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FINAL DEBRIEF

FOR PERIOD 6
THE LOREAL & STRATX TEAMS

3/19/2003

Copyright 2003 by STRATX

215 Teams were selected to


participate in Round 6 !!!

But only 185 teams survived until


the end of the semi-finals

10

Other Countries

37

North America
26

Latin America

37

Europe 2

30 teams did not submit


their decisions and/or their
Business Plan in time
and thus were disqualified

Europe 1

49

Asia/Pacific 2

24

Asia/Pacific 1

32
0

3/19/2003

Copyright 2003 by STRATX

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20

30

40

50

60

How have we calculated the final


ranking ?
The SPIs at the end of Round 6 were calculated by running
the Round 6 decisions in the e-Strat simulation
The Business Plans were graded by a team of nine
professionals from LOral and StratX
The SPIs were scaled so as to give 100 points to the team
that achieved the highest SPI at the end of Round 6
Similarly, the Business Plan grades were adjusted so as to
give 100 points to the team that wrote the best Business
Plan
The final rankings were calculated by applying the ratio of
60:40 for the SPI and the Business Plans respectively
3/19/2003

Copyright 2003 by STRATX

The Top 20 SPIs

3/19/2003

Copyright 2003 by STRATX

More on the grading process

3/19/2003

The grading team included professors from business schools, business


consultants and general managers. Their fields of expertise range from
strategy and marketing to finance and HR.
To ensure consistent and objective grading, a detailed grading grid was
formulated for each section of the business plan. This grid cannot be
made public in order to preserve fairness by not giving away any secrets
to future e-Strat players.
Grades accorded to different teams vary considerably. For instance, a
few teams did not give any Round 6 forecasts, while the best predictions
were accurate to 0.1% !!
The best Business Plans were those that provided clear, accurate and
full responses to all points specified in each section of the Business Plan
Guide.
Attention to detail, quality of presentation and an overall professional
look were rewarded for the final section.
The best Business Plans of each grader were compared during a final
half-day long meeting to guarantee consistency in grading.
Copyright 2003 by STRATX

The Top 30 Business Plans

3/19/2003

Copyright 2003 by STRATX

How was your SPI and your BP grade


combined?

SPI
The highest SPI, 4 322, was achieved by the team VENTURES
They therefore obtained the maximum score of 100
The formula for all other teams is
Scaled SPI = 100 x SPI / 4 322

For example: team CHERRY with a SPI of 2 842 obtained 66 points

Business Plan
The highest BP grade, 88, was achieved by the team PREDATORS
They therefore obtained the maximum score of 100
The formula for all other teams is
Scaled BP Grade = 100 x BP Grade / 88

For example: team MORPHEUS with a BP grade of 48 obtained 55 points

3/19/2003

Copyright 2003 by STRATX

Application of the ratio

The formula to calculate the final result is also very simple


Final Result = (0.60 x Scaled SPI) + (0.40 x Scaled BP)
Final Results were rounded to the nearest whole number

3/19/2003

Copyright 2003 by STRATX

The Top 30 Final Results : SPI + BP


Team

3/19/2003

Country

Business Plan
Grade

Scaled BP

Copyright 2003 by STRATX

SPI

Scaled SPI

Final
Result

High SPIs are obtained with high revenues,


high growth rates and high profitability
Lets examine all teams above 3,500

3/19/2003

Copyright 2003 by STRATX

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Do not forget the trend ! As financial


analysts extrapolate future results, a
flattening curve may have dramatic
consequences
Revenues

3/19/2003

Copyright 2003 by STRATX

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Growth rates and EBIT are fuelled by


strong brands

Three segments out of five proved to be very attractive


The table on next page shows the most profitable brands across all
teams, in Round 6
A coherent strategy that took into account the consumers needs was
the key to success :
Selecting an attractive segment (size, growth, unit contribution, )
Designing a good product through R+D, with high performance levels in the
attributes stressed as important by consumers
setting a price at an attractive level for the targeted segment by paying
attention to market research, while allowing a good unit margin
High investment in advertising to build brand awareness and equity
Selecting the appropriate distribution channels, based on the shopping
habits of target consumers
And, not to forget, good planning to set production capacity at the right level
Respecting the budget constraints, and investing your money wisely

3/19/2003

Copyright 2003 by STRATX

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The top brands that generated more


than M$ 50 in brand contribution

3/19/2003

Copyright 2003 by STRATX

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We wish the best of luck to all the


finalists that will compete in Paris
We want to congratulate each and every team for its
participation in the third LOral e-Strat Challenge
We have very much enjoyed the privilege, and the
extremely difficult task, of choosing between the excellent
teams of this years Challenge
On many occasions we have greatly appreciated receiving
your positive feedback and helpful comments
On behalf of the LOral and StratX teams, we wish you all
the best for your studies, exams (!) and your future career
3/19/2003

Copyright 2003 by STRATX

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And now discover the human touch


behind e-Strat
Stphanie, StratX

Celica, Valrie and Emmanuelle, LOral

Christophe & Aurlien, StratX

Rmi, StratX
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Copyright 2003 by STRATX

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