Simulation Report 1

StratSim

Team D

YEAR 1:

· Strategy: to be leaders in the automobile industry while promoting quality and safety cars. 

· Objective/ mission statement? 

· Minor update for Defy: family car 33% market share - a lot of competitors but we are leading in this category

· justify why this car

· Create Luxury car “Deluxe” - on market Y3

· Upgrades: Interior, Safety and Quality

· Development of Deluxe begins - idea why we did that? Segment: high income and enterprise

YEAR 2: 

· Open new distribution center 

· 3 dealers set to open in North and South

· 1 dealer set to open in East

· 1 dealer set to open in West

· Increased capacity available +1 because we were underproducing

· justify the decisions

YEAR 3

· improve all cars even minor

· Deluxe on market - Set price above 35K (competitors are set at 40.3K and 40.7K) maybe due year 4

· create EAV vehicle

· creation of an additional Plant Automation otherwise it might be a disadvantage???

· ​​Make sure all vehicles are above 4 in safety to avoid fine - detonka will reach 3 in 2 years

· Increased delite price by 1K 

· readjust promotion and marketing ads based on consumers

· increased dealers N and S mainly

· issued 100 M in bonds

·

YEAR 4: 

· Economy: increased safety, quality and interior. Size and horsepower.

· Truck: Detonka: increased safety and styling

· Deluxy: increased size and quality 

· Electric car: Delectric. 

· Marketing:

· Defy (family): increased adv to 60 and decreased promotion to 40 

· Delite (economy): increased avd to 35 and decreased promotion to 24

· Deluxe (luxury): increased adv by 37 and no changes. We changed the advertising theme to Styling. 

· Detonka (truck): increased adv to 35

· North to 35, the rest remaining the same. Social media to 11, and direct marketing decreased to 6.

· Increased dealer 5 in North, the rest remaining the same since we didn't increase budget.

· Increased production in Defy and Detonka. We avoid overproduction, especially since we are making changes in all vehicles. 

· Financing: 3 M in CD @ 3.5% and 3 M in loan repayment.

· special decision: invest in plan automation (10% cost to build current capacity)

YEAR 5: 

· Delectric launching in Y6. 

· Increase safety and Horsepower for Delite (Economy) 

· Increase size, style, interior and quality for Deluxe (Luxury)

· Increased in adv in Delite by 38

· Decreased the price of Deluxe by 37,999

· Increased dealer discount in Deluxe by 15%

· Increased dealer discount in Delite by 10%

· Increased the price of Delite by 13,298

· Increased adv in Deluxe to 35 and decreased 

· Increased adv in Detonka to 40 and decreased 

· Increased price  Detonka 19,669 

· Increased marketing in North by 40

· Increased dealers 4 in North, 2 in South, 1 in East and 1 and West.

· Inventory: Delite 450, Detonka 515, Deluxe: 110, Defy: 750

· Technology: Interior and Style

Decisions:

12/19 - Description: Technology - Invest in Safety

12/ 19 - Description: Product Development - New Development Center

12/19 - Description: Consumer marketing - Direct marketing (5) and Advertising in East (18)

12/19 New project for Delite - minor upgrade

12/19 - Description: Consumer marketing -  Advertising in the South (22)

12/19 - Description: Marketing for Delite: Quality

12/19 - Description: Marketing for Detonka: Performance

12/19 - Description: Distribution - New East Dealerships

12/19 - Description: Manufacturing:

Detonka 400K

Delite 300K

Defy 550K

Capacity change 1K

12/19 - Description: Finance:

Sell bonds: $100M

Loan repayment: $2M

12/19 - Description: Manufacturing:

Scheduled Production for Detonka: 420 K