School Work-Powerpoints

1. Red Team
Simulation
By:Jacb Milan
Jiaze Zhou
Tian Zhang

2. • 16 firms in USA
• 10 firms in Asia
• Round 1 built 3 in USA and 5 in Asia
• Round 3 built 1 in Asia
• Round 4 built 2 in Asia
• Round 6 built 1 in USA and 2 in Asia
• Goals: Increase Production
• Final Result: 8800 production capacity in
USA, 5500 production capacity in Asia
Factories

3. • Every round we used them all instead of producing
by ourselves
• Decided to produce more of Tech 1 and Tech 4 due
to the success we had with both
Contract Manufacturing

4. • All of our Technologies had 6 features
• At each round we would assess how much money
we had left and then decide whether to upgrade
technologies or not
• Too much investing lead to problems later in
simulation
R&D

5. • At the end of Round 1, we sold some shares to get
some capital in order to build 8 firms
• And we want to buyback shares in the last 2 rounds,
but we were short on capital and unable to do so by
the end of the simulation
Shares

6. • Good sale rates helped us get decent market share.
• Low prices in Asia sold well
• We found that more features in Europe and the US
sold better than Asia
• Low price in USA and Europe did not guarantee
good sales every round
Market Share

7. Progress Through
Halfway Point

8. • Round 6, saw us have a bad ROS, ROE, &
EBIT
• Round 7 continued our drop in all the same
categories
• Round 6 failures: Too much money in R&D(3
new plants) & too much money in contract
manufacturing
• Round 7 failures: Managed R&D costs better,
but still too much for contract manufacturing.
• Round 7 our group started to climb out of debt
Freefall After Midpoint

9. • Round 7: Sales improved, but still in debt
• Round 8: Better R&D costs, sales continue to
improve, and finally out of debt
• Round 9: No R&D costs, sales improve to $2.8
million, and $438,300 out of debt
• Round 10: No R&D costs, most manufacturing was
contracted, finished $356,336 out of debt
Improving to the Finish

10. End of Simulation

11. • Lowest prices don’t always mean sales success
• Don’t over-invest in R&D
• Don’t keep too much money on hand
• This is a given, but keeping costs on production is
vital to success
What We Learned