Upload
others
View
4
Download
0
Embed Size (px)
Citation preview
Welcome to MarketplaceCompteam
InternationalQuarter:1
You are about to start a new company that will enter the microcomputer business. You will have limited financial resources and complete accounting responsibility.
You will provide the seed capital (investment money) to start your business. You can use this money to build a factory, open sales offices, and design brands. You will invest 2 million in the first quarter and another 1 million in each of the next two quarters.
You have the next year (4 quarters or decision periods) to get this company off the ground. Within this time frame, you should become a self-sufficient firm, earning substantial profits from your operations.
A balanced scorecard will be used to measure your firm's performance and to compare your results with those of your competitors. The firm's total business performance will be based upon financial performance, market effectiveness, marketing performance, manufacturing productivity, investment in the firm's future, human resource management, asset management and creation of wealth.
Your goal is to be the best competitor in the marketplace.
Now that you have a feeling for the business in which you will compete, take a quick look at what's in store for you in the current quarter and in the near future.
In quarter 1, the goal is to set up your company. These are the decisions that you must make:
1) Name your company 2) Decide on corporate responsibilities 3) Review the market research 4) Design two brands, one for each segment targeted 5) Establish corporate goals and strategic direction
6) Open one or two sales offices 7) Build a plant 8) Make sure there is at least 1,000 in the cash account
Looking ahead to quarter 2, you will study the market research and set things in place to start test marketing.
Company Name:Compteam International
Responsibilities:
Top of Form
Responsibilities Officer Name Primary Responsibility Secondary Responsibility
Sheray Randle President-Overall Leadership VP-Human Resources Company Goals:
Top of Form
Target Markets
1 Workhorse
2 Mercedes
0 Traveler
Mission StatementDefine the mission of your firm. Keep in mind that this mission statement will be read by your customers, investors, and ultimately, your competition.Compteam International’s goal is to offer a diverse consumer base, a variety of products, through distribution channels in North America and Paris, at the least expensive price and with the highest degree of service and customer fulfillment, utilizing the latest in information and technology.
Market Size focus on smaller, high margin segmentsX focus on large, highly competitive segments focus on fringe segments that are out of the mainstream
Geographic Market focus on smaller, less costly geographic marketsX focus on largest geographic markets, even if they are more expensive focus on geographic markets which are in middle of the cost/size continuum focus on geographic markets which minimize distribution costs
Competitive PostureX build a market position and defend it take the lead and keep it be first to market be the leader in all things be a fast follower, imitate smart competitive moves attack the competition on their home ground sidestep the competition whenever possible expend resources which distract the competition ignore the competition
Distinctive Competencies be the low price provider in the market be the market share leader be the profit margin leaderX be the technology leader be the high service provider in the market provide the most reliable product on the market New or Modified Brands:
Top of Form
Comp pro-go 1 [new] Comp Suppro 1 [new] Base Components X XOffice software-word,spreadsheets X XScientific/engineering software XGames XMultimedia accessories for travel X Multimedia accessories for science/engineering XSlim, rugged, portable design X X15" monitor for desktop X 17" monitor for desktop XHigh performance computing power X XStandard keyboard X Expanded keyboard with hot keys XStandard network/Internet connection X
Opening Sales Offices:NY-NorthAmerica
Building Fixed Capacity:25 units a day
Stock History:Top of Form
Stock HistoryType Name of Owner Shares Price per Share Total Amount Quarter
Common Stock Executive Team 20,000 100 2,000,000 1Total 20,000 2,000,000
Certificate of Deposit:
3-Month Certificate of DepositTotal 3-month certificate of deposit investment from last quarter 0How much would you like to withdraw from your account? 0How much would you like to add to your account? 1,000,000
3-month certificate of deposit account for current quarter 1,000,000Quarterly interest rate 1.5Interest to earn 15,000
Bottom of Form
Quarter 2Compteam
InternationalQuarter:2
In quarter 1, you organized your company and set your business in motion. You are now ready to take the next step toward entering the microcomputer industry. In this quarter, you will take on a full assortment of business activities. Your initial business strategy is in place, but you must complete all of the tactics that flow from that strategy to become a fully functioning business enterprise. Thus, you must worry about employee compensation plans, production, advertising campaigns, pricing, sales and service personnel, cash flow and profitability.
