Clipboard Tablet Co. Strategic Review
Module 1 - SLP
Strategic Review
First, run the simulation using the Default Decisions. In other words, use the prices and R&D percentage that are already there. Capture or collect the results for each product (X5, X6, X7) as you run each year. Copy (using Excel, by hand, or some other method) the Financial results and Marketing results, as well as the information provided by the Advisor.
REQUIRED READING:
Refer to the reading on the SLP in the Module 1 Background. Then read the following scenario before you proceed:
SCENARIO
It is December 15, 2015. Joe Schmoe, the VP of Marketing at Clipboard Tablet Co., is smugly patting himself on the back for how well he has done with pricing and product development on the three products, X5, X6, and X7. He knows his strategy was not very creative, since he did not change any prices or R&D allocations over the four-year period (actually six years, counting 2010 and 2011). But he is certain that he did not need to change anything, and that his overall performance is proof.
However, Sally Smothers, CEO of Clipboard Tablet Co., has a different opinion, and she fires Joe.
You are hired. You applied for the position a few weeks ago and interviewed, unaware of the fate of Joe Schmoe at the time. So here you are, Dec. 15, 2015, VP of Marketing at Clipboard Tablet Co., and ready to move the company ahead into 2016. Your boss, Sally Smothers, is expecting you to take over and move the company forward in terms of product development, and smart pricing.
Session Long Project
Write a 4- to 6-page paper, not including cover and reference page, according to Sally’s directions as follows:
Sally wants to make sure that you are ready to move ahead and asks you to review the past four to six years to see what was going on in terms of product development, sales, pricing, and performance against the competition. You collect all of the data and write a report which is due on Sally's desk January 2, 2016.
Analyze the results of Joe Schmoe's decisions and then write the report that Sally is requesting. Run the simulation of the Clipboard Tablet Co. using the default decisions. Access the simulation site and collect the data for each year. Make a case for your proposed strategy using financial analysis and relevant theories.
KEYS TO THE ASSIGNMENT:
The key aspects to this assignment that should be covered in your paper include:
•A review of the products, their life cycles, and how they stack up in terms of price and performance.
•Financial review for each product: X5, X6, and X7 – sales, costs, profitability, prices, unit margins, etc.
•Market review: New Sales, Repeat Sales, Market Saturation, etc.
•Propose an alternate strategy: a general idea of how you might do better with these products: what pricing and R&D allocations, etc., you would have put in place over the last four years, 2012 – 2015.
SLP Assignment Expectations
Your paper will be evaluated on the following seven points:
•Breadth - Is the full breadth of the subject, that is, the Keys to the Assignment, addressed?
•Depth - Does the paper address the topic in sufficient depth and include the background reading and other background resources as references?
•Critical thinking - Is the subject thought about critically, that is, accurately, logically, relevantly, and precisely?
•Clarity - Is the writing clear and are the concepts articulated properly? Are paraphrasing and synthesis of concepts the primary means of responding to the questions or are points conveyed through excessive use of quotations?
•Organization - Is the paper well written? Are the grammar, spelling, and vocabulary appropriate for graduate-level work? Are headings included in all papers longer than two pages?
•Referencing (citations and references) - Does the paper include citations and quotation marks where appropriate? Are the references from the background reading and assignment present and properly cited? Are all the references listed in the bibliography present and referred to via citation?
•Application - Are the concepts of the module appropriately applied to the subject?
TIPS AND SUGGESTIONS:
Please note the following tips and suggestions:
•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 two 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 paraphrase. This means include citations and quotation marks for direct quotes of more than five words, and citations for that information which you have "borrowed" or paraphrased from other sources.
Follow TUI Guidelines for well-written papers.
Hints for success!
Throughout this SLP, you will be asked to make business decisions under conditions of incomplete information and uncertainty. To do so, you will need to make assumptions based on what you have learned throughout the MBA program about how markets operate. Thus, your strategies in approaching this decision need to rely on models, financial analysis, and theories from such classes as Economics, Finance, Accounting, Marketing, Strategy, and Quantitative Analysis. In addition, the simulation will give you some additional market information as you progress.
