BUSINESS PLAN

RYMAX

International Marketing
Ec. Heydi Pazmio

Arvalo Jose, Barragn Gabriel, Herrera

Ariana, Lascano Steven, Lopez Dara
07/12/2015

B. Review of financial and market performance during the

past year
Financial Performance: during the last trimesters, our
company has the next performance in their income statement that
we show in the chart 1. :
Chart 1. Income Statement

EstadodeResultados
Trimestre1

Trimestre2

Trimestre3

UtilidadBruta
Ingresos
- Rebajas
- Costo de ProductosVendidos
=UtilidadBruta

0
0
0
0

187.250
5.750
123.799
57.701

1.190.771
18.025
805.418
367.328

Gastos
Investigacin yDesarrollo
+Publicidad
+Gasto deFuerzadeVentas
+GastosdeOficinadeVentasydel Centro deRed
+Investigacin deMercado
+Envo
+Costo deInmovilizacin de Inventario
+Costo deExceso de Capacidad
+Depreciacin
+GastosdelaRed deMercadeo
=GastosTotales

180.000
0
0
200.000
0
0
0
0
0
0
380.000

180.000
226.222
85.696
540.000
15.000
5.382
8.703
324.497
45.833
21.000
1.452.333

120.000
184.037
145.886
320.000
15.000
20.726
3.046
0
45.833
42.000
896.528

UtilidadOperacional

-380.000

-1.394.632

-529.200

+Ingreso deLicencia
- Tarifasde Licencia
+OtrosIngresos
- OtrosGastos
=GananciasAntesdeIntereseseImpuestos

0
0
10.000
0
-370.000

0
0
0
0
-1.394.632

0
0
2.000
0
-527.200

+IntersDevengado
- Costosde Inters
=IngresoAntesdeImpuestos

0
0
-370.000

0
0
-1.394.632

0
0
-527.200

0
0

0
0

0
0

0
-370.000

0
-1.394.632

0
-527.200

-19

-46

-13

DiversosIngresosyGastos

- Traslado de Prdidas
=IngresoGravable
- Impuestossobre laRenta
=UtilidadNeta
GananciasporAccin

Source: Marketplace game

Figure 1.

Page 1 of 26

Source:
Marketplace game

As we can see, in the last quarter, the company posted

revenues were higher compared to quarter two (figure 1), because
the company sold most computers in the workers segment, allowing
us to increase the income of the 3rd Quarter. Besides operating
profit decreased from -1394632 to -529,200, which indicates that
the next semester with our strategy, we can leave these negative
figures and begin to make a profit. In addition, earnings per share
rose from -19 in the first quarter to -13, we hope that the next
decision becomes positive.
It can be concluded that although our net income is negative
due to earlier decisions taken in recent quarters, we realize that our
strategy to improve in the third quarter, we reduced spending and
losses and that for the next semester, with better management, we
achieve a positive net income and achieve greater profitability.
Chart 2. CashFlow

Page 2 of 26

FlujodeCaja
Trimestre1
SaldodeCajaInicial
RecibosyDesembolsosdelasActividadesdeOperacin
Ingresos
- Rebajas
- Produccin
- Investigacin yDesarrollo
- Publicidad
- Gasto de Fuerzade Ventas
- Gastos de Oficinade Ventas ydel Centro de Red
- Investigacin deMercadeo
- Envo
- Costo de Retencin deInventario
- Costo de Exceso de Capacidad
- Gastos de laRed deMercadeo
- Impuestossobre laRenta
+IntersDevengado
- Costos de Inters
+Ingreso deLicencia
- Tarifas de Licencia
+Otros Ingresos
- OtrosGastos
=FlujodeCajaOperacional Neto
ActividadesdeInversin
Capacidad Fijade laPlanta
=Total delasActividadesdeInversin
ActividadesFinancieras
Aumento en AccionesOrdinarias
+Prstamo del Crdito Bancario Convencional
- Devolucin del Crdito Bancario Convencional
+Prstamo de Emergenciadel Crdito Bancario
- Devolucin del Crdito Bancario de Emergencia
- Certificado deDepsito de3 Meses
+Retiro del Certificado deDepsito de 3Meses
=Total delasActividadesFinancieras
SaldodeCaja, Final del Periodo

