CAMERA TIME U02a1 GLO-BUS Decision for Year 6 Respectfully submitted by Richard Gish, Santana Gray and Johannie

e Grob

To make decisions for Year 6, Team C (Camera Time) conducted a conference call to review Year 5 operating results. After reviewing the prior years results, we decided that the best way to make decisions is to collectively analyze strategies which may lead us to become the worldwide market leader for digital cameras. So, in an effort to learn more about our each one of our individual strengths, we spent a little time discussing our professional backgrounds and learned that Richard is the Production Lead at Radio Shack and both Santana and Johannie have experience in Human Resources. This led our team in identifying that Richard would be an excellent resource in camera design and marketing, with Johannie and Santana helping from the compensation, training, and social responsibility areas. The entire team committed to taking responsibility for all financial decisions required for our company, as well as reviewing our competitors weekly decisions and strategies. The first decision made was in regard to the design of our entry level and multi-featured cameras. The strategy we used was lowering the mega-pixels of the entry-level camera, and raising the mega pixels of the multi-featured camera. It is important to point out that this decision was based on what we felt our entry level and professional photographers would desire in camera. We also decided to lower the ergonomics on the entry-level camera, as these types of photographers usually do not spend long periods of time in taking pictures. Camera Times business partners also decided to only offer customers 2 models per category until more time and money would be available for further research and development. The strategy used to influence our decisions in terms of marketing was to look at the companys previous sales history in Year 5. Statistics revealed that 40% of our sales volume is in Asia- Pacific; therefore, we decided to decrease advertising efforts in that area by $300. In an attempt to obtain a competitive marketing position in the other areas; North America, Europe-Africa, and Latin America, we reallocated $100 on marketing strategies in each of these geographic locations. This offered the company the opportunity of maintaining the same amount of dollars in our marketing efforts. To remain competitive

and to increase sales, Camera Times business partners also decided to decrease the price of the entrylevel cameras by $10.00 in Latin America, North America and Europe, offering these cameras at a cost of $150.00 versus $160.00 in our strongest market, Asia-Pacific. Using the same concept, our multifeatured cameras have been priced at $375.00 in our three lower geographic markets and $385.00 in our strongest market, Asia-Pacific. In terms of the teams assembly decisions, our strategy for Year 6 (entry-level assembly) is to lower Quarter 1 by 2 cameras shipped, and to increase the cameras shipped in Quarter 3 by 2. This offers our company the ability to accommodate camera volumes for seasonal peak times. It is our opinion that our products demand definitely increases during the holidays . For the multi-featured assembly, the team decided to utilize Match to Order, and to increase Quarter 3 by 2 cameras with the exception of Europe-Africa which we increased by only 1. Camera Times business partners also made strategic decisions regarding compensation and labor. Due to the high assembly demand in Quarter 3, we found that it was in the companys best interest to outsource labor and staff an additional 66 temporary employees. To ensure that the company was able to fulfill all orders in a timely manner during the seasonal pre-rush, 90 hours of overtime was necessary. Lastly, Camera Times business partners decided that we should demonstrate our commitment to citizenship. Thus, to enhance Camera Times social responsibility, weve decided to give 1% of our operating profits to charity. We hope and anticipate through future profits that our company is able to increase these efforts with a higher participation in citizenship and social responsibility programs. In closing, our short-term approach is to carefully analyze the costs associated with our decisions so that we can cautiously begin testing other geographic markets for expansion. We are extremely pleased with our Year 6 results; that being $206,091 in Net Revenues, with a 10.8% Net Profit of $22,156. As a young company (only being in existence for 5 years), we hope long-term that we can strategically make decisions to meet our investors expectations, continue to gain global market share (if beneficial) in other geographic locations, while increasing and growing the profitability of our company.