Diagnosis, SLP: Time Warp the Analysis Below

¶ … Diagnosis, SLP: Time Warp

The analysis below is of the recorded results as achieved in Time Warp 2 decisions. We will derive a separate strategy after evaluating the results which will give an explanation of what the fresh strategy ought to be. Different theories will be evaluated so as to arrive at the eventual strategy as concerns the implementation and operationalization of the idea just arrived at.

Here is a scenario: the day is the first day of January 2016. After the New Year's Eve celebration and the conclusion of the analysis exercise of the performance of the Clipboard Tablet Company, there is no other plan but to welcome the New Year (Module 4 - SLP Guidelines). On turning the television on, a strange thing is noticed. You hear the newscaster say that it is actually 2012 New Year's Day all over again and you are surprised that you got trapped in a Time Wrap called Time Wrap 3 (Module 4 - SLP Guidelines). You realize that the process of making decisions is a little different and will involve the application of CVP analysis to aid in the engineering of a fresh strategy for the improvement of performance of Clipboards (Module 4 SLP Guidelines).

In the year 2012, a net profit of $352,144,973 was recorded. The performance of X5 in relation to its peers was considerably good (Sun-View Summary). The X6 is still in the phase of growth and its consumers splurged more on it in comparison to the rest of the products belonging in a similar category. Nonetheless, a big audience not yet tapped still exists that have not yet purchased the X6. In 2013, a net profit of $830,740,435 was realized (Sun-View Summary). While the X7 price is relatively higher it performs badly when compared to its rivals. The X7 is in growth stage and new customers are buying it while its fan base has been kept alive. The 2014 profit is $1,319,039,222 (Sun-View Summary). The consumers incur the same costs for it as they do for the rivals. X5's shakeout phase has been exhausted and the sales figures are dropping. The projected profits for 2015 were $918, 020,206.

A review of performance spanning four years for the X6, X5 and the X7 shows performance that ranges from good to very bad. X5's performance from the year 2011 to the year 2014 was good but its life cycle is pretty much exhausted now (Module 3 SLP Guidelines). Among the three products, the top in performance was the X6 as it garners more in profits and its turnovers are the most impressive (Module 3 - SLP Guidelines). X7's performance was bad throughout the four years beginning in 2011 to the year 2014. Its market saturation is a mere 4%. Its production was halted and focus channeled to the X6.

Revised Strategy

What was the effect on the price? The pricing was as follows for 4 consecutive years: (Sun-Market Info)

2011

2012

2013

2014

X5

$323

$285

$285

$285

X6

$430

$430

$430

$430

X7

$190

$190

$190

$190

Following an observation of the rates, conclusion is made that X6 rates ought to be increased while its standards of performance are maintained. Exploration of methods for the maintenance of the tablets' quality will be carried out openly as the demand from consumers justifies it. The demand is very high given the sales figures and focus should be channeled to the X6.

As earlier seen, the last strategy was to put all focus and funds on the X6 tablet. The same strategy will be applied in Time Warp 3. The X6 will be the focal point as far as marketing strategies, development and pricing are concerned while the X7 production will be halted (Writer Thoughts). The performance and life cycle of the X6 also saw some enhancement. It was made for those customers who prioritize performance over price. It has been available for sale for close to three years and if the trend continues it is believed it will be available for a long time (Writer Thoughts).

Why will the XB tablet see more success? X6 is a good example of pretty high performance with costs kept low which is attractive to customers (Module 1 -SLP). The corporation's trump card has been the X6 as it equally competed with X5 in 2011 and sales grew exponentially in 2014. Its margin per unit has seen an increase to $133.61 in 2014 up from $66.75 in 2013. Unit sales from 2013 to 2014 were 230,000. This has registered a huge peak in the sales of the corporation. 2014's market saturation was about 63% so opportunities to grow further in 2015 are still present (Module 1- SLP).

After an observation of the rates, a conclusion is made that the X6 rates are to be increased while maintaining its standards of performance. Exploration of methods was pursued openly as stipulated by consumer demands. X5's performance was moderate in the 2011-2015 periods (Module 1 - SLP). Finally, 75% market saturation was realized and margin per unit came to $90.25 down from $96.35 in the 2013-2014 periods. Finally, a reduction in sales by 294,445 indicated clearly that the product's sales run had reached an end as regards profits (Module 1 - SLP). Nonetheless, its moderate performance indicates the possibility of its revitalization so as to register a sales spike. This means that the fresh strategy will include reintroducing the X5.

An Outline of the Strategy

1.

X7 models production will continue to be halted

2.

In the X6 case, other venues will be explored

3.

Making of plans to have the X5 available on the market

4.

Facilitation of the implementation of a CVP strategy for X6 and the X5.

5.

Structuring of the 2016 goals

CVP Calculations

The CVP analysis has a basis on the fact that it can assist in deciding the right three product selections beginning 2006 (Module 2 - SLP). It is apparent that carrying out of the analysis was done with disregard to the beginning and end of every year's phases of presentation of the products. Volume cost finds usage in multiple means for decision making (Module 2 - SLP). For example, it can be made use of in the calculation of breakeven point save for merchandise which will help in the production of profits. Contrarily, in this case, an issue is a performance undertaking of manufactured goods whose responsibility is one Mr. Joe Schmoe (Module 2 - SLP). The primary goal of the business is to surpass the net figure desired.