The greatest

memories are at
the tip of your
fnger
Daniel McLaughlin
Digital Imagery
- 3 Year
Strategic Plan
Summary
!" #$%& Strategic Management
Saint Leo 'ni(ersity
Digital Imagery - 3 Year Strategic Plan Summary
Contents
I. Introduction
a. Vision Statement
b. Mission Statement
c. Core Values
II. Objective/Performance Target
III. Stakeholders
IV. Marketing and !change "ates
V. ntr# $evel Strateg#
VI. Multi%&eature Strateg#
VIII. Summar#
&igures'
Figure 1: Digital Imagery performance targets
Figure 2: Competitive Intelligence Report, Quarterly Snapshots
Figure 3: Design, Cost, an !or"force #enchmar" $ %ntry &evel
Figure ': Design, Cost, an !or"force #enchmar" $ (ulti)&evel
Figure *: 3 +ear ,perating -ro.ections /0orth 1merica, %urope)1frica2
Figure 3: 3 +ear ,perating -ro.ections /1sia)-acific, &atin)1merica2
)
Digital Imagery - 3 Year Strategic Plan Summary
I4 Introuction
Digital Imagery is a producer of top line camera and camera product with a focus on
creating product that are both value-added, designed to withstand time and the
elements. Our main headquarters is located in Suffolk, irginia! however we employ our
product from our factory in "aiwan where our two ma#or product line are manufactured
and then shipped globally $%urope-&frica, &sia-'acific, (atin &merica, and )orth
&merica* directly to retail shops. . In order to sustain an economical posture for the
corporation a comprehensive supply distribution chain had to be created! in order to
accomplish this intent Digital Imagery established regional offices in +ilan, Italy!
Singapore! Sao 'aulo, ,ra-il! and "oronto, .anada to manage our sales.

a. ision Statement
Digital Imagery - .ommitted to the manufacturing and global distribution of finest
digital camera/s made, via the best technically knowledgeable employees
available. ,y committing valuable resources to both of our invaluable
commodities, our digital cameras and our people, Digital Imagery strive to be the
world leader in digital camera quality, at the greatest value.
01our countless memories are at the tip of your finger 2 Digital Imagery3
b. +ission Statement
Our corporation is dedicated to the manufacturing and global distribution of the
highest quality digital cameras at the lowest achievable retail price. &dditionally
Digital Imagery will strive to remain continuous of the well-being of those who are
employed and to globally distributing those delivering safe, courteous, convenient
and dependable public transit services for the people of our region. 4e contribute
to the region/s economic vitality, sustainability and enhanced quality of life.
c. .ore alues
Digital Imagery is rooted in the belief that it is not enough to merely produce a
product for a profit. It is our desire to make an impact beyond the world of
economics. In an effort to be thoughtful, caring and visionary in the corporate
environment we feel it is important to establish core values for the organi-ation. .
%5cellence 2 5or most is the value of e6cellence, both in the personnel
and professional environment. Digital Imagery feel s that e6cellence is
achieved when there is a system put in place that specifies that all of the
organi-ations personnel present themselves with the utmost character and
maintain an ethical compass, for the sake of the organi-ation and there
physical and mental well-being.
*
Digital Imagery - 3 Year Strategic Plan Summary
Community ) "he word is a group of people living in a particular local area,
but is our core values community is a sense of oneness with our
surroundings and the people involved $the organi-ation*, instilling
dedication and understanding. In a sense of community we have
interdependence on each other, which cannot be achieved without trust.
Respect $ &t Digital Imagery we have respect one another, respect for the
organi-ation and our surrounding environment. "his sense of respect is
essential for the moral wellbeing of organi-ation and those support it, our
employees. "reating people with respect, regardless of the situation, is
critical in stabili-ing the moral compass.
-ersonal Development 2 &t Digital Imagery we are dedicated to the
growth of our employees, both internal and e6ternal to the organi-ation.
"he overall development of our employees, in that we focus the future,
affords a great opportunity for both the individual as well as the
organi-ation.
Responsi6le Ste7arship - 7esponsible stewardship means to me we
are to be responsible and accountable. Digital Imagery treats our
employees and environment with respect and reverence, and takes our
stewardship for both to heart.