Figure 2. Performance of Rymaxs cash

Performance of Rymaxs CashFlow

Trimestre2
530.000

Trimestre3
94.171

0
0
0
180.000
0
0
200.000
0
0
0
0
0
0
0
0
0
0
10.000
0
-370.000

187.250
5.750
210.830
180.000
226.222
85.696
540.000
15.000
5.382
8.703
324.497
21.000
0
0
0
0
0
0
0
-1.435.829

1.190.771
18.025
748.847
120.000
184.037
145.886
320.000
15.000
20.726
3.046
0
42.000
0
0
0
0
0
2.000
0
-424.796

1.100.000
1.100.000

0
0

0
0

2.000.000
0
0
0
0
0
0
2.000.000

1.000.000
0
0
0
0
0
0
1.000.000

1.000.000
0
0
0
0
0
0
1.000.000

530.000

94.171

669.375

Figure 3

Source: Marketplace game

In the chart 2. we can realize that our cash flow improved in

the last quarter as revenue we had from second to third year,
increased from $ 187.20 to $ 1,190,771, which was an increase of
more than a million dollars, due to the FlashMax our computer was
very good positioned in the workers market giving large profits and
sales, allowing in this last year, our net operating cash flow
decrease their negative amount and ultimately cash balances, give
us a balance of 669,375, which is encouraging, because we have a
strong computer market and the strategies planned for the coming
years, we will further increase our revenue and keep a balance in
the flow of much larger box that was had in the last March quarter.
In the figure 2 and 3, we can see also the performance of the cash
Page 3 of 26

and the CashFlow of Rymax Company, which increased in the last

quarter.
Chart 3. Balance Sheet

BalanceGeneral
Trimestre1

Trimestre2

Trimestre3

ActivosCorrientes
Caja
+Certificado de Depsito de 3Meses
+Inventario de ProductosTerminados
ActivosaLargoPlazo
+ActivosFijosNetos
=Total
Deuda
Prstamo Convencional Bancario
+Prstamo de Emergencia
Capital
+Accin Ordinaria
+GananciasAcumuladas
=Total

530.000
0
0

94.171
0
87.031

669.375
0
30.460

1.100.000
1.630.000

1.054.167
1.235.368

1.008.333
1.708.168

0
0

0
0

0
0

2.000.000
-370.000
1.630.000

3.000.000
-1.764.632
1.235.368

4.000.000
-2.291.832
1.708.168

Source: Marketplace game

Figure 4. Balance Sheet Volume

Source: Marketplace game

In the chart 3, It can be seen that Rymax has done well

on their balance sheet, because its volume is increased as shown in
Figure 4. In addition the company has no debts for now, which keeps
it stable.
Market performance:
In recent years, Rymax has improved its performance in
the market with their brands, because in the second quarter
suffered a minor mistake in the segment of workers, but the last half
recovered, improving its brand and its participation in the market,
which positioned it among the best in this segment as seen in Figure
5:
Page 4 of 26

Figure 5. Brand Concept

Source: Marketplace game

As can be seen in the brand concept (figure 5), our computer

The FlashMax was well positioned in the segment of workers with
73/100, which puts us as the preferred brand by customers in this
segment. Also we increase in the last year our segment size as seen
in this Figure:
Figure 6.
Size

Segment

Source: Marketplace game

Also in the last quarter we increased our market share,

increasing the size to 10% of what we had before in the second
year. In addition also it increased our share in the segment of
Page 5 of 26

workers to 16%, which is our target market, because our computer

was well received by customers, as we can see in the figure 7.
Figure 7. Market share

Source: Marketplace game

Although our competitors as Phoenix and San Miguel Corp.

has greater market share as shown in Figure 7, Rymax has been
improving its brand and is starting to gain more ground, which with
the proposed strategies for the coming years is estimated to
increase by 30% participation, with better positioning and gaining
more acceptance of our computer the FlashMax in the segment of
workers, that is our main goal.
About Mercedes segment: As we can see in the segment of
Mercedes (figure 8), has not been achieved greater participation
because of errors that had the mark, but despite that, we are in this
market with a share of 9% which we have confidence that the next
quarter, increase our demand in that segment. Also in the third year
he ventured into this segment, because in the previous quarter only
fixed in the segment of workers. It is planned to improve advertising
and brand The DeluxMax, in order to increase demand.

