MBA Capstone Project: Chester Company Strategy and Financial Analysis

This MBA Capstone project analyzes the Chester Company's strategic decisions and their impact on financial performance. The company adopted a cost leadership strategy and segmented the market. The analysis covers the impact of the strategy on R&D, marketing, and production, including SWOT analyses for each area. The project reviews financial outcomes, highlighting poor performance in early rounds, and recommends future decisions, such as sustainable financing. It examines changes in marketing and production decisions, including product branding and phasing out low-end products. The project also evaluates the company's performance against competitors, like Digby, and provides a comprehensive overview of the company's strategic choices and their consequences.

Mba Capston
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Author’s Note

 The company chose to undertake the cost leadership strategy of market competition. This is a
competition strategy through which a business entity decides to lower unit price of the goods and
services offered on the market. Under this particular strategy, an entity creates a low cost of
operation within the market. By applying such a pricing strategy, chester positioned itself in an
advantageous position as compared to its competitors in the market
 The second type of strategy that is undertaken by the company is competition in all the five
segments of the market. A market segment refers to the process of sub-dividing potential buyers
and customers into groups or categories depending on particular aspects.
 There are majorly five categories. These include the geographic, demographic, firmographic,
behavioral and psychographic segmentation (qualtrics, 2019).
COMPANY STRATEGY

 Because the chester company is aiming at minim sing costs as much as possible
through the cost leadership strategy, research costs will likewise be minimized.
Having high research expenditure would be a violation of the market strategy (Guo
and Wang,2018).
Impact of company strategy on R&D

The cost leadership strategy would be maintained In relations to r&d. this is because ,maintaining low costs would have positive impact s
in the long run.
The decision to cover all the five market segments would be changed. This implies that market segments would be phased out. This would
reduce on the costs involved.
Decisions that would change

Swot analysis is an evaluation tool used to identify strengths, weaknesses, opportunities and threats. under research and
development the strengths include effective time saving, innovation and effective resource utilization.
Weaknesses include managerial changes, inadequate training requirements, among others.
Opportunities include market control and quick product launch
Threats are high financial costs, and delayed product design and development.
R&D SWOT analysis

Future research decisions that would be made include decisions on new product line developments. Such decisions would
be aimed at finding new products for the market.
The other future research and development decisions would primarily concerned with aspects such as finding new
markets for the existing products and services for the company. this would call for market expansion of the company.
Future research decisions

 The strategy of cost leadership results into customer loyalty and increased market demand. The reduced prices attracts more consumers to the
product thereby leading to more sales revenue In the market.
 It would further facilitate product different ion in the market through the reduced product prices for the products. ultimaktdely this would result
into customer loyalty of the product hence leading to increased demand.
Impact of the strategy on marketing

 The increased promotional sales would imply more customer awareness in the market. This would provide a more competitive advantage and
increased product market share.
 Forecasts on returns during the first round would be aimed higher. This would control under valuation of the firm.
Changes in the marketing decisions

 Strengths: business location, specialized marketing team
 Weaknesses: sub-standard products
 Opportunities: existing and developing markets
 Threats: new and existing competitors, price wars among others (parsons,2018).
Marketing swot analysis

 These may include volume discounts, price decimations, early payment discounts (Buleen, 2019)
 increased distribution channels among others
Future marketing decisions

 Cost leadership strategy will result into operational and production efficiency. As the low costs would be incurred be incurred,
capacity of production will likewise be improved. the cost per unit output will as well be very low as compared to the other
producers in the market.
Impact of strategy on production

 Changes in the methods of production ;would be maintained because of the increased
capacity and demand.
 Low end products need to be phased out because they would simply increase the cost of
production and yet the returns are very low.
Reflections on the decisions