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    PLEASE READ BACKGROUND INFO AS IT PROVIDE INFO FOR ASSIGNMENT. THIS ASSIGNMENT WILL REQUIRE GRAPHS OR CHARTS. TURNIT IN USED.
    Module 1 – SLP
    Strategic Review
    Overview
    The 4-module SLP sequence for BUS599 requires that you run a simulation over an 18-year period and that you analyze the outcome of the decisions you make at each decision point.
    In this course we will be using the MIT Solar Power Pricing Simulation.
    Read the following introduction to the SunPower case:
    The Industry Evolution Management Flight Simulator portrays the growth and competition of firms as an industry evolves. Playing the role of chief executive for one of the firms in the industry you make key decisions involving pricing investment and marketing in order to succeed in the marketplace.
    This version of the simulator has been customized to portray the solar power industry specifically SunPower and other manufacturers of photovoltaic panels (PVs). While historically the cost of electricity from PV panels has limited them to niche applications there is massive potential for growth in the market if solar power could become a viable alternative to traditional sources of electricity.
    In the simulator your job is to maximize SunPower’s cumulative profit over a period of eighteen years. To do this you make pricing and investment decisions each simulated time period.
    As a young company with a new innovation you will start the game with a technology that you hope stays proprietary. In theory you can reap the benefits of technological advancements from the rest of the industry while spreading your advancements to them.
    In addition you (or your administrator) have the option of setting several other competitive and market scenarios including the sources and rates of learning the strength of knowledge spillovers entry of new competitors and external incentives that help to drive consumers towards using solar power.
    You will receive periodic reports including your income statement and industry data. You need to select your strategies based on those reports your understanding of the underlying industry structure and your best judgment about how your competitor and customers may respond.
    Though the model has been carefully calibrated and tested it is not designed to predict the future or exactly match the history and special circumstances of SunPower. Rather it is used to illustrate competitive dynamics important not only in the photovoltaic panel industry but in other contexts you may face. Instead of merely beating the game focus on understanding the underlying industry structure so you can develop robust successful strategies.
    *** Source: Sterman J. (2014). Eclipsing the competition: The Solar PV industry simulation. Forio. Retrieved on November 23 2014 from http://forio.com/simulation/solar-test/index.htm#page=market_research
    Be sure to review the SunPower case study as it will provide you with background and context for the simulation: http://forio.com/simulation/solar-test/downloads/SunPower-Henderson.pdf
    Then visit the simulation here:
    http://forio.com/simulation/solar-test/index.htm#page=market_research
    At the landing page click on Play as an INDIVIDUAL. Then choose a Screen ID and click Submit.
    Familiarize yourself with the simulation. This will require that you get an in-depth understanding of the terminology used in the simulation as well as the pricing and cost structure of the product. As you begin this simulation (Year 1) your market share is only 2.40%. Your role with the company is to expand your companys market share over the multi-year period of operations while recognizing the highest possible cumulative profit. To do this you must make favorable pricing decisions and you must ensure that you are improving your product while simultaneously lowering unit costs. Product improvements are determined by the % of revenue allocated to process improvement (i.e. technological advancement = lower unit costs).
    Should you need to brush up on financial analysis the following presentation provides a very good overview of financial statement analysis:
    http://vrpacioli.loyola.edu/ac102/chapter17/chapter17.ppt
    Assignment
    Run the simulation entering the following data into the simulation for each of four decision points (NOTE: Do not change the assumptions displayed in the Settings tab):
    1) Decision 1: For Years 2008-2012
    a) Pricing Manual
    b) Module Price – $0.15
    c) Revenue to Process Improvement 5%
    d) Years to Advance 5 years
    2) Decision 2: For Years 2013-2017
    a) Pricing Manual
    b) Module Price – $0.13
    c) Revenue to Process Improvement 5%
    d) Years to Advance 5 years
    3) Decision 3: For Years 2018-2022
    a) Pricing Manual
    b) Module Price – $0.11
    c) Revenue to Process Improvement 5%
    d) Years to Advance 5 years
    4) Decision 4: For Years 2023-2025
    a) Pricing Manual
    b) Module Price – $0.09
    c) Revenue to Process Improvement 5%
    d) Years to Advance To end
    At each of the four (4) decision points above you are required to analyze the impact of your Module Price on market share and total profits. You are also required to determine how process improvements reduce unit costs over time. Be sure to copy tables and charts into your Word document to support your analysis. You may need to use Excel to edit the charts and tables. Do not use figures and tables as space fillers however; use these only to support and justify your written report.
    Keys to the Assignment
    The key aspects of this assignment that should be covered and taken into account in preparing your 5-6 page paper include:
    1) Include discussion and analysis of key metrics at the end of each decision point (e.g. among other data be sure to include total market share revenue cumulative profit consumer net price modular price unit cost etc.). State clearly the specific analysis (horizontal analysis or vertical analysis or trend analysis) you used. As an MBA it is your job to identify cause and effect!
    2) For each decision point be sure to include comparative tables that include what you believe to be the most important data. Dont merely recite the data however instead analyze the data! As an MBA what does it tell you?
    3) Make recommendations. What would you have done differently as it relates to pricing process improvement or other?
    **** NOTE: The 5-6 page requirement includes written analysis and all supporting tables figures and graphics. However it does not include Cover or Reference page. Be sure to adhere to the TUI Writing Guide for formatting all papers. If you are unsure how to complete a financial analysis please review the following sample report:
    Gilbert O’Neil Mushure. (2014). Financial analysis report: Malaysia airlines 2007 – 2011.International Journal of Sciences : Basic and Applied Research14 (2) 148-153.
