Based on the data and information from the following report, look at the action and come up with a budget for the main solution (3D Software/Product Design Programs) using fixed costs and variable costs:

We are given that:

_the software costs 1600 us dollars/year

_Cost of training of the staff is 100 us dollars each

_It costs 150 us dollars to hire a 3D designer

_It costs 200 $ for a developer or programmer

Introduction Business name: STMicroelectronics ( Semiconductor technologies Microelectronics) Background: Founded in 1987 HQ: in Geneva, Switzerland with 10 other manufacturing sites Recorded $9.56 billion revenue and have 46,000 employees, with 7,800 in Research and Development as of 2019. . Over 100,000 customers in the world Management and Ownership: President and CEO: Jean-Marc Chery Finance, Infrastructure & Services, CFO: Lorenzo Grandi . Head of Sales, Marketing, Communications & Strategy Development: Marco CassisIntroduction Product, Services and Strategies: They have over 10 product and solution evaluation tools designed for customers. An example is; Communication and Connectivity Eval Boards. Customer support offices are located close to many of STM's customers in order to provide fast, hands-on field support. A dedicated support organization is also in place for their key accounts. Account managers and field sales engineers are the primary customer interface. They manage the business relationship with the customer, respond to customer requirements and ensure that ST is able to comply with customer requirements. The Original Equipment Manufacturers(OEM) or end-customers account for more than 60% of their Total Revenues as compared to their Distribution customers. ST is a differentiated company and follows a broad differentiation strategy from their very large end market and their differentiated technologies. Another aspect of their strategy is customer innovation for their products and solutions to create more value inspired from their needs. Customer Contact and Product Promotion In 2030 We are to imagine the year is 2030 and we are facing major global issues such as the sanitary crisis and global warming. With these obstacles, we will suggest ideas to ensure that ST continues to be the leader in the semiconductor industry through being innovative with its efforts to remain intimate with customers during this trying time and finding ways to continue with: - Organisation of exhibits using technology and the internet (online video conferences, webinars, descriptive videos, learning portal on the website) Showing demonstrations (sending a similar product box to the customer that the company representative has, and having an in-person demo, webinars, etc) - Evaluation Kits (distributing physical and virtual kits to customers with attached explanatory,t l , . videos or one on one video calls) 0312391111: 4 STRENGTHS Customer satisfaction measurement ST attaches great importance to its customers. They have implemented a strategy to guarantee the satisfaction of their customers with regard to the various services received. Dealer Community The company has a strong connection with the many dealers. not only because of the increase in demand but because they are involved In promoting the company's products and training. OPPORTUNITIES Virtual Interaction Improving the website and creating more virtual interactive tools to engage with the customers onllne. Nature conscious customers Ten years from now people are expected to become nature conscious because of the issue of global warming. Therefore customers would lean towards sustainable companies. WEAKNESSES Poor market research ST has not conducted market research In the past 2 years and bases most of their decision making on past information and statistics. Poor RED Compared to competitors, they Invest the least in research and development. This fact can lead to a failure in customer intimacy but also limit product promotion. THREATS Rapid change in technology Adopting new technologies are very pivotal for companies in this industry as the life cycle of a new tech product is very low. It means companies are likely to lack behind in staying updated with new technological breakthroughs. Sanitary crisis A sanitary crisis in the future would denitely crash the business world. What if the next pandemic is worse than what we are facing right now. The production unit of STM would crash unless sanitary measures are taken and even that Is questionable because a virus is unpredictable in terms of its severity. Swot Analysis Strengths Customer satisfaction measurement: ST attaches great importance to its customers. They have implemented a strategy to guarantee the satisfaction of their customers with regard to the various services received. Dealer Community: The company has a strong connection with the many dealers, not only because of the increase in demand but because they are involved in promoting the company's products