Individual Simulation Report 3

StratSim

Team D

1. Do we need to adjust the cost of the cars? 

2. check what competitors are doing

3. focus on the region for marketing advertising 

4. I think we should create aev vehicle because there’s no competitors (only now we saw there is team c) but we might need to go ahead of government regulations with electric car

5. All vehicles are above value 4?

6. open to any suggestions

YEAR 1:

· Strategy: to be leaders in the automobile industry while promoting quality and safety cars. 

· Objective/ mission statement? 

· Minor update for Defy: family car 33% market share - a lot of competitors but we are leading in this category

· justify why this car

· Create Luxury car “Deluxe” - on market Y3

· Upgrades: Interior, Safety and Quality

· Development of Deluxe begins - idea why we did that? Segment: high income and enterprise

YEAR 2: 

· Open new distribution center 

· 3 dealers set to open in North and South

· 1 dealer set to open in East

· 1 dealer set to open in West

· Increased capacity available +1 because we were underproducing

· justify the decisions

YEAR 3

· improve all cars even minor

· Deluxe on market - Set price above 35K (competitors are set at 40.3K and 40.7K) maybe due year 4

· create EAV vehicle

· creation of an additional Plant Automation otherwise it might be a disadvantage???

· ​​Make sure all vehicles are above 4 in safety to avoid fine - detonka will reach 3 in 2 years

· Increased delite price by 1K 

· readjust promotion and marketing ads based on consumers

· increased dealers N and S mainly

· issued 100 M in bonds

·

YEAR 4: 

· Economy: increased safety, quality and interior. Size and horsepower.

· Truck: Detonka: increased safety and styling

· Deluxy: increased size and quality 

· Electric car: Delectric. 

· Marketing:

· Defy (family): increased adv to 60 and decreased promotion to 40 

· Delite (economy): increased avd to 35 and decreased promotion to 24

· Deluxe (luxury): increased adv by 37 and no changes. We changed the advertising theme to Styling. 

· Detonka (truck): increased adv to 35

· North to 35, the rest remaining the same. Social media to 11, and direct marketing decreased to 6.

· Increased dealer 5 in North, the rest remaining the same since we didn't increase budget.

· Increased production in Defy and Detonka. We avoid overproduction, especially since we are making changes in all vehicles. 

· Financing: 3 M in CD @ 3.5% and 3 M in loan repayment.

· special decision: invest in plan automation (10% cost to build current capacity)

YEAR 5: 

· Delectric launching in Y6. 

· Increase safety and Horsepower for Delite (Economy) 

· Increase size, style, interior and quality for Deluxe (Luxury)

· Increased in adv in Delite by 38

· Decreased the price of Deluxe by 37,999

· Increased dealer discount in Deluxe by 15%

· Increased dealer discount in Delite by 10%

· Increased the price of Delite by 13,298

· Increased adv in Deluxe to 35 and decreased 

· Increased adv in Detonka to 40 and decreased 

· Increased price  Detonka 19,669 

· Increased marketing in North by 40

· Increased dealers 4 in North, 2 in South, 1 in East and 1 and West.

· Inventory: Delite 450, Detonka 515, Deluxe: 110, Defy: 750

· Technology: Interior and Style

Decisions:

12/19 - Description: Technology - Invest in Safety

12/ 19 - Description: Product Development - New Development Center

12/19 - Description: Consumer marketing - Direct marketing (5) and Advertising in East (18)

12/19 New project for Delite - minor upgrade

12/19 - Description: Consumer marketing -  Advertising in the South (22)

12/19 - Description: Marketing for Delite: Quality

12/19 - Description: Marketing for Detonka: Performance

12/19 - Description: Distribution - New East Dealerships

12/19 - Description: Manufacturing:

12/29: Decision

01/02: Decision Making

Detonka 400K

Delite 300K

Defy 550K

Capacity change 1K

12/19 - Description: Finance:

Sell bonds: $100M

Loan repayment: $2M

12/19 - Description: Manufacturing:

Scheduled Production for Detonka: 420 K