Be sure to explicitly draw on concepts and theories from the courses you have taken throughout the MBA program. That means you need to "think like an MBA" and use the financial data you are given. You will have to crunch some numbers and present your data analysis professionally by creating some simple tables, charts and graphs.
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BUS-599 Strategic Review
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Introduction
The product life cycle is important to understand the changes in the sales potential of a product from initial product design when there is research and development to the growth, maturity and product decline (McDonald, 2007). The X5, X6 and X7 models all have the potential to improve the company’s profitability based on process and allocation of research and developments. Hence, the changes to be undertaken seek to show how performance would have been improved during Joe Schmoe’s era. The X5 has already been in the market for three years, but customers are not concerned about the product’s performance the X 6 model has been in the market for 2 years, with customers concerned more about performance rather than price. The X 7 model has been in the market for one year, but customers are concerned about the product’s performance as well as price. This paper reviews the X5, X6 and X7 products, their lifecycle, performance, it also delves in to the financial review market review as well as proposes an alternative strategy for which the company would have achieved better results from 2012-2015.
Review of the products
In 2012, the performance of X6 was better compared to the previous year, while X 5 handheld device was in the growth phase in year. However, X 5 costs considerably more than the other two products during the year, while X 6 performed better than the other two categories. In 2012, the customers paid more for X 6 compared to the other products in the same category. There is high potential in this category since the device is in the growth phase, and there is potential to attract more customers. However, the X 5 performance is then better in the year compared to the tables in the same category. According to Wiktorsson (2012), competitiveness is leveraged through creating value by low costs, improving the value function while also taking into account the preconditions in the market.
On the other hand, in 2013, the X6 becomes less expensive compared to similar products. Even though, X7 is in the growth phase, the device is performing poorly compared to the competitor. There is potential for more growth in the X7 devices, highlighting the need to undertake better marketing promotion campaigns to improve performance.
The performance of x5 would improve to 1.06 in 2012 but then stay constant at 1.05 in 2013 and 2014 at 1.05 and falling to 1.04 in 2015. If the proposal is implemented x6 would be the best performer at 1.31 in 2012 but declining to 1. 25 by the year 2015, but it is still better than 2011’s performance of 1.02. However, there is concern that the performance of x7 is below par as it declines to 0.85 in 2012 and rising marginally to 0.89 in 2015, but below the 2011 performance of 0.97
In 2015, the sales for x 6 are in the shakeout phase and the decline is associated with lack of attracting new customers, and x7 is priced lower than competitors. The enterprise is competitive since customers typically pay almost the same price as other similar products. Highlighting the need for differentiation to increase sales and gain a competitive edge.
Financial review
The sales performance would change over time for the five year period where in 2011 the sales were $ 968,979, but this would then decline to $ 963, 776 in 2015. Nonetheless in 2015, the company would record the highest sales at $ 2,145,622. As such, there is a need to understand the changing demand and product lifecycle to ensure there is better performance. The performance is based on the assumption that the price remains $ 285 from 2011 to 2015. There is concern that X 5 has reached the shakeout phase, and the declining sales will impact negatively on growth prospects from then on. The price of X5 is assumed to state constant from 2012 to 2015. The pricing decision is an important aspect that is dependent on the perceived customer value, signifying the willingness of the customers to pay. Hence, strategic pricing for demand creation may be effective towards improving market penetration (Baines, Fill & Page, 2013).
X6 has been impressive since 2011 when the product brought in $ 562 961 in sales, rising from $1,288,999 in 2012 to 2014 to $ 1,369,006, but declining marginally in 2015 was $ 1,164,454. This performance was based on the $435 price in 2011 and 2012 as well as a rise in the price to $ 500 from 2013 to 2015. Like X5, the product is in the shakeout phase during the period under review in 2015, but marketing will prove vital towards maintaining sales. The price of x6 is assumed to be $ 435 in 2012 but then increases to $ 500 in 2013, 2014 and 2015. The reduction in the R & D allocation in a product does not affect the aggregate research budgets, and may even be associated with further loss making (Hulbert, Capon, & Piercy, 2006).
In 2011, the ...
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