StratSimManagementInterpretiveSimulations.pdf

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    4/6/22, 11:51 AM StratSimManagement @ Interpretive Simulations

    https://app5.interpretive.com/ss7s22/index.php 1/3

    Decisions / Decision Summary

    Interior Styling Safety Quality TotalMaximum 10 12 10 12Firm Maximum 5 5 5 6Cost to Increase by 1 (mill.) $189 $229 $263 $301 $982Est. cost savings of increase(mill.) $12 $4 $25 $7 $47

    Increase Attribute: No No No NoCurr. Expenditure (mill.) $0 $0 $0 $0 $0

    Technology

    Dev. Center Project Class Size HP Interior Styling Safety Quality

    BaseCost*

    CurrentExpense

    (mill.)Maximum: 5 5 5 6

    1 no project

    2 no project

    Construct a new center for $643 Million

     Total Expense: $0

    * 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 $25   South $25   East $25   West $25Social Media $6Direct Marketing $2Total $108

    Ad Themes

    Segment Targets

    Marketing / Corporate

       Interior    Styling

    ✓ Safety    Quality

       Performance

    ✓ Value Seekers (1) ✓ Families (2)

       Singles (3)    High Income (4)

       Enterprisers (5)

    Showroom

    StratSimManagement Past Start 1 Year 2 4

    Stock Price: $50.60Introduction Company Market Competition Tools Decisions

    Firm A

    4/6/22, 11:51 AM StratSimManagement @ Interpretive Simulations

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    Vehicle Class MSRPDealer

    DiscountAdvertising

    (millions)Advertising

    ThemePromotion

    (millions)

    SalesForecast

    (000's)

    Remove From

    MarketAlec E $15,351 9.0% $40 Styling $20 612 NoAlfa F $24,084 11.0% $80 Interior $40 344 NoAwesome U $21,149 14.0% $60 Quality $30 315 NoTotals       $180   $90 1,272

    Marketing / Products

    Total North South East WestFull Coverage 800 200 250 150 200Established 515 150 120 125 120Sched. Change 0 0 0 0 0Coverage 64.4% 75.0% 48.0% 83.3% 60.0%

    Dealer Inc./Dec. (0% limit: ±0) 0 0 0 0 0Coverage with Current Decisions 64.4% 75.0% 48.0% 83.3% 60.0%

    Training and Support (mill.) $30 $9 $7 $7 $7  Per Dealer $58,252

    Note: The estimated cost of opening or closing a dealership is $2 million. Average overhead per dealer is estimated at $300 thousand.

    Distribution

     

    Prev.Sales

    (000's)

    CurrentInventory

    (000's)

    ScheduledProduction

    (000's) Flex

    RetoolingCostsMill. $

    Alec 612 0 611 Yes $95Alfa 344 63 400 Yes $0Awesome 315 66 335 Yes $0Total 1,272 129 1,346   $95 Capacity (000's) 1,200Scheduled Production 1,346Over Capacity Charge (mill.) $335 Est. Plant Cost for Add'l 100k Mill. $ $724Capacity Change (000's) 0

    Manufacturing

    Est. Plant Cost Mill. $ n/aEst. Plant Sale Price Mill. $ n/a  Book Value Mill. $ n/a  Loss on Sale of Plant Mill. $ n/a

    Current Cash Balance $9,138MPurchase 1 Year CD @ 3.0% $0M

    Finance / Cash

    Current Stock Price $50.60Current Shares Outstanding 365MCurrent Market Value $18,469MIssue Stock (Negative value is repurchasing.) $0MDividends Paid $100M

    Finance / Stock

    Short-Term Debt

    Finance / Debt

    Showroom

    StratSimManagement Past Start 1 Year 2 4

    Stock Price: $50.60Introduction Company Market Competition Tools Decisions

    Firm A

    4/6/22, 11:51 AM StratSimManagement @ Interpretive Simulations

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      Loan Balance @ 7.5% $10,539M  Loan Repayment $0M Long-Term Debt  Current Bond Rating B  Issue Bonds @ 5.5% $0M Total Debt $10,539M

    There is no special decision this period.

    Special Decisions

    Showroom

    StratSimManagement Past Start 1 Year 2 4

    Stock Price: $50.60Introduction Company Market Competition Tools Decisions

    Firm A

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