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Clipboard Tablet Co. Simulation

Please provide a 4-6 page with references regarding the information attached. This information will be used as informative guidance to assist me completing the work prescribed. In particular analyzing and explaining the financials as seen attached.

In Module 2, you will continue with the scenario and simulation you began in the Module 1 SLP.

REQUIRED READING

SCENARIO CONTINUATION:

SLP2 - It's New Year's day, 2016. You just had a great New Year's Eve celebration. You have finished analyzing the performance of Clipboard Tablet Co. in a great report that you turned in a few days early to Sally Smothers. Now you are ready to charge ahead into the future.

As you turn on the TV you notice something strange. The TV commentator is saying something about New Year's Day, 2012. You look around and everything looks different. Yes, it's true; it's New Year's Day, 2012. Time has rewound - a Time Warp, like the guy in the movie "Groundhog Day."

You realize that you get to make the decisions for Clipboard Tablet Co. starting with 2012. Perhaps you can do better than Joe Schmoe.

At the beginning of each year (2012-2015), you will determine your pricing, your R&D allocations, and whether or not to discontinue any products. You make your decisions and time advances to the end of that year, and you look at the results to see what happened. You keep track of your decisions and make notes about your reasoning and analysis of the data, keeping the data for later analysis.

You run the Marketing of Clipboard Tablet Co. through the end of 2015. It is now December 31, 2015, New Year's Eve. What is your total Score? Did you do better than Joe Schmoe?

You decide to organize your notes about your decisions, your analysis, and your reasoning into a report, which you think will help you move ahead into 2016.

ASSIGNMENT

Run the Clipboard Tablet Co. simulation with your strategy, making decisions year by year for prices and R&D allocations.

Write a report that shows your decisions and the results. Discuss why you did better or worse than Joe Schmoe.

Attachments

Solution Preview

For tables you should see the attachment.

Step 1
Joe's score was 1,513,237,527 whereas my score is 1,527,530,234. We need to analyze the results in some detail. During the 2012 simulation, I was told that X5 was in the growth stage and the customers of X5 were price sensitive. From this perspective, I kept the price of X5 the same. Since, the customers of X6 were not sensitive to price, I increased its price to $450. Also since the customers of X6 were sensitive to performance, I increased the R&D expenditure to 47%. The result was that my score was 350,000,247 whereas the score of Joe was 352,144,973.
During 2013, I assumed that the X5 had reached the maturity stage and I decreased the price to 265. At the same time since the Advisor said that X6 was in the growth phase, I increased its price to $460. Also since the customers of X6 were interested in the performance of X6 the R&D expenditure of 45 percent was maintained. The price of X7 was reduced to 180 because the customers were interested both in price and performance. The rationale was a penetration strategy should be followed. My score in 2013 was 901,928,054 whereas the score of Joe in 2013 was 830,740,435.
In 2014, since X5 was in the maturity phase I decreased its price to 245 and its R&D expenditure to 10%. X6 was also likely to reach the maturity phase so I decreased its price to 430. I distributed 45 percent of R&D expenditure to both X6 and X7. My total at the end of 2014 was 1,409,591,537 whereas the ...

Solution Summary

This solution explains the results of simulation in detail. The sources used are also included in the solution.

$2.19