debrief-6+
DESCRIPTION
L'Oreal Estrat ChallengeTRANSCRIPT
-
3/19/2003 Copyright 2003 by STRATX 1
FINAL DEBRIEFFOR PERIOD 6
THE LOREAL & STRATX TEAMS
-
3/19/2003 Copyright 2003 by STRATX 2
215 Teams were selected to participate in Round 6 !!!
But only 185 teams survived until the end of the semi-finals
30 teams did not submit their decisions and/or their Business Plan in time and thus were disqualified 32
24
49
37
26
37
10
0 10 20 30 40 50 60
Asia/Pacific 1
Asia/Pacific 2
Europe 1
Europe 2
Latin America
North America
Other Countries
-
3/19/2003 Copyright 2003 by STRATX 3
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 4
The Top 20 SPIs
-
3/19/2003 Copyright 2003 by STRATX 5
More on the grading process
The grading team included professors from business schools, business consultants and general managers. Their fields of expertise range fromstrategy and marketing to finance and HR.
To ensure consistent and objective grading, a detailed grading grid wasformulated for each section of the business plan. This grid cannot bemade 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 predictionswere accurate to 0.1% !!
The best Business Plans were those that provided clear, accurate andfull responses to all points specified in each section of the Business Plan Guide.
Attention to detail, quality of presentation and an overall professionallook 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.
-
3/19/2003 Copyright 2003 by STRATX 6
The Top 30 Business Plans
-
3/19/2003 Copyright 2003 by STRATX 7
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 8
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 9
The Top 30 Final Results : SPI + BP
Team Country Business Plan Scaled BP SPI Scaled SPI FinalGrade Result
-
3/19/2003 Copyright 2003 by STRATX 10
High SPIs are obtained with high revenues, high growth rates and high profitabilityLets examine all teams above 3,500
-
3/19/2003 Copyright 2003 by STRATX 11
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 12
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 13
The top brands that generated more than M$ 50 in brand contribution
-
3/19/2003 Copyright 2003 by STRATX 14
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 allthe best for your studies, exams (!) and your future career
-
3/19/2003 Copyright 2003 by STRATX 15
And now discover the human touch behind e-Strat
Celica, Valrie and Emmanuelle, LOral
Stphanie, StratX
Christophe & Aurlien, StratX
Rmi, StratX
215 Teams were selected to participate in Round 6 !!!How have we calculated the final ranking ?The Top 20 SPIsMore on the grading processThe Top 30 Business PlansHow was your SPI and your BP grade combined?Application of the ratioThe Top 30 Final Results : SPI + BPHigh SPIs are obtained with high revenues, high growth rates and high profitabilityLets examine all teams above 3,500Do not forget the trend ! As financial analysts extrapolate future results, a flattening curve may have dramatic consequencesGrowth rates and EBIT are fuelled by strong brandsThe top brands that generated more than M$ 50 in brand contributionWe wish the best of luck to all the finalists that will compete in ParisAnd now discover the human touch behind e-Strat