Scents for Cents
Firm Number: ADV51
Prepared For: Michael Manjuris
GMS 850 - Global Management Strategy
February 10, 2012
Strategy: Low Cost Production Strategy
Form of Company: Classical Firm
(1)We wish to achieve an NPV ranking with the top ten advanced firms by Quarter 4, 2014. (2) We also want to attain a debt/equity ratio of 1.2 and maintain it until Quarter 4, 2014. (3) Continually, we want to maintain a Quality Ratio Rate of Return of 3% or lower by Quarter 4, 2013. (4) UPDATED: Lastly, we wish to attain a total Market Share of 20% for perfume in the NAFTA and EU trade areas as well as 25% for aftershave in both the EU and NAFTA by Quarter 1, 2014 and maintain it until Quarter 2, 2015.
Scents for Cent’s objective is to create a reputation for being the leader in affordable personal care products, while still offering quality that is competitive within industry standards. Our vision centres around living up to and surpassing industry standards. We strive to stay true to our product by using a standardized formula that our customers have grown to appreciate and expect from us.
Management Team and Duties:
Francesco Policelli – Chief Executive Officer
My key roles as CEO are to determine the firm’s overall strategy and overseeing day-to-day tactical decisions. I input and overview each decision made before submitting our firm’s finals choices. I am responsible for locating opportunities that can benefit the firm, such as entering a new market, as well as positioning the firm away from potential threats (such as an undercutting competitor).
I am responsible for delegating responsibilities to each member of my executive team to ensure that the decisions made are appropriate and on par with our organization’s needs. Decision and executive team cohesiveness is an area that I feel I influence because I take in each decision made by each team member and cross-analyze them to see if our numbers aren’t too skewed (either high or low) and that we are on the right track in term of meeting our goals. Team cohesiveness can be established through constant communication. This is accomplished because I set up the meetings and create the email threads that allow for unremitting communication.
As CEO, if I feel a decision that one of my executive members has made as being improper, I will veto that decision and make sure that proper inputs are made to ensure we achieve our vision and mission statements by simulation’s end.
Elliot O’Neill - Chief Financial Officer
The primary tasks for the CFO include making all the financial decisions pertaining to the organization, including; issuing and repurchasing stock, carrying out short term investment options such as Treasury Bills, and creating short term debt through bonds in order to attain goals provided in the “Vision Statement”. All this must be done while making sure the organization is not conducting any part of the business in an illegal fashion, preventing potential audits and fines. With respect to dividends, I will be in charge of determining if dividends will be paid and how much should be paid according to the best interests of the firm. In addition, I will base my financial decisions on the current conditions of the firm; size of plant, working capacity, amount of raw and finished goods inventory, and accounts receivable. As well, I will be responsible for carrying out the firm’s budgeting decisions. This includes deciding how much to budget for engineering, quality control, and product improvement, and be ready to make adjustments if strategy is changed or results become different. Lastly, CFO responsibilities include creating trending graphs for debt/equity ratios against those of competitors in our market group, as well as creating trending graphs for the progress of the firm’s NPV amongst its competitors....