Simulation Report #1

4/3/22, 8:57 PM StratSimManagement @ Interpretive Simulations

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Decisions / Decision Summary

Interior Styling Safety Quality Total Maximum 10 11 10 11 Firm Maximum 7 7 6 8 Cost to Increase by 1 (mill.) $218 $303 $399 $340 $1,260 Est. cost savings of increase (mill.)

$5 $1 $3 $1 $10

Increase Attribute: Yes Yes Yes Yes Curr. Expenditure (mill.) $218 $303 $399 $340 $1,260

Technology

Dev. Center Project Class Size HP Interior Styling Safety Quality

Base Cost*

Current Expense

(mill.) Maximum: 7 7 6 8

1 CA001 New Vehicle

Launching Y#4 AEV 50 150 6 5 5 7 $25,961 $455

2 Cafav Cost Reduction

Launching Now Family 49 165 4 2 2 2

$15,357 $15,062

$184

3 no project

Construct a new center for $630 Million

  Total Expense: $639

* Base cost only; use the Pro-Forma for a projection of the unit cost when you launch the upgrade.

Product Development / Projects

No concepts were created in this year

Product Development / Concepts

Corporate Advertising Millions    North $42    South $70    East $25    West $25 Social Media $90 Direct Marketing $39 Total $291

Ad Themes

Segment Targets

Marketing / Corporate

✓ Interior ✓ Styling

✓ Safety ✓ Quality

✓ Performance

Showroom

StratSimManagement Past Start Year 1

Stock Price: $34.37Introduction Company Market Competition Tools Decisions

Firm C

4/3/22, 8:57 PM StratSimManagement @ Interpretive Simulations

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✓ Value Seekers (1) ✓ Families (2)

   Singles (3) ✓ High Income (4)

✓ Enterprisers (5)

Vehicle Class MSRP Dealer

Discount Advertising

(millions) Advertising

Theme Promotion

(millions)

Sales Forecast

(000's)

Remove From

Market Cafav F $31,361 12.0% $60 Safety $40 142 No Camini M $24,144 13.0% $40 Quality $30 226 No Climax L $45,997 16.0% $80 Interior $20 121 No Totals       $180   $90 489

Marketing / Products

Total North South East West Full Coverage 800 200 250 150 200 Established 350 80 95 85 90 Sched. Change 22 8 6 6 2 Coverage 46.5% 44.0% 40.4% 60.7% 46.0%

Dealer Inc./Dec. (0% limit: ±0) 29 8 8 6 7 Coverage with Current Decisions 50.1% 48.0% 43.6% 64.7% 49.5%

Training and Support (mill.) $90 $22 $24 $22 $21   Per Dealer $228,426

Note: The estimated cost of opening or closing a dealership is $2 million. Average overhead per dealer is estimated at $294 thousand.

Distribution

 

Prev. Sales

(000's)

Current Inventory

(000's)

Scheduled Production

(000's) Flex

Retooling Costs

Mill. $ Cafav 142 0 131 Yes $48 Camini 226 9 217 Yes $0 Climax 121 14 124 Yes $0 Total 489 23 472   $48   Capacity (000's) 510 Scheduled Production 472   Est. Plant Cost for Add'l 100k Mill. $ $766 Capacity Change (000's) 0

Manufacturing

Est. Plant Cost Mill. $ n/a Est. Plant Sale Price Mill. $ n/a   Book Value Mill. $ n/a   Loss on Sale of Plant Mill. $ n/a

Current Cash Balance $3,615M

Finance / Cash

Showroom

StratSimManagement Past Start Year 1

Stock Price: $34.37Introduction Company Market Competition Tools Decisions

Firm C

4/3/22, 8:57 PM StratSimManagement @ Interpretive Simulations

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1 Year CD Maturing @ 3.0% $1M Purchase 1 Year CD @ 2.0% $53M

Current Stock Price $34.37 Current Shares Outstanding 260M Current Market Value $8,936M Issue Stock (Negative value is repurchasing.) $150M Dividends Paid $500M

Finance / Stock

Short-Term Debt   Loan Balance @ 8.5% $4,899M   Loan Repayment $8M   Long-Term Debt   Current Bond Rating B   Issue Bonds @ 6.5% $0M Bonds Outstanding   Year #1 @ 6.0% $238M   Total Debt $5,129M

Finance / Debt

Incident Choice Safety Compliance Initiate a PR campaign informing the public that all your vehicles already meet the standard. (Cost: $10

million)

Special Decisions

Showroom

StratSimManagement Past Start Year 1

Stock Price: $34.37Introduction Company Market Competition Tools Decisions

Firm C