SimulationReport.docx

Overall (Generic ) Strategy(Decision-7-8)

Industry news- Car sales respond strongly as oil prices fall and economy rebounds.
More investment on vehicle attributes such as safety and performance which are advertising themes for our vehicles.
More Investment on development centers, advertising , promotion.
Focus more on awareness and unit market share.
Attractive for automobile industry and increase the dealer discounts with better attributes and affordable MSRP.
Increase the size and performance of the vehicles by collecting and comparing the data of competitors vehicle attributes.
Decided not to increase the plant capacity because we have a more inventory for the vehicles
Skip investing in technology for decision- 7 and increased incrementally in period-8
Invest on test markets , focus groups for all the vehicles to see where we stand in the competition
Invest on corporate advertising , social media, and direct marketing for all the vehicles
s- Increased the dividends pay

Special Decision

To decide with any period special decision firm focus on financial activities and thoroughly check on all the options given to us and if the firm can able to afford, firm comes to a conclusion.
As we have good amount of income our firm had agreed on all the given options for green vehicle incentives to support the legislation.

Strategic Action Plan

The strategic action plan is to go through all results, decisions and comparing the data with previous results and current decisions within the firm. Also comparing our firm data with the competitors to look at all the details and where we stand in the competition for each vehicle.

Product Development & Marketing

Before upgrading(minor/major) all the development centers and marketing numbers , the most important action plan is to run the tools like test market , focus groups so that we can differentiate base line and test result, for example the awareness, value market share , unit market share , net contribution, and its impact.
We maintained the same MSRP for family vehicle and decided to invest more on promotion, direct marketing than advertising with better attributes than before to increase the sales for this vehicle. We had a unit market share of 4.5% , value market share of 4.5% and awareness for 77.3% which was better than the other estimated MSRP for cafav.
This strategy worked out and there was an increase in the vehicle sales on Cafav(family car) which was better than previous decisions that we made.
For all other vehicles we invested on product development(minor) , invested more on promotion, direct marketing , advertising, increased our dealer distribution and invested on training which was firm’s generic strategy for product development and marketing. We are the only firm for minivan class comparatively we had an increase in the sales than our previous sales. Firm luxury class and AEV class had better sales than the previous ones.

Manufacturing

Before any action plan we review the production, capacity decisions and monitor the percentage of sales in the previous results and the number of vehicles remaining in the inventory with re-tooling costs as well. We decide to upgrade the scheduled production and plant capacity depending on the current inventory and previous sales. In regard to our generic strategy, we always try to increase the scheduled production, but plant capacity will only be updated if necessary.

Financing

Regarding finances, before we make decisions , firm strategy is to always analyze the previous decisions on cash flow from operations, investment activities, financing activities and always focus on cash balance and always keep a check on product development minor upgrade expenses, re-tooling costs, plant capacity estimation if there is a necessary to invest. Comparing these expenses, we decide to come up with an upgrade on all the vehicles MSRP. Under financing activities firm always make sure the dividends paid is increased incrementally and keep a check on stock market for every period.

Plan Ahead

To be in the competition with other firms and to make a positive impact on our firm in the market. We planned to launch a new concept with intensive research i.e., utility vehicle class for our customers which falls under singles and enterprisers segment. We have two competitors under utility with advertising theme as quality, performance. Our firm had decided to run a concept test based on results we focused more on enterprisers segment with styling as our advertisement theme which has 34% likely to buy with the MSRP and vehicle attributes that we had decided for utility class. In addition to our plan I would suggest my partners to also focus on scheduled production, capacity and re-tooling costs of existing vehicles not only focus on marketing newly launched vehicle