Here are the specific decisions you will make in quarter 2:
1) Set compensation packages for your sales people and workers 2) Hire sales and service personnel 3) Open new sales outlet for quarter 3 (optional) 4) Set the selling price of each brand 5) Design an advertisement for each brand 6) Schedule the ads in the media 7) Schedule the production of your brands 8) Purchase market research 9) Make sure there is at least 300,000 in your cash account
Summary of DecisionsCompteam
InternationalQuarter:2
Here is an easy way to see everything you have done in this quarter. Look at this summary of your decisions carefully and make sure you saved all your changes and did not forget anything.
Company Name:Compteam International
Company Goals:
Top of Form
Target Markets
1 Workhorse
2 Mercedes
0 Traveler
Mission StatementDefine the mission of your firm. Keep in mind that this mission statement will be read by your customers, investors, and ultimately, your competition.Compteam International’s goal is to offer a diverse consumer base, a variety of products, through distribution channels in North America and Paris, at the least expensive price and with the highest degree of service and customer fulfillment, utilizing the latest in information and technology.
Market Size focus on smaller, high margin segmentsX focus on large, highly competitive segments focus on fringe segments that are out of the mainstream
Geographic Market focus on smaller, less costly geographic marketsX focus on largest geographic markets, even if they are more expensive focus on geographic markets which are in middle of the cost/size continuum focus on geographic markets which minimize distribution costs
Competitive PostureX build a market position and defend it
take the lead and keep it be first to market be the leader in all things be a fast follower, imitate smart competitive moves attack the competition on their home ground sidestep the competition whenever possible expend resources which distract the competition ignore the competition
Distinctive Competencies be the low price provider in the market be the market share leader be the profit margin leaderX be the technology leader be the high service provider in the market provide the most reliable product on the market New or Modified Brands:none
New or Modified Ads:Top of Form
Comp ad 1 [new] [Comp Suppro 1] Comp ad 2 [new]
Mention Brand Name 3 Feature office applications 4 Most powerful computer on market 1 Picture of business professionals 2 Major Media Placement:
Top of Form
World Market Number of times ad should run in market
Media Cost Comp ad 1 Comp ad 2Business Newspapers 23,000 1 1General Business Magazine 16,000 0 0Computer Magazines 5,000 1 1General News Magazines 8,000 0 0
Leading Trade Journals 7,500 0 0New Venture Magazines 9,000 0 0Sports Magazines 24,500 0 0Executive Business Magaz 29,000 1 0Science & Technology Mag 15,000 0 0Daily Newspaper 9,000 0 1Leisure & Entertain Mag 18,000 0 0
Total Advertising Expenses for Major Media = 94,000Price and Priority:
Top of Form
World MarketBrand Available for Sale Retail Price Price Rebate Sales Priority
Comp pro-go 1 0 0 0Comp Suppro 1 X 1,799 0 1
Market Research:
Top of Form
Market ResearchRegion Cost Buy
World Market 15,000 X
Total Expenses = 15,000Opening Sales Offices:none
Sales People:
Top of Form
World Market Quarterly Training Costs
3,000 2,000 4,000 3,000
City Annual Compensation
Total Sales People Service
Support Workhorse Mercedes Traveler
NY-NorthAmerica 54,249 5 2 1 1 1
Total number of sales people in the prior quarter: 0
Total number of sales people in the current quarter: 5Net change in number of sales people in region: 5Cost to employ sales people for the quarter: 82,811
Total Sales Force Budget = 82,811Sales Force Compensation Package:
Top of Form
Compensation Plan
Region Name
World Market
What annual salary will you offer your employees? 45,000
What health benefits package will you offer? Minimum package
How many weeks of vacation will you offer per year? 2 weeks
What percent of the salary are you willing to contribute to the employee's pension? 5%
Total compensation cost per year 54,249Increasing Fixed Capacity:25 units a day
Stock History:Top of Form
Stock HistoryType Name of Owner Shares Price per Share Total Amount Quarter
Common Stock Executive Team 20,000 100 2,000,000 1Common Stock Executive Team 10,000 100 1,000,000 2Total 30,000 3,000,000
Certificate of Deposit:
3-Month Certificate of DepositTotal 3-month certificate of deposit investment from last quarter 1,000,000How much would you like to withdraw from your account? 1,000,000How much would you like to add to your account? 0
3-month certificate of deposit account for current quarter 0Quarterly interest rate 1.5Interest to earn 0
Bottom of Form
Quarter 3Compteam
InternationalQuarter:3
You are in quarter 3. In the previous quarter your company and your competitors entered the market. Now is the time to see how the customers reacted to your initial business activities.
