Tutorial 2: Ashburn Dynamics
To run Ashburn Dynamics open SimVenture and choose to Load Scenario from the main menu. Then choose Driving Lesson from the list on the left. Click OK at the bottom. You will be asked to select an advisor. It does not matter who you choose for your advisor the information is the same. Some tips will be available just click OK and the case study will be loaded.
Ashburn Dynamics is an established company manufacturing and selling Personal Computers. It has been running for 6 months from January to June and has plenty of customers with a healthy financial position.
This is a young company already doing well. They have over money in the bank, a large market already well aware of the product and no strong competitors. Even if they do nothing, the business will make a good profit every month. The company has no outstanding loans and a good credit rating with the bank.
Your task is to establish the current position and evaluate where potential changes could be made to develop the business. Have a look at the four main functional business areas and try to get used to the process of making decisions, running a month and then reviewing your situation. You should have no problem maintaining or even increasing the levels of business.
Things you might like to try are:
• Change the price of your product
• Take out a bank loan
• Run a month and print a report
• Review your financial performance
At the bottom of the opening screen there is a toolbar with the current position indicated. It is possible to click on some of these items and get some more detailed explanation. Profit and Loss, Bank Balance, Income, Costs, Time, Effort and Efficiency. It is possible to get this information from other screens as well. This is the current state of the business after 6 months trading.
Profit and Loss/Cash Flow Report
To begin to look in more detail use the Menu bar at the top of the opening screen. Choose Overview.
This summarises the current position of the company under the 4 main headings of Sales and Marketing, Finance, Operations and Organisation. Much of this information is available from other screens but it summarises everything after 6 months trading.
To review what has happened over the 6 months choose History form the toolbar at the top.
There are available Summary, Messages, Tables and Charts. At the top left it is possible to review previous months history of trading by clicking the arrows. Note orders and sales and products are different numbers. An order can be for many products.
An important feature to review is messages. These tell you what decisions they have made, what they plan to do and where they have spent money. Check out the messages for the current month and some of the earlier messages for previous months.
There is a Table which shows the Production and Cash Flow history for the 6 months.
Have a look at the four main functional business areas. Choose Menu from the menu bar at the top. The 4 main functional areas of the business are shown with the sub headings for detailed information.
To look at the status of the company decisions for the 4 main functions click on the function title box ie Organisation, Sales and Marketing, Operations and Finance.
Marketing and Sales Strategy
What can you find out about the Marketing and Sales strategy and decisions made by the company. More detail can be found by clicking on the purple arrows on the left for Research Strategy, Marketing Strategy and Sales Strategy.
The Market Report defines the target segment for the Company.
The Competition Report identifies the product offerings of the competition.
The Customer Report shows what customers think of the product. This could identify areas for improvement.
Target Segment – indicating the target segment chosen by the company.
Selling Points – indicating the desired product features and performance.
Marketing Promotions – indicating which promotions have been done.
Information about the Product features, the price, component stock and product stock is shown here. To manufacture the computers components are purchased. There is a production process to produce the computers involving time and cost. Changes to the product features will impact on the time and cost of production.
Basic information is shown about the financial status of the company.
More detailed information about the Accounts etc can be viewed by clicking the dark red arrows on the left.
Look at the Other Measures in Accounting. Standard ratio analysis is provided for the company.
Click on Organisation from the Menu of functional areas.
Information about Premises, People and Legal can be viewed here.
Tutorial 2 Tasks
How much capital was invested in the company?
How much cash is in the bank?
Is the company making a profit?
What is the target market?
What price are they charging?
Who are the main competitors?
What are the selling points?
What are the product design features?
Who are the component suppliers?
What price do they charge?
Who is working for the company?
How much time do they spend for the company?
What premises do they have?
How much does it cost?
Are all legal contracts set up?
Comments on Strategy
The Financial status of the company looks good. Will that continue or do they need to consider alternatives?
What is the pattern of customer ordering over the 6 months? Any reason for that?
How competitive are Ashburn, could they change anything to be more competitive and what would the implication be for the company
Are sufficient resources available to meet the demand,/ should the company be changing anything to meet demand?
Is it time to consider employing more people, developing skills or moving to new premises?
留学生作业 How effective are the promotions, would any changes be made here?
Other factors you consider important.
Amend the current business strategy and run next few months, taking note of the changes that have happened.
2. Profit and Loss Report
3. Cash Flow Report
You will need to use the Print Screen button to take a screen shot of the Profit and Loss and Cash Flow reports. Save them to a word document before printing.
Post a comment on the Blackboard discussion for your group.