1. Eric Beardmore Brendan Bonner Kevin Leung Anne Marie Sullivan

2. Overview Problem StatementInternal/ External AnalysisAlternativesRecommendationRisk Analysis/ MitigationImplementation

3. Our Initiative We must determine how to grow efficiently given the seasonal demand by most optimally managing our inventory Problem Statement Smart Growth Model Data AnalysisQ- System Geographic Expansion

4. External Analysis Geographic Climate- seasonal weather changes Political India’s growing economy- social middle class Economic Growing cultural ice cream preference Social Greater data processing capability Technological Fund Direct Investment

5. SWOT Analysis Strengths Growth rate High quality/variety product Aim to educate consumers Product transportation Business structure- franchised Stores located close to warehouse Weaknesses Seasonal sales- manufacturing costs Quality ice cream= time & money Sells some flavors at a loss Take-out discontinued Display limitation 28 flavors Equally priced- production demand Threats Competition between organized & unorganized investments FDI bringing new competitors Currency fluctuation Instability of Rupee Opportunities Fund Direct Investment (FDI) Expansion to Mysore & Surathkal Convert Go Geddy  Just Sundae Franchise growth

6. Alternatives Alternatives & Criteria Smart Growth Model Target Service Level Policy Scaled Stocking Level Policy Common Service Level Target Level for Top Margin Capital Requirements --++ Service Level++----- Profitability Seasonally Adjusted ++++0- Inventory Waste+0000 Alignment to Core Competencies +++-0- Total5311-2

7. Our Solution: Smart Growth Model Upgrade Data Processing Systems Implement a Q- System for Inventory Expand Geographically through Franchising

8. Upgrade Data Processing Transaction Processing System at Retail Locations Share Data in Real Time with Manufacturing Facility Use Data to Make Inventory Systems

9. Real Time Data Data SharingPeak Hours Market Research Monitor Performance Transaction Processing System Capital Spending Requirement 700,000 Rupee (Debt Financed)

10. Use Meteorological Forecasts Issue Link the our demand forecasting to 10 day weather forecasts Focus on three criteria: temperature, cloud cover, and precipitation Solution

11. Reduce Stock Outs Issue Send trucks when inventory levels are low rather then sending them each week Solution

12. Reduce Inventory Waste Issue Forecast Demand based on Historical Figures, Meteorological Forecasts, and Current Sales By Reducing Variance of Projected Demand we can reduce safety stocks Improve Cash Conversion Cycle Solution

13. Q-System (Continuous Review) Use Current Data in Real Time to Meet Demand Send Inventory to Retail Locations when needed Lower Inventory Waste and Increase Service Level

14. Transition ‘Go Geddy’s’ to ‘Just Sundaes’ format Implement TPS system Increase franchise ownership in Bangalore ~25% annually. Short Term Growth

15. Construct warehouses at strategic locations to foster growth. Expand facilities to support franchises outside of Bangalore Grow profitably to new markets. Long Term Growth

16. Geographic Expansion Manufacturing Campus Storage Warehouse Store Location

17. Financial Analysis Implementing Data Analysis System Net Present Value 20132014201520162017 Increased Sales 99922124902156128195159243949 Decreased Inventory Costs 3330741634520436505381316 Change in EBIT 133229166536208170260213325266 Decrease In NWC Requirements 9994996624578069758 Capital Expenditures 700000 FCF -565772171532214415268019335024 Discount Factor @ 15% 10.869565220.756143670.657516230.57175325 Net Present Value 113292.554

18. Risks and Mitigation Better receivable turnover ratio (franchises pay cash immediately) More prompt payment Continued focus on quality Expanding Too Rapidly Hedging to create fixed costs Ex. For the next year we will buy oranges at 5 rupees Fluctuation of Currency Backup controls in case of emergency Regular maintenance Technological Overreliance

19. Strategic Implementation Plan 201320142015201620172018 Q1Q1 Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 Design TPS Test TPS Install new TPS system Convert all stores to Just Sundaes Transition to Q-system Open 15 New Stores (2014) Build New Warehouse Open 15 New Stores (2015) Open 15 New Stores (2016) Build New Warehouse Open 15 New Stores (2017) Build New Manufacturing Plant Implement Q-system Transition Store Model Open New Franchies Expand Capacity

20. Q & A

21. Appendix 1: Emergency Recovery Manually record sales transactions – Include type, amount, and method of payment Call in results to central production facility daily Continue distribution with Q-system

22. Appendix 2: Analysis of Inventory Systems Inventory System Profitability AverageStandardized Target Service Level Policy790983.19 Scaled Stocking Level Policy1021952.43 Common Service Level1088892.28 Target Level for Top 3 Margin808634.71 Target Level for Top 2 Margin919831.91 Overall Averages:925.2858.90