Year-end Report

Mission Statement

“To exceed customer expectations in quality and excellent custom design at

different levels of comfort with an outstanding service”

Our Products• Boat A: simple model, very few fittings,

three wooden benches, targeted at the fishing market.

• Boat B: more specialised, two wooden benches & platform, targeted to the pleasure boat market for sea, estuary and canals.

• Boat C: larger boat, more luxurious, equipped with three cabins and a solarium, targeted for pleasure cruising.

The Initial Strategy

• Product: stocks and raw materials where produced in sufficient amount to use full production capacity.

• Price: penetration pricing, offering a low price in order to penetrate and gain market share.

Debtors collection period – 30 days, Creditors collection period – 60 days

• Promotion: little focus on advertising due to limited information on the market.

• People: no increase in work force due to uncertainty regarding the sales index.

Changes Adopted

• Production- No additional work posts in Quarter 1- Adding workposts in the other quarters to raise production

• AdvertisingInvest more in advertising to increase Production & Sales

• Pricing- Price penetration strategy- Lower down prices to be in line with our strategy

Changes Adopted (Cont.)• Raw materials and boats

- Started buying from other companies due to cheaper prices than those of supplier.

• Loans- No initial loans- In Quarters 2, 3 & 4 loans were taken to finance the needed resources.

• Terms of payment- Changed our terms of payment from 30 to 45 days to be more competitive.

Overview of Company Performance

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Production(Units)

Boat A 21 35 120 61

Boat B 24 60 64 62

Boat C 6 60 71 91

Cash Flow €228,464.53 €446,631.48 €88,435.8 €273,584.33

Market Share 13.06 % ----- ----- 11.31 %

Net Worth €1,937,891.11 €1,786,702.7 €1,798,409.45 €1,783,127.87

Successful Policies

• Production strategy:- High rate of stock turnover- Optimal amount of boats produced- Operating at full capacity and maximum efficiency

• Cash management strategy:- Good amount of cash available- Small loans taken to finance workposts- Current expenses paid with monthly earnings

Successful Policies (Cont.)

• Debt management strategy:- Low-geared and risk averse strategies- Company remained stable - Most liquid company

Therefore ‘Crystal Waters’ had a competitive edge over the other companies.

Policies Having Adverse Impact

• Too stable• Constant net worth • Risk averse• Price takers not price makers• Advertising not given the deserved importance• No substantial amounts of loans for investing• Few sales representatives recruited• Limited production capacity - few workposts

Areas of Improvement

• Take more risks• Less priority towards stability• Increase prices and company’s mark up• More aggressive advertising• Increase sales force• Invest in more work posts• Take out more loans

• No need for Contingency Planning

Our Name & Logo

• Components:- The name: Crystal Waters- The Compass- The colour Light Blue- The colour Dark Blue

Our Name & Logo (Cont.)

• Crystal Waters- A desire to be as transparent as possible.- Customers being involved with and belong to the company.

• Compass- The company has a sense of direction.- Helps in “exceeding customer expectations with the utmost and excellent designs for all levels of comfort at reasonable prices.”- Encourage customers to purchase boats from the company.

Our Name & Logo (Cont.)

• Light Blue Colour- Signifies stability in the market.- Confident with the sufficient % of the market gained, even if not a large share.- Eventually the company will grow, but by investing wisely it will manage to remain stable.

• Dark Blue Colour- Signifies loyalty.- Transparent means the company strives to be loyal to all stakeholders by the use of consistency and best quality.

Business Plan for the Upcoming Year• The following changes will occur:

- Investment and Cash Flow- Pricing Strategy- Production Mix- Advertising and Sales Force

Explanation of Business Plan

• Investment and Cash Flow- Investing in 6 more workposts- Continuously monitoring cash flow

• Pricing Strategy- Follow the Price Penetration strategy- Be competitive but still profitable

Explanation of Business Plan (Cont.)

• Production Mix- Based on “potential market” study- Produce at full capacity

• Advertising and Sales Force- Increase number of Sales Force- Improve Advertising Methods

Mission Statement• “Our mission is to exceed customer

expectations in quality and excellent custom design at different levels of comfort with an outstanding service.”

• Changes to Mission Statement- No need for changes- Only our Aims have changed- Will still follow the same objectives

Thank You

© 2009 Crystal Waters Plc