Hello Team,
Please see attached Word document for my detailed analysis and proposed changes in CAPSIM. I provided a detailed report based on data from Round 3 which was used as my justification to make changes in Round 4. Below the report I included my proposed changes in CAPSIM. Note: I did not save my changes on CAPSIM so not to overwrite anything until we are 100% sure to submit. Again, all proposed changes are in the document I attached. Feel free to suggest changes and/or make tweaks if necessary. Enjoy the rest of your weekend.
On Aug 20, 2024, at 8:35 AM
Team,
Good morning, I hope all is well with you all. We are now onto round 3. As a reminder, Matthew if you could have your adjustments saved by the end of today that’d be awesome so we can look at it and discuss it tomorrow and Wednesday morning if need be. Please send out your summary email of changes and why, plus when you’d like feedback by. Again, have an awesome Tuesday and we’ll chat soon.
On Monday, August 19, 2024 at 03:08:41 PM
Sending another follow up; I think I should go in and set the production for the US? Happy to step in and do that.
I did when I sent the email…thanks for the note though! We have plenty of time so just let me know how to proceed.
Team, sorry for the late email. I am checking on the new product that I put in – buzz – and it looks like there are a few additional things we can go in and set prior to the next round.
· I think we should sell it in another market (probably Germany and perhaps China too), if we do that then we will need to set the marketing budgets for those two markets.
· Regardless we need to set production for buzz in the US because there is a forecast, but we didn’t set the production budget.
Sorry for the late email and I can go in and set these if you would like me too prior to the round.
Team,
The second round of the sim takes place this evening at 8 p.m.. After taking a look at the adjustments made by Ms. Negron, I don’t have any major heartburn with any of the changes. We shall see how the changes work out. Do any of you have any suggestions, or items that you would like to discuss? Ms. Negron asked that we have comments to her by this morning…..
For round 3, Matthew, you are next up with your turn at the wheel. Please have your adjustments and roll up email out to us by tomorrow, Tuesday 20 August in the evening. Once you have done so, we will all take a look and provide feedback by when you would like to have it based on your schedule.
Ms. Negron, thank you for your return email I look forward to seeing how this round turns out.
Round 2 update: This is what I did.
The speed and accuracy values were adjusted to 5.7, positioning the product at the center of the perceptual map. Additionally, the unit price was reduced, which decreased the “revision date”, making the product more appealing to the Chinese and German markets, which have a lower acceptance rate than the United States at 19%.
To maintain consistency with the strategy of offering high-quality products that “stand the test of time,” a service life of 18,000 hours was established. This adjustment reduced the unit cost to $10.73 while ensuring the continued production of quality products.
The promotion budget was increased by 75%, exceeding the recommended 60%. This increase aims to enhance the product’s visibility relative to competitors and improve accessibility.
Production capacity and automation were slightly increased, which is expected to generate savings in labor costs.
In the finance area, a loan was secured, and shares were issued to ensure a positive closing cash position. These measures aim to guarantee future financial stability and maintain strategic consistency across all departments.
Good evening everyone,
Thank you for your patience in getting round 3 changes and recommendations done. Please review the following:
R&D Changes Made:
· Baker
· Speed and Accuracy updated from 5.7 to 6.3 which are the ideal positions for each in the low tech segment.
· There was still a lot of time available in the calendar year till the end of 2027, so I propose adding region kits to USA and China.
· With the remaining time of revision date still available, increased the service life to the upper end of the service life range placing Baker in the center of the low tech perceptual map.
· Buzz
· Speed and Accuracy updated from 9.0 to 9.5 which is the ideal position for each.
· Service life is already at the top of the range so that is kept the same.
· Region Kits were made for Germany and China with a resulting revision date still within 2027.
Marketing Changes Made
· Baker and Buzz both optimized to the top end of price range
· Promo budget maximized to foster 100% awareness
· Sales budget unchanged as it was already maxed. Adjusting the sliders didn’t seem to yield any change so I am a bit confused on that one.,
· Buzz sold in Germany and China now so lots of changes were made there.
Production
· Had some difficulty with Baker due to budgetary and plant restrictions so I maximized production while still remaining on budget.
· I think we are well on our way to meet demand for Buzz and still remain under budget. Capacity increased to meet production demand. Remaining available funds are allocated to investments in automations.
Finances:
· Production for Buzz automation investments was limited to 3 to end the year with a positive cash position. Remaining cash position used to pay down long-term debt.
· Remaining Closing Cash position is used to retire debt, buy back stock, and Issue a small dividend to shareholders.
· Closing Cash position is $10 (in 000’s).
