Strategic Management StratSim

Company “B”By Olivia Ortega, Jennifer Kakacek, Nikole Ellison and

Jordan Truchan

The “

Buzz

y”

Sports car

Hold 100% of the market still

Marketed to high income, and singles

MSRP $35,652

The “

Beaut”

Luxury Car

We currently hold ?% of the market

Marketed toward high income and enterprisers

MSRP $33083

The “

Bach

elo

r”

AEV

We currently hold 100% of the market

Marketed towards eco-conscious consumers and value seekers

MSRP $28380

Sco

reca

rdStrategy Map Strategic

ObjectivesPerformance Measures

Initiatives

Financial•Increase Net Income•Increase Stock Sales

•Increase Sales•Increase shareholder value

•Net Sales•Stock Issue/Purchase (%)

•Increase Sales through Marketing and Production•Increase Stock Sales

Competition•Increase Market Share•Dominate markets

•Increase Market Share•Focus on New Product and Upgrades

•Market Share ($ and %)•Change in Sales/New Product

•Advertise New Product and Upgrades to Vehicles

Internal Process•Increase R&D •Increase Advertising

•Improve Car Ratings•Increase Advertising of Products

•Car Ratings (#)•Promotion and Advertising ($)

•Increase Upgrades•Increase Advertising

Learning and Growth•New Product Focus

•R&D on New Product

•R&D Expenditures ($)

•Increase Spending on R&D

Sco

reca

rdStrategy Map Strategic

ObjectivesPerformance Measures

Quantitative

Financial•Increase Net Income•Increase Stock Sales

•Increase Sales•Increase shareholder value

•Net Sales•Stock Issue/Purchase (%)

•Increase by 8%•Increase by 6%

Competition•Increase Market Share•Dominate markets

•Increase Market Share•Focus on New Product and Upgrades

•Market Share ($ and %)•Change in Sales/New Product

•Increase by 10%•Increase by 8%

Internal Process•Increase R&D •Increase Advertising

•Improve Car Ratings•Increase Advertising of Products

•Car Ratings (#)•Promotion and Advertising ($)

•All ratings above 4•$140 Million on Advertising

Learning and Growth•New Product Focus

•R&D on New Product

•R&D Expenditures ($)

•$10 Million in R&D (20 Surveys)

Marg

ins

 Vehicle

Per UnitRevenu

e

Per UnitCOGS  

Per UnitMargin 

MarginPct.  

Adv  Promo

Per UnitContrib.

Contrib.Pct.  

Bachelor $28380 $22716 $5664 20% $703 $4961 17%

Beaut $33083 $28135 $4948 15% $465 $4484 14%

Boffo NA NA NA NA NA NA NA

Buzzy $31374 $20553 $10821 34% $1414 $9407 30%

Total $30252 $24497 $5755 19% $679 $5076 17%

 Product Contribution – Period 10

Firm B Product Contribution

Net

Inco

me

Sto

ck P

rice

Mark

et

Share

EN

D !

!!!!

!!!!

!!!!

Cocktails anyone?