Economics

Simulation here:
https://forio.com/simulation/solar-test/index.htm#page=market_research

Assignment
Run the simulation, entering the following numbers at each of the four major decision points:
1) Decision 1: For Years 2008-2012
a) Pricing – Manual
b) Module Price – $0.13
c) Revenue to Process Improvement – 5%
d) Years to Advance – 5 years

2) Decision 2: For Years 2013-2017
a) Pricing – Manual
b) Module Price – $0.11
c) Revenue to Process Improvement – 5%
d) Years to Advance – 5 years

3) Decision 3: For Years 2018-2022
a) Pricing – Manual
b) Module Price – $0.09
c) Revenue to Process Improvement – 5%
d) Years to Advance – 5 years

4) Decision 4: For Years 2023-2025
a) Pricing – Manual
b) Module Price – $0.08
c) Revenue to Process Improvement – 5%
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

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.

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