and training. Weaknesses Poor market research: ST has not conducted market research in the past 2 years and bases most of their decision making on past information and statistics. Poor R&D: Compared to competitors, they invest the least in research and development. This fact can lead to a failure in customer intimacy but also limit product promotion. Swot Analysis Opportunities Virtual interaction: Improving the website and creating more virtual interactive tools to engage with the customers online. Nature conscious customers: Ten years from now people are expected to become nature conscious because of the issue of global warming. Therefore customers would lean towards sustainable companies. Threats RaQid change in technology: Adopting new technologies are very pivotal for companies in this industry as the life cycle of a new tech product is very low. It means companies are likely to lack behind in staying updated with new technological breakthroughs. Sanitary crisis: A sanitary crisis in the future would definitely crash the business world. What if the next pandemic is worse than what we are facing right now. The production unit of STM would crash unless sanitary measures are taken and even that is questionable because a virus is unpredictable in terms of its severity. Industry Analysis 0 Corporations and consumers use semiconductors globally 0 Companies are driven by producing: smaller, cheaper, faster semiconductors 0 Why? to facilitate more streamlined, powerful, and affordable technology products 0 Composed of 323 Companies 0 Four categories: microprocessors, memory chips, commodity integrated circuits, and complex "systems on a chip." 0 Companies play a major role in the development of new technology products and are seen by many investors as a key investment 0 Stocks tend to be high Key Competitors: Intel Corp + NVIDIA Company Fundamental Data Fundamental Data STMicroelectronics Revenue (TTM): $9.7 billion Industries: Telecommunications, computer, Net Income (TTM): $0.9 billion . . industrial, and consumer electronics. Market Cap: $23.9 billion This graph demonstrates where STMicroelectronics stands . . 1-Year Trailing Total Return: 74.5% Exchange: New York Stock Exchange compared to two major competitors, Intel Corp and NVIDIA Corp. STMicroelectronics is not the leader of the industry in regards to revenue, as it stands at 9.7 billion NVIDIA Corp . Revenue (TTM): $11.8 billion Net Income (TTM): $3.3 billion and Intel stands at 75.7 billion, so there is a significant Market Cap: $227.2 billion difference there. Despite this, something interesting to note Known for: High-end video graphics . . . 1-Year Trailing Total Return: 155.5% Exchange: Nasdaq is that the 1-year trailing total return for Intel is 34.1%, whereas for STMicroelectronics it is 74.5%. Additionally, NVIDIA and Intel are both on the 'Nasdaq' stock exchange, Intel Corp Revenue (TTM): $75.7 billion and STMicroelectronics is on the New York stock Known for: Motherboard chipsets, network Net Income (TTM): $22.7 billion interface controllers, and integrated circuits. . . . Market Cap: $256.1 billion exchange. Made the world's first metal oxide 1-Year Trailing Total Return: 34.1% semiconductor Exchange: Nasdaq Biggest in the industryKey Competitors: Intel Corp + NVIDIA STMicroelectronics Industries: Telecommunications, computer. Industrial. and consumer electronics. Most cites OHSAS 18001 certied 77% of employees recommend ST as a great place to work 50 average training hours/employee in 201 9 34% women In the workforce 9% women in executive positions NVIDIA Corp Known for: High-end video graphics Intel Corp Known for: Motherboard chlpsets. network 0 Made the world's rst metal oxide semicondudcr 0 Biggest in the industry interface controllers. and Integrated circuits. Workforce ls close to 19 percent female, up from 16 percent three years ago 25 percent of executive staff is female Equal pay commitment: an external rm to analyzes all pay practices for gender and ethnicity Top 100 best places to work - Fortune 27.5% women In the worktorce 20% executive staff female Rated well by Bloomberg in the index for companies supporting gender equality 2019: $1 billion in annual spending with tier 1 and tier 2 certied diverse suppliers 2019: $279 million annually with women-owned businesses globally Responsibility This graph demonstrates how each company ranks regarding diversity and inclusion in the workplace. Regarding happiness in the workplace, at STMicroelectronics 77% of employees said it was a great place to work, and this could be due to the average of 50 training hours per employee. Similarly, NVIDIA was named one of the Fortune top 100 best places to work. For Intel, they ranked well by Bloomberg as a company that supports gender equality. The same can be said with STMicroelectronics and NVIDIA too, as they both have high numbers of women in the workforce and in executive positions, with STMicroelectronics having