Capsim round 1

Change 1: Increased Pfmn from 8.0 to 8.9.

Change 2: Decreased size from 12 to 11.1.

→ Reason: Both Pfmn and Size are important to the customer in High-end market segment with the importance of 43%.

Dot (Pfmn):

Change 1: Change Size from 15.5 to 16 in order to meet customers’ expectation in the segment.

Dune (Size):

Change 1: Pfmn remains the same, but Size has been decreased from 11.0 to 10.6. (Importance=43%)

Marketing: Truc

Price

Daze (traditional): Price is 23% important, price range is 20-30.

With 23%, price is the second important after the ideal age. Thus, customers will 1st look for ideal age and then consider the price. I will adjust the price in the middle which is 25.

Dell (low end): Price is 53% important, price range is 15-25

Since the percentage of price of Low End is very high, which is 53%. Customer will basically look for the cheapest but nothing else. I will decrease the price to 20, since it must larger than sum of material cost and labor cost

Dixie (high end): Price is 9% important, price range is 30-40

Because the importance of High End price is only 9% important, which means customers won’t care much about the price. Thus, I will increase the price to 40, which is the max price customers are willing to pay for High End.

Dot (performance): Price is 19% important, price range is 25-35

For performance, Price is the 3rd important, so I keep the same price as 33.

Dune (size): Price is 9% important, price range is 25-35

Same as High End. Price will be 33 as last year

Your Forecast: Unit sold last year

Daze: 999, price 28.00. This years, we decrease the price to 25. So I’m expecting it will be sold more, which is 1300.

Dell: 1763, price 21.00. Price is very important in dell, with 20$ I believe the unit sold will increase to 2300

Dixie: 366, price 38.00. We increase the price which is not much important, but we also increase performance. So I expected to sale 400

Dot: 358, price 33.00. Price is the same but we did some change to meet customers’ needs. So I expected to sale 400

Dune: 314, price 33.00, Price is the same but we change the size so the expected sales is 350

Promotion Sale:

Daze: $1000, 55% spend 1000 this year increase to 77% awareness

Dell: $900, 52% + increase to 2000 to get 45%, so we have 97% awareness because we increase number of sale

Dixie: $800, 49%, spend 500 this year increase to 60%

Dot: $700, 46%, spend 500 this year increase to 57%

Dune: $700, 46%, spend 500 this year increase to 57%

Sales Budget

Keep them the same

Production: Yone

Daze’s price $29.00 capacity next round $1,800, 1st shift capacity is $1,100 so i put double amount of that so $2,000 and i sell out -$700 capacity see how much we lose or gain for investment. So, it gain $10,010.

Dell’s price $22.00 capacity next round $1,400, 1st shift capacity is $1,400 so i put double amount of that so $2,800 but this time i didn’t sell it and i buy 400 capacity. We lose $10,400 for investment.

Dixie price $38.00 capacity next round $900, 1st shift capacity is $900 so i put double amount of that so $1,800 but this time i didn’t sell or buy.

Dot price $33.00 capacity next round $600, 1st shift capacity is $600 so i put double amount of that so $1,200 but this time i didn’t sell or buy.

Dune price $33.00 capacity next round $600, 1st shift capacity is $600 so i put double amount of that so $1,200 but this time i didn’t sell or buy.

Truc

Yone: I did change all number of production schedule of your part. I had told you that you have to wait for me to make decision. I’m so sorry to forget to update it.

So what we will change in production schedule is make the number of production after adj is close to the unit sales forecast.

For example, we believe that we will sell 1300 units for Daze, so I tried to put 1300 in production schedule since we still have some inventory on hand, and then I click on recalculate, it show in the production after adj is less than 1300, which is less than the units we expect to sale, So then I tried 1400 and recalculate again. It show that we have 1386 for production after adj, which is higher than the number we expected to sale. However, if in the future, you don’t believe we can make the forecast, you can put 1300 for worst case.

Finances: Phuong

Parenthesis = loss unless it means in thousands

Plant Improvements:

Total Investments ($000) is at $10,400 -> cannot interact

Sales of Plant & Equipment is at ($10,010) -> cannot interact

Common Stock:

Shares Outstanding (000) is at 2,400 -> cannot interact

Price Per Share is at $34.25 -> cannot interact

Max Stock Issue ($000) is at $13,700 -> cannot interact

Issue Stock ($000) - I issued it from $0 to $13,700 to make Cash Position for December 31, 2017 gain some money as it was higher in the negatives which was at ($83,000) down to ($70,179). I maxed it out so that the

I kept Retire Stock ($000) and Dividend Per Share at $0 because it changes important values to more negative and didn’t want that to happen.

Current Debt:

Interest Rate is at 9.9% -> cannot interact

Due This Year is at $0

Borrow ($1000) was at 0 but changed it to $1000 to reduce the debt that would be predicted in December 2017.

Long Term Debt:

Retire Long Term Debt ($000) is at $0

Issue Long Term Debt ($000) was at 0 but changed it to $5,000 to reduce that debt that would be predicted in December 2017 and also to help even the current debt and long term debt. Although the earnings per share went from a loss of 1.60 to loss of 1.84 - it should cancel out some current debt.

-> Updated my decision for Finance (includes Accounts Receivable/Accounts Payable) @10:35

Human Resource: Yufei Bai

Overtime is 0% < 0.2% decreases employee turnover and increases productivity.

Turnover rate is 10%=10%, A better workforce increases worker productivity and lowers worker turnover.

Recruiting cost is $71, we need increase recruiting cost to recruit a better workforce.

Training hours can boost productivity index and save on employee cost. Recruiting Spend is set depending on its benefits.

Training produces a higher productivity index and a lower turnover rate. The productivity index displays 100% that means new workers are just as good as old Workers.