Simulation Pricing Strategy

Constructit is a company which does not presently have any employees with health insurance benefits. The company employs 1000 people and are willing to fund annual premiums as long as they can pay $4,000 per person. The employees comprise of 550 men and 450 women, ranging in ages 26 to 45. Furthermore, the workers 57% of the workers range from high activity to moderate activity while the 43% that remain are in predominantly sedentary positions. The employer must calculate what kind of risks the employee will face when considering what type of insurance to offer the employees. In this scenario, 38% of the employees are not at any major risk whatsoever.

2. a. According to the simulation spreadsheet, 4 hours of investment in creation maximizes daily profit at $371.33.

Loyalty programs include frequent flier miles or points systems associated with credit card offers that can be used only with the original company, creating a perceived loss or cost when switching to a competitor. Most programs are able to get consumers to spend more money just to get to free or bonus item.

Costs: Experimenting in real life is costly. It’s not only the capital expenditure of hiring new staff or purchasing new equipment but also the cost of the ramifications of these decisions. For instance, if you fire 3-staff members and then find it difficult to cope with the workload, you may probably lose customers while the only cost with simulation is the software and the man hours to build it.

Since quarter one was the first quarter of this simulation, I was unaware of how difficult it was going to be to make all the different decisions. Firstly, I had to choose a Company name. Because I was selling computers, I thought that the name “Dev-Tech” was a perfect fit being that this simulation was about development and technology. Next, I had to choose a target segment. I knew going into this simulation that it would be better to invest in the more expensive goods as it would benefit me in the end. The segment that didn’t care about price was Mercedes, so that is the segment that I made my first priority.

A. The simulated function given in the Excel spreadsheet “Hamptonshire Express: Problem_#1” allows the user to find the optimal quantity of newspapers to be stocked at the newly formed Hamptonshire Express Daily Newspaper. Anna Sheen estimated the daily demand of newspapers to be on a normal standard distribution; stating that daily demand will have a mean of 500 newspapers per day with a standard deviation of 100 newspapers per day. Using the function provided, the optimal stocking quantity, which maximizes expected profit, is determined to be approximately 584 newspapers. If 584 newspapers were to be ordered, Hamptonshire Express will net an

The purpose of participating in the stock market game is to explore the fundamentals of the stock market. It does this by providing a tangible, real-time simulation of the stock market, and how current events affect the DOW. The stock market game also teaches students to make smart decisions and most importantly to be patient.

The Stock market simulation provided a variety of lessons, tips, tricks, and skills on how to play with the stock market without the risk of losing real money. From the beginning of the simulation I came in with little to no experience on how to play, to ending up as the number two ranked person in the class. Throughout the simulation I used trial and error, real life research, and just plain old in order to turn a profit through this weekly assignment. During the entirety of the of the stock market game one of the primary lessons I learned while playing was patience. Once I started losing a little bit of money at the beginning of the game I would sell the stock and buy a new stock that was at that time doing “goof”, not know-ing that the

The advertising strategy was also to be an immediate market follower. J.D.B.T.’s advertisements were modified by comparing them to the top rated brands’ advertisements. This worked well until R&D came into effect. Other companies were able to advertise titles such as Highest Performance Processor, and Technical Leader Most R&D. We had a decline in our advertising because we did not strategize in the beginning to invest in the R&D as fully as other companies.

Simulation is a computer process that gives a probable NPV or IRR for a project. All factors that affect the project’s returns are input. The computer then randomly selects one observation from each category. All of the observations are combined and the NPV or IRR is calculated from those figures. Simulation gives a range of outcomes as well as the probability of the outcomes. It provides the total risk level of a project.

The customer simulation exercise of Minnesota Micromotors Inc, was a very intriguing one. It exposed me to a variety of moving pieces that enable a successful business performance across different objectives and parameters.

The important part of the simulation assignment is what you have learned from it. As such you will be required to reflect on the decisions you made and the outcomes.

Market Place Live is a simulation of starting a computer company and as a group you are expected to make all production, marketing, and manufacturing decisions. Along with all of that you have to look into what the consumer wants to buy as well as what size market you are selling to. When it first starts you have to design and name a computer while also making an advertisement that is true about your product to let your customers can expect from their computers. Then after that you have to set up a plant and sales office(s) to make and sell the products. When you are looking at locations to produce and sell the product it is important to see the startup cost as well as the cost to ship the product to the customers. After this part of the simulation it gets a little easier and less complicated because the simulation will load any data that you put in for demand and cash flows to get you ready to submit each quarter.

9. Investopedia. Game: Investopedia Stock Only Game 2009 - No End. Investopedia. [Online] 2010 February - April. http://simulator.investopedia.com/Portfolio/.

Based on these 6 factors in setting a price: selecting the pricing objective, determining demand, estimating costs, analyzing competitors costs, prices and offers, selecting a pricing method and selecting the final price, Singapore GP Pte Ltd employed 2 different pricing strategies. They are