Our company is D. At the start of the year, we decided to build a new vehicle called Delta.

This is from
concept and is DU-0001. The specs’ size is 60, its HP is 250, and its I/S/S/Q is 2/4/3/2. The vehicle class is
utility. The marketing decisions for consumer marketing where we chose the ad themes of safety and
quality and we spent $15M for advertising in the north, the south, the east, and the west, respectively.
We spent $3M in direct marketing, and our segment targets were families, singles, and people with high
incomes. We spent $9M on social media advertising. In terms of distribution decisions, then we spent
$12M in training and support, and decided to schedule production for the manufacturing of the car Defy
at $660K, and the car Dusty for $405K. The marketing decisions for Defy were that we chose the
advertising theme of interior and spent $20,599 on MSRP. The marketing decisions for the car Delite
were that we chose the advertising theme of safety and spent $11,999 on MSRP. The marketing
decisions for the car Dusty were that we settled on the advertising theme of performance and spent
$20,499 on MSRP. The decisions for the new concept DU-0001 were that the specs were 60 in terms of
size, 250 in terms of HP, and 2/4/3/2 in terms of I/S/S/Q. The vehicle class for this new concept is utility.
The decisions for the new project for Dusty are that the current specifications are 70 for size, 190 for HP,
and 2/2/1/1 for I/S/S/Q. This project type is a major upgrade, and the specification changes are +6, +0,
+0/+0/+2/+1. For product development, we decided to build a new development center. We also
decided to do an environmental impact audit for $4M as part of our special decisions. In terms of
decisions related to technology, we decided to invest in quality and safety. The decision rationale for the
year was that we decided to build a development center at the beginning to get a jump start in
production and beat the competition in the market. We wanted to build the best product with the best
price, and paid attention to what consumers wanted and produced products that met those criteria. We
also increased our marketing expenditure by $2-3M per segment and kept our pricing competitive for us
to target multiple segments with the same vehicle class. The performance measures for Year 1 for net
income (in millions) were -$158M, stock price was at $24.41, total shareholder return (in %) was -30.3%,
market value (in millions) was $12,205M, market share (in percentage value of dollar) was 16.9, and
cumulative net income (in millions) was $1,044M.

The decisions in Year 1 are the following:

We spent $16M for advertising in the east, the north, the south, and the west, respectively, spent $4M
on direct marketing, and $10M on social media for decisions relating to consumer marketing. We spent
$1 on new east dealerships, new north dealerships, new south dealerships, and new west dealerships,
respectively, and spent $16M on training and support for our distribution decisions. We also spent
$120M on dividends, had a loan repayment of $600M, and purchased a 1-year CD at $5M for our
financing decisions. We spent $500K on capacity change, $715K for scheduled production for the car
Defy, $320K for scheduled production for the car Delite, and $550K for scheduled production for the car
Dusty as part of our manufacturing decisions. We set a dealer discount of 10 percent for marketing
decisions for the car Dusty. We spent $1M on plant automation as part of our special decisions. We
decided to invest in interior design and safety as part of our decisions related to technology. The decision
rationale for that year was that since we had a shortage of trucks like Dusty and we could not deliver to
the total market’s demand, then we had to increase our production and capacity, keeping in mind the
growing demand for vehicles. In the past year, there was a shortage of Dustys, so because of that, we
had to decrease our sales discount from 12 percent to 10 percent. On the financial side, we had a cash
flow of $3.875M, which we used to repay $600M of the short-term loan at an interest rate of 8.5%. For
our marketing strategy, we provided a dealer discount of 1%, which we hoped would help to increase
our sales. We decided to increase dividends to increase the stock price and increase advertising by $1M
in each segment to attract more consumers, as well as increased dealer incentives to entice dealers to
sell more of our vehicles.