Page 6 of 26

Figure 8. Mercedes

Source: Marketplace game

About Travellers segment: Rymax has no share in this segment,

because the two approaches are the Workers and Mercedes, which
in Figure 9 you can see that you do not have a computer and a
share in this segment.
Figure 9. Traveller

Source: Marketplace game

Page 7 of 26

About the price: As for prices, Rymax has maintained an excellent

concept in prices, giving a good acceptance with our customers to
both brand The FlashMax directed for workers as directed The
DeluxMax Mercedes segment. We also have prices that are
competing with our competitors, besides having a good concept of
reduction of $ 75, which is in the average of our competitors.
The following figures 10, 11 and 12 detail how this is our concept of
prices for our two brands and compared with our competitors:
Figure 10. Prices Concept

Figure 11. World market workers

market - Mercedes

Figure 12. World

Source: Marketplace game

About advertising: As shown in Figure 13, our concept of advertising

to our computer The FlashMax is excellent compared to our
competitors, we are the higher score, which indicates that we are
well positioned in the segment of workers. The problem was with our
computer DeluxMax that by mistake in advertising, the greater
acceptance occurred in the segment of workers and low in the
Mercedes segment, which was the loss of sales and customers. But
already know our mistake, and for next year we want to improve
that feature and have a good advertising campaign for this
computer The DeluxMax.

Page 8 of 26

Figure 13. Concept of advertising

Source: Marketplace game

C. Assessment of current situation and the market

1. Customers: Currently with our customers, there is good
acceptance and we managed to meet their needs in what they
ask for a computer for both: Workers segment as the
Mercedes segment. As we saw in the previous graphs on the
assessment of the mark, The FlashMax was the most accepted
was from our customers because we gave them what they
most needed, as shown in Figure 14. In addition, our prices
were well accepted by them, which conclude that we are
doing our best and giving an excellent computer to our clients.
In our computer: the DeluxMax, the acceptance does not
come to great standards because we didnt included the
manufacturing program in our computer, which is what our
customers demanded more as seen in Figure 15. Compared to
our competences. That's why for the next year, we want to
make The DeluxMax, adapted to the needs of our customer
and satisfying them the most as we can delivery.

Page 9 of 26

Figure 14. The FlashMax- Customers preferences

DeluxMax- Customers preferences

Figure 15. The

Source: Marketplace game

Page 10 of 26

2. Competition
The situation of Rymax according to the competition in the last
quarters, 2nd and 3th, have not been very equitable because each
company has developed different strategies to reach the market
demand and also their specific needs.
RYMAX is pursuing the Workhorse and Mercedes segments with their
two brands that are Flashmax and DeluxMax for each segment
mentioned before. But our competition had reached more market
share in the 2nd quarter in the two segments that we are.

Market Share
7%

RYMAX
San Miguel Tech

40%
44%

SMARTECH
Phoenix Corp.

9%

As a company we consider that is necessary to know how other

firms are having participation in each segment:
For the Workhorse segment:

workhorse
12%

RYMAX
San Miguel Tech

45%

SMARTECH

43%

Phoenix Corp.

0%

For the Mercedes segment:

Page 11 of 26

Mercedes
RYMAX
San Miguel Tech
SMARTECH
Phoenix Corp.

100%

For the Traveler Segment:

Viajero
RYMAX
San Miguel Tech

41%

SMARTECH

58%

Phoenix Corp.

1%

In general, the situation besides the other companies was pretty

bad for us because we had a very low demand in the 2 nd quarter.
Firms like San Miguel and Phoenix have more market demand
because of the things that they are offering to the consumer.

