147+ documents containing “time warp 3”.
strategy for the Time Warp 3 was formulated based on careful analysis of the results of Time Warp 2, which provided insight into buyer behavior at different price points for the three tablets. The strategy was set to optimize the profits for all three products at pre-set levels of R&D allocation. There may be better R&D levels, but for Time Warp 3 these were not explored. The strategy for this Time Warp was as follows:
The results were as follows. In the first year, the X5 sold 1.859 million units and delivered a total profit of 151.182 million. The X6 sold 1.237 million units and delivered a total profit of 217.837 million. The X7 sold 0.740 million units and delivered a loss of around $4.8 million. The total income was 364.210 million for the year. The market saturation of the X5 is 54%, for the X6 it is 37% and….
2012: 1/2/2012, beginning Time Warp 3. You completed analysis revised strategy years a breather. Just time, enter predetermined decisions year collect data future analysis.
The time wrap experience comes to an end and makes way to resume the normal activities. Still, before doing so, it is necessary to review the decisions made in each of the two scenarios, and draw the adjacent lessons. The table below was created to offer a more integrated look at the two scenarios, with the two sets of decisions and the two sets of results. The lines following the table explain the differences and use the CPV analysis to shed more light.
Decrease in &D allocations from 33% to 20%, coupled with price stagnation
Stagnation of the market; the product enters the decline phase
X5 -- &D costs capped at 20 per cent and prices slightly decreased to attract more customers
Loss of profitability, discontinuation in the near future
Blocher, E., 2005, Cost management: a strategic emphasis, 3td edition, McGraw-Hill. Irwin Hansen, D.R., Mowen, M.M., Guan, L., 2007, Cost management: accounting and control, 6th edition, Cengage Learning
Jalan, P.K., 2005, Encyclopedia of economic development, Volume 3, Sarup & Sons
Sadler, P.., Craig, J.C., 2003, Strategic management, 2nd edition, Kogan Page Publishers
CTC Time Warp
Time warp 2 provided for increased knowledge regarding the market and the way in which CVP could be used to improve decision regarding prices. Time has reset and the CVP along with the results may be used to develop a more effective strategy. Adjustments to the strategy will be made learning from time warp 2.
The assessment from the past time warp indicated that the X5 has only a limited life, it is well into the product lifecycle, and it may be argued that the reluctance to discontinue this item until 2015 may not have been an optimal result; while the X5 was available there was less likelihood that the customers buying the firms tablets would move to the more profitable models of the X6 or the X7. The X5 may be producing some revenue, but with most sales being replacement due to the high level of….
Comparison of Time Warp 2 and Time Warp
Time warp has begun and the plan to make changes to the prices with the aim of optimizing the performance of Clipboard Table Co (CTC). The planned changes that were made at the end of time warp 2 will not be implemented, and the results of time warp three can be compared directly with time warp 2. The third time warp appears to have been more successful, with an accumulative profit of $1,970,217,066 compared to time warp 2 where there was an accumulative profit of $1,752,777,185, so the changes made during time warp increased the profit for CTC by a total of $217,49,881. To compare the changes each year will be compared.
Comparing results for 2012
In time warp 2 the price for the X5 was $270, with R&D cut to zero, the X6 was priced at $440, and R&D was set….
Time warp 3 was more successful, the strategy of keeping prices low to sell more products and make a higher overall profit appears to work. The exception to the better performance of time warp 3 was 2013, when time warp 2 had a better performance. It is possible that the X5 was discontinued to early, and the lowering of the X7 price at an earlier point may also provide some benefits, however, the overall performance wit the firm gaining more market share on a lower profit per unit, but a higher overall profit has been a good strategy.
