The Module 3 SLP requires that you enter the same pricing data into the simulation as you did in SLP2. In SLP3 however, you will face new entrants into the industry (new competition).
Assignment
Go to the “Settings” page, and change the following:
1) Entry for New Competitors – On
2) Be sure to SAVE your change!
Now, input the SLP3 decisions:
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
Leave the process improvement percentage at 5%. Note that you will now need to monitor the market share and financial performance of new entrants entering the Solar Power industry (see the “Settings” page for definition of this concept).
Run the simulation once, keeping track of your pricing decisions and the outcome of each decision made (note market share of new entrants, profitability, etc).
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:
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!
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 it! As an MBA, what does it tell you?
Using Excel, provide a comparative analysis of key data to demonstrate the differences between SLP2 and SLP3 results. It is your responsibility to determine which data (and which comparisons) are most salient.
Explain the significance of new entrants into the PV industry. What is the impact that new competitors have on your company’s market share? Cumulative profitability? Cost to the consumer?
Make recommendations. What would you have done differently as it relates to pricing, process improvement, or other?
**** NOTE: The 5-6 page requirement includes written analysis and all supporting tables, figures, and graphics. However, it does not include Cover or Reference page. Be sure to adhere to the TUI Writing Guide for formatting of all papers. If you are unsure how to complete a financial analysis, please review the following sample report:
Gilbert O’Neil Mushure. (2014). Financial analysis report: Malaysia airlines 2007 – 2011. International Journal of Sciences : Basic and Applied Research, 14 (2), 148-153.
Also refer to the following source on business writing:
O’Hara, C. (2014, November 20). How to improve your business writing. Harvard Business Review. Retrieved from https://hbr.org/2014/11/how-to-improve-your-business-writing?utm_campaign=Socialflow&utm_source=Socialflow&utm_medium=Tweet
SLP Assignment Expectations
Your paper will be evaluated based on the Rubric.
Please note the following tips and suggestions:
Include a cover page and reference page, in addition to the 5-6 pages of analysis described above.
Include headings for all papers greater than two pages (basically all papers), but do not use headings as “space fillers.”
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 of more than five words, and citations for that information which you have “borrowed” or paraphrased from other sources.
Hints for success!
Throughout this SLP, you will be asked to make business decisions under conditions of incomplete information and uncertainty. To do so, you will need to make assumptions based on what you have learned throughout the MBA program about how markets operate. Thus, your strategies in approaching this decision need to rely on models, financial analysis, and theories from such classes as Economics, Finance, Accounting, Marketing, Strategy, and Quantitative Analysis. In addition, the simulation will give you some additional market information as you progress.