...Beginning the first phase of marketing and developing took careful consideration. First, a product that met all of the top needs of the consumer with a few extras was the top priority. After the product was completed, the need for proper exposure in the media and a solid workforce was needed. During the development phase of the computer, the top functions were implemented into the model for each of the market demographic and then one or two extras to make sure that the new product had an edge against their competitors. It was important to make sure that the price point was comparable to the competitors as well our product having a technology edge. Next, research was done to compare the salary packages of sales personnel for other like products. Initially the salary and the pension benefits were increased to be above the average salary in the World Market and the other benefits, vacation and health benefits were kept at the average of the market. Each quarter the market, productivity and the market average were assessed and salaries were raised accordingly to stay just ahead of the others in the market. After having product development, advertising and sales employees put in place, a decision had to be implemented on how much inventory needed to be produced. Research was done on what the demand for each type of product was in each area. Typically the only 25% of market share is what can be expected in the first run of a new market. The amount of inventory was calculated on...
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...JCT 2 Task 1 Heidi Dyer A. The following files have been submitted as attachments: · Fourth Quarter Cumulative Balanced Scorecard · Income Statements for the 4 quarters · Balance Sheets for the 4 quarters B. 1. A budget is an itemization of estimated or known expenses for a given time period. Pro-forma Statements are forecasted income statements, statements of cash flow, and balance sheets for the following term. They are based on expected revenues and costs. It is a good idea to pay close attention to the figures in these statements, although they are not based on fact, they do provide helpful advice if used in conjunction with previous quarter financials and the allocated budget. The budget and pro-forma statements are used to plan production costs. I tried to keep costs at a minimum for the first and second quarter planning. I opened only 2 offices, advertised sparsely, and hired a minimum of sales people. However I underestimated sales and though I had cash left for the next terms, I did not have enough inventories to cover the demand. For the third quarter I spent more than I had previously and squandered a great deal of the capital I had built up from the second quarter, suffering a significant financial loss. I did not pay attention to the pro-forma statements and did not think about the budget. My lack of planning showed at the end of that quarter and I learned a valuable lesson. If this had been a real company and not just a simulation, I would...
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...JCT2 – Task 1 Western Governors University Table of Contents 1. Financial Statements a. Balanced Score Card b. Income Statement c. Balance Sheet d. Cash Flow Statement 2. General Simulation Analysis a. First Quarter b. Second Quarter c. Third Quarter d. Fourth Quarter 3. Adequacy of Funds 4. Just-in-Time 5. Lean Operations 6. Work Cells 7. Inventory Management 8. Continuous Improvement Program 9. Sources Financial Statements Balanced Score Card Income Statement Balance Sheet Cash Flow Statement General Simulation Analysis Micro Computer Solutions (MCS) performed well below the market standard during its first year. The company failed to establish and defend its position during any of the quarters. “Firms achieve (their) mission in three conceptual ways: (1) differentiation, (2) cost leadership, and (3) response.” (Heizer and Render, 2011). The struggle of MCS can be attributed to failure to invest in its future, and overall financial performance. The company did not design any new micro computers during its first year and the Max and Air had a limited technological life cycle, because they failed to evolve. In addition, the firm was unable to make the necessary adjustments in branding and advertising to meet market demands. MCS manufactures two different types of micro computers, Max 2.0 and Air. Max 2.0 cost $3,160 and was created specifically to cater to the Workhorse demographic. The Air was designed...
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...A. 1. Brand Design: When determining brand design, I consulted the lists of criteria each of my target markets claimed would be the most important items they wanted in their computers. All of the things they desired most were not available to me at the beginning of the simulation, and because I did not design new models for the third and fourth quarters, I was unable to give them the other components that they required later in the game. I started with 2 models, a portable and a desktop. The TN Portable was designed for the Traveler’s market. The TN Desktop was designed for the Workhorse market. I examined the specifications that each of my target markets was looking for and tried to give them products that they would enjoy. Both designs had the base components, office software, multi-media for office, standard keyboards, and standard networking. The portable also included the slim rugged design, 10 inch monitor, and standard computing power. The desktop was packaged with gaming software, a 15 inch monitor, and high performance power. Before the end of the simulation I had modified each brand, designed new brands and stopped producing all except for the TN Desktop and the modified TN Portable II, which unlike its predecessor offered games and high performance power. Although I did well in both target markets, none of my designs for portable computers were actually recommended to the traveler’s market. If I had produced a new computer later in the game I would have been able...