Page 12 of 26

Another issue that we have in this semester were the segments in

which we were supposed to work. For example we planned to work
in Workhorse and Mercedes, but we didnt produce for the segment
of Mercedes and this was a very big problem because we were not
following our strategy and the competition took advantage of this.
In the following chart we can see how each brand was accepted by
the demand:

Brand
FlashMax
BigMax
SSaint
WingBox
SmartPR
O
SmartSWI
FT
EasyWork
SkyTech

Demand of the Brand

Workhor Mercede
Company
se
s
RYMAX
31
0
RYMAX
50
0
San Miguel
302
0
Tech
San Miguel
0
0
Tech

Traveler

Total

0
0

31
50

302

207

207

SMARTECH

98

99

SMARTECH

315

315

145

145

Phoenix
Corp.
Phoenix
Corp.

In the 3th quarter our situation have improved in some way better.
But we have to keep working and designing new strategies. The
following char show us the market for the last quarter and also how
the competition keep gaining more participation:

Market Share
RYMAX

10%

San Miguel Tech

43%

SMARTECH

40%

Phoenix Corp.

8%

Page 13 of 26

If we can appreciate, Phoenix and Rymax had gain a little bit more
participation than the previous quarter. So, San Miguel and
Smartech had lost a little but, the first company mentioned have no
problems in assuming that lost because is a company that keeps
with a high market share. And according to each segment for this 3 rd
quarter we have the following:
For the segment of Workhorse:

Workhorse
35%

16%

RYMAX
San Miguel Tech
SMARTECH
Phoenix Corp.

0%

49%

For the segment of Mercedes:

Mercedes
RYMAX

9%
19%
73%

San Miguel Tech

SMARTECH
Phoenix Corp.

For the segment of Traveler:

Page 14 of 26

Traveler
RYMAX
San Miguel Tech

37%

49%

SMARTECH
Phoenix Corp.

14%

Another important fact is to know where the other companies are

stablishing their offices or point of sales, the following char would
help us to understand the location of each firm:

City

Competition in the city

Global Market
RYMA San Miguel
SMARTE
X
Tech
CH

ChicagoNORAM
San PabloLATAM
Pars-EMEA
ShanghaiAPAC
Centro de Red

Phoenix
Corp.

X
X

X
X
X

X
X

Our firm hasnt a direct competition in the same city, this mean that
we werent able to open new offices and compete in other regions.
Another important fact is the price judgment of each firm.
Customers are always willing to pay the cheaper but they prefer
high quality, in many cases this is difficult to reach, but the price is
always going to be a variable that people will always consider:

Company
RYMAX
RYMAX

Competitors Prices
Global Market
Pric Reba
Brand
e
te
The
3.10
100
DeluxMax
0
The
2.50
75
FlashMax
0

Priorit
y
2
1
Page 15 of 26

San Miguel
Tech
San Miguel
Tech
San Miguel
Tech

WingBox

SMARTECH

SmartPRO

SMARTECH

SmartTRAVE
L

Phoenix
Corp.
Phoenix
Corp.
Phoenix
Corp.

SSaint

Worker

EasyWork
SkyTech
GoldenByte

2.00
0
2.75
0
2.50
0
3.00
0
2.50
0
2.45
0
2.70
0
3.90
0

100

100

100

100

50

51

51

100

In what is publicity our competition it is investing a lot in advertising

as we can see in the following chart:

Page 16 of 26

Phoenix is the one that is having more publications in the different

magazines for each segment that they are selling the computers.
The compensation to the workers is another important factor for the
company to run, if you keep the employees with a good motivation

they are going to have a better performance.

As we can see the productivity in the company in the part of the
vendors is the highest of the companies competing in this market,
but also is important to know the compensation with workers in

factory that is the following:

The highest productivity in the market is for Phoenix, the key factor
here for compensate the workers is giving one more week of
vacations.

Page 17 of 26

3. Companys strengths and weaknesses

Strengths
Our company, RYMAX, has invested a
considerable amount of money in
Future Investment
assets that will help us to have a
better development in the future as
manufacturing and employees that
will increase the production and
reduce costs.
Our company, RYMAX, has decided
that our employees should be well
Human Resources Management
remunerated, a complete insurance
and an average of three weeks of
vacations, satisfying their needs and
getting the maximum efficiency from
them.
Our company, RYMAX, has reached
Manufacturing Productivity
an optimal point where the leftovers
of inventory are the smallest and the
demands
projection
is
pretty
accurate saving us warehousing
costs.
Our
company,
RYMAX,
hasnt
Financial Risk
incurred into strong debts and we are
actually equal to the rest of the
companies.
Weaknesses
Our company, RYMAX, has a total
performance of 0 because, although
we are having an acceptable
performance in many of the factors
considered,
the
financial
Total Performance
performance is low even negative
and earnings are not produced by the
company.
Our
company,
RYMAX,
hasnt
achieved a balance between the
revenues and costs, leading us to
negative numbers because of the
Financial Performance
excessive expenses and for not being
able to generate enough incomes.
Our company, RYMAX, is not well
positioned into consumers mind
Page 18 of 26

