Sunflower Nutraceuticals & the Nutraceutical Industry

You are the CEO of Sunflower Nutraceuticals (SNC), a privately-held Miami, Florida based nutraceuticals distributor

HOW TO PLAY

Sunflower is essentially breaking-even with flat annual sales growth on total revenues of $10 million. The nutraceutical distribution business is working capital intensive and margins are generally thin.
Sunflower Nutraceuticals started in 2006 as an Internet-based direct to consumer distributor and retailer of dietary supplements Product offering spans 100 SKUs from 50 third-party brands Experienced ambitious growth including expansion into new retail outlets and private label production

The nutraceutical industry is a relatively new sector with strong growth potential
In 2010, the global nutraceuticals market was worth approximately $128.6 billion. The global market is forecasted to grow at a compound annual growth rate (CAGR) of 4.9% and reach $180.1 billion by 2017.

Copyright 2012 by Harvard Business School Publishing.

Copyright 2012 by Harvard Business School Publishing.

How to Play
1. 2. Prepare Review the Prepare tab for an introduction to the company, How to Play, and download the terminology primer. Analyze reports The financial statements report the company's historical and current financial picture and how the financial condition of Sunflower Nutraceuticals has changed over time Enter decisions Click on the Decide tab to enter investment decisions for the next phase. You can choose to invest in or reject any or all of the opportunities available to you in the 3-year phase. When you have finished entering your investment decisions, click the Submit Decision button to advance to the next phase. Review Look at the Synopsis page and your financial statements to see how each opportunity you selected impacted Sunflower Nutraceutical's performance.

PREPARE
This section gives information on your role, a company overview, and provides basic steps for How to Play.
The Terminology Primer PDF downloadable from the How to Play introduces key concepts relevant to the simulation.

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Continue until you have completed all phases of the simulation.

Copyright 2012 by Harvard Business School Publishing. Copyright 2012 by Harvard Business School Publishing.

ANALYZE: Dashboard Overview

This page provides a visual summary of the current status of the simulation based on the most recent phase completed. The sim begins in Phase 1, with the Dashboard presenting historical data for years 2010-2012.
1. 2. 3. 4. 5. Annual Sales Annual EBITDA Annual Net Income Annual Free Cash Flow Cumulative Free Cash Flow 6. Cash Surplus/Shortfall 7. Total Value Created; and for each Phase 8. Incremental Credit Available 9. Total Current Assets 10. Time Line indicates your progress through the simulation

ANALYZE: Balance Sheet

The Balance Sheet depicts 3 years of data for the current phase of the simulation.
As you progress through the simulation, a toggle at the top will allow you to view historical data. This screen includes three bar charts illustrating each phases Cash and Cash Equivalents values Total Current Assets Credit Line Availability

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On this screen, like most others in the simulation, you can use Copy to Clipboard functionality to paste the data into a spreadsheet program of your choice for further analysis.
Copyright 2012 by Harvard Business School Publishing. Copyright 2012 by Harvard Business School Publishing.

ANALYZE: Income Statement

The Income Statement depicts 3 years of data for the current phase of the simulation.
As you progress through the simulation, a toggle at the top will allow you to view historical data. This screen includes three line graphs illustrating each phases Sales EBITDA Net Income

ANALYZE: Cash Flow

The Cash Flow Statement depicts 3 years of data for the current phase of the simulation.
As you progress through the simulation, a toggle at the top will allow you to view historical data. This screen includes two bar charts illustrating each phases Cash Flow from Operations Ending Cash and Cash Equivalents

Copyright 2012 by Harvard Business School Publishing.

Copyright 2012 by Harvard Business School Publishing.

ANALYZE: Credit Line and Ratios

The Credit Line and Ratios statement shows a table with financials for the companys credit line statement depicting 3 years of data for the current phase of the simulation.
As you progress through the simulation, a toggle at the top will allow you to view historical data.
This screen includes a graphical illustration of the Cash Conversion Cycle that updates based on opportunities selected.

DECIDE: Decisions
This is where all Decisions are entered. Each opportunity includes a detailed description and initial assumptions. You must decide to accept or decline each opportunity.
A green check indicates an opportunity has been selected.

All Opportunities Selected are listed.

Your selections will not be final until you click Submit Decisions.

Copyright 2012 by Harvard Business School Publishing.

Copyright 2012 by Harvard Business School Publishing.

ANALYZE: Synopsis
The Synopsis screen provides updates on how each of your opportunity investments performed.

Copyright 2012 by Harvard Business School Publishing.