Dr. Aspy P. Palia
A-0713
After class & by appointment
6822-0570 (Work)
6839-6406 (Home) aspy@hawaii.edu aspypalia@smu.edu.sg
May 11 to June 6, 2004
BIZ_L2_Seminar Rm 6
The Innovate directory consists of worksheets used by competing participant teams to monitor and analyze data on their own and competitor performance. You are encourage to develop additional worksheets to assist you in analyzing data and making decisions. Extraordinary income will be given to teams that submit a copy of the worksheets they develop during the course of the competition. The worksheet/s submitted will not be made available to competing teams during the semester they are submitted.
There are four worksheets in the Innovate Directory. They are (1) MKTMIXC, (2) MKTPEEK, (3) RATIOSC, and (4) PPA16. The use of these worksheets will save you and your team considerable time in analyzing data and making decisions. The following guidelines will help you to use these worksheets.
1. MKTMIX
The worksheet MKTMIX is used to compare and contrast the market share performance and corresponding price, advertising, salesforce, and quality predictor variables by company for each strategic business unit. In some instances, it may be possible to identify major reasons for variation in performance among teams.
2. MKTPEEK
The worksheet MKTPEEK is used by regional managers to get a quick overview of the competition within their respective regions. Data on advertising by product and by media, pricing, salesforce, advertising content, market share, and shipments are entered by the user. Simple summary measures are computed by the worksheet.
3. PPA16
The PPA worksheet is used in strategic market planning. Enter each competing firm's (1) price and (2) quantity sold in units for each product in each region in each decision period. Based on these inputs, the worksheet calculates: (1) the relative market share (RMS), (2) the industry growth rate (IGR), (3) brand growth rate (BGR), and (4) Regional Sales Revenue (RSR) for each of the 9 strategic business units (SBUs) of each of the competing firms. The RMS, IGR, BGR, and RSR are subsequently used as inputs in the PPA Graphics Application Package disk. This graphics application package automatically generates and prints the growth share matrix (GSM) and growth gain matrix (GGM) for each of the competing firms. The GSM and GGM are used to analyze each firm's portfolio of brands based on the Product Portfolio Analysis approach developed by the Boston Consulting Group.
4. RATIOS
The RATIOS worksheet helps you to keep track of competitor performance in each decision period. Enter each competing firm's (1) Earnings per Share (EPS) and (2) Total Sales Revenue for each decision period from the corresponding COMPETE printout. Based on these inputs, the worksheet calculates and graphs each firm's (1) Return on Total Assets (ROTA), (2) Net Profit Margin (NPM), and (3) Sales-to-Asset Turnover (SATO) for each decision period. These ratios will enable you to assess (1) how effectively each firm is employing its assets to generate sales (SATO), (2) how profitable the sales of the firm are (NPM), and (3) how effectively each firm is employing its assets to generate profits (ROTA).
The PERFORM directory consists of 6 worksheets that graph the trends in performance of the competing firms. There are six worksheets in the Perform Directory. They are (1) BAL, (2) EFF, (3) EPS, (4) IEI, (5) MKTSH, and (6) QLTY. These worksheets will enable you to generate performance graphs for use in your final report and team presentation.
1. BAL
Enter balance sheet variables such as cash, investments, short term notes payable, retained income, ending inventory by product, and overtime by product. The graphs generated will enable you to monitor the trends and take corrective action whenever necessary.
2. EFF
Enter sales revenue, advertising and salesforce expenses for all firms. The worksheet calculates and graphs such efficiency measures as Sales-to-Advertising Ratio, Sales-to-Salesforce Expense Ratio, and Sales-to-Total Promotional Expense Ratio for all firms.
3. EPS
Enter and graph Earnings per share for all firms.
4. IEI
Enter and graph trends in the Industry Effort Index for all products in all regions. The trends indicate those parts of the market that are either well- or under-served by all firms in the industry.
5. MKTSH
Enter and graph trends in market share for all products.
6. QLTY
Enter and graph trends in quality for all products.
bravenet.com
