13.4 Broad Differentiator - Practice Round 3

Practice Round 3

R & D Round 3

Daze - Improve positioning and reduce age. Example: Increase Daze's performance to 7.8 and reduce size to 12.2.

Marketing Round 3

Daze - Change Daze 's promotion and sales budgets to $1200, and a price of $35.00. Forecast unit sales near last year's level. Enter a sales forecast of 1200.

First New Product - Enter promotion and sales budgets of $1200, and a price of $34.00. Enter a sales forecast of 900.

Second New Product - Enter a promotion and sales budget of $1000, and a price $45.00. The product will not be released by R&D until late in the year, therefore enter a sales forecast of 200.

Production Round 3

For each product, schedule production using the formula:

(Unit Sales Forecast X 1.15) - Inventory On Hand

Important: As your new product is coming out sometime during the year, you might not be able to use the above formula - new products cannot begin production prior to their revision (release) date. Should the number you enter into the production schedule turn red, reduce the schedule until the red number turns black.

Finance Round 3

Follow the guidelines from last round to manage your cash position.

If you are cash poor, issue additional stock or additional bonds. If you are cash rich, pay dividends and retire stock.

Save decisions (select "directly to the website").