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Financial Management

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I need some assistance on this Project.

Review your strategy from last module and enter your decisions into the simulation. Run it through all the way through, (ALL FOUR YEARS - NOT JUST ONE!) and do not deviate from your strategy. Then in a 2-3 MLA paper (plus appendices):

Give your final score on the simulation. How does that compare to market potential? (Hint: View high scores)

Evaluate the effectiveness of your strategy. Be sure to discuss the ratios you calculated and how you used them.

Outline your proposed changes in strategy for the next run and justify them.

Remember that the key here is ANALYSIS. What assumptions did you make when you planned your strategy? Did these assumptions prove to be right, or was there something else you didn't think about that influenced your results? How will taking those factors into account affect your strategy in this upcoming run?

Again, you need to crunch some numbers to determine how successful you were, where the greatest sources of profit are, and what changes make sense. The ratios identified in module 1 are a good place to start, but you may have identified additional ratios that will give you better information. Make sure you proposed changes in strategy are firmly based in this analysis of financial and market data and sound business principles. Present your analysis professionally making strategic use of tables, charts and graphs.

I also attached two documents that would be useful.

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Solution Preview

The response addresses the queries posted in 752 words with references.

//Simulation offers the opportunity to review the results alternatives available to solve a problem and choose the best alternative. In this paper, we have reviewed the last strategy and its results. //

The simulation exercise aims at maximizing the total profits for all the three models over a period of five years. The strategy that has been suggested in this case is to enhance the price of product X6, decrease the price of product X7 and maintain the price of X5 at the same level for 2 years. Our strategy was quite effective because it resulted in an increase in the revenues and profits. An escalation in the research and development expenses led to a hike in the profits.

//Next, we will discuss the assumptions on which our strategy is based.

It is based on the theory of value to the customer. If a customer gets value for a product, he will surely buy it and will be ready to fetch a decent price for it. However, the other factors such as the requirements and the income of the customer are also important. And yes, this assumption was correct to a certain extent (although, they were not the best) because as a result of this ...

Solution Summary

The response addresses the queries posted in 752 words with references.

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