Market Performance

Wealth

Assets Management

because we are fulfilling their need

with our products and not using the
right publicity to locate us in a good
spot and that is a reason why we
possess a small market share.
Our company, RYMAX, has not being
able to generate wealth to our
invertors because the lack of
incomes and excessive costs that
havent let us make profits.
Our company, RYMAX, has not been
capable of use the assets we have to
increase the sales in a considerable
percentage because, even though we
have many assets, we dont have the
other assets that complement and
generate incomes.

4. Major problems/opportunities to be dealt with in next

year
Major problems
At worst scenario, if we do not get
Bank loan
the 4 million investors, applying
for a bank loan of 2 million.
The concept of brand and price
competition exceeds that of our
Intense Competition
company, and we remove market
share in our core segment.
The competition to create a
Rapid technological change
superior technology offered by
our company
The deceleration the growth rate
of PC market

The growth rate of the computer

market is slowing and the near
future and the markets are close
to saturation

Opportunities
Acquisition of technology through
Dabble with new technology in
investment and R&D licenses
computer DeluxMax through R&D
license with the company
Smartech.
Investing in technology for
FlashMax computer.
Page 19 of 26

Investors

Negotiations with investors for a

maximum amount of $ 4,000,000

D. Strategy for the next year in business

Marketing Strategy
Apparently we are working a loss to our products The profitability of
the brand is negative sales and revenue decreases the negative
when you are going by subtracting the total cost , the only thing to
highlight the gross margin is positive taking profits and that a from
advertising costs very high that reduce earnings .
Recommendations would be:
Increase the sales force, this would be an obligatory action.
Handle with advertising Effective ads
SALES CHANNELS
Increase the profitability of channel sales
Sales Office
offices at least 10 % of sales revenue.
Increase the number of sales offices in the other markets.
Q4 : Sao Paulo and Shanghai
Q5 : Chicago
Q4. In the Paris office: To hire 8 people directed to the workhorse
segment and 4 people aimed at Mercedes segment and 1 staff. This
strategy aims to offset the advantage that our competitors have in
sales offices and sales force.
Q5. In Sao Paulo and Shanghai sales offices hire at least 7 people per
channel: 4 people aimed at workerhorse segment and 2 persons aimed
at Mercedes segment and a sales staff.
Q6. To hire 7 people at Chicago office with the same division of staff
other offices
Web sales
Increase the profitability Web center channel at
least 1% of sales revenue
Increase website traffic by spending 6 updates or tactics.
Increase the likelihood of purchase once the visitor is on your site by
spending 7 updates or tactics.
Increase staff for assistance in customer sales and support to enhance
customer satisfaction in the process.
Be more objective in the Brand Features

Page 20 of 26

Sales Channel Strategy

Until the quarter 3 we handled a focused strategy in the Paris-EMEA
market in both segments with a sales office.
In addition RYMAX has a Web center to have a scope in all markets
worldwide. Below detailing strategies to increase sales