The performance measures for the second year are that we had a net income (in millions) of -$376M, a
stock price of $20.12, a total shareholder return (%) of -23.7%, a market value (in millions) of $10,060M,
and a cumulative net income (in millions) at $668M. For year 2, our ad themes were styling, safety,
quality, and performance, and our segment targets were families, singles, people with high incomes, and
enterprisers for our decisions relating to consumer marketing. In terms of distribution decisions, we
spent $1M on new east dealerships, new north dealerships, new south dealerships, and new west
dealerships, respectively, as part of our distribution decisions. We spent $70M in dividends, had a loan
repayment of $5,000M, and sold bonds at $5,000M, as part of our financing decisions. We had a
capacity change for $700K, scheduled production for Defy at $640K, scheduled production for Delite at
$280K, scheduled production for Delta at $650K, and scheduled production for Dusty at $620K for our
manufacturing decisions. We chose the advertising theme of safety and set a dealer discount of 10.5
percent for our marketing decisions for the car Defy. We spent $25M on advertising and the theme was
quality for the marketing decisions for the car Delite. We spent $50M on advertising, the theme was
styling, the dealer discount was 8 percent, the MSRP was $24,999, and promotion was $25M for
marketing decisions for the car Delta. The new project for Dusty’s decisions were the following: current
specifications were 76 for size, 190 for HP, and 2/2/3/2 for I/S/S/Q, the project type was a minor
upgrade, and the specification changes were +2, +0, +0/+0/+0/+0. We spent $4M on distribution
management challenges for special decisions. We purchased concept test report for enterprisers, utility,
and Delta, at $24,000. The decision rationale for year 2 was the following:

We decided to pay off our short-term debt so that we would not have to pay the high interest
costs.
We decided to decrease advertising and promotional spend because we were paying the
most for
advertising out of anyone.
We decided to change to marketing of the Defy to Safety and we changed the marketing of
Delite to quality.
in order to better appeal to the target demographics.
We also ran a focus group to decide exactly which features people wanted in our upcoming
utility vehicle.
We increased capacity in order to prevent the over capacity charge from eating into our
income. We launched Delta, did a study on the concept, increased capacity to reduce the
over-capacity charge, issued bonds to pay off the short-time debt, and decreased dividends
share.
For year 3, the performance measures were as follows:
Our net income (in millions) was $1,322, our stock price was $41.08, total shareholder return
(%) was 5.7, market value (in millions) was $20,540, market share (% of $) was 23.6%, and
cumulative net income (in millions) was $1,990.
For year 3, we decided to build a new vehicle called Drift. This is from concept DM-0003, the
specs were 80 for size, 210 for HP, and 2/2/3/2 for I/S/S/Q. Vehicle class is minivan.
For distribution decisions, we purchased new east dealerships, new west dealerships, new
south dealerships, and new north dealerships, each costing $1M. For financial decisions, we
had a dividend of $60M, and a loan repayment of $99M.
In terms of manufacturing decisions, we decided to have a capacity change at $300K,
scheduled production for Defy at $450K, scheduled production for Delite at $150K, scheduled
production for Delta at $1100K, and scheduled production for Dusty at $500K.
For marketing decisions for Delite, we gave a discount of 10 percent for the dealer discount,
and we had an MSRP at $11,699.
For marketing decisions for Delta, we had an MSRP of $24,399.
For marketing decisions for Dusty, we had a dealer discount of 10 percent.
For decisions for the new concept DM-0001, we had the specs of 80 for size, 210 for HP, and
2/2/3/2 for I/S/S/Q, and the vehicle class is minivan.
Decisions for new project for Delta were that we chose specs of 60 for size, 250 for HP, and
2/4/3/2 for I/S/S/Q. The project type was a minor upgrade, and specification changes were +0,
+0, +1/+0/+0/+0.
For special decisions, we did collective bargaining for four groups.
Our decision rationale was that we started another minivan drift, lowered the price for Delite,
increased the discounts for Dusty and Delite, increased the production for Delta, increased
capacity for 300, made special decisions by checking all boxes, and our dividends paid $60M
and the short-term repayment was $99M.