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….
warp, Clipboard Tablet Company had the ability to look back and use data based on previous known financial performance in their decision making. The company made decisions regarding pricing strategies along with the allocation research and development resources following the analysis of past performance. During the second warp period, the company used CVP to make critical financial decisions not only based on the past performance but also the present and future perfomances (Baye, 2007). Though the use of these strategies during the first and second warp were beneficial to the company, the decisions they helped in making led to the decline of sales of both the X5 and X6. In addition, these strategies concentrated only on the pricing and increasing the contribution of the computers. The company also resorted to maximizing the profit without further investment and setting the price of the X7 higher to make it competitive, including….
Clipboard Tablet Company - Comparing the Time Warps
Finally 2016 has arrived and after moving through the period 2012-2015 twice due to Groundhog Day, the results of the different strategies can be compared.
In time warp 1, the first consideration was the X5. As the price was noted as being higher than competing products the price was lowered to $220. As the product was already established in the first time warp it was decided that the research and development (&D) budget should be reduced to 10%, as a higher level of investment may not gain sufficient returns in a maturing product. The X6 was different; this was a product that was being sold to a market which was not price sensitive. The initial strategy was to increase the price to take advantage of this lack of prose sensitivity and increase the revenue per unit, with the price increased to $450.….
Carter, M, (2014, Feb 22), Why Whole Foods Market May Have a Big Problem, Motley Fool, accessed 22nd Feb at http://www.fool.com/investing/general/2014/02/22/why-whole-foods-market-may-have-a-big-problem.aspx
Lambert, T, A, (2008), Four Lessons from the Whole Foods Case, CATO Institute, accessed 22nd Feb at http://object.cato.org/sites/cato.org/files/serials/files/regulation/2008/2/v31n1-4.pdf
MacKey, J; Robb, W, (2013). Letter to Stakeholders, accessed 22nd Feb 2014 at http://www.wholefoodsmarket.com/sites/default/files/media/Global/Company%20Info/PDFs/WFM-2013-Letter-to-Stakeholders.pdf
Meador, Don; Britton, Mike; Phillips, Paige; Howery, Andrew, (2007), Case Analysis -- Whole Foods Market, accessed 22nd Feb 2014 at http://pnphillip.asp.radford.edu/whole%20Foods%20Case.pdf
The best way to approach this situation is to understand some basic concepts. First, each product has fixed costs. Thus, the fixed costs are going to exist in every year a product is sold. This has ramifications for the X5 in the final year.
The second factor that needs to be considered is cost-volume-profit analysis. This technique is used to determine the contribution to fixed costs that each product makes. Thus, CVP is used to find the price point at which the profit is maximized. The key point to remember is that as the price falls, volume increases. The company cut sell all the product by cutting the price to the variable cost level, but that will not deliver any profit. But there is a point at which profit is going to be maximized, and that is the point at which the company should price each product. Then, the only….
While the contribution margins of the X6 and X7 appear to be maximized, that only holds for the levels of R&D investment. A shift in the R&D investments levels, therefore, is critical to maximizing profit over the four years. his requires a greater understanding of how R&D affects demand for the two products. he X6 clearly benefits from a high level of R&D, but this impact may wane as it reaches total saturation. he X7 sales still have potential as well, and they benefit from R&D investment. Consumers love getting a great product for cheap.
here will not be a next step, but if there was, a shift in the R&D strategy would need to be conducted in order to deliver even greater success. However, the current strategy was a strong one. he use of the contribution margin analysis provided the basis for this assessment because it allowed for more….
The company's initial performance was terrible. At first, simply cleaning up the glaring mistakes of the Joe Schmoe regime was enough to succeed. The company stabilized, and made money in 2009. The price points set for the X6 and X7 were a better match for the positioning in the market that the company was trying to achieve. Leaving so many millions of potential X7 sales on the table because of the $200 price point was a key issue that needed to be addressed right away.
But from there the real work of maximizing contribution began. Cost-volume-profit analysis helps the CEO to understand how much money is made per unit of sale. Profit derives from both this figure and the number of sales. The optimal profit point is not the same as the point at which sales are highest -- a selling price of $1 would have sold all 15 million X7s right away, but the company would have been bankrupt. Thus, the CVP analysis strikes the balance between price and sales. In finding this balance for the two key products that drive profit, the company's performance improved with each time warp.
