Simulation Report 3
SweetyS
Decisions-DecisionSummary-Year6-FirmA.xlsTechnology
| Technology - Year 6 - Firm A | |||||
| Technology | |||||
| Interior | Styling | Safety | Quality | Total | |
| Maximum | 11 | 13 | 13 | 14 | |
| Firm Maximum | 5 | 5 | 6 | 7 | |
| Cost to Increase by 1 (mill.) | $187 | $211 | $333 | $317 | $1,048 |
| Est. cost savings of increase (mill.) | $5 | $6 | $13 | $4 | $27 |
| Increase Attribute: | No | No | No | No | |
| Curr. Expenditure (mill.) | $0 | $0 | $0 | $0 | $0 |
| Note: Investing in technology does not automatically increase the specifications of your vehicles. |
Product Development
| Product Development - Year 6 - Firm A | |||||||||||
| Product Development | |||||||||||
| Dev. Center | Project | Class | Size | HP | Interior | Styling | Safety | Quality | *Est. Base Cost | Current Expense (mill.) | |
| Maximum: | 5 | 5 | 6 | 7 | |||||||
| 1 | Alfa | F | 32 | 170 | 2 | 1 | 4 | 2 | $14,837 | $177 | |
| Major Upgrade Launching Y#8 | 8 | 0 | 0 | 1 | 1 | 0 | $15,304 | ||||
| 2 | no project | ||||||||||
| 3 | no project | ||||||||||
| Total Expense: | $178 | ||||||||||
| * Base cost only; use the Pro-Forma for a projection of the unit cost when you launch the upgrade. | |||||||||||
| Concepts | |||||||||||
| Concept | Class | Size | HP | Interior | Styling | Safety | Quality | *Est. Base Cost | Devel. Cost (mill.) | Devel. Time | |
| * Estimated Base Cost is for 100,000 units. |
Marketing
| Marketing - Year 6 - Firm A | |||||||
| Contracts | |||||||
| Corporate Advertising | (mill.) | Ad Themes | |||||
| $27 | Safety | ||||||
| $27 | |||||||
| $27 | |||||||
| $27 | Segment Targets | ||||||
| Social Media | $6 | Value Seekers (1), Families (2) | |||||
| Direct Marketing | $2 | ||||||
| Total | $116 | ||||||
| Product Marketing | |||||||
| Vehicle | Class | MSRP | Dealer Discount | Advertising (millions) | Advertising Theme | Promotion (millions) | Sales Forecast (000's) |
| Alec | E | $22,550 | 10.0% | $80 | Performance | $25 | 425 |
| Alfa | F | $29,611 | 10.0% | $80 | Safety | $45 | 12 |
| Awesome | U | $24,220 | 12.0% | $79 | Performance | $35 | 207 |
| Totals | $239 | $105 | 643 |
Distribution
| Distribution - Year 6 - Firm A | |||||
| Dealers | |||||
| Total | North | South | East | West | |
| Full Coverage | 800 | 200 | 250 | 150 | 200 |
| Established | 518 | 150 | 98 | 150 | 120 |
| Sched. Change | 0 | 0 | 0 | 0 | 0 |
| Coverage | 64.8% | 75.0% | 39.2% | 100.0% | 60.0% |
| Dealer Inc./Dec. (0% limit: ±0) | 0 | 0 | 0 | 0 | 0 |
| Coverage with Current Decisions | 64.8% | 75.0% | 39.2% | 100.0% | 60.0% |
| Training and Support (mill.) | $30 | $9 | $6 | $9 | $7 |
| Per Dealer | $57,915 | ||||
| Note: The estimated cost of opening or closing a dealership is $2 million. Average overhead per dealer is estimated at $326 thousand. |
Manufacturing
| Manufacturing - Year 6 - Firm A | |||||
| Production & Capacity Decisions | |||||
| Prev. Sales (000's) | Current Inventory (000's) | Scheduled Production (000's) | Flex | Retooling Costs Mill. $ | |
| Alec | 425 | 140 | 285 | Yes | $0 |
| Alfa | 12 | 0 | 100 | Yes | $142 |
| Awesome | 207 | 103 | 104 | Yes | $0 |
| Total | |||||
| Capacity (000's) | 1,200 | ||||
| Scheduled Production | 489 | ||||
| Capacity Change (000's) | 0 | ||||
| Est. Plant Cost for Add'l 100k Mill. $ | $788 |
Financing
| Financing - Year 6 - Firm A | |
| Cash | |
| Current Cash Balance (mill.) | $9,951 |
| Purchase 1 Year CD @ 0.0% (mill.) | $0 |
| Stock | |
| Current Stock Price | $17.97 |
| Current Shares Outstanding (mill.) | 365 |
| Current Market Value (mill.) | $6,559 |
| Issue Stock (Negative value is repurchasing.) | $0 |
| Dividends Paid (mill.) | $100 |
| Debt | |
| Short-Term Debt | |
| Loan Balance @ 11.5% (mill.) | $10,539 |
| Loan Repayment (mill.) | $0 |
| Long-Term Debt (mill.) | |
| Current Bond Rating | D |
| Issue Bonds @ 9.5% (mill.) | $0 |
| Total Debt (mill.) | $10,539 |
Special Decisions
| Special Decisions - Year 6 - Firm A | |
| Green Vehicle Incentives | |
| National elections are coming up, and the legislature plans to consider a new law governing energy policy after the election. Among the items that might be included in the law is a tax credit for buyers of alternative energy vehicles (AEVs). A tax credit would make the vehicles more affordable, and should stimulate demand for them. While the Alliance of Automobile Manufacturers plans to support the measure, they have been seeking extra funds to help lobby for the bill. They are also encouraging members to lobby lawmakers directly, and to contribute to candidates who will support the tax credit. If the effort succeeds, the credits are expected to be available in two years. Choose none, one, or more of the following options to support the legislation. | |
| No | Contribute to the efforts of the Alliance of Automobile Manufacturers. (Cost: $1.0 million) |
| No | Engage a lobbying firm to promote tax credits for AEVs. (Cost: $2.0 million) |
| No | Contribute to the campaigns of candidates who support the tax credit. (Cost: $1.5 million) |
| No | Encourage parts suppliers to lobby for the legislation. (Cost: none) |
