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Your strategy for the first decision page seems acceptable; however the teacher is asking you to calculate the profit/sales ratio. Is it increasing or decreasing. The strategy to decrease the price of X7 is okay and to continue with X5 is also acceptable. However, as you proceed, X5 enters the shakeout stage. At this stage it is better to discontinue X5. X6 also reaches a shakeout stage however, it still remains profitable and it is good to continue with it but it become necessary to reduce the R&D expenditure on it. X7 becomes profitable as you increase your R&D expenditure.
During the simulation you get instructions. ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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