Analysis of digby

R&D: We made a mistake in R&D because we used the ideal spots in the industry conditions report instead of using the ideal position in the report for round O plus the Industry trend, We TLD change the performance and size of the low end products because the No. L factor customers considering was the age of the product. The ideal age was 7, but the age of our product was just 4. 6. Price and sale forecast: For the traditional and low end products, customers were more sensitive to price, so we lower our price to occupy more market share.

But for the rest three segments, customers were not sensitive to the price, they will buy the product as long as the product was what they want, no matter what the price was. We used 20% as our racket share In the first round, It turned out that we under estimate the need for our traditional, low end and performance products. Promotion and sales budget: we understood that the promotion and sales budget ware very important because it would influence the awareness and accessibility not only for this round but also for the next 7 rounds, so we spent $14,400,000 on promotion and sales.

Production: Our production schedule was based on the forecast of our sales, the capacity was more than enough, so we didn’t spend any money on buying capacity this year, but we pent $18,800,000 on automation rating, because It could help to reduce the labor cost. Human resources and TTS: We didn’t notice the important role about training and recruiting spend and TOM were playing in reducing the cost and the R&D cycle time, so we didn’t spend any money on these things. Finance: We borrowed $7,000,000 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 wasn’t at the Ideal spot and this was the No. L factor customers considered, and also we under estimate the need for our traditional, low end, and performance products. Our stock price was $29. 17 at the end of the 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 new product 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 he price of high end, performance and size products as high as possible. In the 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 2. 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: R: 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 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. Promotion and sales budget: We spent $14,800,000 on promotion and sales this round. Production: Spent $20,100,000 on plant improvement including buying capacity and increasing automation rating. Human resources and TTS: Spent $2,000,000 on Result: Because Andrews increased their production in traditional products and our products are similar so the market share was not as better as we expected before, tots of our traditional products was left. The stock price was $119. 6 in this round, increased $46. 17. Round 6: R&D: We used the ideal position except 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 the low end product because our low end products was better than our competitors, so we predicted our market share would e 35%.