    Also refer to the following source on business writing:
    OHara C. (2014 November 20). How to improve your business writing. Harvard Business Review. Retrieved from https://hbr.org/2014/11/how-to-improve-your-business-writing?utm_campaign=Socialflow&utm_source=Socialflow&utm_medium=Tweet
    SLP Assignment Expectations
    Your paper will be evaluated based on the Grading Rubric.
    Please note the following tips and suggestions:
    Hints for success!
    Throughout this SLP you will be asked to make business decisions under conditions of incomplete information and uncertainty. To do so you will need to make assumptions based on what you have learned throughout the MBA program about how markets operate. Thus your strategies in approaching this decision need to rely on models financial analysis and theories from such classes as Economics Finance Accounting Marketing Strategy and Quantitative Analysis. In addition the simulation will give you some additional market information as you progress.
    Be sure to explicitly draw on concepts and theories from the courses you have taken throughout the MBA program. That means you need to think like an MBA and use the financial data you are given. You will have to crunch some numbers and present your data analysis professionally by creating some simple tables charts and graphs.
    Module 1 – Background
    Strategic Review
    OVERVIEW OF CASES
    The Integrative Case Project (which you learn more about in the Case) focuses mainly on using Organizational Diagnosis (OD) models to analyze Whole Foods Market. For purposes of the Case studies you will assume the role of a consultant for the Excellent Consulting Group. You will need to study Whole Foods Market and prepare reports for your boss Art Epance who is the Senior Project Manager at the Excellent Consulting Group. Essentially the ABC Company has determined that it will require an outside review of Whole Foods Market to assist the company in determining how to proceed relative to integrating Whole Foods Market into ABC Company.
    Each Case will be a separate analysis task in which you will prepare a report. The details of these assignments are explained in the Case assignments in each module.
    The four cases in this course include the following:
    The SLP for this course involves participating in a simulation exercise. Unlike cases which are static simulations are interactive and you can see the results of your decisions. Additionally you can repeat the simulation to improve the quality of your decisions.
    GENERAL SLP SCENARIO:
    The 4-module SLP sequence for BUS599 requires that you run a simulation over an 18-year period and that you analyze the outcome of the decisions you make at each decision point.
    In this course we will be using the MIT Solar Power Pricing Simulation.
    The Industry Evolution Management Flight Simulator portrays the growth and competition of firms as an industry evolves. Playing the role of chief executive for one of the firms in the industry you make key decisions involving pricing investment and marketing in order to succeed in the marketplace.
    This version of the simulator has been customized to portray the solar power industry specifically SunPower and other manufacturers of photovoltaic panels (PVs). While historically the cost of electricity from PV panels has limited them to niche applications there is massive potential for growth in the market if solar power could become a viable alternative to traditional sources of electricity.
    In the simulator your job is to maximize SunPower’s cumulative profit over a period of eighteen years. To do this you make pricing and investment decisions each simulated time period.
    As a young company with a new innovation you will start the game with a technology that you hope stays proprietary. In theory you can reap the benefits of technological advancements from the rest of the industry while spreading your advancements to them.
    In addition you (or your administrator) have the option of setting several other competitive and market scenarios including the sources and rates of learning the strength of knowledge spillovers entry of new competitors and external incentives that help to drive consumers towards using solar power.
    You will receive periodic reports including your income statement and industry data. You need to select your strategies based on those reports your understanding of the underlying industry structure and your best judgment about how your competitor and customers may respond.
    Though the model has been carefully calibrated and tested it is not designed to predict the future or exactly match the history and special circumstances of SunPower. Rather it is used to illustrate competitive dynamics important not only in the photovoltaic panel industry but in other contexts you may face. Instead of merely beating the game focus on understanding the underlying industry structure so you can develop robust successful strategies.
    *** Source: Sterman J. (2014). Eclipsing the competition: The Solar PV industry simulation. Forio. Retrieved on November 23 2014 from http://forio.com/simulation/solar-test/index.htm#page=market_research
    GET FAMILIAR WITH THE SIMULATION
    Familiarize yourself with the simulation. This will require that you get an in-depth understanding of the terminology used in the simulation as well as the pricing and cost structure of the product. As you begin this simulation (Year 1) your market share is only 2.40%. Your role with the company is to expand your companys market share over the multi-year period of operations while recognizing the highest possible cumulative profit. To do this you must make favorable pricing decisions and you must ensure that you are improving your product while simultaneously lowering unit costs. Product improvements are determined by the % of revenue allocated to process improvement (i.e. technological advancement = lower unit costs).
    Be sure to review the SunPower case study as it will provide you with background and context for the simulation: http://forio.com/simulation/solar-test/downloads/SunPower-Henderson.pdf
    Then visit the simulation here:
    http://forio.com/simulation/solar-test/index.htm#page=market_research
    At the landing page click on Play as an INDIVIDUAL. Then choose a Screen ID and click Submit.
    Explore the interface and get familiar with it and the information it provides. The menu on the left-hand side shows these options:
    NEED TO BRUSH UP ON CVP ANALYSIS?
    You were introduced to this method in your previous courses but this link will provide a refresher.
    Fundamentals of Cost-Volume-Profit Analysis (n.d.).
    Should you need to brush up on financial analysis the following presentation provides a very good overview of financial statement analysis:
    http://vrpacioli.loyola.edu/ac102/chapter17/chapter17.ppt
    Optional Reading and Resources
    Remember that in preparing the assignments for this module (as those that follow) you must demonstrate thatyou know how to use the appropriate business tools for such an analysis. This will require you to integrate learning from courses throughout the MBA program.
    Other Useful Resources
    You may access some useful Internet and other resources relating to such matters as financial ratios and processes for measurement of organizational resources (both tangible and intangible)through the following links:
    http://www.investopedia.com/university/ratios/#axzz2JNe7QCr3
    http://www.sveiby.com/articles/IntangibleMethods.htm

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