World 4 QUARTERLY INDUSTRY REPORT 02-19-2019 Year 3 Quarter 3 BUSINESS POLICY GAME, 7TH EDITION 07:57:33 F1 © 2016 by Richard V. Cotter, David J. Fritzsche and Simon Rodan ---------------------------------------------------------------------------- FINANCIAL MARKET DATA Merica Sereno | ---Credit Rating--- GDP Index (Nominal) 107.70 128.50 | Interest Rates: No. 1 No. 2 No. 3 Consumer Price Index 102.60 119.90 | Long-Term 7.10 8.00 9.00 Stock Market Index 109.10 | Short-Term 5.80 6.30 7.50 3-Month Time CD Rate 4.08 | ---------------------------------------------------------------------------- REAL GROSS DOMESTIC PRODUCT FORECAST Actual Values, Last 4 Quarters Forecast Values, Next 4 Quarters Qtr 8 Qtr 9 Qtr 10 Qtr 11 Qtr 12 Qtr 13 Qtr 14 Qtr 15 Merica 100.00 101.88 103.14 104.97 107.59 107.09 108.73 110.97 Sereno 100.00 98.73 102.78 107.17 109.69 109.50 115.35 119.84 ---------------------------------------------------------------------------- EXCHANGE RATE FORECAST Sereno 6.00 6.09 6.29 6.31 6.26 6.37 6.40 6.26 ---------------------------------------------------------------------------- Inves- Stock Earn- Divi- tor Shares Bank Time Credit Co. Price ings dends ROI Issued Bonds Loans Cash CDs Rating 1 1.13 -0.087 0.000 -28.6 6000 2000 0 3955 0 2 2 1.09 -0.020 0.000 -29.9 7100 2000 0 5739 800 2 3 1.22 0.048 0.000 -24.6 6000 1500 225 247 4000 3 4 1.31 0.049 0.000 -21.0 5000 1000 0 1096 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 -524 8606 14832 12405 -3.5 -4.2 -25.0 11.3 16.1 -9.3 2 -143 9020 17501 14155 -0.8 -1.0 -3.9 20.7 14.1 3.9 3 289 9923 16524 13467 1.7 2.1 8.0 21.8 11.1 18.2 4 246 11164 14311 12036 1.7 2.0 6.7 25.7 8.3 22.9 ---------------------------------------------------------------------------- Key: Company 1 Scrub Buddies Company 2 PurTaste Company 3 Harken Company 4 Coyote Components Corp. World 4 QUARTERLY INDUSTRY REPORT, Page 2 02-19-2019 Year 3 Quarter 3 BUSINESS POLICY GAME, 7TH EDITION 07:57:33 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 1680 10.1 116 35 32 33 16 14.43 14.43 14.43 93 2 3626 30.4 350 89 97 93 71 9.98 9.98 9.98 75 3 3594 30.0 346 87 85 103 71 10.00 10.00 10.00 75 4 3675 29.5 340 93 83 86 78 10.25 10.25 10.25 80 ---------------------------------------------------------------------------- Model Model New Plant Expansion AltmanZ Co. No. Avail Lines M1 M2 M3 S Year 1 2 2 0 0 0 0 0 2.55 2 1 2 4 6 0 0 0 2.63 3 1 2 0 0 0 0 2 2.63 4 1 2 2 0 0 0 4 2.78 ---------------------------------------------------------------------------- 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 | |1 | | 3 | | | | | | | | | | | | | | | | ----------------- ----------------- ----------------- ----------------- |2,3,4| |2,3,4| |2,3,4| |1,2,3| 2 | | | | | | |4 | | | | | | | | | ----------------- ----------------- ----------------- ----------------- | | | | | | | | 1 | | | | | | | | | | | | | | | | ----------------- ----------------- ----------------- ----------------- ---------------------------------------------------------------------------- Key: Company 1 Scrub Buddies Company 2 PurTaste Company 3 Harken Company 4 Coyote Components Corp.