Simulation Report #1

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Decisions / Decision Summary

Interior Styling Safety Quality Total Maximum 10 12 10 12 Firm Maximum 8 8 7 9 Cost to Increase by 1 (mill.) $290 $306 $423 $445 $1,464 Est. cost savings of increase (mill.) $4 $1 $2 $1 $8

Increase Attribute: No No No No Curr. Expenditure (mill.) $0 $0 $0 $0 $0

Technology

Dev. Center Project Class Size HP Interior Styling Safety Quality

Base Cost*

Current Expense

(mill.) Maximum: 8 8 7 9

1 CA001 New Vehicle Launching Y#4

AEV 50+0 150 +0

6 +0

5 +0

5 +0

7 +0 $26,346 $455

2 no project

3 no project

Construct a new center for $643 Million Total Expense: $455

* 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 $60 East $25 West $25 Social Media $80 Direct Marketing $40 Total $272

Ad Themes

Segment Targets

Marketing / Corporate

✓ Interior ✓ Styling

✓ Safety ✓ Quality

✓ Performance

Showroom

StratSimManagement Past Start 1 Year 2

Stock Price: $37.77Introduction Company Market Competition Tools Decisions

Firm C © 2022

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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 $29,361 13.0% $60 Safety $40 150 No Camini M $24,144 11.0% $40 Quality $30 225 No Climax L $41,997 18.0% $80 Styling $20 120 No Totals $180 $90 495

Marketing / Products

Total North South East West Full Coverage 800 200 250 150 200 Established 372 88 101 91 92 Sched. Change 29 8 8 6 7 Coverage 50.1% 48.0% 43.6% 64.7% 49.5%

Dealer Inc./Dec. (0% limit: ±0) 4 1 1 1 1 Coverage with Current Decisions 50.6% 48.5% 44.0% 65.3% 50.0%

Training and Support (mill.) $60 $15 $16 $14 $15 Per Dealer $139,535

Note: The estimated cost of opening or closing a dealership is $2 million. Average overhead per dealer is estimated at $300 thousand.

Distribution

Prev. Sales

(000's)

Current Inventory

(000's)

Scheduled Production

(000's) Flex

Retooling Costs Mill. $

Cafav 144 0 160 Yes $54 Camini 243 3 230 Yes $25 Climax 134 4 120 Yes $0 Total 521 6 510 $79 Capacity (000's) 510 Scheduled Production 510 Est. Plant Cost for Add'l 100k Mill. $ $782 Capacity Change (000's) 1 Est. Plant Cost Mill. $ $8

Manufacturing

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

Finance / Cash

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Current Cash Balance $4,284M 1 Year CD Maturing @ 2.0% $53M Purchase 1 Year CD @ 3.0% $0M

Current Stock Price $37.77 Current Shares Outstanding 265M Current Market Value $10,009M Issue Stock (Negative value is repurchasing.) $0M Dividends Paid $500M

Finance / Stock

Short-Term Debt Loan Balance @ 7.5% $4,891M Loan Repayment $0M Long-Term Debt Current Bond Rating B Issue Bonds @ 5.5% $0M Bonds Outstanding Year #1 @ 6.0% $238M Total Debt $5,129M

Finance / Debt

There is no special decision this period.

Special Decisions