Intro to Business
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This 6 page Reader was uploaded by Nathan Stevens on Tuesday April 15, 2014. The Reader belongs to a course at University of Oregon taught by a professor in Fall. Since its upload, it has received 156 views.
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Date Created: 04/15/14
Intro to Business April 15 2014 If having problems with Foundation exit the usual format which is a beta and revert to the older version Rehearsal Tutorial is due Friday 418 by Midnight The next quiz is due Tuesday 422 Capsim s tutorials and demos are under the quothelpquot tab At capsim you must click on quotprocessquot to earn the points for the tutorial after you39ve finished the tactics and quiz As you39re going through the tutorial make sure to update in the top bar RampDquot is where you can reposition size performance the product to place it within the fine circle Changing the position of the product will decrease its age by half if in low tech and by a year in high tech The RampD tutorial will have you reposition the starting product Able Try to keep your low tech product between 2 and 4 years old high tech should be reset to 0 every year Low tech should be repositioned every other year quotMarketingquot is where you make sure consumers are aware of your product You39ll change the Price Promo Budget Sales Budget and the Sales Forecast The costs of the product can be found on the RampD page quotProduction Schedulequot is where you39ll decided the amount of units made how many units made in a shift and general human resource decisions You always want to have more of the product on hand than you think you will sell but not too much more quotFinancequot is where you can keep track of loans and debts and how you fund your production Promotion and Awareness Rate of Diminishing Returns The more aware consumers are of your product the more attractive it becomes Promotion Your message Awareness Percent of the market that received the message You will lose 33 of the awareness you had the year before When you reach 100 awareness you can lower your promotion budget You will only need to regain the 33 you lost as the year changed As you are trying to reach 100 put 2200OOO in your promo budget Once you are at 100 awareness move your budget to 1400OOO Your accessibility will also lose 13 of consumers at the end of each year It s much harder to get to 100 accessibility than awareness Put in 2000000 every year in sales Awareness is how many people know about your product Towards the end game most low tech products look and act very similar The key factor to dominating the market is investing heavily in Awareness and Accessibility to distinguish yourself from the rest of the competition The awarenessaccessibility percentages put on the fast track report doesn t account for the market that finds your product without your promotions Low tech advice Make the MTBF 20000 Revise to the ideal spot in Round 1 Revise so the age will be cut in half in November when it is 4 years old It will change to 2 years old High tech advice MTBF at 23000 If you want to add products Add Able 2 in round 2 Give it performance of 95 and size 105 Add Able 3 in Round 4 Performance 109 size 91 After release reposition every year by making it 7 units smaller and 7 units faster You can charge higher prices in high tech only lower if you39re losing sales On fasttrack there is a page that shows the amount of product that your competitors are making If they39re not expanding the number or expanding their factories you can raise your price as demand will likely exceeded supply just make sure you won t understock The top limit of price raise is 999 In a buyer39s market DO NOT EXCEEDE THE HIGHEST PRICE You will lose 10 of the market for every dollar over the top level 35 for low tech 45 for high tech Sales estimate will be the most important number you calculate Methods for Sales estimate Market Growth Estimate For each product take the number of units sold in its market and increase it by listed growth for the next round If a product sells in both markets take the number sold in each market and multiply by the respective growth rate 11 for low tech 12 for high tech then add the resulting numbers together EX You sell 14 units in the high tech market Multiply 14 by 12 This method estimates you will sell 17 ish units next year in the high tech market You sell 10 units in the low tech market Multiply by 11 You will sell 11 ish in the low tech next year Add them and you will sell 28 ish units total next year This method is reliable if you and your competitors serve your customers the same this year as you did before Keep that in mind Market Share Estimate Take the quotTotal Industry Unit Demand and increased it this is the demand for low tech products for next year Take each product39s quotActual Market Share from the reported year and multiply it by the demand for next round Take each product39s quotPotential Market Share from the reported year and multiply it by the demand for next round Market1growth rate x market share Use the quotPotential Market Share if anyone stocked out quotActual Market Share will not be reliable Customer Survey Scores Take all CSS scores add them together then divide your CS5 by that number The resulting number will be your CSS share Multiply your CSS share by the total demand for next year BA 101 April 17 2014 Reminders Rehearsal tutorial is due tomorrow April 18 at midnight Quiz 2 is due Tuesday April 22 39 at midnight Practice Round 1 is due Wednesday April 23quot at midnight Practice Round 2 is due Friday April 25 at midnight Quiz 3 is due Thursday May 1 at 10 AM The results for Practice Round 1 amp 2 don t affect your grade they just need to be completed In all Rounds after 1 amp 2 results do matter and will affect your grade The goal of business is to create wealth and you can tell how well you are doing by Measuring individual transactions How much acquired wealth do you have and where did it come from Assets Liabilities Owners Equity Assets are anything you own Liabilities are things you owe to other people Owners Equity is the investment put into a business How much new wealth are you creating with it Revenue Expense Profit Revenue is the money you receive Expenses are costs In Accounting A balance sheet is made of Assets The value and amount of the stuff the organization controls Liabiities The debt claims against the stuff Owners Equity The owners claims what they actually own of the stuff Foundation and Accounting Definitions Common Size Common size column represents each item as a percentage of the total assets Cash The amount of available cash Accounts Receivable Reflects the delay between delivery and payment of your products The consumers have not paid you and this is how much they owe you Due within 30 to 60 days of the sell nventories The cost of your inventory across all products A zero value indicates your company stocked out and your competitors would potentially benefit from your inability to sell product Fixed Assets Physical tangible assets tables chairs yada Plant amp Equipment The total cost of your plant and equipment before depreciation over time your plant amp equipment gets old and less useable and valuable Accum Depreciation The total accumulated depreciation of your plant and equipment Use the difference between the number for Plant amp Equipment and Accum Depreciation to see how much your stuff is currently worth and how much it has depreciated Accounts Payable What the company currently owes suppliers for materials and services usually paid within 30 days Current Debt The debt the company is obligated to pay during the next year Current debt includes short term debt bonds and emergency loans Counts as a Liability Long Term Debt The total bonds Counts as a Liability Common Stock The amount of capital invested by shareholders in the company counts as Owners Equity Retained Earnings The amount of owners profits the company chooses to reinvest in the company Revenue Transactions are between a business and its customers Expense Transactions are between a business and its suppliers resources people capital Net Income is a profit the difference between revenue and expense Under Expenses there are Variable costs The more of a product you make the higher the cost Also called Costs of goods sold More labor is needed more material is needed and the costs of keeping inventory will increase if there is more inventory Profit is the owners If the company gives profits to shareholders it s called a dividend Period Costs comes from selling expenses and administrative expenses In other words the period costs are the costs of being in business that month These costs are fixed they will not change with the amount of products made Inventory Carry The cost to carry unsold goods inventory Net margin the difference between revenue and operating expenses Direct Material The costs of the parts of sold goods
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