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Module 599 bus slp # 5
Essay Instructions:
The same person that did my Module 1 slp, module 2 slp, module 3 slp, module 4 slp should
do this module 5 slp as well because its a continuation.
BACKGROUND
In Module 5, you will continue with the scenario and simulation you worked on in the Module 1, Module 2, Module 3, and Module 4 SLPs.
REQUIRED READING
SCENARIO CONTINUATION:
It's still 2012: 1/2/2012, the beginning of Time Warp 3. You have completed your analysis and revised strategy for the next four years and taken a breather. Just like the last time, you enter your predetermined decisions each year and collect the data for future analysis. Time flies and it is certainly deja vu.
Now it is New Year's Eve, 2015, and you are hoping against hope that Time Warp 3 and all time warps will soon come to an end. You have the results of decisions. How did you do? What was your final score? Once again you celebrate hard, hoping you wake up in 2016.
It's New Year's day, 2016. You just had a great New Year's Eve celebration, you finished another four years of moving Tablet Development through 2012 – 2015, and are ready to charge ahead into the future. As you turn on the TV and try to open your eyes, you notice something strange (again?). The TV commentator is saying something about New Year's Day, 2016. Wait, 2016? YES, YES. You did it. You have moved ahead into 2016!!!
You realize that this experience has been invaluable. You know it will help you make better decisions for Tablet Development as you move forward. But before you move ahead, you want to make sure that you have learned what you need to know.
You decide to analyze and compare the last two Time Warp results. You want to see how this last Time Warp results compare to the previous Time Warp results [the results from this run in SLP5 to the results of the run in SLP4.] So you put the results side by side and you put the decisions side by side. And you analyze what happened – how the results were different. And you use CVP analysis to help you understand why the results were different.
You think this is very important and you write it all down so you can refer back to it later if you need to as you move forward into 2016 and beyond.
You hope this never happens to you again, even though you realize how valuable this experience has been.
ASSIGNMENT
Run the simulation with the Strategy that you developed in SLP4 for Time Warp3. Access the simulation site Click here. Collect the results for all three products over all four years. Compare the results from Time Warp 3 with those of Time Warp 2. Show the results side by side and show the decisions side by side. Explain how they are different. Use CVP analysis to explain why they are different.
Please turn in a 4 to 6 page paper, not including cover and reference page.
KEYS TO THE ASSIGNMENT
The key aspects of this assignment that should be covered and taken into account in preparing your paper include:
You need to be detailed, clear, and complete.
Using CVP analysis, explain how the different prices and R&D allocations have generated different results.
Celebrate the end of the Time Warps!!!
TIME LINE SUMMARY
SLP1
2015: 12/15 hired. 12/30 turned in first report to Sally a few days early. 12/31 – celebrated
SLP2
Time Warp 1 begins: 1/1/2016 WARPS INTO 1/1/2012
You freak out, and then realize you have to make decisions for 2012 – 2015, which you do.
12/31/2015 – you have gone through all four years, and you write your report to summarize how you did. You are hoping that you will wake up tomorrow and it will be 2016.
SLP3
Time Warp 2 begins: 1/1/2016 WARPS INTO 1/1/2012 (Again)
Now it's 1/1/2012: you decide to use CVP analysis and develop a four year plan for your strategy. You analyze the results of your first decisions in Time Warp 1 and make notes. You use the CVP Calculator to help you develop your strategy and you make more notes explaining your logic and your analysis. Then you take a short breather before you start in again tomorrow.
SLP4
1/2/2012: you begin to implement your four year plan. You follow it and use the pre-determined decisions for each year, through 2015. You keep track of the results, year by year, both financial and marketing.
12/31/2015 - Celebrate
Time Warp 3 begins: 1/1/2016 WARPS INTO 1/1/2012 (Again).
Now it is 1/1/2012 (for the third time.) You do it all over again, one more time. You decide to do the same thing you did the last time and develop a four year plan. You use CVP, analyze your previous results, and make notes explaining what you did and why. Again, you take a breather before diving in with your decisions tomorrow.
SLP5
1/2/2012: you begin to implement your four year plan. You follow it and use the pre-determined decisions for each year, through 2015. You keep track of the results, year by year, both financial and marketing.
12/31/2015 - Celebrate and hope for the best
1/1/2016 - You made it through the Time Warp - you analyze the results, compare this last run with the previous run and write your final report.
1/2/2016 CELEBRATE, AND RESUME A NORMAL LIFE!!
ASSIGNMENT EXPECTATIONS
Your paper will be evaluated on the following seven (7) points:
Precision - Does the paper address the question(s) or task(s)?
Breadth - Is the full breadth of the subject, i.e., all the keys to the assignment, addressed?
Depth - Does the paper address all elements of the topic in sufficient depth? Does it include and apply the background readings and other background resources? Are they included as references?
Application - Are the concepts of the module appropriately applied to the subject organization?
