Hi,

Please help me answer these questions using the attachmentbelow. (Precise short answers and don'tforget to reference the statement you use to help you answer the questions)

Competitive Environment

What are the characteristics of the external environment in which the company is operating? In what ways do these affect your goals?

How will you decide on product prices? How will you monitor and adjust the appropriateness of your product pricing?

What types of pricing, advertising, and sales force management decisions will you make to support your company?s proposed competitive position?

What level of sales in dollars and units do you forecast given the external environment and your marketing strategy? Please provide a sales forecast (2 years by quarter) in your appendices.

World 25 10-03-2016 J1 CONSOLIDATED HISTORICAL DATA FOR YEARS 1 AND 2 19:01:24 THE BUSINESS POLICY GAME --------Year 1--------- --------Year 2--------- Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 GDP (Merica) Y2Q4=100 84.1 86.3 89.7 91.9 94.2 96.7 98.2 100.0 GDP (Area 4) Y2Q4=100 84.1 86.3 89.7 91.9 94.2 96.7 98.2 100.0 CPI (Merica) Y2Q4=100 85.8 86.6 88.2 90.0 92.2 94.1 97.3 100.0 CPI (Area 4) Y2Q4=100 85.8 86.6 88.2 90.0 92.2 94.1 97.3 100.0 Exchange Rate (Area 4) 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Loan Interest Rate (%) 5.80 6.30 6.60 7.50 9.40 9.90 9.80 11.20 Bond Interest Rate (%) 8.20 8.00 8.00 8.10 8.50 8.40 9.60 9.10 Stock Market: Market Index 121.8 130.9 125.2 116.7 117.6 105.6 108.5 100.0 Company Stock Price($) 0.97 1.08 1.07 1.04 1.08 1.00 1.04 0.99 Company EPS ($) 0.014 0.053 0.059 0.081 0.045 0.055 0.033 0.052 Product Prices: Home Area ($) 10.00 10.00 10.20 10.40 10.40 10.20 10.10 10.10 Nonhome area ($) 10.60 10.60 10.60 10.70 10.60 10.40 10.20 10.20 Nonhome area ($) 10.60 10.60 10.60 10.70 10.60 10.40 10.20 10.20 Nonhome area ($) 10.60 10.60 10.60 10.70 10.60 10.60 10.20 10.20 Company Salespeople (#): Home Area 6 7 7 7 9 10 11 12 Nonhome area 6 7 7 7 7 8 9 10 Nonhome area 6 7 7 7 7 8 9 10 Area 4 7 9 9 9 10 11 12 13 Customer Orders (000s): Home Area 84 89 72 92 77 90 84 93 Nonhome area 77 80 67 87 64 74 69 89 Nonhome area 77 80 67 87 64 74 69 89 Area 4 35 41 38 49 37 43 40 57 Company Sales (000s): Home Area 55 80 72 107 77 90 84 93 Nonhome area 51 60 67 78 64 74 69 89 Nonhome area 51 60 67 78 64 74 69 89 Area 4 35 41 38 37 37 43 40 57 Advertising: Home Area (M$000s) 30 32 33 37 45 45 46 46 Nonhome area (M$000s) 30 31 32 35 37 37 38 38 Nonhome area (M$000s) 30 31 32 35 37 37 38 38 Area 4 (M$000s) 30 31 32 35 37 37 38 38 R & D, Training ($000s): Product R & D 40 42 46 51 56 62 68 68 Employee Training 40 42 45 49 54 58 64 64 Other Items (000s): Actual Output 208 260 312 247 296 312 312 312 Ending Inventory 16 35 103 50 104 135 185 169 Total Unit Sales 192 241 244 300 242 281 262 328 World 25 10-03-2016 J2 FINANCIAL DATA FOR YEARS 1 AND 2 19:01:24 THE BUSINESS POLICY GAME --------Year 1--------- --------Year 2--------- Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Consolidated Income Statement ($000s) Gross Sales 2003 2507 2557 3179 2549 2914 2664 3336 Cost of Goods Sold 846 1013 1034 1356 1034 1220 1125 1507 Gross Profit 1157 1494 1523 1823 1515 1694 1539 1829 Selling Expenses 645 660 661 709 743 807 848 925 Admin and General Exp 330 265 231 273 283 310 336 358 Operating Profit 182 569 631 841 489 577 355 546 Capital Gain (Loss) 0 0 0 0 0 0 0 0 Interest Expenses 50 50 50 50 50 50 50 50 Time CD Interest 0 0 0 6 7 9 14 13 Net Profit Before Tax 132 519 581 797 446 536 319 509 Income Tax 51 202 227 311 174 209 124 199 Net Profit After Tax 81 317 354 486 272 327 195 310 ------------------------------------------------------------------------ Consolidated Cash Flow Statement ($000s) Accounts Collected 963 2250 2535 2875 2871 2734 2808 2996 Less Production Cost 585 965 1161 1106 1157 1273 1321 1360 Less Operating Expense 646 928 892 940 999 1074 1152 1238 Less Taxes Paid 0 51 202 227 311 174 209 124 Net Operating CF -268 306 280 602 404 213 126 274 Investment Receipts 0 0 0 0 500 500 500 700 Less Investment Expend 0 0 0 500 500 500 700 700 Net Investment CF 0 0 0 -500 0 0 -200 0 Financing Receipts 0 0 0 0 0 0 0 0 Less Financing Expend 0 0 0 0 0 0 0 0 Net Financing CF 0 0 0 0 0 0 0 0 Net CF for Quarter -268 306 280 102 404 213 -74 274 ------------------------------------------------------------------------ Consolidated Balance Sheet Items ($000s): Cash 1332 1638 1918 2020 2424 2637 2563 2837 Time CDs 0 0 0 500 500 500 700 700 Accounts Receivable 1040 1297 1319 1629 1314 1503 1373 1726 Inventory 86 178 456 228 489 656 943 895 Fixed Assets 9755 9610 9465 9320 9175 9030 8885 8740 Total Assets 12213 12723 13158 13697 13902 14326 14464 14898 Accounts Payable 581 623 679 648 718 780 808 857 Bank Loans 0 0 0 0 0 0 0 0 Taxes Payable 51 202 227 311 174 209 124 199 Bonds Outstanding 2000 2000 2000 2000 2000 2000 2000 2000 Total Equity 9581 9898 10252 10738 11010 11337 11532 11842 Total Liab and Equity 12213 12723 13158 13697 13902 14326 14464 14898