● How to formulate corporate/functional strategies and tactics and how to implement them.

○ Went for luxury across all segments

○ Maintain brand image
○ First mover mentality, explore untapped market
○ Constant innovation
○ Current decisions that breed long term benefits
i. Forward thinking and time line monitoring
● What (and how) metrics should be used to make decisions and monitor performance.
○ Percentage of market share
○ Desired specs for target microsegments
○ Awareness and dealership preference
● How to decide on whether to finance investment through retained profits, debt or equity
issuances; and how to target and monitor the firm’s leverage.
○
● How to best integrate business functions, both in terms of data-driven decisions and
teamwork. Provide an exhibit that shows a model of how your team made its decisions
and how you considered FE, MK and OM as you proceeded through the simulation.
○ Contribution margins
○ Sales forecasting
○ Breakeven contribution
○ Return on investment
○ Debt-equity ratios, managing cash on hand
○ S curve
○ Finding the “white space” of a market
○ Meeting a consumers needs, identifying micro segments
1. Monitoring for emerging markets using micro segment reports and
industry outlook
2. Focus groups, buying microsegment reports
3. Create concept
4. Test concept
5. Based decision on likeliness to buy in micro segment and competition
specs
○ Dealership distribution and gross sales/dealer
○ Constant innovation required very strict inventory monitoring and management
i. Created huge need for accurate forecasting
● What factors drive performance (what relationships you observed between decisions
and outcomes).
Throughout the simulation you will have access to performance data on all firms in all
industries and should be using these data to make decisions. As part of the Executive
Summary, provide an exhibit that shows how the decision variables affect Total
Shareholder Return.
○ Market shares
○ Capacity utilization
○ Awareness
 ○ Dealership distribution
○ Competition technology specs/capabilities
○ Cash balances, debt leverage
○ Product contribution margins
● How to allocate resources based on those relationships.
○ CONSTANT monitoring of competition
○ Make upgrades and shift products based on new releases and upgrades of
competition
○ Marketing budget based on price point and competition entry
● Your advice on how to approach ethical challenges and team conflicts.
○ Open communication from the beginning
○ Must come to group consensus and make sure no one has unvoiced
○ Group pluses and deltas

Executive Summary (TIP: refer to Note on Effective Business Writing (posted on Mod 2
QTools site). No more than 1 page, single-spaced

INDUSTRY NEWS
Period 0:
Gas prices and economy fairly stable which should provide a good environment for
vehicle sales.
Firm A has added a new development center.
Firm B has added a new development center.
Firm C has added a new development center.
Firm D has added a new development center.
Firm E has added a new development center.
Firm D's market share fell from 28.0% to 25.9%.
Firm E's stock price rose $5.15 to $48.06.
Industry marketing expenditures were flat at $1,894 million.

Period 1:
Car sales sluggish as concerns about economy dampen demand in first half of year.
Alfa has been upgraded.
Cafav and Climax have been upgraded.
Efizz and Estruck have been upgraded.
Firm A has added a new development center.
Firm B has added a new development center.
Firm C has added a new development center.
Firm E has added a new development center.
Firm D's market share fell from 25.9% to 21.4%.
Firm B's stock price fell $16.65 to $28.04.
Industry marketing expenditures increased $303 million to $2,197 million.

Period 2:
Alec and Awesome have been upgraded.
Firm B has completed development of Bentley.
Buzzy has been upgraded.
Cafav has been upgraded.
Efizz and Euro have been upgraded.
Firm E has added a new development center.
Firm E's market share increased from 29.3% to 36.7%.
Firm E's stock price rose $29.15 to $78.37.
Firm E's capacity increased 500 to 1,600.
Firm B increased dealerships by 25 to 305.
Industry marketing expenditures increased $346 million to $2,543 million.
Period 3:

Market research has identified a new microsegment: 4M

Awesome has been upgraded.
Boffo and Buzzy have been upgraded.
Camini has been upgraded.
Efizz and Estruck have been upgraded.
Firm A announced they were preparing to introduce a Truck class vehicle.
Firm C announced they were preparing to introduce a Utility class vehicle.
Firm E announced they were preparing to introduce a Delivery class vehicle.
Firm C has added a new development center.
Firm E's market share increased from 36.7% to 42.9%.
Firm E's stock price rose $30.57 to $108.94.
Firm A's capacity increased 100 to 1,400.
Firm B increased dealerships by 28 to 333.
Industry marketing expenditures increased $511 million to $3,054 million.

Period 4:
Vehicle sales stronger thanks to better than expected economic growth. However, crude
oil prices double in December and raise concerns about the coming year.
Firm A has completed development of Alamo.
Alfa and Awesome have been upgraded.
Beaut and Bentley have been upgraded.
Firm C launched Commodore with an advertising campaign of $200 million.
Firm E has completed development of Express.
Efizz and Euro have been upgraded.
Firm A has added a new development center.
Firm C has added a new development center.
Firm C's market share increased from 10.9% to 16.1%.
Firm C's stock price rose $39.75 to $118.40.
Firm E's capacity increased 500 to 2,100.
Firm C increased dealerships by 35 to 396.
Industry marketing expenditures increased $596 million to $3,650 million.
Firm C announced they were preparing to introduce a AEV class vehicle.
Firm E announced they were preparing to introduce a Sports class vehicle.
Period 5:
Rising gas prices and weak economy hurt auto sales.
Market research has identified a new microsegment: 5A
Alec, Alfa and Alamo have been upgraded.
Beaut and Boffo have been upgraded.
Firm C launched Charge with an advertising campaign of $80 million.
Firm C launched Celine with an advertising campaign of $200 million.
Cafav and Climax have been upgraded.
Firm E launched EnerG with an advertising campaign of $200 million.
Estruck, Euro and Express have been upgraded.
Firm B has added a new development center.
Firm E has added a new development center.
Firm A's market share increased from 28.2% to 37.8%.
Firm E's stock price fell $62.17 to $58.18.
Firm E's capacity increased 700 to 2,800.
Firm A increased dealerships by 48 to 528.
Industry marketing expenditures increased $1,121 million to $4,771 million.

Period 6:
Period 0:
Period 0:
Period 0: