Production strategy
The production strategy of Dice during the period managed was to produce a high volume of products at a lower price by managing production at a consistent and lower rate. This approach resulted in increased net profit and cash flow. The company did not rely on overtime or in-house assembly expansion to achieve this strategy.
In terms of workforce compensation and training, Dice provided its employees in AC camera assembly and UAV drone assembly facilities with great wages and attendance bonuses to increase productivity and commitment to the company. Additionally, the company invested in productivity improvement training for both facilities. Dice provided a positive and safe working environment for its employees, including on-site child care, safety gear, a cafeteria, and better lighting and ventilation. These initiatives helped the company to attract and retain talented employees.
Finance strategy
Debt-to-equity ratio of 20.80%. The company did not issue any stocks during this period and did not pay any dividends. Instead, Dice reinvested its profits back into the business to achieve growth.
The company used a mix of short-term and long-term loans to manage its finances. Overdraft loans had higher interest rates (2% higher than one-year loans), while principal bank loans with terms of five and ten years had to be repaid in year twelve.
Overdraft loans had higher interest rates than one-year loans, while principal bank loans with terms of five and ten years had to be repaid in year twelve. Furthermore, Dice maintained a reserve of 10% of camera and drone parts on hand and allocated 25% of the cost of camera and drone parts used in Year 11 to accounts payable.
Dividend policy
Dice did not have a dividend policy during the period managed, and there were no payouts. Instead, the company focused on reinvesting its profits back into the business to achieve growth. However, the company may consider paying out dividends in the future, depending on the financial performance and growth prospects.
If the company decides to pay out dividends, it will likely start with a small pay-out ratio and gradually increase over time as profits and cash flow increase. The company may also consider using stock repurchases as an alternative to dividend pay-outs to return value to shareholders.
Dice’s focus on maintaining a strong credit rating and reinvesting profits back into the business aligns with its long-term growth strategy. The company will continue to monitor its financial performance and make adjustments to its finance strategy as needed to achieve its goals.