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Tabl e of Contents

Executive Summary!!!!!!!!!!!...!!1.1

Departments
Business Report!!!!!!!!!!!!!!!2.1
Financial Report!!!!!!!!!!!!!!!2.2
Operations Report!!!!!!!!!!!!.!!2.3
Marketing Report!!!!!!!!!!!..!!!2.4

Mental Health Report!!!!!!!!!!!!!3.1

























i


Executi ve Summar y

I am pleased to report LPHS has seen a successful first eight quarters since
takeover " largely due to increasing and compounding profit margins alongside a
positive growth of both stock and brand name. As with any business takeover,
LPHS saw limited start-up results in the first and second quarters. Nevertheless,
thanks to our dedicated Finance, Operations and Marketing Teams LPHS finished
quarter 6 and 7 in the top 4 companies " a phenomenal achievement.

Our finance team at start-up were unsure on how much to spend on marketing,
human resources, operations and goods. We were also trepid on the prices at
which we would sell our goods for. Despite all of these initial challenges, the
company performed well, achieving a respectable index of 29 (quarter 6). The
company managed to sustain equal tax after profit from the years during
takeover, making over $20million in quarters 6&7.

Injunction with exceptional business sense, LPHS is committed to understanding,
supporting, and accepting mental health. We understand preconceived ideas of
mental heath can lead to a negative impact on vocation, which is why we as a
tem are committed to change. Our company understands that the mental health
of our employees is extremely important to the success of our business and this
is why we pride ourselves on the awareness and support that we provide for
people with mental health issues.

LPHS is looking to expand to fit the growing nature of today#s technology focused
future. We are looking at new stores, new products, and new ideas. It is certainly
an exciting time at LPHS. Thank you for an exceptional two years to all " I cannot
wait for the future!

Oscar Bruck

LPHS Manager


















1.1


Busi ness Repor t

The Low Price High Stock Group made its debut in the ABW as a company with
the conviction that it had the ability and the resources to sell at low costs in
large volume. The underlying ideology behind LPHS# company takeover was to
change the existing business structure from that of general sales of a variety of
goods, to retailing low-end products at competitive prices. The Electronics industry
was subdivided into three categories: 1 being goods $0-99, 2 being goods $100-
999, and 3 being goods $1000+. The general mentality to the angle that LPHS
took was that it was better to stand out from the crowd. In order to achieve this,
it was concluded that the group had to specialise in either category one or three.
LPHS initially opted for category one: electronics of value $0-$99.

With such a mindset, LPHS began to purchase its goods, with particular emphasis
on category 1 intake. This leads to our SWOT analysis:

-Strengths: As a company that took particular focus on buying more from a
particular category, we were able to differentiate our group from the rest of the
cohort to some degree. Having a single-minded approach also eliminated the
wastage of time due to ambiguity and weak direction. A secondary advantage of
LPHS# approach was that it could quickly identify where the market share lied, if
for instance, It was the casse that there was no demand for category 1 goods

-Weaknesses: The ideology that LPHS adopted would either be a hit or miss one.
As stated before, there was always the possibility that we would find no market
share in category 1. Therefore, our approach could have backfired on us
completely. As a management team comprising of both friends and unfamiliar
individuals, communication could have lead to the company#s downfall. It would be
crucial to maintain high levels of interaction.

-Opportunities: The primary opportunity was that every company was starting off
on a level playing field. This presented LPHS with the tempting prospect of
initiating bold decisions in order to accelerate our movement in simulation
rankings. Also, LPHS capitalised on the diversity of our management team.
Perspectives from different genders as well as from that of a learned mentor
meant that we were well equipped in terms of creativity and wisdom.

Threats: The major threat to the company#s success was the 32 other competing
companies in ABW. However internally, discord amongst team members, lack of
organisation and close-cut time limits pushed the resilience of LPHS to the very
edge.

Though in terms of industry trends, all three categories garnered significantly
higher demands, it was clear that category three received the least attention of
companies, due to its exorbitant unit prices.





2.1


Fi nanci al Repor t

Taking over the company after it had been in operation for 2 years proved
difficult for our first quarter. We were unsure on a number of things such as how
much to spend on marketing, human resources, operations and goods. We were
also trepid on the prices at which we would sell our goods for. Despite all of
these initial challenges, the company performed well, relative to the rest of the
companies, achieving a respectable index of 29 (quarter 6). The company
managed to sustain equal tax after profit from the years during takeover, making
over $20million in quarters 6&7. Another notable observation was that the quarter
had ended without any stock left, indicating that there was potentially room to
greatly expand our product depth and ultimately move up on the leader board of
the simulation game.

