Simulation Report #1

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Decisions / Decision Summary

Interior Styling Safety Quality Total Maximum 11 12 11 12 Firm Maximum 8 8 7 9 Cost to Increase by 1 (mill.) $333 $370 $493 $462 $1,658 Est. cost savings of increase (mill.) $7 $2 $4 $2 $15

Increase Attribute: No No Yes No Curr. Expenditure (mill.) $0 $0 $493 $0 $493

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 Now

AEV 50+0 150 +0

6 +0

5 +0

5 +0

7 +0 $26,524 $455

2 no project

3 no project

Construct a new center for $659 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 $30 South $30 East $10 West $10 Social Media $35 Direct Marketing $25 Total $140

Ad Themes

Segment Targets

Marketing / Corporate

✓ Interior ✓ Styling

✓ Safety ✓ Quality

✓ Performance

Showroom

StratSimManagement Past Start 1 2 Year 3

Stock Price: $46.67Introduction 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 CA001 A $45,000 10.0% $30 Safety $10 100 No Cafav F $29,361 13.0% $40 Safety $30 200 No Camini M $30,144 12.0% $20 Quality $20 200 No Climax L $41,997 18.0% $30 Styling $15 100 No Totals $120 $75 600

Marketing / Products

Total North South East West Full Coverage 800 200 250 150 200 Established 401 96 109 97 99 Sched. Change 4 1 1 1 1 Coverage 50.6% 48.5% 44.0% 65.3% 50.0%

Dealer Inc./Dec. (0% limit: ±0) 30 10 10 0 10 Coverage with Current Decisions 54.4% 53.5% 48.0% 65.3% 55.0%

Training and Support (mill.) $50 $12 $14 $12 $12 Per Dealer $122,249

Note: The estimated cost of opening or closing a dealership is $2 million. Average overhead per dealer is estimated at $308 thousand.

Distribution

Prev. Sales

(000's)

Current Inventory

(000's)

Scheduled Production

(000's) Flex

Retooling Costs Mill. $

CA001 0 0 50 Yes $79 Cafav 176 0 250 Yes $134 Camini 256 0 150 Yes $0 Climax 136 0 200 Yes $120 Total 567 0 650 $333 Capacity (000's) 511 Scheduled Production 650 Over Capacity Charge (mill.) $425 Est. Plant Cost for Add'l 100k Mill. $ $801 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

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Current Cash Balance $5,290M Purchase 1 Year CD @ 3.5% $0M

Finance / Cash

Current Stock Price $46.67 Current Shares Outstanding 265M Current Market Value $12,368M Issue Stock (Negative value is repurchasing.) $0M Dividends Paid $500M

Finance / Stock

Short-Term Debt Loan Balance @ 8.0% $4,891M Loan Repayment $4,891M Long-Term Debt Current Bond Rating BB Issue Bonds @ 6.0% $4,891M Bonds Outstanding Year #1 @ 6.0% $238M Total Debt $5,129M

Finance / Debt

Incident Choice Plant Automation Invest in plant automation. (Cost: 10% of cost to build current capacity)

Special Decisions