Mission: To produce cheap computers that satisfy the target market’s needs and wants.

Presto PC

Presto PC Focus on two market segments (Workhorse & Mercedes).

High quality and diverse products. Expanding our market by opening a new sales office in

Paris

Kevin - Sales Management Rachel - Marketing Ciara – Accounting and finance Stephen – Manufacturing Jamie - Market research

The Management Team

Objectives: Initially it was our plan to supply cheap computers that would satisfy our

target markets needs. We were to primarily focus on the Workhorse segment.

However following poor results we realised that selling our products at such low prices was simply unsustainable, so we therefore raised the price hoping to attain a much greater profit.

The Advantage: By selling our products at a cheaper price than the competition we were

hoping to earn the majority of the sales, in turn only making a smaller profit.

The Scope: Initial plan to target large competitive markets with low prices.

Following our poor start we decided to change to supply exactly what the customers wanted, at an affordable price.

The Overall Strategy

Pricing: The first product we launched was the Ablaze1 into the workhorse

market. At the time it was the second cheapest in its category. We then redeveloped it and re-launched it at a higher price from 2,000 to 2,300.

In Quarter 3 we developed a model for the Mercedes segment to be launched in Quarter 4. The Deluxe5, priced at 3,750 was definitely one of the cheaper models in its category.

When we introduced our final product in Quarter 6, the Royalty, to the Mercedes market for what it had to offer it was very cheap, it cost 350 less that the most expensive in its class.

Implementation of Strategies

Marketing: We re-developed our products, studying the market analysis very

closely in order to see what the customers wanted. Following this improvement our product, the Ablaze2, consistently scored the highest rating in brand judgement every quarter.

Also our other product, the Deluxe5, scored very highly in the Mercedes segment. It was consistently ranked in the top 3 products for sale in the Mercedes segment right up to Quarter 6.

Advertising: Advertising was definitely our strongest point throughout the

whole simulation finishing with the highest Cumulative Marketing Effectiveness. Our plan was to put out a small number of effective ads.

We targeted the areas where we believed our ads would be most effective.

Distribution: From the beginning of the simulation until Quarter 5 we only operated out

of Shanghai until we opened another Sales Office in Quarter 6 in Paris.

Manufacturing: As the simulation went on our performance in this sector increased. It

was still not as effective as we would have liked it to be as we simply weren’t producing enough products until our last quarter.

In Quarter 5 we continued to increase our Fixed Capacity and Operating Capacity, again in Quarter 6 we once more raised our Operating Capacity.

Positioning Unfortunately Presto PC’s ranked quite poorly in competition with our

rivals in overall performance.

However we did shine in other areas, ranking first in marketing effectiveness, we believe it was our inability to turnover a larger profit by selling more products that eventually lead to our demise.

Financial Performance

Market Performance

Total Market Share Progress from Quarter 3 , 4 and 5

Q.3 Q.4 Q.5

Market Effectiveness

• One of our main strengths is the success of our advertisements. Our Workhouse computer (Ablaze) was the highest rated advert in the game to our newest Presto Royalty Mercedes computer running in first place.

• Opening a new sales office in Paris has increased our revenue from 2,507,500 in the last quarter to 5,564,500 in this quarter which is a huge improvement.

• Our newest Mercedes computer, Presto Royalty is the highest rated machine in the game(85/100)

• Brand pricing- have the highest ratings for both of our brands.

• Have very low costs on ads despite their success.

Assessment of current SituationKey Strengths

Wealth- though we have increased our financial performance a huge amount from the first quarter, it is still extremely low and still remains a major downfall.

Human resource management we are joint last which would also be considered a huge weakness and a point which we have to work on.

Another of our main weaknesses in our asset management which we must improve greatly as in this sector we are falling last.

Our total performance is the second lowest in the game but though we are second lowest we still look at our current total performance as a strength as it had increased significantly without current changes.

Our Weaknesses

Strengths and Weaknesses of the Competition

Weaknesses Strengths

Eureka’s cumulative market performance is quite low at 0.131

The marketing effectiveness and adverts of Sagitta Systems fall behind at 0.664

One of Dora’s flaws would be its Human resource management at 0.756

Cyclones’ investment in the future would be relatively low at 2.061

Cyclone: Four sales offices and 72 ads allowing them to reach a large market. Also have the best financial and market performance.

Sagitta : Highest market share with 31% and demand exceeds 5000.

Dora: Has the highest manufacturing productivity

Eureka: Have second highest rated Mercedes computer in the market.

As a business we wanted to try to develop slowly but steadily by only releasing one of our machines at the beginning but this proved to be a major flaw of our business. It allowed other people to get ahead in the game and we fell behind.

We decided then to focus and enhance our strengths, creating new advertisements and releasing our second machine in the fourth quarter.

Once the new technologies were released, as a group we did not act fast enough as our debt at the time made us feel insecure about releasing any more machines that may fail.

In quarter 4 we eventually increased our fixed capacities and throughout quarter 5 and 6 we gradually increased our operational capacities.

By the time quarter 6 had come and after continuous disappointment about Presto PC’s we decided to make a daring move and to open a new sales office in Paris and to release our final and most successful machine, Presto Royalty, which proved t be our best move yet, increasing demand, profit and revenue significantly.

Growth Plan

We believe that our risk has been significantly decreased given the opening of our new sales office and release of our new computer.

Highest rated computer in the game (Presto Royalty) gives us great hope.

Gradual development of our products and revenue has allowed us to recognise our weaknesses and fix them accordingly.

We have to take great caution with our spending as wealth is quite low, however, we are positive about the future and what it could mean for our success

Risk Going Forward