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Wgu Task 2

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With utilizing the pro-forma balance sheets revealed that I did not use the correct approach. My overall market share for traveler was around 94% however in the workhorse line my overall market share was only around 42%. I made a decision to invest $500.000 into a certificate of deposit which proved to be disastrous. I only opened one office in North America and because of my neglect in opening an additional office, I was not a leader in the market share.
It is vitally important to utilize the pro-forma balance financial statements as they are used to determine the outcome of previous decisions that one has made. Earlier, in the first quarter, I had a negative $294,000 that required that I take an emergency loan of $300,000. This was disappointing to me because and made me understand that I needed to make some adjustments especially since I was only at 3% market share with the workhorse line – I dropped the line completely. I made the decision to drop the workhorse after reviewing my profit and loss statements. I viewed this as a low profit item that was taking away from cash assets that could be best used to catapult our traveler line and this was the overall cause of having to take the emergency loan with the loan shark.
My overall goal was to regain market share and then work to defend it. I eventually gained market share but unfortunately I did not keep it. My initial approach early in the simulation did not allow me time to correct and adjust my mistakes. I analyzed the competitors and they were gaining multiple ground against me.
Competitive Posture |
X | build a market position and defend it |
X | take the lead and keep it | | be first to market | X | be the leader in all things |
| be a fast follower, imitate smart competitive moves |

Once I reached the 3rd quarter

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