Finance and Short-term Debt Essay
During decision three, we continued to capture as much market share by investing on R&D, sales and promotion, and focusing on customers’ criteria. We launched a new product (Bull) in the high-end segment because it had a high growth rate, was not sensitive to price and would have a higher profitability. Because our strategy was profitable, we continued to make similar decisions for round four. Our new product, Bull, began selling in the high-end segment. Additionally after reading the manual, we discovered we could invest in Total Quality Management (TQM), which reduced labor costs, material costs, Selling, General and Administrative (SG&A) cost, and also increased product demand. In the manual, it said not to invest under $500 or over $2000, because those investments would not show profitability. We decided to invest $1,500 in all the different TQM options in the simulation and saw positive results. By the end of round four, our short-term debt was $25,345 and out stock price had increased significantly to $38.65.
During decision five, we knew that the end was coming. We did not want to use any different strategies to try and catch up to the winning team, so we continued with our original strategy. We continued to meet customers’ criteria in all segments. Additionally, we continued to