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StratSimManagement Year 3Industry: ind1 Firm: A

Decisions / Decision Summary

Interior Styling Safety Quality TotalMaximum 11 12 11 12Firm Maximum 5 5 5 6Cost to Increase by 1(mill.) $193 $214 $322 $281 $1,010

Est. cost savings ofincrease (mill.) $12 $6 $29 $9 $57

Increase Attribute: No No Yes YesCurr. Expenditure (mill.) $0 $0 $322 $281 $603

Technology

Dev.Center Project Class Size HP Interior Styling Safety Quality

BaseCost*

CurrentExpense

(mill.)Maximum: 5 5 5 6

1AwesomeMinor Upgrade

Launching NowUtility 40+0

220+0

1 +0

1 +1

1 +1

1 +1

$14,408$14,716 $192

2 no project

Construct a new center for $659 Million

Total Expense: $192

* Base cost only; use the Pro-Forma for a projection of the unit cost when you launch the upgrade.

Product Development / Projects

No concepts were created in this year

Product Development / Concepts

CorporateAdvertising Millions

 North $30 South $30 East $30 West $30

Social Media $6Direct Marketing $2Total $128

Ad Themes

Segment Targets

Marketing / Corporate

 Interior  Styling

✓ Safety  Quality

 Performance

4/14/22, 7:22 PM StratSimManagement @ Interpretive Simulations

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✓ Value Seekers (1) ✓ Families (2)

 Singles (3)  High Income (4)

 Enterprisers (5)

Vehicle Class MSRPDealer

DiscountAdvertising

(millions)Advertising

ThemePromotion

(millions)

SalesForecast

(000's)

RemoveFrom

MarketAlec E $15,351 9.0% Styling 672 NoAlfa F ,084 11.0% Interior 366 NoAwesome U ,149 14.0% $60 Quality $30 307 NoTotals $180   $90 1,345

Marketing / Products

Total North South East WestFull Coverage 800 200 250 150 200Established 515 150 120 125 120Sched. Change 0 0 0 0 0Coverage 64.4% 75.0% 48.0% 83.3% 60.0%

Dealer Inc./Dec. (0% limit:±0) 3 0 -22 25 0

Coverage with CurrentDecisions 64.8% 75.0% 39.2% 100.0% 60.0%

Training and Support (mill.) $30 $9 $7 $7 $7 Per Dealer $58,252

Note: The estimated cost of opening or closing a dealership is $2 million. Average overhead per dealer is estimatedat $308 thousand.

Distribution

Prev.Sales

(000's)

CurrentInventory

(000's)

ScheduledProduction

(000's) Flex

RetoolingCostsMill. $

Alec 672 0 672 Yes $94Alfa 366 97 400 Yes $0Awesome 307 *94 335 Yes $109Total 1,345 192 1,407 $203

Capacity (000's) 1,200Scheduled Production 1,407Over Capacity Charge (mill.) $518

Est. Plant Cost for Add'l 100k Mill. $ $742

Manufacturing

4/14/22, 7:22 PM StratSimManagement @ Interpretive Simulations

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Prev.Sales

(000's)

CurrentInventory

(000's)

ScheduledProduction

(000's) Flex

RetoolingCostsMill. $

Capacity Change (000's) 0

*Vehicle being upgraded: this inventory will be written off. Be sure to produce enough to match forecast.

Est. Plant Cost Mill. $ n/aEst. Plant Sale Price Mill. $ n/a Book Value Mill. $ n/aLoss on Sale of Plant Mill. $ n/a

Current Cash Balance $10,120MPurchase 1 Year CD @ 3.5% $0M

Finance / Cash

Current Stock Price $45.66Current Shares Outstanding 365MCurrent Market Value $16,666MIssue Stock (Negative value is repurchasing.) $0MDividends Paid $100M

Finance / Stock

Short-Term Debt Loan Balance @ 9.0% $10,539M Loan Repayment $0M

Long-Term Debt Current Bond Rating CCC Issue Bonds @ 7.0% $0M

Total Debt $10,539M

Finance / Debt

Incident ChoicePlant Automation Invest in plant automation. (Cost: 10% of cost to build current capacity)

Special Decisions

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