Analysis of digby Essay Example

spend any money on these things.

Finance: We borrowed $7,000,000 in long-term debt to avoid emergency debt.

Result: Our high-end and size products didn't sell very well because our products' performance and size weren't at the Ideal spot and this was the No. L factor customers considered, and also we underestimate the need for our traditional, low end, and performance products.

Our stock price was $29. 17 at the end of round 1, fall by $5. 07.

Round 2

R&D: Still using the ideal spot in the industry conditions report, and didn't change any performance and size of low-end products.

Built the new high-end product G, because the ideal age of high-end products is O, so we want to build a new products with younger age to attract customers.

Price and sale forecast: Increased the price of traditional products to $26. 50 because from the report of round 1, our price Is much lower than the other competitors, Kept the price of low-end products low and kept the price of high-end, performance, and size products as high as possible. In round 1, our traditional, low-end and performance products were stock out, so we increased our sale forecast of these three products to 25%-27% of the demand, kept the forecast of the high-end and size products 20%.

Promotion and sales budget: We spent $14,500,000 on promotion and sales this round.

Production: Spent $11,400,000 increasing automation rating.

Human resources and TTS: Spent $1,000,000 on recruiting and set 40 training hours. And we also spent $4,500,000 on TTS.

Finance: Didn't borrow any money this round.

Result: Because our sells increased this year, so our stock price increased $9. 53 to $38. 69

at the end of the round

Round 3

R&D: started to use the ideal position in the report from round 2 plus the industry trend to get the ideal spot for round 3, and still didn't change any performance and size of low end products.

Price and sale forecast: Keep the price of traditional and low end products low and keep the price of high end, performance and size products as high as possible.

In the round 2, except the high end products, other products all stock out. So we increased our market share forecast for these four products to 7%-30%. Because Andrews also had a new product in high end segment, we predicted the market share will be lower than before, we predicted the market share for our old high end products Dixie was 15% and 10% for the new product G, because the performance and size were not at the ideal spot.

• Promotion and sales budget: We spent $14,650,000 on promotion and sales this round.
• Production: Spent on plant improvement including buying capacity to low end and new products, and increasing automation rating.
• Human resources and TTS: Spent $1 on recruiting and set 40 training hours. And we also spent $7,500,000 on TTS.
• Finance: $2,547,000 emergency loan happened this round because our sells didn't meet our expectations, some of our cash was in the inventory.
• Result: The stock price was $48.19 in this round, increased $9. 49.

Round 4

R&D: We used 4. 7 and 15. As performance and size for low end products instead 4. 2 and 15.8 which are the ideal position for round 4, because this was the best product we could produce in

one year based on the R&D cycle time. Every time we reproduce the product, the age of the product would reduce half of the original age, which was 4. 3 in the end of the round 4, but the age is the most important factor customers insider about the low-end products, so after we reproduced this time, we would not change it anymore before the simulation end. For the other segments, we Just used the ideal spot in the report for round 4.

Price and sale forecast: Kept the price of traditional and low-end products low and keep the price of high-end, performance and size products as high as possible.

We have better products this round than round 3, so although we didn't sell very well in round 3 and had a lot of inventory, we still believe our products can occupy 25%-32% of market share.

Promotion and sales budget: We spent $14,800,000 on promotion and sales this round.

Production: Spent $20,600,000 on plant improvement including buying capacity and increasing automation rating. Human resources and TTS: Spent $1,500,000 on recruiting and set 40 training hours.

And we also spent $9,000,000 on TTS.

Finance: Retired the $2547 emergency loan and $34750 long-term debt, issued new long-term debt with the same amount, because the interest rate was lower than before.

Result: The stock price was $73. 79 in this round, increased $25. 61.

Round 5

We used the ideal position in the report for round 5 except the low end segment, we didn't change anything about the low end segment.

• Price and sale recast: Keep the price of traditional and low-end products low and keep the price of products that were sold
  

out last year, so we increased the predicted market share to 35%. Other segments stayed as the same amount of market share as last year.

The stock price was $119. 6 in this round, increased $46. 17.

Round 6

R&D: We used the ideal position except for the low-end products, we didn't change anything about the low-end segment. Price and sale forecast: Keep the price of traditional and low-end products low and keep the price of high-end, performance, and size products as high as possible.

Our market share for each segment was expected between 25%-30% except for the low-end product because our low-end products were better than our competitors, so we predicted our market share would e 35%.