Given a different starting point of R&D allocations, the results could have been better, but the strategy developed was strong and can be applied in the future as well to continue to deliver strong results to the company even as it moved into the X8 and X9 products in the next couple of years.
Figure 1 provides a graphical representation of the effects of consistently high levels of &D investments spread evenly across all product lines.
Figure 1: Outcome of Initial &D and Pricing Analysis
For the implications to Total Income based on these decision points, see Table 2. Note that consistently high &D spending, not price declines, are what is fueling the overall sales growth. At the end of the second iteration, Sales Volume is up 36% and evenue Volume is up 40%. The lesson learned is that when there is a rapidly expanding market, investments in &D and more powerful than price in driving sales (Chwelos, Berndt, Cockburn, 2008)
Total Income Based on Second Iteration Assumptions
Throughout the simulation, market data is periodically provided in addition to market lifecycle stage of each of the products in the company. By the third iteration it is apparent that the X5 is maturing rapidly and as a….
Bayus, Barry L, Jain, Sanjay, & Rao, Ambar G. (1997). Too little, too early: Introduction timing and new product performance in the personal digital assistant industry. JMR, Journal of Marketing Research, 34(1), 50-63.
Chwelos, P., Berndt, E., & Cockburn, I.. (2008). Faster, smaller, cheaper: an hedonic price analysis of PDAs. Applied Economics, 40(22), 2839.
Peter Denno, & Thomas Thurman. (2005). Requirements on information technology for product lifecycle management. International Journal of Product Development, 2(1,2), 109-122.
Mike Edwards. (2008, January). PDA design a collaborative effort. DPN: Design Product News, 36(1), 1,7.
In this case, we have a base logic for R&D allocations -- the X6 needs to be feature-rich in order to attract buyers. The X7 needs only to be current in its features. The X5 is more or less locked into a particular sales, revenue and profit trajectory. Adjustments made at this point in the product life cycle may impact total company profitability by a few million in either direction, but the real profit potential lies in the X6 and X7. Under Joe Schmoe the X6 had a contribution margin of $400 -- 250 = $150. I hypothesized that if the features were improved I could raise the price and therefore the contribution margin. I delivered a margin of $450 - $250 = $200 or $50 more contribution margin than the Schmoe strategy. This came at a cost of a $6.6 million increase to the R&D cost. In 2007….
It should also be noted that the idea do the Big Bang is also included to some degree into the other two theories.
What makes the two theories based of string theory so compelling is that they are multidimensional and provide a more appropriate and fitting understanding of the universe. Another aspect is that many critics have stated is that the Big Bang theory does not answer the vital question of what occurred or existed prior to the Big Bang. Theories such as the Ekpyrotic Theory tend to provide us with a better understanding of the universe as it may have existed before the Big Bang.
In conclusion, an answer to the question, what are the origins of the universe has not been as yet conclusively reached by modern science, What modern science has realized is that a simplistic and logical explanation for the origins of the universe will not….
God, Genesis and the big bang: The Origin of the Universe. Retrieved August 23,
2009, from http://www.hpcisp.com/~kls/page4.html
Origin of the Universe Theories. Retrieved August 23, 2009, from http://web.cecs.pdx.edu/~danr/ph367u/report.pdf
Scientific Origins of the Universe. Retrieved August 23, 2009, from http://www.infoplease.com/cig/theories-universe/scientific-origins-universe.html
The Lord will lead one to safety always. One can simply believe in something higher to get the meaning of this; it doesn't have to be Jesus. Psalm 127, contrarily is confusing because it states that unless the Lord builds the house, it is built in vain. This seems to be more literal, but I do get the idea. Unless the people building the house are doing it with the love of the Lord in their hearts, or building it for him, then what is the point?
Didactic poetry can be quite comforting as seen in Psalm 23 or it can be much too literal and seen as both confusing and condescending. Psalm 127 isn't very instructive spiritually speaking, unlike Psalm 23.