Integrity ) &n honest, reliable, and trustworthy organi-ation is paramount.
Integrity in the corporate world is largely ine6pensive when you have it, but
if it is lost the cost to obtain it again could be insurmountable, requiring a
substantial amount of capital to do so. Integrity is woven throughout Digital
Imagery, from the staffing of our valuable work force to the distribution of
our fine products.
II4 ,6.ectives8-erformance 9arget
Digital Imagery has work hard on being an honest broker, a responsible employer and
environmentally conscious company and we are focused of building a solid foundation
that sustains our company/s dedication to8 9* a quality camera product, and! :* our
employees that build that product. I order to accomplish the manufacturing some of the
best available camera products our emphasis has been of incorporating top of the line
digital components, enhancing the functionality of our cameras to make them both user
friendly but also durable and long lasting. It is our belief that it/s vital that we invent in the
people, the most important aspects of our manufacturing system.
3
Digital Imagery - 3 Year Strategic Plan Summary
,y putting in place a top notice compensations and benefits packages we hope to
develop a dedicated, sustainable workforce, limiting employee turnover and retaining a
speciali-ed knowledge base. 4e believe that by committing valuable monetary
resources toward, top of the line camera component and the best possible employee
working conditions and compensation;benefits packages will impact our bottom line in
the short term $9-: yrs.*, but that all stakeholders will see substantial returns in the long
term $:-< yrs.*.

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Figure 1: Digital Imagery performance targets for the proceeing 3 years
III4 Sta"eholers
& successful endeavor requires the support of those who are stakeholders in those
endeavors. )owhere is this more the case then it is with a business entity. It is through
the support and hard work of those that are Digital Imagery stakeholder that we will
continue to be successful.
It has always been Digital Imagery/s goal to ensure that a respectable amount of the
company/s profits were to be used to provide a respectable compensation for our hard
working employees. It is our feeling that this would instill a sense of ownership and
personnel pride in the products being developed. "his sense of pride would bleed over
in the market place and then into the net profit margin for the company. Digital
Imagery/s/ employee throughout the past < year have been rewarded with the higher
compensation packages then our competitors. It is through these compensation
packages that these valuable stakeholders in the company receive the #ust deserts of
their labors and dedicated efforts.
&nother critical stakeholder for Digital Imagery is the customer. "he amount of
attention that is paid to the development and production of our camera/s is with one
thought in mind, the best possible product with the best possible image quality available.
It is these things that will provide one of our most important stakeholders, the customer,
the ability to capture that 0greatest moment3. It will always be our goal to product the
most reliable, highest quality cameras, providing the customer with a simple to operated
#
Digital Imagery - 3 Year Strategic Plan Summary
camera, dealing with the least amount of down time. "his customer focus is what drives
many of our production decisions.
It is through our ,oard of Director and investors that this company is able to provide a
safe and amenable work environment and make notable environmental donation that
had a significant impact on the local "aiwan populous.
I<4 (ar"eting an %5change Rates
"he marketing strategy for Digital Imagery for both of entry and multi-level cameras was
marginal, at best. "he intent of a good marketing plan is to come up with a realistic,
measurable and equitable performance target. Our strategy was defiantly measurable
but it missed the equitable and realistic aspects. "he bull headed saturation strategy
was ill informant and placed a substantial cost burden on the company. Eere is how the
focus on market saturation played out $also provide in 5igure :8 .ompetitive Intelligence
7eport, Fuarterly Snapshots, below*.
&sia - 'acific +arket8 In 9<B more chain stores, >@B more online sites and ?@B
more local shops
%urope 2 &frica8 In ?9B more chain store, 9A9B more online site and C?B more
local shops
(atin &merica8 In C@B more chain stores, 9A?B more online stores and <DB more
local shops
)orth &merica8 In G<B more chain stores, >GB more online sites and CAB more
local stops.
+
Digital Imagery - 3 Year Strategic Plan Summary
Figure 2: Competitive Intelligence Report, Quarterly Snapshots
"hough our factory and outsourced production partners we have been able to produce
the numbers required to meet our market demand e6patiations for our cameras, both
%ntry-(evel and +ulti-(evel. "hat being said it is now apparent that our advertising
budget for each of the G regions was defiantly wanting in comparison to our competition.
