Case Analysis
“X-Opoly, Inc.”
1 Summary
The text deals with the topic of developing and producing a board game, called X-Opoly. The game is similar to the famous game ‘’Monopoly’’. It was the idea of two students. Their business has grown rapidly. This year they are expecting that they will sell 50,000 units. Over next 5 years the sales will grow 25 percent annually.
The order of the game has to be differentiated in ordering a new game and ordering a game, which was already produced. For every new game one employee of the art department and the client have to set the design. The required time can vary because it depends on the customer’s specification. The next step is printing. In the printing department the design of the
…show more content…
Capacity per year = time available x stations = days x hours per daytotal task time x stations = 200days x 7.5h0.18h x stations = 8,333 units for 1 station = 50,000 units for 6 stations
= 158,333 units for 19 stations
Capacity per day = Capacity p.a. / 200days = 791,67units for 19 persons
Number of theoretical workstations:
NT = ∑task time / cycle time = 650108 = 6.02 select 7 workstations
The line’s maximum capacity amounts to 791.67 units per day assuming that it is operated for 7.5 hours. Assuming that X-Opoly operates 200 days per year, the capacity is 58,333 units per year. Compared with the expected demand the capacity is three times higher than the demand (50,000 units). Therefore there is an overcapacity of more than 100,000. One consequence could be a falling price and the production of waste. A fall in the price would lead to a decline of the return on investment as well as the cash flow. That is why it is necessary to use fewer stations in order to save resources.
In the calculation it can be said that they only 7 stations are needed. With this number of workstations one could achieve the highest efficiency at this moment. But the company will grow rapidly. Therefore they had to add new stations every year.
However, the company expects that its sales will grow 25 percent annually for the next five years. As illustrated in Table 1 the demand after 5 years will be approx.
Thus, after redistribution we have new cycle time to be 48 secs. And the efficiency of the line can be increased to 89%.
The rise in revenue was rapid starting from the year of operations. The key period of business was from April to September were revenues were equal to 65% of total revenue as the product was seasonal. The basis of forecasting for the year 1981 & 1982 is the expectations of sales by Mr. Turner & Mr. Rose. It is given that total sales were $ 15.80 million in first half of year 1981 and the total sales in 1981 to reach $ 30 million. Profit after tax was expected to be $ 1 million for 1st half and we assumed for the next half, profit will be in proportion to first half & expected to be amounting to $ 0.90 million. For year 1982, the sales expectation by Mr. Rose was around more than $ 71 million &
* If we surmise that the company’s specialist’s predictions of 4% on market growth along with renewing current and or adding more customer contracts then the profits should be as follows:
One of the key issues faced by McGraw is that there is a large gap between his projections for next year, and what the manager’s are promising him . His goal is to obtain a 15% increase in the operating income from his division (OM, LR and NP). The managers are projecting a decrease of 5.2% from the current year. In absolute terms there is a gap of $27 MM in the projected divisions operating income.
(5) How much would you be willing to pay for a share of Boston Beer if you think that the growth rate from 1996-1999 will be 30%, declining to 5% in perpetuity thereafter?
The market for board games has seen annual increases of 10-20 per cent over the last decade, leading some to suggest we are in a “board game renaissance” (Carlson, 2013).
To complete outcome 1 of the Business, Culture and Strategy I have to answer 3 questions based out the case study Alphabet Games. The 1st question asks me to describe how 4 forces of change may impact upon Alphabet Games and in doing so I must use a recognised analytical framework. The 2nd question asks me to carry out a SWOT analysis to illustrate and analyse the relationship the Alphabet Games has with its external environment. The last question asks me to provide a guideline for the senior managers of Alphabet Games to follow that would enable them to carry out an effective SWOT analysis.
Another objective that has been set is a 5% growth by the company. This will help it increase its market share since it operates in a very competitive environment and will therefore have an edge over the competitors.
d. If the demand for its cars increases at 500,000 cars per year, compute the present cost of adding the next two plants, the first one is added now and the second is added after the optimal number of years calculated in part b. Assume that the plant closes for two weeks for maintenance in July every year and remains open for the rest of the year. Use annual compounding for your calculations.
The increase projected was for 18% in sales each year for the next five years. Evaluating Pro Forma statement indicates that overall revenue will increase to $957,105 at the end of five years. Upon fine-tuning the numbers for increased cost to produce sales taxes on the increased income will come to $453,281. Further the Current Assets accounts of Cash, Accounts Receivable, Inventory, and Prepaid Assets are also predicted to increase. Cash is projected to increase to $18,883, while Accounts Receivable will increase to $46,646. As a conclusion of increased sales
Customer A B C D E F Sales Revenue $600 $4200 $300 $2500 $4900 $700
Given the Body Shop’s growth level of 36.8% and 27.5% in the period between 1990-1992, it is assumed that the Body Shop will be able to sustain a relatively high growth rate
We estimate we will begin distributing our product in about 3 ½-4 years. At that time we estimate our sales to grow steadily and that we can make a profit starting in year _____. Within the next ten years we would like to develop a longer lasting 5-year ink, and possibly 10-year ink. We estimate that we will be able to sell our product online and to tattoo parlors around the globe. We estimate we will capture a market share of ______%. Within 10 years, the company plans to have expanded through the United States, making _______ annually. In total, within 10 years the company hopes to make annual sales of
For Research Project I have chosen to investigate the process that game developers use to make a video game. Games have been around since 1951 when the first game Pong was invented, which took to an international stage (Pong Story, 2013). Since then technology has evolved, which has allowed game designers to make more sophisticated and technical games, which gives the players a more realistic experience.