Mobile Inc.

VMO STATEMENT

TEAM NAME: U14T2

TEAM MEMBERS:
VIGNESH G UM16306
ASWATH SB UM16258
 Mobile Inc

Vision

To become the market leader in the mobile manufacturing industry and thereby improve connectivity throughout the world.

Mission

To capture maximum market share in Asia by leveraging technology and price sensitivity
To create a stronghold in global markets by investing in R&D and emerge as a leader in mobile manufacturing in U.S., Asia and Europe.
To Develop new technologies in the European and Asian market and become a pioneer in these markets.

Objective/Goals:

To capture 20% market-share in all three regions

To introduce new technologies through innovation, R&D and better employee training
To develop sustainable business practices.
To introduce technology in the following years at following regions as below:-

Column1 Region R1 R2 R3 R4 R5 R6 R7 R8 R9 R10

Product
USA T1 & T2 T1 & T2 T1 & T2 T1 & T2 T1 & T2 T1 & T2 T1 & T2 T1 & T2 T1 & T2 T1 & T2
Mix
Asia T1 & T2 T1 & T2 T1 & T2 T1 & T2 T1 & T3 T1 & T3 T1 & T3 T1 & T3 T1 & T3 T1 & T3
Europe T1 & T2 T1 & T2 T1 & T2 T1 & T4 T1 & T4 T1 & T4 T1 & T4 T1 & T4 T1 & T4 T1 & T4
No. of
USA 12 12 12 14 16 16 16 16 16 16
Plants
Asia 0 0 2 2 2 2 2 2 2 2
Production T1, T2, T1, T2, T1, T2, T3, T1, T2,
USA T1 & T2 T1 & T2 T1 & T2 T1, T2, T3, T4 T1, T2, T3, T4 T1, T2, T3, T4
Mix T4 T3, T4 T4 T3, T4
Asia - - T1 T1 T1 T1 T1 T1 T1 T1
T4 - 1
R&D Buy T2 - Buy T4 Buy T3 - T3- 1 Feature - -
feature
Invest Invest in Invest Invest in Invest in 1 Invest in
Invest in 1 Invest in 2 T4 Invest in 1 T4
in 1 T2 1 T2 in 1 T4 1 T3 T4 1 T3 -
T1 feature features features
features features features features features features
 Final results:

We were tried to do justice to our vision statement by providing mobile phones to a large population across USA, Europe and Asia

Column1 Region R1 R2 R3 R4 R5 R6 R7 R8 R9 R10

Product Mix USA T1 & T2 T1 & T2 T1 & T2 T1 & T2 T1 & T2 T1 & T2 T1 & T4 T1 & T4 T1 & T4 T1 & T4
Asia T1 & T2 T1 & T2 T1 & T2 T1 & T2 T1 & T2 T1 & T2 T1 & T2 T1 & T2 T1 & T2 T1 & T4
Europe T1 & T2 T1 & T2 T1 & T2 T1 & T2 T2 & T4 T2 & T4 T2 & T4 T2 & T4 T2 & T4 T2 & T4
No. of Plants USA 12 12 12 16 20 20 20 20 20 20
Asia 0 0 1 4 6 6 6 6 6 6
Production
USA T1 & T2 T1 & T2 T1 & T2 _ T1 & T2 T2 & T4 T1 & T4 T1 & T2 T1 & T2 T1 & T4
Mix
Asia T2 T2 T1 & T2 _ T4 T1 & T4 T4 T4 T4 T4
T1- 3 T1- 3
Features Features T4 - 1 T4 - 1 T4 - 1 T4 - 2
R&D Buy T2 - _ T4 - 1 feature
& T2 - & T2 -4 feature feature feature feature
2Features Features
Invest in
Invest in Invest in Invest in 1
1 T1 &
1 T1 & T2 1 T2 T4 _ - - - - -
T2
feature features features
feature
Reasons for deviations from targets:
The targeted market share could not be attained because of increased long-term loans taken to build new plants in order to meet
estimated demand
The deviations in introduction of technologies were due to the fact that demand for new technologies increased and so did the
outsourcing cost. Due to unforeseen loss of demand in certain markets and at the same time due to attractive customer segment in
other markets, the introduction of technologies was deviated from what we had planned.
Inventory pile-up resulted in reduction in capacity utilization which resulted in high depreciation costs
Dumping of goods at lower margins by other companies leading to reduction in sales and in turn sales revenue
Reducing the margin of sales lead to further reduction in sales revenue and increase in loans
High depreciation costs and high interest rates on loan increased the cost of production of goods

Conclusion:

Due to huge investments in factories as well as lower margins by competitors, our profit margin was very low and resulted in short term loses.
But we were still able to make these handsets available to a significant population. We could not achieve our targeted market share of 20%
globally because of some errors in forecasting the demand for the new technologies. But we surely but certainly made some good strategic
decisions towards the end like clearing the inventory and technology-as-per-market. With few more years of support and stability we could have
achieved the target. We did exceedingly well in reducing our costs of production, and increased the sales volume considerably and developed
sustainable practices which in the long run would surely have benefitted the company.

Regards,

Aswath S B and Vignesh G

CEOs, U14T2