"his miss-calculations made in the marketing of both camera types compressed our
ability to increase our market shares, thereby reducing potential revenue. "hese number
are represented by the follow and can be seen in 5igures H: above.
&sia - 'acific +arket8 -G9B
%urope 2 &frica8 -?:B
(atin &merica8 -@?B
)orth &merica8 -<@B
Digital Imagery had committer resources to introducing a si-able quantity of both the
%ntry-(evel and +ulti-(evel products into the market place with the strategy that with
high sales comes higher net revenue, this would in turn allow for a compensatory
reduction for the higher then normal front end cost which were being incurred. "his kind
of market saturation came at a cost. I did not fully understand the delivery costs that
were to be incurred, nor did I provide a satisfactory level of marketing funds $G9B lower
,
Digital Imagery - 3 Year Strategic Plan Summary
than average* to support such a saturation and allow for an opportunity to increase
sales. If 0Strategic 'lanning3 was to be successful then the below stated market shares
would have been higher.
I<4 %ntry)&evel Strategy
0,ecoming a global +arketing leader in the +ulti-feature camera sales to retailers3
5or the entry level segment the initial strategy was to not dedicate to many resources
to this segment. "he strategy was to develop the best available entry level camera,
using the 0global low cost leadership strategy3 and to provide it at the best camera at the
best available price. &s the first two years went by it was appeared the Digital Imagery
was losing the low cost race, our competitors were producing cameras at cost the were
far below ours. It was determined that instead of sacrificing the top notch quality of our
cameras and compensation package for our employees that we would dive head strong
in to making the 7olls 7oyce of cameras. "his ad#usted strategy is the 0most value for
your money3 strategy with an emphasis on manufacturing and distribution at the best
possible price with a global perspective. "hough the entry level camera is a valuable
part of Digital Imagery/s future success, the +ulti-(evel camera is the center of our
manufacturing universe.
&s the years passed it was clear and I evaluate the .ompletive Intelligence 7eports,
the 'roduction 7eports, Operation 7eports and the 5inancial Statement that the going in
strategy was not going to be a complete success. 5rom the onset Digital Imagery
establish a model that though it would produce some fiscal success it was to lag behind
its competitors. Our position of saturation would prove ineffective. Our going in position
was to spend in the front end and while reaping the rewards when we sold our 0superior3
camera for a higher price $average cost of =9>9.<<*. "he cost of production pre camera
was higher than our competitor, averaging a production cost of =99>.9A per unit.
It wasn/t until our company had the opportunity to analy-ed our competitors data the
we reali-ed that cost and sales price were substantially highest. "hroughout the ne6t
three year attempts were made to reduce the cost associated with production of the
entry level cameras. It is apparent now that as well as reducing our production costs that
a reduction is the numbers produced would have been advisable 5igure @8 Design, .ost,
and 4orkforce ,enchmark. Digital Imagery however reduced, production cost, sales
price and increased production, not an entirely successful formula.
-
Digital Imagery - 3 Year Strategic Plan Summary
Figure 3: Design, Cost, an !or"force #enchmar" $ %ntry &evel
<4 (ulti)&evel Strategy
0,ecoming a global +arketing leader in the +ulti-feature camera sales to retailers3
"he strategic thinking behind the manufacturing of a +ulti-(evel camera was that Digital
Imagery intent to take the 0global marketing leadership strategy3. It is a case of quality
and quantity, but at a reasonable price. It was understood that a shock to the revenue
stream would be received, but a corporate decision was made to recover the bottom line
via the multi-level production line.
&s was stated with the entry-level camera, our emphasis on purchasing the best
components, establishing a amenable working environment and implementing a
aggressing compensation package for our employee/s has placed us in a position of
having a camera that requires a greater level of commitment to purchase. & corporate
decision was made to focus Digital Imagery/s resources of producing a top of the line
+ulti-level camera, using the best available components and best trained employees.
