| ASSIGNMENT 2: Case Problem "Business Simulations Global - Marketing Only One of Two New Business Simulations" |
| Problem Description |
| The company Business Simulations Global (BSG Co) is developing two different business simulations for a pilot offering in the next six months: International Trade and Logistics Strategies (IT&LS) and Digital Marketing Strategies (DMS). |
| | (i) IT&LS is a unique business simulation and appears to have no competition. |
| | (ii) BSG Co is optimistic about the success of the business simulation DMS. However, the concerns are that the profitability will be affected by a competitor's introduction of a similar business simulation. |
| | (iii) For planning purposes, BSG Co is predicting there is 0.6 probability that its competitors will produce and offer in six months on the market a new business simulation similar to Digital Marketing Strategies. |
| The estimated profits and profitabilities under high, medium, and low demand for both business simulations are as follows: |
| | | State of Nature (Demand) |
| | | High | Medium | Low |
| | International Trades & Logistics Strategies (IT&LS) |
| | Profit | A | B | C |
| | Probability | a | b | c |
| | Digital Marketing Strategies (DMS) with Competition |
| | Profit | D | E | F |
| | Probability | d | e | f |
| | Digital Marketing Strategies (DMS) without Competition |
| | Profit | G | H | I |
| | Probability | g | h | i |
| Assignment 2: Starting Conditions |
| Each student will receive from the instructor an excel file with a different dataset for profits (A to I) and probabilities (a to i). You have to prepare and submit a managerial report where you should answer the question: "which one of the two business simulations BSG Co should prepare for marketing?" | | | | | Grading Points Per: |
| | | | | | Tasks | Assignment |
| # | Content per Tasks | | | | | 10 |
| Task 2-0 | Students should structure and present their Assignment 2 in the form of a Managerial Report. The expected length of the main body (tasks 2-1 to 2-4) is up to 3 pages APA format, excluding cover page, table of content, executive summary (task 2-5), and appendices (screenshots of the Payoff Table, EMV Table, Sensitivity Analysis Diagram, TreePlan Diagram of the Decision Tree). Submission requirements: Managerial Report (pdf file), and excel file with completed worksheets (iii) to (vi). | | | | 1 |
| Task 2-1 | Prepare a payoff table and develop a decision tree for this problem | | | | 2 |
| Task 2-2 | Given this probability of competition and using expected monetary values (EMVs), recommend which one of the two simulations to start marketing: IT & SL or BSG? | | | | 2 |
| Task 2-3 | Use sensitivity analysis to determine what probability of competition for Digital Marketing Strategies (DMS) would have to be for BSG Co to change your recommended in task 2-2 decision alternative. | | | | 2 |
| Task 2-4 | Apply a software tool for the decision tree/Task 2-1 (the recommended tool is MS Excel Add-Ins TreePlan is preinstalled on all V-PCs of the MET V-LABs). | | | | 2 |
| Task 2-5 | Prepare an executive summary | | | | 1 |
| | List of Worksheets in the Excel File (it should be used as a reference for different tasks of the managerial report) |
| (i) | A2 Text |
| (ii) | Payoff Table - Template |
| (iii) | Payoff Table - Solution --> Needed for Task 2-1 |
| (iv) | EMV Table: use EMV as a decision criterion for each decision nodes and states of nature nodes and recommend which one of the two simulations to start marketing --> Needed for Task 2-2 |
| (v) | Sensitivity Analysis Diagram: compute the probability of competition for GMS and define the range of probability values before BSG Co would change to IT&LS (probability of the cross point = ?) --> Needed for Task 2-3 |
| (vi) | TreePlan Diagram of the Decision Tree: use BU MET V-LAB for Excel Add-In TreePlan --> Needed for Task 2-4 |
Raina9312
AD715Sprg2018__A2TextTemplatesforTasks2-1to2-4.xlsx
