Forecast Period 4 – Year of economic turnaround
In opposite to the year 1 to 3 there won’t be an economic growth. Experts predict a decrease of the gross national product and the investments by 1%. Costs of living will increase by 3% and wages and salaries will rise by 4%. Interest rates will be reduced by 2% to ensure the domestic demand.
Market 1
The demand will probably decrease by 2% for product 1.
Market 2
There is a rise in sales of about 25% expected.
The BTME 2009 offers to purchase up to 15.000 copiers for 1.950€ as well.
Experts predict an increase of prices on the crude oil-markets up to 150%.
Due to the economic situation customers have financial problems. That leads to the effect that 70% of the sales revenues will be paid in the next period.
The required capacity for product 1-new per copier decreases to 0,8.There is also a reduction of the taxes to 20%.
Period 4 – Pokerface and looking forward to a cold beer
Group A
This period went very confused. There have been many surprises in the decisions of different companies. Company A1 and A4 has suffered a big loss because they sold with at lower price than their costs of production. Their finance and accounting department have made devastating mistakes. They have reduced their production dramatically which had an influence on their COP per unit. The other three companies were able to reduce their COP. So they have been capable to reduce their price and because of that they made a profit in this business year. The price leader was company A2 and A5. But company A5 was the only enterprise which was not able to deliver all their customers. Due to this situation the other 4 companies have made profit because they had the chance to take over the unsatisfied customers of company A5.
Group B
Due to the expected economical crisis nearly every company lowered the price in this period. Company B1 to B3 increased their expenditure on advertising whereas Company B4 and B5 decreased their spending. Company B4 has taken this decision because of the long term impact of the high expenditure of period 3. Company B1 and Company B5 defeated their technological and ecological advantage. Company B1 is still corporate image leader.
Company B5 pushed the shareholder’s luck by paying 85% of net income to them.
It is remarkable that in Period 4 every company was improving in their processes especially in their decision making processes. Every company announced pretty quickly how much they were going to invest in the different departments and which strategic decisions they were going to make.
