Forecast Period 1 – Year of recovery
“In this period experts are predicting a recovery after last year’s economic slump. The gross national product, investments, wages and salaries as well as factory material costs are supposed to increase. There will also be a small increase of demand (2-3%) and there exists the possibility to relaunch the product 1-old."
According to this forecast, this year will be a year of recovery after last years economy slump. The gross national product, investments, wages and salaries as well as factory material are supposed to increase. There will also be a small increase of demand.
Period 1 – First Results, (deep) Impact
Group A
Company A1 has got the highest technology index and quality of the market. Because of that their products are also in the premium sector. The ecology index is one of the worst of the market. But despite of investing more money for advertising and hiring new staff in the sales sector the storage of the company increased.
Company A2 has got a cheap product and their indexes of technology and ecology are on average. But they have a big problem in producing their goods. Many customers couldn’t be satisfied and so they bought in other competitive companies. The enterprise has to hire more personnel for the production to produce all the goods for the demand of the market in the next year.
Company A3 offers a middle range product but the ecology index decreased. They had a stock problem in the first year of their new position in the board of directors. Now they haven’t problems with their storage anymore, they cleaned it. In addition they won the announcement of the federal government.
Company A4 has got the best ecology index and also the second best in technology. They offer a product with high quality but you also have to pay a high price for the goods. The enterprise has got a very good image of 108.5 and also the second highest value of all companies on the market.
Company A5 has got a good ecology index but a low quality in their products. Because of that their customers haven’t to pay a high price for a photocopier. This enterprise is the only one which made a relaunch of their old product.
To sum up all the companies could expect a profit in this business year. Company A1, A2 and A3 reached a higher net income than in the year before, but company A4 and A5 could only reach less than in period 1.
Group B
In period 1 Company B1 decided to lower the price due to the high price in period 0. All the other companies (B2 till B5) increased or left the price at the same level. Two companies (B2 and B5) didn’t invest enough in advertisement compared to the market average. This had a negative influence on their potential sales. Company B2 didn’t recruit the necessary sales staff for their chosen strategy which led to the intervention of the ‘invisible hand’ (the so-called Emir Stubai). Company B1 followed their strategy to be the technology leader, but didn’t put their focus on corporate image. Although it would be very important for a premium seller.
Being the ecology leader as a goal of Company B3 couldn’t be fulfilled due to their low expenditure. In conclusion, Company B1, B4 and B5 followed the conservative strategy whereas Company B2 and B3 made some risky decisions. Overall, regarding the net income as an indicator of success Company B1 and B4 did the best job.
