Business Game

In the period 3，the target of my company is to continuously increase the total sales which should increased by 10% in contract with period 2 so as to increase the products market share. In order to achieve the target, The decisions was made respectively on the basis of analysis of internal, market, the BCG Growth-Share matrix and competition in Product Development, Marketing, Distribution, Financing and Manufacturing. In the ending of this period, the target of increase in sales and was achieved. Meantime, the stock price increase by nearly $2. However, the market share do not have any change which is some with the last period.

In summary, the decisions in this period ware made in five aspects, namely, production development, marketing, distribution, manufacturing and financing. Firstly, in the production development, the cafav, family car, had a minor upgrade and modified its current ISSQ （Interior，Styling，Safety and Quality） and size. Secondly, as for the marketing, all of classes' advertsing theme was changed, in addition, the MSRP of Cafav decresed from $31,361 to $28,361. Then,the number of delears in those 4 regions had a minor increase respectively. At the same time, the training and support fees also increased by $5 million in the distribution sections. The next decision is about the manufacturing, the production of Cafav, Camini and Climax was 263,000, 230,000 and 142,000 respectively. finally, $50 million stock was issued, at the same time, the divedend paid also rised from $500 to $520.

Decision 1

1n the production development, the cafav, family car, had a minor upgrade and modified its current ISSQ （Interior，Styling，Safety and Quality） and size.

Justification:

In the the BCG Growth-Share matrix of vehicle class, both Cafav and Climax are dog products which means low profit, high debt and low growth rate. Therefore, some upgrade measures need to be taken so as to release Cafav and Climax's current situation. At the same this, in oder to reduce the risk if of investment, a minor upgrade just given to Cafav. On the basis of a comparison with other companies' family car, the size and interior decreased from 47 to 45, and from 2 to 1 respectively, moreover, the safety, the most important item for customers, increased from 2 to 3 which also is same the Defy and Alfa, both of which are the leaders in family car market.

Decision 2

As for the marketing, all of class' advertising themes were changed, in addition, the MSRP of Cafav decreased from $31,361 to $28,361.

Justification:

Firstly, as for the change of advertising themes, features on a family car are focus on safety and flexible storage which are also the sale point and attract customers mostly. Meanwhile,