the most women, and NVIDIA having the most women in executive positions. Key Competitors: Intel Corp + NVIDIA Microelectronics Industries: Telecommunications, computer, Industrial. and consumer eledrorrice. Customer support oices located close to customers provide fast hands on-tield support. Dedicated support organization for company's key account: Engineers & amount managers responsible for ensuring the satisfaction of customer requirements 'Solutions" section of the site which shows what they can help with for connectivity solutions They oer a 'sample and bur section to the website where customers can contact ST or buy directly Online support center to They already otter seminars, trainings, and onllne videos for help with their products Intel Corp Known for: Motherboard chlpeeta. network interface controllers. and Integrated circuits. 0 Made the world's first metal oxide semicondudor 0 Biggest In the Industry - Collaborating with industry and partners to advance the adoption of ted'molcgy-neutral safety a Alter several complaints and recommendations due to the rather recurring technical problems suffered by intel customers. the brand has set up a new free onllne service In orderto satisfy the customers and improve the experience. For any help, customers can reach ' Intel customer support'. 0 Many dcwmente are available for customers to see on their website. such as nancials and others. a No customer training o No customer store Intel does have a store tor other products, but not for microelectronics. Known for: High-end video graphics Customer Contact and Product Promotion Something that STMicroelectronics does great is that they offer a section of their website for customers to \"sample and buy" products directly. NVIDIA also has a similar function, but Intel does not have this option. ST also already offers various videos, seminars, and e-presentations to help customers learn about the products and show how they work, which makes them have an advantage amongst their competition. Although Intel and NVIDIA have information available on their website and have contact information accessible, they need to improve on providing their customers with more tools, similar to what ST is doing. 0 Support customers through website and NVIDIA Corp several forums & communities a They have set up a 'Digiual Genius' application to improve the customer experience and thus obtain ' smarter and faster customer responses' I Onllne store for buying their products 0 No customer training Main Solution: 3D Software/Product Design Program 30 illustrations/visuals for online demonstrations with advanced software Concept: The 3D software/ product design program will provide customers with the design files of microelectronics so they can see its functionalities on their device without going through the hassle and time commitment of shipping. We save the design/project/document to a Dropbox-style internal sharing platform, then we share them with the customer. They have access to the product files and can test and modify them on the software that they are given access to. Customer Journey with this new software and design program: Step 1) Customer requests and downloads the design les of the specific product Step 2) Customer tests the 3D visual in their device, which can be made into the 3D software to be compatible Step 3) Customer can do tests, request modifications, and try other products Step 4) If desired, customer can request a physical product to be delivered and tested hands-on This solves the problem that customers have with not being able to test products as easily with limited physical exhibitions and meetings, and enables the customer to not only try their product easily and fast, but try many products and have access to any product they wish to test in just one download. This also enables them to request to modify products easily to be fit perfectly for their product. Main Solution: 3D Software/Product Design Program Advantages Disadvantages Eliminates shipping complications/waits Work is prone to viruses and could be easily No environmental shipping impact - no hacked packaging, CO2 emissions, etc Time and cost of training staff for this new tool Decreases error percentage & increases Adds another step to the purchase process, but production efficiency by reducing design error this is also an advantage as it mitigates risks Easy to share online and saves time (production lead-time) Easy for the customer to test products Less barrier for customer to test a product (no request for physical items, no waiting, less time to change their mind or find alternatives) Opportunity to expand and involve holographic experiencesExample: AutoCAD is a software to ENJOY FLEXIBILITY AND PRODUCTIVITY design anything-with WITH time-saving toolsets, AUTOCAD ACROSS web, and mobile apps. DESKTOP, WEB, AND MOBILE APPS One of the companies that uses this software is VERSA PRODUCTS, INC, a manufacturing company