December 2006, Quarter 0/12

To play Credit Crisis please Sign Up for a free trial account.

Credit Crisis
As credit availability disappears and consumer markets turn down, this established machinery manufacturer is finding it difficult to reposition for the new economic realities.
Simulation Run Time The simulation will run for 12 Business Quarters (3 years), at a screen-refresh rate of 5 minutes per simulated Quarter. The simulation round therefore lasts 60 minutes - plus some start up time, as you familiarise yourself with the screens.
Topics Covered Strategy, Product Lifecycle, Finance, Issue/Buyback Shares. Your Starting Position The intial seed capital is 200M$ and your available investment budget is 25M$. Your company has already invested into 3 product lines: Forklifts, Farm Tractors and Road Tractors. You are competing against 1 virtual competitors: Machinery Inc Inc.

MACHINERY

Buses

Investment: 309M$
Monthly Capacity: 163
Product Life Cycle: 25 months

Sales Price: 138,000$
Monthly Revenues: 22M$
Staff: 712

Circular Saws

Investment: 64M$
Monthly Capacity: 34,864
Product Life Cycle: 18 months

Sales Price: 168$
Monthly Revenues: 5.86M$
Staff: 185

Excavators

Investment: 92M$
Monthly Capacity: 100
Product Life Cycle: 25 months

Sales Price: 84,000$
Monthly Revenues: 8.40M$
Staff: 266

Farm Tractors

Investment: 236M$
Monthly Capacity: 265
Product Life Cycle: 25 months

Sales Price: 64,800$
Monthly Revenues: 17M$
Staff: 544

Forklifts

Investment: 200M$
Monthly Capacity: 288
Product Life Cycle: 25 months

Sales Price: 42,000$
Monthly Revenues: 12M$
Staff: 383

Road Tractors

Investment: 253M$
Monthly Capacity: 264
Product Life Cycle: 25 months

Sales Price: 69,600$
Monthly Revenues: 18M$
Staff: 582

Tower Cranes

Investment: 74M$
Monthly Capacity: 51
Product Life Cycle: 25 months

Sales Price: 132,000$
Monthly Revenues: 6.73M$
Staff: 213

Utility Engines

Investment: 62M$
Monthly Capacity: 17,000
Product Life Cycle: 25 months

Sales Price: 294$
Monthly Revenues: 5.00M$
Staff: 158

Strategic Positioning

Customer Service	TQM/Product Quality	R&D/Innovation	HR/Training	CSR/Sustainability
Staff Cost +10.00% Cust.Satisfaction +50.00% Demand +4.00%	Staff Cost +8.00% Material Cost +8.00% Production +2.00% Demand +7.00%	Staff Cost +8.00% Material Cost +8.00% Demand +10.00%	Staff Cost +4.00% Material Cost +4.00% Overhead Costs -25.00% Production +2.00%	Staff Cost +8.00% Material Cost +8.00% Taxes -30.00% Demand +4.00%