Our results for Year 4 in terms of performance measures are the following:
Net income (in millions) was $2,696, stock price was $61.94, total shareholder return (%) was
15.4%, market value (in millions) was $30,970, market share (% of $) was 27.5%, and
cumulative net income (in millions) was $4,685.
Decisions for Year 4 were the following:
Decisions relating to consumer marketing was that we spent $17M for advertising in the
north, and $5M on direct marketing.
We spent $1M on new north dealerships, new south dealerships, new east dealerships, and
new west dealerships, respectively and spent $17M for training and support for our
distribution decisions.
We spent $65M on dividends and $500 on loan repayment for our financing decisions.
For our manufacturing decisions, we had a capacity change for $800K, scheduled production
for Delite at $250K, scheduled production for Delta at $1815K, and scheduled production for
Dusty at $380K.
For marketing decisions for Defy, then we had an MSRP of $20,699.
Marketing decisions for Delite were that we spent money on advertising for $30M and had an
MSRP of $12,299.
Marketing decisions for Delta were that we had a MSRP of $24,599.
Marketing decisions for Dusty were that we had a dealer discount of 11.5%.
Our decisions for new project for Delite were that we chose specifications of 12 for size, 120
for HP, and 1/1/1/1 for I/S/S/Q. The project type was a major upgrade, and the specification
changes were +8, +0, +1/+1/+2/+2.
Our decisions for new project for Delta were that we chose specifications of 60 for size, 250
for HP, and 3/4/3/2 for I/S/S/Q. The project type was a minor upgrade, and specification
changes were +0, +0, +0/+0/+0/+1.
For our special decisions, we spent $4M on product safety issue, and for our decisions related
to technology, then we decided to invest in interior.
We purchased reports for high income people and families for family and economy vehicles.
Our decision rationale for that year was that:
We increased our interior attribute by 1 point in order to stay competitive with the
competition and offer the best product possible. We increased advertising, promotion, and
dealer discount to our Delite economy vehicle while also raising the price and improving its
features. The Delite was our lowest selling vehicle which is why we decided to perform a
minor upgrade on it in order to stay competitive.
We paid off $500M in short-term debt in order to keep our heads above water. We increased
our capacity by 800 because of the increased sales we were forecasting. We also offered a
1% dealer incentive for each region to entice dealers to sell our vehicles. We also raised our
prices of our vehicles to adjust for inflationary measures. We increased the training in order
to have more effective salespeople sell more vehicles. For our special decision, we have
decided to protect our future customers and our brand reputation by doing the right thing
and doing a recall.
Results for Year 5 were the following:
Net income (in millions) was $1,576, stock price was $73.44, total shareholder return (%) was
16.0%, market value (in millions) was $36,720, market share (% of $) was 26.5%, and
cumulative net income (in millions) was $6,261.
Our decisions for that year were that we spent $3M each on new east dealerships, new north
dealerships, new south dealerships, and new west dealerships, and also spent $25M on
training and support for our distribution decisions.
For our financing decisions for Year 5, we spent $63M on dividends.
For our manufacturing decisions, then we spent $400K on scheduled production for Defy,
spent $400K for scheduled production for Delite, spent $1320 for scheduled production for
Delta, and spent $800K for scheduled production for Drift.
For marketing decisions for Defy, we spent $40M on advertising and gave a dealer discount
of 12.0%.
For marketing decisions for Delite, we gave a dealer discount of 12.0%.
For marketing decisions for Delta, we spent $40M on advertising and gave a dealer discount
of 12.0%.
For marketing decisions for Drift, we spent $40M on advertising, chose the advertising theme
of safety, gave a dealer discount of 12.0%, spent $22,099 on MSRP, spent $25M on
promotion, and had a forecast sales of 550 000 cars.
For marketing decisions for Dusty, we gave a dealer discount of 12.0%.
For decisions for new project for Defy, we made the current specifications to be 28 for size,
145 for HP, and 2/2/3/1 for I/S/S/Q. The project type was a minor upgrade. The specification
changes were +2, +0, +0/+0/+0/+1.