Looking ahead to quarter 4, your engineers are working to create an expanded set of brand features that will greatly expand your ability to satisfy your customers’ needs. These R&D features will become available for brand design in quarter 4.
With the addition of new brand features and new sales outlets, your firm will probably need to substantially expand its production capacity for quarter 4.
The tactical details that must be completed in quarter 3 are the following: 1) Review performance during the test market and adjust strategy and tactics 2) Improve current brands (if necessary) 3) Hire additional sales and service people 4) Open one or two new sales offices for quarter 4 5) Set the selling price of each brand 6) Design an advertisement for each brand 7) Schedule the ads in the media 8) Schedule the production of your brands 9) Expand production capacity to handle the projected increase in demand in quarter 4 10) Purchase market research 11) Make sure there is at least 300,000 in your cash account
Summary of Decisions Compteam International
Quarter:3
Here is an easy way to see everything you have done in this quarter. Look at this summary of your decisions carefully and make sure you saved all your changes and did not forget anything.
Company Name:Compteam International
Company Goals:
Top of Form
Target Markets
1 Workhorse
2 Mercedes
0 Traveler
Mission StatementDefine the mission of your firm. Keep in mind that this mission statement will be read by your customers, investors, and ultimately, your competition.Compteam International’s goal is to offer a diverse consumer base, a variety of products, through distribution channels in North America and Paris, at the least expensive price and with the highest degree of service and customer fulfillment, utilizing the latest in information and technology.
Market Size focus on smaller, high margin segmentsX focus on large, highly competitive segments focus on fringe segments that are out of the mainstream
Geographic Market focus on smaller, less costly geographic marketsX focus on largest geographic markets, even if they are more expensive
focus on geographic markets which are in middle of the cost/size continuum focus on geographic markets which minimize distribution costs
Competitive PostureX build a market position and defend it take the lead and keep it be first to market be the leader in all things be a fast follower, imitate smart competitive moves attack the competition on their home ground sidestep the competition whenever possible expend resources which distract the competition ignore the competition
Distinctive Competencies be the low price provider in the market be the market share leader be the profit margin leaderX be the technology leader be the high service provider in the market provide the most reliable product on the market New or Modified Brands:none
New or Modified Ads:none
Major Media Placement:
Top of Form
World Market Number of times ad should run in market
Media Cost Comp ad 1 Comp ad 2Business Newspapers 23,000 1 1General Business Magazine 16,000 0 0
Computer Magazines 5,000 1 1General News Magazines 8,000 0 0Leading Trade Journals 7,500 0 0New Venture Magazines 9,000 0 0Sports Magazines 24,500 0 0Executive Business Magaz 29,000 1 0Science & Technology Mag 15,000 0 0Daily Newspaper 9,000 0 1Leisure & Entertain Mag 18,000 0 0
Total Advertising Expenses for Major Media = 94,000Price and Priority:
Top of Form
World MarketBrand Available for Sale Retail Price Price Rebate Sales Priority
Comp pro-go 1 0 0 0Comp Suppro 1 X 3,799 0 1