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...1. Explain how you determined your brand design decisions. When making brand decisions, I utilized market research as well as the provided statistics in regards to what customers desired in regards to a specific type of computer. Unfortunately, by using this technique, both of my original designs were rated poorly in terms of how they met a customer need. By benchmarking my decisions against my competitors in the subsequent designs, I was able to design a more successful product. Whereas I had focused on the specific and literal definitions of the customer need, my competitor had provided “bonus” items that increased the customer’s overall experience and satisfaction with the product. Based on the needs and wants information provided, the most important features and benefits to the Workhorse market were ease of use, low price, office applications, and after sales service and support. Additionally, the ability to link with other computers, fun to use and fast and powerful ranked somewhat high on the desired list. Based on these preferred features and benefits, my initial design included features to match the top five requirements. I did not include “extra” features to keep the initial production cost down. Similarly, with the Traveler market, the most important features and benefits were portability, the ability to link to other computers, office applications, low price and easy on the eyes. Other notable features and benefits were after sales service and support...
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...A1: Product Design During the course of the year, TCB enterprises had tried to design its products based on what the customers wants. During the test market phase, two line of product was created; the Echelon, aimed for the high end market, and the JetSetter, aimed towards the travelers. These brands were also priced below the price that customers are willing to pay. Discounts were also given to reduce the price even further to attract customers to these brands. In Quarter 2, the decision was made to rename the Echelon line to Mercedes, and a new line, the Workhorse line, was added. This was decided as TCB’s management wanted to cover all three markets in order to gauge the profitability of each market. The Mercedes and Jetsetter lines were modified to align them more towards the customer’s needs and wants. Based on the performance reports from Quarter 2, during Quarter 3, TCB decided to realign all three lines. The Jetsetter line was renamed to Traveller to emphasize that this line is catering to the travelers. Each line was modified based on customer’s feedback, and each line was given the “v2” signature to emphasis on the newly improved version of the lines. The pricing strategy was kept the same, and the advertising campaign was modified to emphasize on the modified lines. In Quarter 4, a new line was added. The Echelon Line was reintroduced during this quarter...
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...A1. Brand Design Decision Traveler Brand The reason for creating a computer for the Traveler is to provide those who are business executives with a device which can be taken on business trips and have all the amenities used in an office computer but compact. The name chosen for this creation is the Phoenix GT which is an analogy to a sports car that has a GT engine. When consumer see or hear GT, they think fast, sleek, and finely tuned machines. This is the brand image that we want all executive to think about when purchasing there laptop. The market was in need for a design which the target market could feel confident about. Traveler Brand Functionality The Traveler Brand is the most top of the line laptop in its class. The GT comes with a 4th Generation Intel Core processor which allows the computer to operate without lagging transition from one program to the next. This comes in handy when executives are running meeting remotely and need to access additional programs as a part of the presentation. Comes with 8GB DDR3 SDRAM at 1866mhz to retrieve information from multiple file storage location in the hard drive. As for the hard drive, this model comes with 512GB made by Solid States. The amount of GB’s supersedes most desk top computers which are why this is the preferred choice of executives. Imagine having enough GB’s where you can download projections and diagrams of every project without worrying about space to store vital business information while traveling. ...
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...Task 2 Supply Chain Western Governor University A1. Brand Design Decision Traveler Brand The reason for creating a computer for the Traveler is to provide those who are business executives with a device which can be taken on business trips and have all the amenities used in an office computer but compact. The name chosen for this creation is the Phoenix GT which is an analogy to a sports car that has a GT engine. When consumer see or hear GT, they think fast, sleek, and finely tuned machines. This is the brand image that we want all executive to think about when purchasing there laptop. The market was in need for a design which the target market could feel confident about. Traveler Brand Functionality The Traveler Brand is the most top of the line laptop in its class. The GT comes with a 4th Generation Intel Core processor which allows the computer to operate without lagging transition from one program to the next. This comes in handy when executives are running meeting remotely and need to access additional programs as a part of the presentation. Comes with 8GB DDR3 SDRAM at 1866mhz to retrieve information from multiple file storage location in the hard drive. As for the hard drive, this model comes with 512GB made by Solid States. The amount of GB’s supersedes most desk top computers which are why this is the preferred choice of executives. Imagine having enough GB’s where you can download projections and diagrams of every project without worrying about space to...