The decisions for project changes for Drift were that we made the current specifications to be
80 for size, 210 for HP, and 2/2/3/2 for I/S/S/Q. The project type was a new vehicle, in-
progress changes. The specification changes were +0, -5, +0/+0/+0/+0.
Decisions relating to special decisions were that we spent $2M on disaster recovery planning.
For our report purchases of concept test, we purchased a report on families and minivan,
Drift for $21K.
The decision rationale for Year 5 was the following:
We decided to increase the dealer discount on all vehicles to 12% to increase sales. We
equalled brand promotion across the board to $40M. We launched our new minivan Drift and
included a 12% discount, and we performed a concept test to better determine which
features the most desirable and which ones need to be changed on the Drift minivan. We
decided to increase dealer incentive by $3M in each region to get more sales. For the special
decision we decided to select number 2 give consumers who order the vehicle before
inventory is available a special discount of $500 per vehicle to wait for delivery in the 2 nd half
of the year. This cost will show up as a one-time exceptional cost. We are in the lead right
now, so we are operating from a perspective in which we want to maintain and grow our
position while fending off against Firm F who is our major competitor right now.
Results for Year 6 were the following:
Performance Measures:
Net income (in millions): $-267
Stock price: 50.08
Total shareholder return (%): 6.3
Market value (millions): 25,040
Market share (% of $): 28.3
Cumulative Net Income (millions): 6,013
Decisions for Year 6 were the following:
In terms of decisions relating to consumer marketing, our segment targets were value
seekers, families, singles, high income people, and enterprisers. For decisions relating to
distribution, we spent $1M each on new east dealerships, new north dealerships, new south
dealerships, and new west dealerships. We also spent $20M on training and support.
For decisions relating to finance, we called our Year 3 bonds and purchased $40M on
dividends. For decisions relating to manufacturing, we scheduled production for Defy at
$500K, scheduled production for Delite at $700K, scheduled production for Delta at $1300K,
scheduled production for Drift at $0K, and scheduled production for Dusty at $500K.
Decisions for marketing for Delite were the following:
MSRP was at $12,599.
Decisions for marketing for Delta were the following:
Dealer discount was set at 13.5%.
Decisions for marketing for Drift were the following:
Advertising was $30M. Dealer discount was 13.5%. MSRP was $21,699. Promotion was $20M.
Decisions for marketing for Dusty was the following:
Dealer discount was set at 13.5%. MSRP was set at $20,299.
Decisions relating to special decisions were the following:
We selected option 2 for safety compliance.
Our decision rationale was the following:
We increased the price of our Delite Economy car from $12,299 to $12,599 because we were
sold out of the vehicle and wanted to get more profit from it.
We increased the discount on Delta from 12% to 13.5% to attract more consumers.
We lowered the price of the Drift minivan and increased the dealer discount in order to sell
more minivans because we had a lot of vehicles left over from last year.
We changed dealer incentive to 1 down from 3 last year. We also lowered training from 25
down to 20 to increase net profit.
We increased the discount of Dusty from 12% to 13% to attract more customers, we also
lowered the price from $20,499 to $20,299 in order to compete better with the competition
who were slightly lower priced than us.
We produced 0 Drift minivans this year because it is not profitable for us and it is losing us
money.
We decreased dividends from 63 to 40 to show that we are fiscally responsible when we have
a down year.
We selected option 2 for the special decision (Run a PR campaign that, although not all your
vehicles currently meet the standard, you are committed to meeting the new safety
requirements in the future which costs $10M).
Results for Year 7 were the following:
Net Income (millions): -2,372
Stock price: 25.32
Total shareholder return (%): -4.1
Market value (millions): 12,660
Market share (% of $): 25.6
Cumulative Net Income (millions): 3,642
Based on the above information, give me a SWOT analysis of 5 strengths, 5 weaknesses, 5
opportunities, and 5 threats.