World 4 QUARTERLY INDUSTRY REPORT 02-26-2019 Year 3 Quarter 4 BUSINESS POLICY GAME, 7TH EDITION 07:07:05 F1 © 2016 by Richard V. Cotter, David J. Fritzsche and Simon Rodan ---------------------------------------------------------------------------- FINANCIAL MARKET DATA Merica Sereno | ---Credit Rating--- GDP Index (Nominal) 112.00 134.90 | Interest Rates: No. 1 No. 2 No. 3 Consumer Price Index 104.60 124.50 | Long-Term 7.20 8.00 9.10 Stock Market Index 104.40 | Short-Term 6.20 6.60 8.10 3-Month Time CD Rate 4.65 | ---------------------------------------------------------------------------- REAL GROSS DOMESTIC PRODUCT FORECAST Actual Values, Last 4 Quarters Forecast Values, Next 4 Quarters Qtr 9 Qtr 10 Qtr 11 Qtr 12 Qtr 13 Qtr 14 Qtr 15 Qtr 16 Merica 101.88 103.14 104.97 107.07 106.91 107.82 110.11 107.43 Sereno 98.73 102.78 107.17 108.35 109.61 112.31 119.31 115.80 ---------------------------------------------------------------------------- EXCHANGE RATE FORECAST Sereno 6.09 6.29 6.31 6.25 6.24 6.25 6.40 6.34 ---------------------------------------------------------------------------- Inves- Stock Earn- Divi- tor Shares Bank Time Credit Co. Price ings dends ROI Issued Bonds Loans Cash CDs Rating 1 1.08 0.001 0.000 -26.9 6000 2000 0 4124 0 3 2 1.11 0.132 0.000 -25.4 7100 2000 0 4257 2000 2 3 1.22 0.099 0.000 -21.5 6000 1500 0 2077 1500 3 4 1.33 0.139 0.000 -17.6 5000 1000 0 1891 0 2 ---------------------------------------------------------------------------- Income Income Income Sales Bonds Int. Net Fixed Total Total to to to to to Cover- Co. Income Assets Assets Equity Assets Equity Sales Assets Equity age 1 6 8446 15206 12416 0.0 0.0 0.2 17.3 16.1 4.4 2 939 9753 18834 15099 5.0 6.2 17.4 28.6 13.2 30.4 3 592 10779 17204 14073 3.4 4.2 11.9 28.9 10.7 31.3 4 696 10996 15352 12767 4.5 5.5 14.9 30.5 7.8 54.6 ---------------------------------------------------------------------------- Key: Company 1 Scrub Buddies Company 2 PurTaste Company 3 Harken Company 4 Coyote Components Corp. World 4 QUARTERLY INDUSTRY REPORT, Page 2 02-26-2019 Year 3 Quarter 4 BUSINESS POLICY GAME, 7TH EDITION 07:07:05 F2 © 2016 by Richard V. Cotter, David J. Fritzsche and Simon Rodan ---------------------------------------------------------------------------- Sales Market ----Sales (in 000s)---- --------Product Price--------- Co. $000s Share Tot M1 M2 M3 S M1(M$) M2(M$) M3(M$) S(Ps) 1 2632 11.3 181 49 45 47 40 14.43 14.43 14.43 93 2 5385 32.3 519 130 150 136 103 9.98 9.98 9.98 75 3 4970 28.8 463 113 107 155 88 10.25 10.25 10.25 80 4 4679 27.5 442 124 108 112 98 9.97 9.95 9.95 80 ---------------------------------------------------------------------------- Model Model New Plant Expansion AltmanZ Co. No. Avail Lines M1 M2 M3 S Year 1 2 2 0 0 0 0 0 2.31 2 2 3 0 6 0 0 0 2.46 3 2 2 1 0 0 0 2 2.46 4 1 2 0 0 0 0 0 2.65 ---------------------------------------------------------------------------- Q Product Position Map u Features M1 Features M2 Features M3 Features S a 1 2 3 1 2 3 1 2 3 1 2 3 l ----------------- ----------------- ----------------- ----------------- | |1 | |1 3 | |1 3 | | 3 | | | | | | | | | | | | | | | | ----------------- ----------------- ----------------- ----------------- |4 | 3 |4 | |4 | |1,4 | 2 | | | | | | | | | | | | | | | | ----------------- ----------------- ----------------- ----------------- 2 |3 | 2 | | 2 | | 2 | | 1 | | | | | | | | | | | | | | | | ----------------- ----------------- ----------------- ----------------- ---------------------------------------------------------------------------- Key: Company 1 Scrub Buddies Company 2 PurTaste Company 3 Harken Company 4 Coyote Components Corp.