Product Development, And Process Improvement

1601 Words Jul 24th, 2016 7 Pages
As our team got ready to start quarter 3 and our third decision, we had to take a look back at quarter 2. We are firm 2 and currently in last place at the end of quarter 2. Sure we had the 2nd highest cumulative profit at $311, 553 compared to firm 3 at $339,969 but we were quite a bit ahead of firm 1 at $299,061. But it’s not all about the cumulative profit but it’s about the net profit and at end of quarter 2, we were in dead last. Firm 1 was actually in first place with the net profit at $170,197 and firm 3 was in 2nd at the time with $164,589. Then finally us $20,000 plus below firm 3 at $141,704 net profit which was not a pretty sight at first but we needed to make some adjustments quickly to move back into this competition.
As our team was looking over where we were with pricing, production, advertising, product development, and process improvement we knew we had to make a good run here in quarter 3. Our quarter 2 pricing was $73.00, production 6,927, demand of 6,641, excess supply of 286, advertising $5,000, product development $4,400, and process improvement $1,750. We knew big time adjustments were coming and it starts now with quarter 3.
First thing we wanted to do was adjust the price. We adjusted the price based off looking at the other firms and what they have done the previous quarters and what made them successful thus far through the game. We decided to raise our price from $73.00 to $73.85. We figured a small increase of $.85 would be ideal for our market…
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