Year 3 Summary

Special decisions:
Improve billing and payments processes (cost of 5 Million) – lowering the
administrative expenses by 1% and reducing receivables by 20%
Charge Interest on payments received late – a smaller reduction in receivables of
5% and revenue generated on late payments (when compared to the second
option, it is better, as otherwise our receivables would go down by 40% and we
knew our accounts would even themselves out in the long run)
Take discount on accelerated payments to suppliers – because our vision of the
company was to reduce as much short-term income to profit in the long term, we
decided that this option is best as it aligns with our vision better

Product development:
We did a major upgrade on the Crash truck, as we noticed a gap in the market (in
both 1T and 3T microsegments), as no other company had significantly upgraded
their trucks.
Our Create utility vehicle is launching in Year 3 and we also started allocating
funds to its production.
Importing & Exporting:
We imported two vehicles from the Atlantic region as a way to make the funds
needed for our future projects: a Minivan and another Truck
We exported both our newest vehicles, the AEV and the utility vehicle to the
Atlantic region and after some negotiation, we managed to strike a profitable deal
for both cars. This would also help us fund our future projects.
Marketing:
We continued to add to our marketing budget this year as well with no difference
in the allocation of funds between regions as all of the cars we were currently
selling are scattered between all regions.
Distribution:
We increased the training budget by 1 million in each region.

Manufacturing:
Because in the past years, we have better managed our production capacity and
tried to combat overcapacity charges as best as we could, this year we started
producing: 1.2 million family vehicles (as the family vehicle was our star product at
the time), 300 thousand new utility vehicles, 325 thousand of the economy
vehicle and 420 thousand trucks

Financing:
Unfortunately, we needed to take out a short-term loan to cover our expenses as
a mistake was made while pricing the new utility vehicle. Furthermore, our Bond
rating improved from a CC to a C rating, meaning that if we continue to make
investments in the long term, we will get a better rating and be able to transfer
our short-term loan into a long term one.
Year 4 Summary

Special decision:
For the special decision of this year, we decided that it is best if we invest in plant
automation even though it would reduce our income short-term and increase
short-term costs, it would be better for us long-term, as we would have a 5%
reduction in labor costs in the next years and over that 10% flexibility with
changing production costs, which we were going to do a lot in the future.

Technology:
We invested in styling to match our competitor’s AEV styling and remain
competitive.

Product Development:
We did a minor upgrade on the AEV, which would improve its Styling, Safety and
Quality, to maintain competitiveness.
We also did a minor upgrade for the original truck, improving its safety by four to
reach a total Safety 4.
We did a major upgrade of the Economy vehicle which would eventually turn it
into a safety 4 car and be able to sell it in the domestic market again.
Importing & Exporting:
We imported the Canvan minivan from the Atlantic market (as it had safety 4) and
canceled the importing of the Ctruck from last year, as it did not meet the
technology requirements to stay competitive.
We also exported the economy vehicle to the Atlantic as it wouldn’t reach the
safety standards of the domestic market. (export-only production)
Marketing:
We improved marketing overall by 2 and due to focusing on the East and West
regions more, we improved them by 5. We stopped marketing for the economy
vehicle as it would not sell anymore for some time.

Manufacturing:
We lowered production of the family vehicle as we had leftover stock from last
year, we produced enough economy cars only needed for the export deal, we
increased the production for the upgraded Crash truck to 900 thousand units and
lastly, we decreased the production of the utility vehicle as we had leftover stock.

Financing:

Our bond rating increased this year as well, from a C to a BB rating, allowing us to
pursue our goal of getting rid of short-term loans and replacing them with long-
term bonds for a lower interest rate. We repaid 10 billion in short-term loans and
replaced it with 10 billion in long-term bonds with a difference of 2% on the
interest, remaining with just 4 billion in short-term loans. Lastly, we increased the
dividends paid by 100 million and issued 1 million worth of stock to better our
stock price.