for furnitures.Action Plan Action Steps Timeline Group Task Start Date Due Date Planned Hours Details Concept Development Draft concept novembre 1, 2020 decembre 1, 2020 1 month Draft concept with team, research competitors, industry analysis, benchmark analysis, SWOT, elaborate concept Concept Development Requirements estimation novembre 15, 2020 decembre 11, 2020 1 month Seek out nessesary resources needed, requirements for concept needed Concept Development Budget estimation novembre 15, 2020 decembre 11, 2020 1 month Estimate budget based on prior analysis Planning Add concept details decembre 1, 2020 decembre 11, 2020 2 weeks Add details to initial concept, finalize, add holographic addition to the initial concept, eleaborate on technical specifications and feasibility Planning Seek resources decembre 1, 2020 decembre 11, 2020 2 weeks Seek out resources needed to develop software, benchmark options. Ex Autocad Planning Contact resources decembre 11, 2020 janvier 11, 2021 1 month Contact researched resources, get quotes, find more information Planning Select resources janvier 11, 2021 janvier 31, 2021 2 weeks Based on previous research, choose resources needed Planning Schedule and budget control fevrier 1, 2021 fevrier 15, 2021 2 weeks Schedule and budget in relation to resources needed and chosen, create plan draft Planning Project management plan fevrier 15, 2021 fevrier 28, 2021 2 weeks Create and finalize management plan for this project Requirements Analysis Draft required documents mars 1, 2021 mars 15, 2021 2 weeks Draft all required documents that relate to the contracts, sexurity, and safety of the software and designs Requirements Analysis Security planning mars 1, 2021 avril 1, 2021 1 month Secure platform that will be used to host software and designs (similar to Dropbox) Requirements Analysis Requirement analysis/check avril 1, 2021 avril 15, 2021 2 weeks Ensure all requirements have been met, double check and finalizeAction Steps Timeline Group Task Start Date Due Date Planned Hours Details Design Draft design software avril 1, 2021 mai 31, 2021 1 month Software drafted by developer Design Draft designs of products juin 1, 2021 juin 30, 2021 1 month Designs drafted by developer Design Technical specifications avril 1, 2021 juin 30, 2021 3 months Technical specifications controlled by developer Design Designs completed juillet 15, 2021 juillet 15, 2021 Initial deisngs of prodcts completed by developer Development Testing of designs juillet 1, 2021 juillet 31, 2021 1 month Designs tested between internal departments, testing with upload, download, and configuration Development Testing modification ability juillet 1, 2021 juillet 31, 2021 1 month Modifications of designs tested, uploading modications tested, use of modifications tested Development Training plan juillet 1, 2021 juillet 31, 2021 1 month Training plan for employees created and released Reporting and measurement Quality control juillet 1, 2021 juillet 31, 2021 1 month Making sure the efficient deliverables are met Reporting and measurement Risk managment juillet 1, 2021 juillet 31, 2021 1 month Identify and plan for risks to minimize impact Reporting and measurement Budget control juillet 1, 2021 juillet 31, 2021 1 month Estimate costs, setting an agreed budget, and managing actual costsAction Steps Timeline Group Task Start Date Due Date Planned Hours Details Implementation Final review aout 1, 2021 aout 15, 2021 2 weeks Final review of all software and designs Implementation aout 15, 2021 aout 15, 2021 Launch of software + designs Launch to customers only for testing and initial designs Implementation Test with current customers aout 15, 2021 septembre 1, 2021 2 weeks Initiate a marketing campaign to attract them Implementation Modification testing septembre 1, 2021 septembre 1, 2021 Test modification options with real customers Implementation Launch to all customers septembre 1, 2021 septembre 1, 2021 Software and designs released to be used for all customers Communication septembre 1, 2021 septembre 30, 2021 1 month Reach out to current customers letting them know Contact with current custome about the new software and design functions available Communication septembre 1, 2021 septembre 30, 2021 1 month Contact with new customers Reach out to new customers letting them know about the new software and design functions available Communication Advertising + marketing septembre 1, 2021 septembre 30, 2021 1 month Advertising and marketing B2B Maintenance and Follow-up Maitenance review septembre 30, 2021 octobre 30, 2021 1 month Check on functionality and efficiency of software and designs Maintenance and Follow-up New designs octobre 30, 2021 octobre 30, 2021 Create new designs on more products, increase amount of products available in the software Maintenance and Follow-up Customer reviews novembre 1, 2021 decembre 31, 2021 2months Obtain feedback on program and reserve them for future changes