R&D: Phuong

Daze (Traditional):
Cannot interact so they values are left where they are.

Daze Traditional

Pfmn 6.0

Size 10.0

MTBF 15000

Dell (Low-end):
Increased Pfmn from 2.7 to 3.5.
Decreased Size from 17.0 to 16.7.
Increased MTBF from 12000 to 15000.
The reason why I am changing the values above is because we need to raise
our market share in low-end segment. We are currently placed in 6th and that
hopefully with a good prediction with our list price, promo and sales budget,
we can bring awareness and sell this product to customers. I have based
these numbers on recent performance of other companies and how they are
doing. I have also based these values on the perceptual map to be as close to
the competition as possible.
Dixie (High-end):
Increased Pfmn from 10.7 to 11.5
Decreased Size from 9.3 to 9.0
Decreased MTBF from 20000 to 19000 to see if the our market share can
increase with the current upgraded rates and to lower the cost of new
materials. The reason why these decisions were made is because with the
low market share percentage we have, the less units sold and that it doesn’t
make sense to make a product that is doing well to be full blown awesome if
customers aren’t aware and have access to it.
Dot (Pfmn):
Increased Pfmn from 10 to 11.8
Decreased Size from 15.0 to 14.0
Decreased MTBF from 25000 to 23000
Dune (Size):
Increased Pfmn from 5.4 to 6.0
Decreased Size from 8.6 to 8.0
Increased MTBF from 16000 to 17750

Marketing: Sarah

Note: Since price is expected to fall each year as customers expect, prices
will be decreased to meet demands unless said otherwise.
Price:
-Daze (low-end): Price will be lowered from $25.75 to $25. It is because in its
market (low-end), it is not doing so well gaining the market share, but it is still
a relevant product.

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 -Dell (low-end): Price will be lowered from $19.50 to $19. It is due to it being
our best in the low-end market share and that lowering the price will help it be
competitive according to Low End Market Segment Analysis.
-Dixie (high-end): Price will be lowered from $38.50 to $38. It is because it
owns 17% market share in its respective market.
-Dot (performance): Price will be lower from $32.75 to $32.25. I wanted to
lower it for it to become more profitable compared to competition.
-Dune (size): Price will be lowered from $33.75to $33.25. I wanted to lower it
for it to become more profitable compared to competition.
Promo Budget and Sales Budget:
Note: Promo budget and Sales budget has diminishing return at the certain
point of the money you spend. For this one, $1700 is that point. Also, both
promo budget and sales budget can either increase or decrease customers’
awareness of the brand, as well as the customer accessibility. As default,
customer’s awareness is supposedly decreased by 33% every year. In order
to keep up with it, we have to spend more on Promo and sales budget.
-Daze:
→ Promo budget: Has been increased from $1800 to $1900.
→ Sales budget: Has been increased from $1800 to $1900.
-Dell:
→ Promo budget: Has been decreased from $2000 to $2200.
→ Sales budget: Has been increased from $2000 to $2200.
-Dixie:
→ Promo budget: Has been increased from $1500 to $1700.
→ Sales budget: Has been increased from $1400 to $1900.
-Dot:
→ Promo budget: Has been increased from $1600 to $1800.
→ Sales budget: Has been increased from $1500 to $1700.
-Dune:
→ Promo budget: Has been increased from $1500 to $1700.
→ Sales budget: Has been increased from $1300 to $1600.

Forecast:

Products [Market Share] Sales Forecast (in units of thousands)

Daze [1%] 354

Dell [15%] 1415

Dixie [17%] 435

Dot [14%] 353

Dune [18%] 839

Production: Yufei

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 Schedule Daze Dell Dixie Dot Dune

Unit Sales Forecast 2247 1416 435 353 840

Inventory On Hand 0 0 98 0 350

Production Schedule 2269 1430 340 356 495

Production After Adj. 2247 1416 337 353 490

Note: The numbers in the Production Schedule row are the number that
needs to be gassed in order to get the number in Production After Adj. For
instance, if we want to know what the “Production After Adj.” for Dune, the
calculation is: 840 units (Unit Sales Forecast) - 350 (Inventory on Hand) = 490
units (This is the number that you want in “Production After Adj.” for each
product.)

Note: For products that requires a lot of update such as High End,
Performance, and Size, keep these around 2~4. It might cost more to produce
the product, but you can release the product faster.
For moderate updated products like Traditional like Traditional, keep around
5-6. It cost a little bit less to produce, and you should have enough time to
improve the product and get it out on time.
For products like Low end where don't really need to update it ever, can set it
to 8~10. I don't need that many human labor to produce the low end products.

Human Resources: Han

Increased Recruiting spend and Training hours, which both are capped at $
5000 for “ Recruiting spend” and 80 hours for “Training hours.”
Recruiting Spend: $20 → $ 5000
Training Hours : 20→ 80 hours
Note: Both “ Recruiting Spend” and “ Training Hours” could make Productivity
Index to increase (which is a good thing), as well as lowering Turnover rate
( the lower the turnover rate the better). In our case in Round 5, the turnover
rate is decreased from 9.2% from last year to 7% in the current year.
Productivity Index went up from 100% to 104.1%.

Finance: TRUC
I issued 10000$ common stock this year to raise the company cash.

TQM: YONE

Increased CPI system to $500.

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 Increased vendor/JIT to $250.
Increased quality initiative training to $250.
Increased channel support system to $0.
Increased concurrent engineering to $0.
Increased UNEP green programs to $0.
Increased benchmarking to $0.
Increased quality function deployment effort to $250.
Increased cce/6 sigma training to $250.
Increased GEMI TQEM sustainability initiatives to $250.
Note: Any investment less than $250 will not result in a meaningful benefit.
The UNEP Green program and GEMI TQEM can lower labor and material
costs.
Note: In order to increase demand for our product and reduce administration
costs. The total current expenditures is $1,750. We can see the worst case
and best case rates on the below chart.

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