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...Task 2: Marketplace Simulation Evaluation Section A: Simulation Results A1: Explain how you determined your product design decisions in the simulation. During the simulation, I used two pieces of information to design my products by. The first was the initial information provided in quarter one in the section “Market Research – Customer Needs.” I decided to focus on two groups and create two products. I choose the features of each product based on the market research ratings for each of the features and attempted to create names for each of the products that would appeal to the product’s target group. For example, the Workhorse group needed an easy to use computer, loaded with office applications. For them, I created a machine based on their needs called the “Workforce-LS,” a name which I thought would speak to its intended use. In the following quarters, I looked to sales data, customer needs, and added design options to create new products. I used the sales data to determine what features my competitors were offering which might have enticed customers to purchase their products over mine. I also looked at upgraded design options, such as a larger screen size or faster processors, to redesign products based on the provided customer needs. Overall, this strategy worked as my sales increased with each adjustment made. A2: Discuss whether you would change the target markets you selected if given the opportunity to repeat the simulation. My initial response to this question...
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...JCT 2 Task 3 Having been retained by a group of investors who plan to manufacture and market a line of power hand tools to guide their decisions around the supply-chain, the first order of business would be to recommend adoption of an overall supply-chain strategy. There are many different strategies to choose from. One such strategy would be to use the Many Suppliers strategy where “a supplier responds to the demands and specifications of a ‘request for quotation’, with the order usually going to the low bidder” (Heizer, J. & Render, B. 2010, p. 425). This strategy forces the suppliers into competition with one another and is not very conducive to forming long-term partnerships. Another is the Few Suppliers strategy where the goal is to form long-term relationships with suppliers. “Long-term suppliers are more likely to understand the broad objectives of the procuring firm and the end customer” (Heizer, J. & Render, B. 2010, p. 425). The potential downside for this strategy is huge cost for changing suppliers if necessary and the purchaser also has to worry about supplier performance. The strategy I would recommend for the power tool company would be the Vertical Integration strategy. The goal in using this strategy would be to ‘develop the ability to produce goods or services previously purchased or to actually buy a supplier or a distributor’ (Heizer, J. & Render, B. 2010, p. 426). Vertical Integration can also offer different strategic opportunities...
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...Managing Internal Cost & Controlling – Developing & Maintaining Quality – Managing Operations JCT2 Supply Chain Task 1 Western Governor’s University Introduction My company name was Arete Sytems. Arete is an ancient Greek term meaning “excellence of any kind”. The choice of name was intended to represent the quality, high-end systems that we would produce. B1. Using Budgets and Pro-Forma Statements to Plan Production Capacity One of my key lessons from this simulation was the importance of working in teams and openly discussing decisions that need to be made before making them. I approached the simulation as the only team member because the simulation didn’t include other participants. In retrospect, I would have assigned other members, at least in my mind, to gain additional team insights. I was not careful enough in setting pricing for my two products correctly in the second quarter when we actually began sales. I priced my high end Mercedes line accidentally at the price I had planned for my mainstream Workhorse line and vice-versa. I did not look closely enough at my pro forma cash flow or income statements to recognize the forecasted loss and as a result did not dig deep enough to see the reasons and to make the adjustments in pricing. I was overly focused on cash at that point to fund production capacity. I discovered the error when evaluating second quarter actuals. Going into third quarter planning, I looked at the pro forma cash flow...
