University of Houston CVP Simulation Paper

Write a 6- to 8-page paper, not including cover and reference pages, in which you use the results from SLP3 (see attached) and continue the CVP analysis to develop a revised strategy. You will use CVP analysis to inform the pricing of your three products.

Required Reading: Read the following scenario carefully before you proceed.

• I’ll add a separate list of resources to cite below
  • file will be called ‘background’, and it’ll contain a link with the sources
  • remember to closely support premises of thought with course material)
• This is a continuation earlier assignments. You’ll find the completed assignments posted separately below (see SLP 1, 2, and 3 files attached).
• Note: Reflect on the above—and analyze critically though you will want to consult the library, some websites, and other resources. Cite your sources, and do not copy-and-paste material directly from those resources. Use direct quotations sparingly, if at all.

Scenario Continuation:

It is still January 2, 2013. You have just completed your revised SLP3 strategy using CVP analysis (see attached), and you are eager to implement your decisions for 2013 through 2016.

Using the CVP analysis from SLP3 (see attached), run the simulation. Be sure to take notes about your analysis and document the reasoning behind your decisions.

• Simulation link: https://forio.com/simulate/michael.garmon/tablet-development-sim/simulation/

Finalize your report showing the strategy you have used.

Assignment Overview

Using the strategy that you developed in SLP3, run the simulation (https://forio.com/simulate/michael.garmon/tablet-development-sim/simulation/). Document your results as you did previously. Review and analyze these results, and develop a final strategy.

Please write a 6- to 8-page paper, not including cover and reference pages.

Keys to the Assignment

The key aspects of this assignment that should be covered and taken into account in preparing your paper include:

• The revised strategy consists of the Prices, R&D Allocation %, and any product discontinuations for the W1, W2, and W3 tablets for each of the four years: 2013, 2014, 2015, and 2016.
• You must present a rational justification for this strategy. In other words, you must provide support for your proposed strategy using financial analysis and relevant theories.
• Use the ‘CVP Calculator’ and review the ‘CVP Analysis’ PowerPoint that explains CVP and provides some examples (see attached files for both).
• Use the Decision Matrix Table – Download this Word doc with a blank table to show your proposed strategy decisions. (see attached)
• You will need to crunch some numbers (CVP Analysis) to help you determine your prices and R&D allocations.
• Make sure your proposed changes in strategy are firmly based in this analysis of financial and market data and sound business principles. Your goal is to practice using CVP and get better at it.
• Present your analysis professionally, making strategic use of tables, charts, and graphs.

Time Line Summary:

SLP1:

• 2016: Hired on December 31, 2016.
• Turned in first report to CEO Smothers.

SLP2:

• You are returned – via Time Warp – to January 1, 2013.
• You make decisions for 2013 – 2016.
• December 31, 2016 – You have revised all four years, and you write up your summary report.

SLP3:

• Apparently, your SLP2 decisions were not “good enough,” as you have again been returned to January 1, 2013.
• It is once again January 1, 2013: You decide to use CVP analysis to develop a revised four-year plan for your strategy. You analyze the results of your first decisions from SLP2, taking notes, and documenting your decision-making process. You use the CVP Calculator to help you develop your strategy. Your notes explaining the logic behind your decisions.

SLP4:

• It is still January 1, 2013. Using your CVP analysis from SLP3, you run the simulation, implementing your revised four-year plan. You keep track of your financial and marketing results year over year.
• You submit your final 6- to 8-page report, which includes your Final Total Score.
• You compare – and report – your results with previous results.

Assignment Expectations

Write a 6- to 8-page paper, not including cover and reference pages, in which you use the results from SLP3 (see attached) and continue the CVP analysis to develop a revised strategy. You will use CVP analysis to inform the pricing of your three products.

Tips and Suggestions

You might find the following attachments useful:

Decision Matrix Table – Download this Word doc with a blank table you can use to show your proposed strategy decisions. (see attached)

CVP Analysis PowerPoint– Provides a good overview of Cost Volume Profit analysis, the various equations that you can use, and how to use it. Some examples are provided showing how to use the CVP Calculator. (see attached)

CVP Calculator – This an Excel-based calculator that you can use to determine prices, volumes, and profits. Keep in mind that it will tell you what need, but the market determines what you actually get. (see attached)

• Include a cover page and a reference page, in addition to the 6-8 pages of analysis described above.
• Include appropriate section headings.
• Use charts and graphics strategically, but do not use these as “space fillers.” Include lengthy tables, etc., in an Appendix instead.
• Cite and reference all sources that you use in your work, including those that you paraphrase. This means include citations and quotation marks for direct quotes, and citations for that information which you have “borrowed” or paraphrased from other sources.