In Module 4, you will continue with the CVP analysis you completed in the Module 3 SLP.
Scenario Continuation:
It is still January 2, 2013. You have just completed your revised SLP3 strategy using CVP analysis, and you are eager to implement your decisions for 2013 through 2016.
Using the CVP analysis from SLP3, run the simulation for a final time. Again, be sure to take notes about your analysis and document the reasoning behind your decisions.
Finalize your report showing the strategy you have used.
Assignment Overview
Using the strategy that you developed in SLP3, run the simulation. Document your results as you did previously. Review and analyze these results, and develop a final strategy.
Please turn in a 6- to 8-page paper, not including cover and reference pages.
Keys to the Assignment
The key aspects of this assignment that should be covered and taken into account in preparing your paper include:
The revised strategy consists of the Prices, R&D Allocation %, and any product discontinuations for the W1, W2, and W3 tablets for each of the four years: 2013, 2014, 2015, and 2016.
You must present a rational justification for this strategy. In other words, you must provide support for your proposed strategy using financial analysis and relevant theories.
Use the CVP Calculator and review the PowerPoint that explains CVP and provides some examples.
You will need to crunch some numbers (CVP Analysis) to help you determine your prices and R&D allocations.
Make sure your proposed changes in strategy are firmly based in this analysis of financial and market data and sound business principles. Your goal is to practice using CVP and get better at it.
Present your analysis professionally, making strategic use of tables, charts, and graphs.
Time Line Summary:
SLP1
2016: Hired on December 31, 2016.
Turned in first report to CEO Smothers.
SLP2
You are returned – via Time Warp – to January 1, 2013.
You make decisions for 2013 – 2016.
December 31, 2016 – You have revised all four years, and you write up your summary report.
SLP3
Apparently, your SLP2 decisions were not “good enough,” as you have again been returned to January 1, 2013.
It is once again January 1, 2013: You decide to use CVP analysis to develop a revised four-year plan for your strategy. You analyze the results of your first decisions from SLP2, taking notes, and documenting your decision-making process. You use the CVP Calculator to help you develop your strategy. Your notes explaining the logic behind your decisions.
SLP4
It is still January 1, 2013. Using your CVP analysis from SLP3, you run the simulation, implementing your revised four-year plan. You keep track of your financial and marketing results year over year.
You submit your final 6- to 8-page report, which includes your Final Total Score.
You compare – and report – your results with previous results.
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