Updated Proverb: A broken toe can hurt, but a broken heart can kill.
Metaphors: Obscure or Illuminate? Didactic literature with its use of metaphors can sometimes obscure the message, as….
By connecting the awarding of a peace prize with the concerns of a world in which terrorism has become a constant threat, Obama makes clear the exigency of his message when he says: "I do not bring with me today a definitive solution to the problems of war."
Nobel laureates are given few formal constraints in terms of their responses but Obama faced the more general constraints of trying to meet very high expectations and the conflicting expectations of the peoples of different nations. I believe that he did a good -- though not perfect -- job in meeting these differing expectations, and so crafted a speech that served as a fitting response to the occasion.
Whether or not one believes that Obama achieved the Aristotelian concept of ethos -- the ability to make a credible ethical appeal -- depends probably more on one's own politics than the speech itself. I….
profit analysis was introduced, but the execution was lacking. One of the important factors is that CVP analysis requires a number of data points so that the elasticities of demand for the product can be determined. There is still going to be the wild card of R&D investment, but setting prices is an important determinant of demand. Working on theory rather than data last time, the results were perhaps less than stellar. The key, however, is to learn from the mistakes that we make and build a better company next time.
Last time out, the prevailing theory was that the X5 should be cheaper, the X6 more expensive and the X7 should be much cheaper. The X5 is going to sell out anyway, so whatever we do with that product is only going to make a few million in difference. Nevertheless, we know that the X5 has to be….
Business - Advertising
strategy for the Time Warp 3 was formulated based on careful analysis of the results of Time Warp 2, which provided insight into buyer behavior at different price…Read Full Paper ❯
Business - Advertising
2012: 1/2/2012, beginning Time Warp 3. You completed analysis revised strategy years a breather. Just time, enter predetermined decisions year collect data future analysis. The time wrap experience comes…Read Full Paper ❯
Business Management CTC Time Warp Time warp 2 provided for increased knowledge regarding the market and the way in which CVP could be used to improve decision regarding prices. Time has…Read Full Paper ❯
Business - Advertising
Business Management Comparison of Time Warp 2 and Time Warp Time warp has begun and the plan to make changes to the prices with the aim of optimizing the performance…Read Full Paper ❯
Business - Advertising
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…Read Full Paper ❯
warp, Clipboard Tablet Company had the ability to look back and use data based on previous known financial performance in their decision making. The company made decisions regarding…Read Full Paper ❯
Business Studies Clipboard Tablet Company - Comparing the Time Warps Finally 2016 has arrived and after moving through the period 2012-2015 twice due to Groundhog Day, the results of the different…Read Full Paper ❯
CVP Analysis The best way to approach this situation is to understand some basic concepts. First, each product has fixed costs. Thus, the fixed costs are going to exist in…Read Full Paper ❯
While the contribution margins of the X6 and X7 appear to be maximized, that only holds for the levels of R&D investment. A shift in the R&D investments…Read Full Paper ❯
Business - Advertising
Figure 1 provides a graphical representation of the effects of consistently high levels of &D investments spread evenly across all product lines. Figure 1: Outcome of Initial &D and…Read Full Paper ❯
In this case, we have a base logic for R&D allocations -- the X6 needs to be feature-rich in order to attract buyers. The X7 needs only to…Read Full Paper ❯
It should also be noted that the idea do the Big Bang is also included to some degree into the other two theories. What makes the two theories based…Read Full Paper ❯
The Lord will lead one to safety always. One can simply believe in something higher to get the meaning of this; it doesn't have to be Jesus. Psalm…Read Full Paper ❯
Black Studies - Philosophy
By connecting the awarding of a peace prize with the concerns of a world in which terrorism has become a constant threat, Obama makes clear the exigency of…Read Full Paper ❯
profit analysis was introduced, but the execution was lacking. One of the important factors is that CVP analysis requires a number of data points so that the elasticities…Read Full Paper ❯