"he ad#ustment or redirection was with the mindset that the camera was more important
than what it cost to produce each unit. Our strategy is now 0+ost value for the money3.
Digital Imagery envisions that our best opportunity for future growth is in the +ulti-(evel
camera. "o this end, as the .ompletive Intelligence 7eports, the 'roduction 7eports,
Operation 7eports and the 5inancial Statement will support, we concentrated our
%
Digital Imagery - 3 Year Strategic Plan Summary
production cost on core components, brands-specific components and special utility, out
spending our entire competitors in each of these areas $See 5igure IIIII*.
&s with the entry-level camera our going in position for our multilevel camera was to
spend in the front end and while reaping the rewards when we sold our 0superior3
camera for a higher price $average cost of =GA@.@@*. "he cost of production pre camera
was higher than our competitor, averaging a production cost of =@@>.>C per unit.
&s the years progresses it became appear to us that our +ulti-(evel cameras were
going to become the financial foundation of our company. "he decision was made to
retain the quality level of the produced and give the customer the benefit of a high end
product, mush better than our competitors, but at reasonable prices, while continuing to
saturate the market place with our cameras allowing the best availability and visibility. I
would have been able to recover the high price point, but was unable to convince myself
to move off of the other cost related to production. +y inability to reduce assembly cost,
all on the higher end of the cost spectrum, if not the highest cost. 5igure G8 Design,
.ost, and 4orkforce ,enchmark 2 +ulti-(evel, provided below shows how in the areas
of core components, brands-specific components and special utility features Digital
Imagery over spent. &lso as your can see in 5igure G8 Design, .ost, and 4orkforce
,enchmark 2 +ulti-(evel, our (abor cost, per unit, were e6cessive. "his, as I e6plained
earlier, was intentional.
Figure ': Design, Cost, an !or"force #enchmar" $ (ulti)&evel
$
Digital Imagery - 3 Year Strategic Plan Summary
"he physical and mental well-being of Digital Imagery/s employee/s is as important to
the company as the quality of the camera is. &nd it is our belief that one will enhance the
other. Eowever the wiliness to place an emphasis on quality and people had an impact
on our production cost and ensured that Digital Imagery would not be as competitive, as
demonstrated by our low operating profit ratio $9A.:B*. "he high production cost
required that our net revenue be at level much higher than achieved.
<4 Summary4
"he Jlo-,us computer-based e6ercise has effectively put into play may of the lessons
that I/ve learned over the last two years, and then again many of those that I have
learned, but not recalled. It was a very effective way of culminating the business
speciali-ation lesson plans. .ombining a ma#ority of the business functions in to a
business e6perience.
5or Digital Imagery, every effort was made over the last @ years to reduce variation in
the production, distribution and marketing of both our entry and multi-level cameras.
"his was done by minimi-ing changes in labor related cost $compensation packages,
hiring*, stabili-ing our production cost and marketing impacts.
"wo of the areas that caused me fits were e6change rates and earnings per share
$%'S*.
%6change rates - I was unsure on how to effectively manage to impacts of the
varying e6change rates or how to recover or protect revenue.
%'S- )et income issues resided in the strategic decision to produce high
production cost cameras and to pump funds back into the company and not
bolster the shareholders profits. If I had it to do again I would not be as
aggressive with the production cost and concentrate more developing plans to
increase the net income arena.
It became apparent that the Digital Imagery initial strategy was not going to be a
0gaming3 success. 5rom the onset Digital Imagery establish a model that though it would
produce some fiscal success it was to lag behind its competitors. Once I was deep into
the strategy all I could do was ad#ust to stay profitable and learn from my mistakes and to
battle the =KBLH e6change rates.
Mnfortunately we didn/t go in the 9:
th
year, because it appeared that the e6change rates
had finally come around and it was pro#ected that I was going to make a killing on my
%'S..

).
Digital Imagery - 3 Year Strategic Plan Summary
Figure *: 3 +ear ,perating -ro.ections /0orth 1merica, %urope)1frica2
))
Digital Imagery - 3 Year Strategic Plan Summary
Figure 3: 3 +ear ,perating -ro.ections /1sia)-acific, &atin)1merica2
)*