To discontinue a product, simply go to the production area and sell all capacity for that product by entering a negative value in the Buy/Sell capacity cell. Selling the entire capacity will discontinue the product.
Production after Accounts Payable adjustment (the A/P delay entered in the Marketing spreadsheet) and other conditions affect the availability of parts needed to build a product. This line adjusts production forecasts to account for material shortages.
To keep your business profitable, you want high profit margins. If you’re sitting on cash, try to pay dividends to shareholders. But make sure you only pay dividends after you’ve made a profit; Dividends must be less than earnings per share.
Durability is a measure of the lifespan of a product and has both economic and technical dimensions. Technically, durability can be defined as the length of time you can get from a product before it deteriorates.
Capacity can be sold by entering a negative number to indicate the amount you wish to eliminate. The capacity will be sold on January 1 for 65% of the purchase price. When capacity is sold, the sale is completed immediately and the money is available in the current turn. Selling its entire capacity will terminate a product.
Repurchase Shares – You can redeem up to 5% of your outstanding shares in each round.
A red number in the cash position cell indicates that a shortfall is expected and your team needs to reach out to the capital markets. Lack of funds means the company is running out of cash.
The simulation was easy to use and navigate. It won’t take you long to learn the system. The challenge was that the instructor had us work in groups. The class had 6 groups (5 students each).
You can improve your margins in two ways. If your business is a differentiator, you can raise prices. The company distinguishes itself by creating high demand with good design, high awareness and easy accessibility. You sacrifice part of the demand with a higher price.
You can spend up to $5,000 per person to hire better talent. The amount is added to the $1,000 automatic hiring fee for each new hire. Recruitment expenses and training budgets are not entered in thousands. To spend $5,000, enter 5000.
The product lifecycle is the progression of a product through 5 distinct phases – development, adoption, growth, maturity and decline.