COMP XM
Segment/Perf/Size - ANS-Thrift +-0.5 -0.5
Core +0.8 -0.8
Nano +0.8 -1.1
Elite +1.1 -0.8
*THE ONLY PRODUCT THAT DOES NOT MOVE, IT'S THE PRODUCT IN LOW END
SEGMENT. LEAVE THIS PRODUCT AT 3.0 AND 17.0*
You want to increase
performance and reduce size as much as you can without the revision date reaching
July.
Prices between each round - ANS-Don't change the price!
Price for each product - ANS-Nano - max
Elite - max
Core - a few bucks below
Thrift - a few bucks below
Automation - ANS-increase automation by 1 point each round in each product
get low end up as high as you can
What is your target leverage and how do you get there? - ANS-borrow money until you
hit 2.2 and get 60 days of working capital (will have to pay dividends)
To calculate leverage, - ANS-divide total assets by total equity. This number will
represent the number of dollars of assets owned per dollar invested by equity holders.
If a company has leverage of four, that means they have $4 in debt for every $1 in
equity.
sales and promo budgets (all four rounds) - ANS-For all products
Round 1: 2,000
Round 2: 1,500
,Round 3: 1,400
Round 4: 1,400
Recruiting hours and spend - ANS-$5,000
80 hours
TQM - ANS-$1,500 first round
$1,500 second round
$1,000 third round
$0 fourth round
adding capacity - ANS-a couple hundred each round
best date for new products to come out - ANS-June 26-28th
forecasting shift capacity - ANS-forecast next year's demand directly
This year's potential market share * next year's demand is a good starting point, but
then make judgment adjustments as necessary (e.g. is my product improving, are my
competitors improving, etc.)
use 200% of plant utilization
you must calculate capacity _____ rounds ahead - ANS-2 rounds
MTBF - ANS-Set to maximum amount
Steps for getting a good finance position - ANS-Goals is to get a cash position of $5,000
in Decembers
Step 1: get as much issue stock as possible
Step 2: get as much issue long-term debt
Step 3: get whatever you need left from borrow
when to retire stock - ANS-when you have a good cash position and you have some
money left over to purchase stock back from the market
when to give out dividends - ANS-it's for when you have cash leftover in capital
investment to give to your
shareholder.
, when to retire long-term debt - ANS-it's for when you want to pay your debt early (This
usually decreases your interests expense)
Buy/Sell Capacity Strategy - ANS-You want to keep 2 nd Shift Production % between
20% and 50%
If you have less than 20%; you have to sell capacity
If you more than 50% you have to buy capacity
After you make you decisions on production, check how much capital investment you
have; If you have capital investment leftover, try to spend it in Automation or Capacity
If you are spending more than you should, try to sell capacity or not invest as much.
production schedule formula - ANS-((Units Sales Forecasted) * (1.2) ) - Inventory on
Hand)
forecasting strategy - ANS-From the Market Share page in the Capstone Courier, take
your last year's market
share and multiple it by the next year demand of each segment.
To calculate Next Year Demand, you take current demand and multiple it by the
growth rate
Multiple your Market Share by Next Year's Demand
Finding the profit margin - ANS-Look at "ROS" under the Selected Financial Statistics
A +/- ROS is directly correlated to - ANS-a +/- ROA
ex) negative ROS means you will have a negative ROA
more on ROA - ANS-Return on assets is an efficiency ratio. The ratio answers the
question, "How good is the company at producing wealth with our assets?"
It compares the profits generated by the company with the asset base.
Segment/Perf/Size - ANS-Thrift +-0.5 -0.5
Core +0.8 -0.8
Nano +0.8 -1.1
Elite +1.1 -0.8
*THE ONLY PRODUCT THAT DOES NOT MOVE, IT'S THE PRODUCT IN LOW END
SEGMENT. LEAVE THIS PRODUCT AT 3.0 AND 17.0*
You want to increase
performance and reduce size as much as you can without the revision date reaching
July.
Prices between each round - ANS-Don't change the price!
Price for each product - ANS-Nano - max
Elite - max
Core - a few bucks below
Thrift - a few bucks below
Automation - ANS-increase automation by 1 point each round in each product
get low end up as high as you can
What is your target leverage and how do you get there? - ANS-borrow money until you
hit 2.2 and get 60 days of working capital (will have to pay dividends)
To calculate leverage, - ANS-divide total assets by total equity. This number will
represent the number of dollars of assets owned per dollar invested by equity holders.
If a company has leverage of four, that means they have $4 in debt for every $1 in
equity.
sales and promo budgets (all four rounds) - ANS-For all products
Round 1: 2,000
Round 2: 1,500
,Round 3: 1,400
Round 4: 1,400
Recruiting hours and spend - ANS-$5,000
80 hours
TQM - ANS-$1,500 first round
$1,500 second round
$1,000 third round
$0 fourth round
adding capacity - ANS-a couple hundred each round
best date for new products to come out - ANS-June 26-28th
forecasting shift capacity - ANS-forecast next year's demand directly
This year's potential market share * next year's demand is a good starting point, but
then make judgment adjustments as necessary (e.g. is my product improving, are my
competitors improving, etc.)
use 200% of plant utilization
you must calculate capacity _____ rounds ahead - ANS-2 rounds
MTBF - ANS-Set to maximum amount
Steps for getting a good finance position - ANS-Goals is to get a cash position of $5,000
in Decembers
Step 1: get as much issue stock as possible
Step 2: get as much issue long-term debt
Step 3: get whatever you need left from borrow
when to retire stock - ANS-when you have a good cash position and you have some
money left over to purchase stock back from the market
when to give out dividends - ANS-it's for when you have cash leftover in capital
investment to give to your
shareholder.
, when to retire long-term debt - ANS-it's for when you want to pay your debt early (This
usually decreases your interests expense)
Buy/Sell Capacity Strategy - ANS-You want to keep 2 nd Shift Production % between
20% and 50%
If you have less than 20%; you have to sell capacity
If you more than 50% you have to buy capacity
After you make you decisions on production, check how much capital investment you
have; If you have capital investment leftover, try to spend it in Automation or Capacity
If you are spending more than you should, try to sell capacity or not invest as much.
production schedule formula - ANS-((Units Sales Forecasted) * (1.2) ) - Inventory on
Hand)
forecasting strategy - ANS-From the Market Share page in the Capstone Courier, take
your last year's market
share and multiple it by the next year demand of each segment.
To calculate Next Year Demand, you take current demand and multiple it by the
growth rate
Multiple your Market Share by Next Year's Demand
Finding the profit margin - ANS-Look at "ROS" under the Selected Financial Statistics
A +/- ROS is directly correlated to - ANS-a +/- ROA
ex) negative ROS means you will have a negative ROA
more on ROA - ANS-Return on assets is an efficiency ratio. The ratio answers the
question, "How good is the company at producing wealth with our assets?"
It compares the profits generated by the company with the asset base.
