2. Alpha Sonic
Company Long-Term Direction
Vision
We help the customers of Alpha Sonic live happier lives by
providing them affordability, quality and guarantee.
Mission
To become the number one producer in Camera Industry by
selling high-quality products.
Objectives
Achieving lower costs than other rivals.
11. Performance Targets
EPS year 16: $6.06
ROE year 16: 23.5
Credit Rating year 16: A
Image Rating year 16: 85
Stock Price year 16: $98
EPS year 17: $6.15
ROE year 17: 24.5
Credit Rating year 17: A+
Image Rating year 17: 90
Stock Price year 17: $110
12. Strategy Formulation
Entry Level Strategy
Offered moderate quality
entry level cameras.
As progressed, lowered the
quality of our entry level.
Our entry level cameras
came with a warranty.
Invested in R&D and
technical support.
Multi Level Strategy
Focused more on quality.
Provided warranty and
technical support.
Multi-feature camera
customers are also
concerned with price,
which encouraged us to
lower the quality.
13. Strategy Formulation
Production Strategy
Compensating our employees
fairly to increase their commitment
to the company and increase
production rates.
Invested in training programs for
our employees and each year able
to increase production rates.
Given the increased production
rates, we were able to accomplish
all entry level and multi feature
cameras in the house.
Financial Strategy
To maintain a good credit
rating.
Didn’t borrow much money.
Net sales revenue were
among the highest of all the
companies.
Spent the most on
advertising, and our
production costs.
15. What didn’t work well?
Actions to take
Reducing or ending operations in Latin America, as
this is the region where our company receives the
least amount of profits.
Investigate alternatives regarding production of
entry level and multi feature cameras to decrease
warranty claims and costs.
Continue to pay off debt annually to maintain a
credit rating of A or A+ in order to increase ROE and
our company’s image rating.
16. Lessons Learned
Compensation of employees
Amount invested in training programs is a
positive indicator of production rates and
image rating
Lowering production costs allows for
savings to be passed on to customers by
means of lower costs or increasing
promotions
