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Marketing

This is quite significant. Here are a few really valuable pointers: 1. Prices should never be set at an excessively high or low level. Make certain that you can pay all of the costs and that you are not selling at a loss in the Low-End category. When it comes to High-End, individuals may try to price it at a very high level since just 9 percent of the market is concerned with pricing.

It’s okay to price it more than the range and still make a profit, as long as the performance and size meet their expectations. Also, keep in mind that consumers want the price to be $0.50 lower every year, but you should price it at a decent price to beat your rivals’ prices as well. To get you started, here are some reasonable prices: T$28/L$20/H$39/P$32/S$32.

When it comes to rounds 0 and 1, you are unable to divide your money across multiple promos and discounts. Begin by allocating 2000 to each promotion and 3000 to each sales budget to start the ball rolling. This is quite important. Increased awareness and accessibility are critical factors in increasing the likelihood of your items selling effectively. Aim for a 95 percent or higher level of awareness and accessibility.

Once you have a good start, you’ll be able to take over the whole market. Once it reaches 95 percent or above, you should be in cycle three, at which point you may begin allocating money to various advertising and sales campaigns.

Also keep in mind that awareness and accessibility are increasing year after year! Spending a lot in one year and then spending a little in the next year will not result in a high one and a low one. They lose 15% of their value each year, so you must create a budget to ensure that it remains high after it has been reached.

For promotion, have a look at the suggestions and devote your funds to the areas where the most effective methods of promotion are used. Make certain that you spend at least $1,500 in each phase in order to maintain the total high. If you don’t spend money on marketing, your business will decline by 15% each year you wait.

For the Sales Budget, the deadline is December 30th, 2015 (I think $4,500 per section). If you get 95 percent awareness, you may reduce the cost to around $2,000 overall per sector.

If your firm is performing well, make a prediction that you will sell 200-500 percent more merchandise than you did the previous year every year. Don’t pay attention to the computer’s prognosis since it’s not very reliable. Essentially, it is estimating how much you will sell in the absence of any strong competition.

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Production

It is really necessary to comprehend this page as well. Unit sales forecast minus inventory on hand Equals production schedule. You are capable of producing less than that. If you generate more than that, you will be charged a price depending on the amount of additional product you make.

Purchase and sale of capacity

Capacity refers to the amount of product that can be produced. Capacity should be half of the amount of product you anticipate being required to create. So, after deducting your Inventory on Hand, the Production Schedule represents how much you expect to create throughout the course of the year. You should have a 1st Shift Capacity of 550-600 (for generating 1100-1200 items) if you’re producing 1000 products in a year, but no more than that unless you expect to create much more the next year.

Keep in mind that the cost of purchasing capacity is more than the amount of money you get from selling. Don’t sell an excessive amount of it. High/Perf/Size should have a relatively large capacity, while Tradition and Low-End should have a relatively small capacity.

Automation is the term used to describe the use of machines to manufacture items. It is possible to reduce labor costs by using automated systems (at automation 10, your labor cost should be $1.57). This sounds fantastic! However, it is not the end of the story. Every year, you make improvements to your goods via research and development. When you improve your goods, you must also upgrade your manufacturing equipment in order to generate the new items.

This may cause the items to be delayed, and you will not be able to launch the new products until late in the year or possibly the next year as a result. As a result, you desire a high level of automation on items that don’t improve much or just increase a little bit each year. It is desirable to have modest automation for items that need significant changes year after year. Here are some examples of effective automations: T6/7, L10, H3, P5, S5, T6/7, L10, H3, P5, S5.

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Human Resource

Human Resources (often known as “HR”) are a valuable resource for every organization.

Make certain that your labor negotiations are in line with what the workers desire. Use every dollar you have available to you in this area. Alternatively, just retain it in the average. I didn’t see anything particularly noteworthy here. Every year, between $1000 and $2000 in recruiting expenses are incurred, as well as 40-60 training hours.

Finance

Never, ever, ever! Do not take out short-term loans unless absolutely necessary! That indicates that your firm is experiencing significant difficulties, and you anticipate that if you do not act quickly, you will be forced to take out an emergency loan at a higher interest rate. If you are not involved in the Price per Share market, you should take out the maximum amount of long-term debt possible for the first two to three years. It will be very beneficial to you in the long run if you can get a head start on marketing, sales, and research and development. We were not very concerned about the number of shares. You should issue new shares when the price per share is high and buy them back when the price per share is low. For example, in my organization, the price per share has been $1.00 for the previous three rounds.

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