Market Research:
Top of Form
Market ResearchRegion Cost Buy
World Market 15,000 X
Total Expenses = 15,000Opening Sales Offices:none
Sales People:
Top of Form
World Market Quarterly Training Costs
3,000 2,000 4,000 3,000
City Annual Compensation
Total Sales People Service
Support Workhorse Mercedes Traveler
NY-NorthAmerica 54,249 5 2 1 1 1
Total number of sales people in the prior quarter: 5
Total number of sales people in the current quarter: 5Net change in number of sales people in region: 0Cost to employ sales people for the quarter: 82,811
Total Sales Force Budget = 82,811Sales Force Compensation Package:
Top of Form
Compensation Plan
Region Name
World Market
What annual salary will you offer your employees? 45,000
What health benefits package will you offer? Minimum package
How many weeks of vacation will you offer per year? 2 weeks
What percent of the salary are you willing to contribute to the employee's pension? 5%
Total compensation cost per year 54,249
Increasing Fixed Capacity:50 units a day
Stock History:Top of Form
Stock HistoryType Name of Owner Shares Price per Share Total Amount Quarter
Common Stock Executive Team 20,000 100 2,000,000 1Common Stock Executive Team 10,000 100 1,000,000 2Common Stock Executive Team 10,000 100 1,000,000 3Financial Institution Guido 674 1,000 674,000 3Total 40,674 4,674,000
Certificate of Deposit:
3-Month Certificate of DepositTotal 3-month certificate of deposit investment from last quarter 0How much would you like to withdraw from your account? 0
How much would you like to add to your account? 0
3-month certificate of deposit account for current quarter 0Quarterly interest rate 1.5Interest to earn 0
Bottom of Form
Quarter 4Compteam
InternationalQuarter:4
You are in quarter 4.
The adjustments in your strategy during quarter 3 should have resulted in a substantial improvement in your market demand, sales, and profitability. Hopefully, you have put everything in place for a solid finish to your first year in business.
Hopefully, you have added new sales outlets and production capacity to take advantage of the new R&D features that your engineering department has developed. There is money to be made this quarter.
The activities that must be completed in quarter 4 are the following: 1) Evaluate your performance in quarter 3 by function and for the organization as a whole 2) Review and revise your strategy in light of your assessment 3) Evaluate and adjust your firm's compensation packages 4) Expand or revise your assortment of brands based upon the new R&D features 5) Set the selling price of each brand 6) Design an advertisement for each brand 7) Schedule the ads in the major media 8) Plan the production of your brands 9) Expand plant capacity to prepare the firm for your second year in business 10) Purchase market research
11) Check pro forma cash flow 12) Make sure there is at least 300,000 in your projected cash account
Summary of DecisionsCompteam
InternationalQuarter:4
Company Name:Compteam International
Company Goals:
Top of Form
Target Markets
1 Workhorse
2 Mercedes
0 Traveler
Mission StatementDefine the mission of your firm. Keep in mind that this mission statement will be read by your customers, investors, and ultimately, your competition.Compteam International’s goal is to offer a diverse consumer base, a variety of products, through distribution channels in North America and Paris, at the least expensive price and with the highest degree of service and customer fulfillment, utilizing the latest in information and technology.
