For this assignment, you will respond to the results of your team simulation round. What have you have identified as the key business issues that will impact your company? Respond to the results of your management area. What have you have identified as the key business issues that impacted your decisions in the simulation round? Prepare to discuss your decisions with the other members of your team.
As the Vice President of your product please address these questions for the decisions you made in R&D:
- How well did you establish the specification of the products to meet customer demand?
- What level of quality and reliability—mean time between failure (MTBF)—did you build into your products?
- How did you ensure that the perceived age of the product meets customer demand?
- What new products did you create to meet the changing marketplace?
As the Vice President of your product please address these questions for the decisions you made in Marketing:
- Explain your rationale for how you set the price of your products in the marketplace.
- What was your strategy around creating new products to meet the changing marketplace?
- How well did you build customer awareness through promotion?
- How effectively did you establish a sales force and distribution channels?
- What was your sales forecast strategy for your products?
- What was your rationale for your credit policies (accounts receivable and accounts payable)?
As the Vice President of your product please address these questions for the decisions you made in Production:
- Did you purchase machinery to automate your facilities? If so, what was your rationale?
- Did you buy or sell capacity of product lines?
- How did you establish you production schedule for each line?
- How well did you manage the majority of the company’s fixed assets?
- Did you establish your workforce complement?
In conjunction with the COO, the Vice President will address these questions for the decisions you made in Finance:
- Did you acquire capital to fund capital expansions?
- Did you issue stock, short-term debt, or long-term bonds? If so, why?
- Did you issue a dividend to your shareholders? Explain your rationale whether your answer was yes or no.
- How well did you balance your debt portfolio? What was your strategy regarding the management of the pro forma statements?
There was a lot to learn from week one for Dell and for Digby. It was a rough week for team Digby. But in week two we turned things around instead of being in the negative we actually were in the positive with our net income. Our sales earning was $146,950 which was not bad for week two for Digby and we did not have to get an emergency loan. For Daze and Dell we stocked out and for Dell this was the second week that we stocked out. This is never a good thing for a company. It doesn’t show consistency to their customers I have to work on not stocking out. Even though we were able to stay in the positive side of the finances for week two there are still loads of are that team Digby can work on to make it a successful company. So I will outline what I did in each department and how well it worked for team Dell we actually were able to rank #1 for the Low end production.
For Dell which is the low end production for Digby I made some changes in week 2. In the R& D page I left this alone the reason for this was because this was the second most important aspect for our customers. It ranked number two with a 24% of what our customer are looking for in a product. The ideal age is 7.0 and if I would have made any changes in the R& D page I would have lowered the age of the product. This actually worked well for me it brought my product age up to 4.04. This means that next year it will be even higher. As for Dell there were no new products created because that will not be feasible for my customers.
In the Marketing department I left he price alone at $20.50 which compare to my competitors it was low. But that was ok with me for Dell product because the most important expectation for my customers is the Price. The reason I left the pricing alone was to generate customers to come and buy the product. The price range is from $14 to $24 it ranked number one with a 53% margin of what the customers want. I actually lowered the budgeting for Promotion to $700 and the sales Budget to $500 even with lowering the promotional budget to $700 the customer awareness was 50%. For customer awareness it wasn’t too bad it could have been better but 50% was not a bad at all. For the sale force I think that I did ok for Dell for week two my forecast strategy was 2840 and I could have worked on this better for Dell.
For Dell Production I thought I did well for production but apparently I stocked out again. For week 2 my contribution margin was 23% which was low. I also did not utilize my second shift like I should have. I purchased 500 capacity as well as 5.0 in automation rating. I did not utilize my production for each line as well as not establishing a good workforce. I thought by increasing the production as well as the capacity and the automation it would have been suffice. But as I seen again in week two running out of production again showed me that I have to be able to utilize both shifts. I will make those changes for week three.
When it came to our finances Digby did a whole lot better than week one. In week one team Digby was in the negative for the net income and this was because we had to take out an emergency loan. For week two our focus was to make sure that we did not take out an emergency loan. As well as making sure that the company was actually in the positive when it came to our net income we ended with $2,986. We actually did issue long term debt because this was the reason for week one emergency loan. So issuing long term debt actually helped Digby in not getting an emergency loan at all. For Dell our sales were $35,455 and our net margin was $2,338. There are still loads of areas for us to work on as a company. Digby did better in week two than in week one. We still have some areas that we need to work on for week three. For Dell I have to work on making sure that there is no stock out. As well as making sure that as a company that our overall finances are in order. We need to learn from week one and week two in-order to make week three successful for team Digby.