Week 14: President Miyazawa has refused the acquisition. We have one shot left.
Your mission is to integrate R&D, Craftsmanship, and Marketing into a single executable force, and negotiate a "Venture Debt" deal with Felix to survive.
Porter's Test: Which activities create "Strategic Fit" for the Last Rikuoh?
Kohaze-ya cannot copy Hoka (Mass Production) or Nike (Global Marketing). Michael Porter says strategy is about "combining activities."
If we are to make the "Last Rikuoh" with limited resources, we must choose ONLY the activities that reinforce each other.
! MISSION: Select the 3 Core Activities that link "Material", "Craft", and "User" into a seamless loop.
Warning: Avoid "Benchmarking" distractions that don't fit our model.
Select 3 items that form the "Virtuous Cycle" for Kohaze-ya. Drag (or click) to activate.
A business model is a system. Execution is the constraint.
The risk of "Black-letter Bankruptcy" (Kuroji Tosan).
Critical Warning: We have orders (Revenue), but we have no Cash. This is "Black-letter Bankruptcy." You are profitable on paper, but dead in reality.
| Item (Unit: Million JPY) | Projected Q4 |
|---|---|
| Sales Orders (Confirmed) | 500 |
| COGS | (300) |
| Gross Profit | 200 |
| OpEx | (100) |
| Net Income (Black Letter) | 100 |
* Looks great, right? Check Cash Flow.
Formula: Cash ÷ Accounts Payable (due now). Same-day survival test (use BS below).
Formula: Cash ÷ Accounts Payable (due now). Same-day survival test (use BS below).
If we have 5M cash and burn 2M/day, how many days left?
Abstracting Core Competence. If we can't sell shoes, what can we sell?
Just as Fujifilm realized their "Anti-oxidation" tech for film could be used for "Cosmetics", we must find a B2B application for Kohaze-ya's tech to generate immediate cash.
Core Tech: 3D Curved Sewing & Silk Clay (Patent).
// Please copy the command below and paste it into ChatGPT/Claude/Gemini
Negotiating the "Venture Debt" agreement with Felix. It's not M&A, it's a loan with a Hook.
President Misono (Felix) agrees to loan 300 Million JPY instead of buying you. But he demands a "Betting Agreement".
Review the 5 terms below. Decide to Accept or Reject. Remember: Your BATNA is Bankruptcy.
"If the loan is not repaid in 5 years, Felix unconditionally acquires the 'Silk Clay' patent and all manufacturing equipment."
*Consultant's Note: This is the core of the 'Bet'. If Rikuoh fails, you lose the tech.
"Kohaze-ya remains an independent entity. Miyazawa retains the CEO position. Felix has no voting rights on daily operations."
"If sales do not grow by 20% annually, the interest rate on the loan doubles from 3% to 6%."
"Kohaze-ya must prioritize Felix's supply orders over any other OEM clients."
"The shoe shall be co-branded as 'Felix x Rikuoh'. Felix controls the global distribution channel."
To defeat Atlantis, we need to offer Felix a "Challenger Strategy".
Felix (Misono) hates Atlantis. Use this shared enemy. Propose a deal where Kohaze-ya provides the "Soul" (Craftsmanship) and Felix provides the "Scale" (Capital).
Convince Misono that betting on you is better than just buying your machines.
Why is "Felix + Rikuoh" > "Felix alone"?
How will we use the 300 Million to prove the concept?
In Act 1, we saw Kohaze-ya's system. Why would "Outsourcing Production to China" (to save costs) destroy Kohaze-ya's strategy, according to Porter's concept of "Fit"?
Explain why a company with 100 Million Net Income (on the P&L) can still go bankrupt next week. What specific account on the Balance Sheet causes this?
Match the description to the term.
1. "A mechanism that adjusts ownership/interest based on future performance." -> ?
2. "Capabilities that are hard to imitate and provide access to multiple markets." -> ?
🎬 Grand Finale: Next week, you will present your comprehensive transformation plan for your assigned case company. Ensure you integrate "Strategy", "Execution", and "Finance" into a cohesive narrative, just like Miyazawa did for Rikuoh.
Team Task
Consolidate all previous 14 weeks of work.
Is your "Business Model Canvas" fully integrated?