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...JCT2 Task 3 A: Supply Chain Strategy The best strategy for this company in regards to supply chains is known by the Japanese term “Keiretsu”1. “It is part collaboration, part purchasing from few suppliers and part vertical integration.” Your manufacturing company would most “likely be a financial supporter of some or all of your suppliers through either ownership or loans. Members of the Keiretsu are assured long term relationships but are expected to collaborate as a partner, provide technical expertise, and stable quality production”1 to you. What this means to you is the ability to work with suppliers with a relative level of trust. This will allow you to work together on making your power tools a better product to the competition. In addition your company’s goals will be directly tied to the goals of your suppliers. You can share data, collaborate on business decisions, as well as standardize your products and processes. This makes the overall success of your company just as important to your suppliers as to yourselves. You will have to be mindful of a few things. The first is to keep an eye on your entire supply chain and make sure that all of the entities involved are aware of the overall goals. This will help keep the idea of “Local Optimization”1 in check. “Local Optimization”1 is the concept where a supplier or other entity is unaware of the overall goal and its importance and focuses on their own goals which could potentially sabotage the overall efficiency...
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...B1. During quarter 1 the company started with a budget of $2 million to get the company off the ground. From the initial seed capital, I was able to effectively plan and the company’s infrastructure using the Q1 balance, income and cash flow records. The financial allowances were budgeted for the opening of two sales offices, research and development, and fixed plant capacity. Based on a startup operating budget of $2 million, I was able to allocate a fixed plant capacity 1,625 units a quarter at cost of $600,000. Reviewing the cash flow balance sheets, the company was able to end the period with $810,000 positive balance and a negative cash flow of $590,000. Had the decision been made to increase the plant capacity the first quarter costing $1.1 million, the company would have been left with a negative cash balance, thus requiring additional funding to operate. As the company progressed through the quarters, careful analysis of the previous quarter accounting statement were undertaken to understand the current company cash flow versus total balance with combined assets and debt before allocating an operations budget plan. Using balance sheets along with pro forma statements allow the budget to be planned by projecting the impact to the cash flow in real time. Using the Pro Forma statements in conjunction with setting the cost of goods and the capacity of the manufacturing facility for quarter 2, the company was able to realize $1,810,000 in revenue, with a cost of $1,195...
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...Supply Chain Task 1 B.1 Pro-Forma and Budget Quarter 1 marked the launch of NeoTech. Two million dollars in capital was raised by selling company stock. This capital was used for the initial cost of the launch. Unlike later in the simulation, budget decisions in the first quarter were much easier to manage because costs were fixed, and the revenue guaranteed. Just over half million dollars was spent to open the first office and complete research and development. I determined the direction of NeoTech would be to focus on producing a high end computer as its marquee product and a mid-range/office computer as a secondary focus. Quarter 2 marked the first quarter where a product was produced, salesmen hired, and product sold. The most difficult decision in this quarter was finding the proper equilibrium between projecting sales of a new and unknown commodity, choosing the right amount of sales people and their compensation, and determining a competitive yet profitable price. Summarizing the decisions made in quarter 2, a total of 9 salesmen were hired at 55k annual salary. It was estimated that each salesman would sell at minimum 100 computers. The high end computer, “Engineo” was priced at $3799.00 with a $300 rebate. The “Neoffice” was priced at $2,000.00 with a $100 rebate. The cost per unit of the engine and Neoffice were $2,146 and $1,794 respectively. Based on the cost per unit and the predicted sales per salesman, NeoTech directed the production of 600 Engineo...
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...Task 2 A. Analyze your simulation results. Include the following in your analysis: 1. Explain how you determined your brand design decisions. In the first quarter, it was the goal of the company to focus on higher quality products, for a more discerning market willing to pay more. There was a secondary goal to use the prestige of the brand to incite interest in the lower end models that would be offered to the Workhorse level client. It was also the goal of the company to offer an affordable product that offered a higher value for the lower end of the market. With those goals in mind, customers needs were assessed for both sectors of the market to help determine what to include in each brand. For the Mercedes line, the Elite, any item that showed that there was either a clear or marginal need was added to the product. This same process was used for the Workhorse or Pro brand. One thing that was added to create value and differentiation from the rest of the market was each model was to have the fastest processor. Each quarter in the beginning we held almost 25% of the market, with three other competitors, we neither were behind or dominated it. Each Quarter would bring an updated model to each brand, with a focus on needs. Market research would tell of where items hit or missed the mark, and the brands would be redesigned to compensate for the misses. As the fourth quarter approached it became clear that the traveler market was interested in the type of products the company offered...
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