Human Resource Strategy

Goal
Increase worker productivity
Compensation Sales Force
Increased holiday weeks from 2 to 3
Health Benefits Package: offered employees a complete health
PACKAGE
Compensation of factory workers
Pension increase regarding his salary to 6%
Rymax will offer three weeks of paid leave for their workers
Manufacturing Strategy
Although our company RYMAX has suffered a hard time with a low
performance because of many mistakes, the manufacturing area
has developed in a very significant way by trying to reduce unit
costs, increasing the number of mistakes that workers make and the
useless warehousing costs. During these trimesters, a high plant
capacity was installed, nearly 50 units per day, hoping that we could
be able to get into a strong market share from the beginning and
being able to satisfy all the demand that we may possibly generate.
Unfortunately, our marketing performance wasnt the best and we
were not able to generate enough demand for our products and,
therefore, we were producing under a small demand and were not
able to exploit the whole capacity we had acquired.
Our plan for this trimester is to develop a good product and produce
it in a massive way, so we can be able to apply economies of scale
and being able to reduce the cost per unit even more than the
previous trimesters. We are planning that for the fifth trimester to
analyze the results and notice if our strategy worked and decided if
we should expand even more our plant capacity producing a
massive production and make our costs even lower. For the last
trimester, it would be very hard to do any change because it would
be our last decision and the game will be over, so we should
Page 21 of 26

probably keep the same strategy we were applying during the last
exercise.
Another issue we will try to improve during these last trimesters is
the effectiveness in our operational capacity. Our workers, as any
human, make mistakes during the process of building a computer,
but, as they keep performing the same task every day, they are
capable of reducing these mistakes in a very significant percentage,
making the process go on and producing fewer computers with
failures that generate costs to our company.
One issue that should never be forgotten and that is one of the main
tasks from the manufacturing area is the inventory. The inventory is
the backup you plan to leave in your plant shells in order to be
capable of satisfying an extra demand that you do not project at the
beginning of the exercise and never leave a client without your
product which could generate a loose of a considerable group of
clients. So far, we have been very conservative about the
inventories from our products lines and always leave just the right
amount, so we are sure to not incur into meaningless warehousing
costs that takes could take a big part of our profits in case we lose
the control of these inventories. We are planning to keep this
strategy during the next trimesters because is getting good results
and we will try to keep an accurate demand projection.
This strategy will let us exploit our maximum plant capacity,
keeping the lowest cost per unit, developing and enhancing the
productivity from our workers and saving space and money by not
expending too much money on warehousing and get the highest
grade in the balanced scored card in manufacturing productivity and
helping to upgrade our total performance.
Financial Strategy

Page 22 of 26

Financial Impact Matrix Strengths RYMAX

N

S1

S2
S3
S4
S5
S6
S7

Strengths
Good
cash
management,
the
company
has
the
resources necessary for
their operations.
The rotation of the
finished products, the
company
handled
it
differently
Sales have increased in
recent quarters
There have been no
emergency
or
conventional bank loan.
Inventory turnover, the
company
is
handled
efficiently
The fixed asset turnover,
the company is handled
efficiently.
The total asset turnover,
the company is handled
efficiently

High

Impact
Medium

Low
X

X
X
X
X
X
X

Page 23 of 26

Financial Impact Matrix Weaknesses RYMAX

N

Weaknesses

W
1
W
2

Retained earnings have

been negative
cash account increases
over time
The gross profit margin
in the last three quarters
has been an increase.
Significant investments
for the purchase of
assets
The net profit margin in
the last three quarters
has been an increase.
The return on assets
over the life of the
company
The return on capital
paid to shareholders.

W
3
W
4
W
5
W
6
W
7

High

Impact
Medium

Low

X
X
X
X
X
X
X

Matrix Financial Strategies

Page 24 of 26

Weakness

Strategic

Activity
Build
2
distribution
make
a centers.
Rymax has not
bank
loan Buy
and
made
and
exchange
significant
convince
technology
investments for
investors
with
other
the purchase of
interested
companies
assets
and
in
the in
the
technology
industry
industry
through
licensing
Production costs
and
excess
inventory
that
Reducing
optimal
manages
the
production
resource
company
are
costs
and managemen
very high so
products
t
through
there
is
a
stored
in economies
reduction
in
warehouse
of scale
gross profit in
the same.
Net income of
the company in Boost sales
the
last
3 in
coming
quarters
have quarters
been negative
Able
to
Rymax has not
obtain
made
profit
profits
to
sharing to its
pay
members
dividends

Provide
better
computer
market and
recruit more
employees

Goal
Having
largest
distribution
centers
in
international
markets and
launching an
efficient
computer
market

Having one of
the
lowest
costs in the
production of
computers

Achieving an
increase
of
25% and 30%
on
future
sales
Distributing
retained
earnings
to
our partners
and investors
as
appropriate

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