ORGANIZATIONAL DIAGNOSTIC MODELS
In SLP2, you will again be provided the numbers to be input for each of four decision points. For purposes of SLP2, pricing will be more conservative (lower) than the pricing strategy reflected in the Module 1 SLP.
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
The key aspects of this assignment that should be covered and taken into account in preparing your 5-6 page paper include:
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 decisionshave affected market share, cost to the customer, cost of goods sold, revenue, profits, etc., etc.
Be sure that you retain all SLP2 notes, tables, and figures, as you will be comparing the results of SLP2 with those of SLP3 in the next module.
**** 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.
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.
Be sure to explicitly draw on concepts and theories from the courses you have taken throughout the MBA program. That means you need to "think like an MBA" and use the financial data you are given. You will have to crunch some numbers and present your data analysis professionally by creating some simple tables, charts and graphs.
INTRODUCTION
Various types of business are running all around. Many fundamental components form the basis of a business and keeping a balance between them will help in gaining the overall business success.
Financial statementplays a vital role in taking financial decisions for the company. It also helps in taking major investment decisions for the organization as well. All of the above can be strategized in an operational plan (Cespedes, & Sun, 2014). An operational plan includes implementation of the established strategies that will benefit the customers as well as the company. The operational plan includes,
- a clear vision
- a well-established strategy
- Upgraded technology
- Trusted stakeholders
- Improved and proper engagement
Those strategies requirements are quite essential in the formation of performance measures and tasks (Sun, & Cheng, 2013). Not only that they also provide a frame work for implementation. Performance is a set of overall efforts made to bring a plan into action. Such sets performance indicators will allow the operation for monitoring of success. While incorporating new technology within an organization needs a strong implementation plan, same way there is a strong necessity lot of KPIs. They provide knowledge and guide the whole process. It also helps in tracking the performance along with reducing the risk associated with it. Balanced scorecards, daily dashboards and other metrics will help in tracking the growth and performance of the process. Keeping right people holding right capability in right place makes the process to perform better and show the best output (Morecroft, 2015). There should be proper job description along with the set expectations for the resources. They will design their activities based on those elements. A well-established performance cycle should also be made which should include three main parameters to judge individual performance and their contribution.
- Start with a Plan
- Monitor of the On-going process
- Evaluate and Review of the work
This concept will help in understanding the MIT Solar Power Pricing Simulation plan in a better way.
SCOPE OF WORK
The scope of the work includes running of MIT Solar Power Pricing Simulation and having a discussion on the pricing and implementation of the operational plan (Yan, Tang, He, & Sun, 2015). Currently generating electricity now has become quite costly and it also affecting the depletion of the natural resources. A Sun Power Analysis is also included to understand the justification of the need of such program or procedure. It will highlight some of the major concern related to the solar investment. After running the Solar Power Pricing Simulation, a discussion is added to highlight the justification of adopting one plan out of the four proposed plans and the reason behind it.