Market Size focus on smaller, high margin segmentsX focus on large, highly competitive segments focus on fringe segments that are out of the mainstream
Geographic Market focus on smaller, less costly geographic marketsX focus on largest geographic markets, even if they are more expensive focus on geographic markets which are in middle of the cost/size continuum focus on geographic markets which minimize distribution costs
Competitive PostureX build a market position and defend it take the lead and keep it be first to market be the leader in all things be a fast follower, imitate smart competitive moves attack the competition on their home ground sidestep the competition whenever possible expend resources which distract the competition ignore the competition
Distinctive Competencies be the low price provider in the market be the market share leader be the profit margin leaderX be the technology leader be the high service provider in the market provide the most reliable product on the market New or Modified Brands:none
New or Modified Ads:none
Major Media Placement:
Top of Form
World Market Number of times ad should run in market
Media Cost Comp ad 1 Comp ad 2Business Newspapers 23,000 1 1General Business Magazine 16,000 0 0Computer Magazines 5,000 1 1General News Magazines 8,000 0 0Leading Trade Journals 7,500 0 0New Venture Magazines 9,000 0 0Sports Magazines 24,500 0 0Executive Business Magaz 29,000 1 0Science & Technology Mag 15,000 0 0Daily Newspaper 9,000 0 1Leisure & Entertain Mag 18,000 0 0
Total Advertising Expenses for Major Media = 94,000Price and Priority:
Top of Form
World MarketBrand Available for Sale Retail Price Price Rebate Sales Priority
Comp pro-go 1 0 0 0Comp Suppro 1 X 3,799 0 1
Market Research:
Top of Form
Market ResearchRegion Cost Buy
World Market 15,000 X
Total Expenses = 15,000Opening Sales Offices:none
Sales People:
Top of Form
World Market Quarterly Training Costs
3,000 2,000 4,000 3,000
City Annual Compensation
Total Sales People Service
Support Workhorse Mercedes Traveler
NY-NorthAmerica 54,249 5 2 1 1 1
Total number of sales people in the prior quarter: 5
Total number of sales people in the current quarter: 5Net change in number of sales people in region: 0Cost to employ sales people for the quarter: 82,811
Total Sales Force Budget = 82,811Sales Force Compensation Package:
Top of Form
Compensation Plan
Region Name
World Market
What annual salary will you offer your employees? 45,000
What health benefits package will you offer? Minimum package
How many weeks of vacation will you offer per year? 2 weeks
What percent of the salary are you willing to contribute to the employee's pension? 5%
Total compensation cost per year 54,249Increasing Fixed Capacity:25 units a day
Stock History:Top of Form
Stock HistoryType Name of Owner Shares Price per Share Total Amount Quarter
Common Stock Executive Team 20,000 100 2,000,000 1Common Stock Executive Team 10,000 100 1,000,000 2Common Stock Executive Team 10,000 100 1,000,000 3Financial Institution Guido 674 1,000 674,000 3Financial Institution Guido 3,646 1,000 3,646,000 4Total 44,320 8,320,000
Certificate of Deposit:
3-Month Certificate of Deposit
Total 3-month certificate of deposit investment from last quarter 0How much would you like to withdraw from your account? 0How much would you like to add to your account? 0
3-month certificate of deposit account for current quarter 0Quarterly interest rate 1.5Interest to earn 0
Bottom of Form
These were my mistakes/errors made on the simulation:
Important WarningsYour firm took on an emergency loan of 3,645,806 in quarter 4. Your current emergency loan is 4,319,782. This reflects poor financial management. You are advised to control your expenditures this quarter and pay off this loan.
Your firm went bankrupt in quarter 4. Your retained earnings were -5,473,013, while your equity was only 4,000,000. As a result, you are required to scale back your operations and focus on only the most profitable markets and brands. You are also restricted from further investments in new sales offices or further plant expansions.
Private Report from Customer Union
Customer Union is an independent, international, product-rating service that performs objective evaluations of new products across a host of business and consumer industries. The following is their private report to your firm based upon their analysis of market needs and your
brand offerings.
Your firm has selected the Workhorse segment as the first target market. However, none of your brands meet the minimum requirements of this target segment. Therefore, Customer Union has not recommended any of your firm's brands for Workhorse. You are advised to develop a new brand to better meet your target segment's needs. Private Report from Customer Union
Customer Union is an independent, international, product-rating service that performs objective evaluations of new products across a host of business and consumer industries. The following is their private report to your firm based upon their analysis of market needs and your
brand offerings.
Your firm has selected the Mercedes segment as the second target market. However, none of your brands meet the minimum requirements of this target segment. Therefore, Customer Union has not recommended any of your firm's brands for Mercedes. You are advised to develop a new brand to better meet your target segment's needs.