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You are about to start a new company that will be entering into the microcomputer business. You will have limited financial resources and complete accounting responsibility.

You will provide the seed capital (investment money) needed to start your business up. You can use this money to build a production facility, open sales offices, and design brands. You will invest 2,000,000 in the first quarter and another 1,000,000 in each of the next 2 quarters.

After this period, you will have the opportunity to approach the venture capital community for additional equity funding. In quarter 4, you will be able to receive up to an additional 5 million for your future development. Potentially, you will have up to 9,000,000 to invest in this new enterprise.

You have the next year and a half (six quarters or decision periods) to get this company off the ground. Within this time frame, your firm should become a Conscious Business that aligns and harmonizes the interests of employees, customers, suppliers, the community, and shareholders.

A balanced scorecard will be used to measure your firm's performance and to compare your results with those of your competitors. The firm's total business performance will be based upon its financial performance, marketing effectiveness, market performance, investments in the firm's future, human resource management, manufacturing productivity, asset management, financial risk, creation of wealth, and reputation.

The balanced scorecard requires that you take a multidisciplinary perspective in managing your firm. To be successful, you will need to deal with both the short-term and the long-term, to consider both financial and nonfinancial issues, and to provide for customers, employees and stockholders.

While you must do well in all areas measured, your investments in the future will indicate where your true priorities lie. How you choose to make these investments will indicate the balance or imbalance of your priorities among all of the stakeholders to whom you have responsibility. After this 6-quarter startup phase, will you be judged to be a Conscious Capitalist, a semi-conscious capitalist or an unconscious capitalist?

Markets

Your company will be introducing a new line of microcomputers into selected markets in North America, South America, Europe/Africa, and Asia.

The map is divided into 4 regions: North America (abbreviated NORAM); Latin and South America (LATAM); Europe, the Middle East, and Africa (EMEA); and Asia and the Pacific (APAC). NORAM's city is Chicago. LATAM's city is Sao Paulo. EMEA's city is Paris. APAC's city is Shanghai.

The current state of the PC industry

· Other firms will be entering the market at the same time that you are.

· The microcomputer industry is in the introductory stage of its product life cycle. There is no history and there are no established competitors.

· All competitors, including your own company, will start with exactly the same resources and knowledge of the market.

· You will sell through company-owned sales offices in four major metropolitan markets around the world.

· You will not sell through retail stores. Your marketing strategy will be tightly focused on direct sales to business customers.

· Your target market will be the business sector, not the home market.

Market Segments Among PC Buyers

The PC market can be divided into three major market segments. Each segment has its own set of needs and wants. Each one also has a price point where they are willing to consider a purchase, should you be able to satisfy their needs and wants.

These three segments are portrayed in the accompanying graph. The circles are positioned to indicate the price and performance requirements of each segment. The size of the segment is portrayed by the size of the circle. Each segment has different needs and wants and requires a different market strategy to appeal to it.

The Mercedes segment is looking for a high performance computer to use in engineering and manufacturing applications. Mercedes customers are willing to pay extra for the higher performance.

The Workhorse segment is the largest group of customers. They want an easy-to-use PC for office workers. It should also be modestly priced.

The Traveler segment wants a practical computer to use on the road. Traveler customers are executives and sales people who travel a great deal. This segment is also price-sensitive.