Organizational Diagnostic Models

Module 2  – Second Paper – Organizational Diagnostic Models

In SLP2, you will again be provided the numbers to be input for each of four decision points. For purposes of SLP2, pricing will be more conservative (lower) than the pricing strategy reflected in the Module 1 SLP.

Run the simulation, entering the following numbers at each of the four major decision points:

1) Decision 1: For Years 2008-2012

  1. a) Pricing – Manual
  2. b) Module Price – $0.13
  3. c) Revenue to Process Improvement – 5%
  4. d) Years to Advance – 5 years

2) Decision 2: For Years 2013-2017

  1. a) Pricing – Manual
  2. b) Module Price – $0.11
  3. c) Revenue to Process Improvement – 5%
  4. d) Years to Advance – 5 years

 

3) Decision 3: For Years 2018-2022

  1. a) Pricing – Manual
  2. b) Module Price – $0.09
  3. c) Revenue to Process Improvement – 5%
  4. d) Years to Advance – 5 years

 

4) Decision 4: For Years 2023-2025

  1. a) Pricing – Manual
  2. b) Module Price – $0.08
  3. c) Revenue to Process Improvement – 5%
  4. d) Years to Advance – To end

NOTE: Do not change the numbers displayed in the “Settings” tab!

At each of the four (4) decision points above, you are required to analyze the impact of your Module Price on market share and total profits. You are also required to determine how process improvements yield a reduction in unit costs. Be sure to copy tables and charts to support your analysis. You may need t use Excel to edit the charts and tables. However, do not use figures and tables as “space fillers” – use these only to support your analysis.

Keys to the Assignment

The key aspects of this assignment that should be covered and taken into account in preparing your 5-6 page paper include:

  1. Include discussion and analysis of key metrics at the end of each decision point (e.g., among other data, be sure to include total market share, revenue, cumulative profit, consumer net price, modular price, unit cost, etc.). As an MBA, it is your job to identify cause and effect!
  2. For each decision point, be sure to include comparative tables that include what you believe to be the most important data. Don’t merely recite the data, however – instead, analyze the data! As an MBA, what does it tell you?
  3. Make recommendations. What would you have done differently as it relates to pricing, process improvement, or other?
  4. Compare and contrast the pricing decisions made in SLP1 and SLP2. Give key metrics that demonstrate how the different pricing decisions have affected market share, cost to the customer, cost of goods sold, revenue, profits, etc., etc.

Be sure that you retain all SLP2 notes, tables, and figures, as you will be comparing the results of SLP2 with those of SLP3 in the next module.

 

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