Organization - Is the paper organized in a coherent and systematic manner? Are headings included in all papers greater than 2 pages?
Clarity - Is the writing clear and the concepts articulated properly? Are paraphrasing and synthesis of concepts the primary means of response to the questions, or are thoughts conveyed through excessive use of quotations?
Referencing (citations and references) - Does the paper use citations and quotation marks where appropriate? Are all references listed in the bibliography used and referred to via citation?
TIPS AND SUGGESTIONS
Please note the following tips or suggestions:
YOU MIGHT FIND THESE DOWNLOADS USEFUL:
Decision Matrix Table - Download this Word doc with a blank table you can use to show your proposed strategy decisions.
PowerPoint discussing CVP - provides a good overview of Cost Volume Profit analysis, the various equations that you can use, and how to use it. Some examples are provided showing how to use the CVP Calculator.
CVP Calculator - this an Excel-based calculator that you can use to determine prices, volumes, and profits. Keep in mind that it will tell you what NEED, but the market determines what you actually get.
Include a cover page and reference page, in addition to the 4-6 pages of analysis described above.
Include headings for all papers greater than 2 pages (basically all papers), but do not use headings as "space fillers."
Cite AND reference all sources that you use in your work, including those that you do not quote but paraphrase. This means include citations and quotation marks for direct quotes of more than 5 words, and citations for that information which you have "borrowed" or paraphrased from other sources.
Essay Sample Content Preview:
MODULE 599 BUS SLP # 5
Name:
Course:
Professor Name:
(March 13, 2012)
Module 599 bus SLP # 5
Introduction
The management has already experience and experimented on various strategies of growth in the technology sector (Portougal & Sundaram 2006). For SLP 4, it was clear that though the reduction of R&D figures in the budget works in the rung run; it might cause drop in profits in the short run. Indeed resource and development is set as a key driver in the industry (Albrecht, et al. 2010; Hall & Johnson 2009). Cost Volume and Profit in the business imply that the cost of doing business must be checked; and the volume of sales must be kept high so as to increase profitability (Thomas, 1993; Weske, 2007). The profitability in SLP 2 and 3 could be compared as they also used different strategies and decisions for each model.
This paper aims to run the simulation with the strategy developed in SLP4 for Time Warp3; collect the results for all three products over all four years and compare the results from Time Warp 3 with those of Time Warp 2. In addition, it shows the results and the decisions side by side and explains using CVP how they are different.
Analysis
The SLP 3 time warp 2, cumulative profit score, is 1,193,923,740 while for time warp 3, final cumulative profit score is 1,237,348,124. Time warp 3 has a higher cumulative profit meaning that decisions made in the time warp were more effective. However this can only be ascertained if the costs and volume also were more than the previous time warp.
2012
For the time warp 2; in 2012, the decisions that were made included strategies to reduce costs for the various models. The reduction of the R & D figures of the X5 from 33 to 23 percent and X6 models from 34 to 24 percent was a strategy to reduce the total costs to be used in the models. However the increase of the R&D costs for the X7 model from 33 to 53 percent resulted to a higher total cost which was not intended (Michael & Belch 2006).
For time warp 3, the decisions made in 2012 included the reduction of R & D figures for the X5 and X6 models and increased for X7. In this time frame we reduce the R & D figures for X5 from 33 to 23 percent, and increase the X7 figures from 33 to 43 percent; X6 figures remain the same. However the prices remain the same for all products. The decision leads to higher profitability i.e. 29 percent up from 24.
The strategy in time warp 2 led to increased total costs i.e. from 702,004,245 to 936,135,255 and increased revenues and sales for the X5, X6 and X7 models there was also increased profitability for all models and the cumulative profits were 678,564,724. The strategy/decisions for time warp three also showed increased revenue from 928,356,756 to 1,323,125,098 and profitability up by 4 percent. Sales also increased from 2,860,367 to 3,955,935 and profits from 226,352,511 to 386,989,843 for the company. In the two time warps, the third one with bring a significant amount of revenue and profits owed to reduced costs.
2013
In 2013 for time warp 2; the decisions made were as similar to the once made in 2012 however, in order to reduce the total cost the R&D was reduced. The prices remained the same meaning that the revenue would only be impacted by more sales.
In 2013, for time warp 3, the decisions remained the same as for the year 2012 only that there was reduced price for the X7 model from $195 to $185.
The decisions of time warp 2 seemed to be better and more effective as it increased the revenues from 1,323,125,098 to 1,155,088,428; this also reduced the total costs from 936,135,255 to 834,072,010. However for time warp 3, the decision slaked the company as there were lower revenues and reduced profitability from 29 to 28; in addition there were lower revenues and sales. The decisions for time warp 2 seemed to have had a better effect.
2014
Decisions for 2014 in time warp 2 included the rethink of the strategy; since the X6 had reached the shakeout phase the ...
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