The second quarter oversaw LPHS group significantly drop in both simulation rank
and index number. This was mainly due to the groups insufficient purchases in
stock, as well as covering a very insignificant market share. It became apparent
that LPHS were dangerously underselling its name as both a business and a
provider of cheap goods. Therefore it was necessary to start thinking much bigger
than we had been previously. Again we had sold out on all our stock, meaning
that we were in much higher demand than we recognised. Our next move had to
be one that would ensure that we could assess just how high that demand was,
and how we could accommodate for the demand, if it was very high. LPHS began
thinking about the introduction of newer stores and increasing stock diversity.

Third quarter was the mark of rapid improvement in simulation rank. As evidenced
by the graphs, the gradual shift toward category 3 as a potential market niche
was a wise one. The industry trend revealed that category 3 goods were in high
demand, yet significantly insufficient in terms of supply. We moved in to purchase
even more stock than before. This made a steady base for our company that was
vital to sell its products. Our company was not required to put any money into
the credit facility at this stage, having excess 2million$ in reserve. However, as
we were later to discover, the expenditure of $2million alone was an extremely
unfavourable one.

The fourth and fifth quarters saw LPHS attempt similar strategies, including, the
necessary shift from a category 1 focus to category 3. We finally resolved to
borrow from the bank, and extensively increase expenditure on advertising,
promotions, and employee bonuses. This in turn, would boost the overall sales of
our goods, thus maximising simulation rank. After buying exponentially, LPHS still
managed to sell out on all fronts. The level of advertising and the prices at which
the products were being sold were at perfect balance.

6
th
and 7
th
quarters oversaw LPHS rise to 2
nd
position, after further investment of
all profits. No cash at bank was left unspent. Thus, LPHS group rose to second
position in terms of the simulation in quarter 6. That was the peak index for the
company, after which LPHS tapered off, as it had reached a limit in terms of how
much stock it could purchase.


2.2






























Oper ati ons Repor t

The role of operations is to work out and organise the percentage split of each
three categories of products that a group wants to sell, the size and quality of
the stores, how many staff are employed and the quality of their training and
finally how well-maintained the store is.
From the start we were good at changing the business# financial structure from
its takeover state to how we as a company wanted it to look and run, however in
doing this it also lead to something that we as a company were not so great at "
the way our revenue and profit after tax results came back in certain quarters as
our plan came into full swing.
Despite this, we made positive changes that lead to us making a profit, such as
changing the percentages of the three categories from a 30-50-20 split to a 60-
20-20 split in favour of category one items. We later added two further stores;
with splits favouring products based more in category two and three. This was as
a result of our company analysing data from the first three quarters, leading us to
refocus our idea of where we want to sell our products and shift towards a more
up-market company.
2.3
Mar keti ng Repor t

Mar ket Si ze Resul ts and Tr ends
The market size is large as lots of goods are being sold and purchased. In the
first four quarters stock was completely sold out which shows there is high
demand for our products. To solve this issue the purchase units were increased
each quarter, however the products continued to sell out. This shows that the
purchase units need to be increased as well as the purchase price as the
requested purchase units were not being met due to other companies paying
more.

Tar get Mar ket
The target market for the company is people who want affordable goods. Our
company targets people who do most of their electrical goods shopping online as
that is where the highest percentage of goods is sold. This would include lower
income earners such as university students.

The Competi ti on
The company faces competition by other electrical goods companies such as Jb-
Hi-Fi and Dick Smith. These companies have a similar target market and similarly
provide low prices and high stock. To beat competition such as this the company
needs an emphasis on advertising in order to attract consumers.

Mar keti ng Mi x and Str ategi es
The companies marketing mix and strategies include advertising and promoting the
companies focus point, low prices and high stock. Investing money in
advertisement will increase buyers and demand for products also by increasing
awareness of the company. The company aims to purchase higher than average
quantities of stock and sell products at a lower than average price. This will
attract buyers and maximize revenue.

2.4


Mental Heal th

Our company understands that the mental health of our employees is extremely
important to the success of our business and this is why we pride ourselves on
the awareness and support that we provide for people with mental health issues.
The attendance of BeyondBlue seminars and participation in the mental health
month ensures that all of our employees understand the importance of this issue
and the impacts of a negative work environment. Our website allows employees
who are unhappy or have any issues with the company to anonymously submit
their concerns and speaking to the company manager about important issues such
as mental health is encouraged.

Our company employs an on-site psychologist for the support of all our
employees. In a business situation like ours, we understand that stress levels can
be extremely increased as well as other emotions becoming highly sensitised. Our
psychologist is proficient in helping to manage emotions and stress to ensure that
the workplace remains an enjoyable and positive environment for all our
employees.

































3.1