World 3 QUARTERLY INDUSTRY REPORT 02-13-2018 Year 3 Quarter 2 BUSINESS POLICY GAME, 7TH EDITION 07:07:17 F1 © 2016 by Richard V. Cotter, David J. Fritzsche and Simon Rodan ---------------------------------------------------------------------------- FINANCIAL MARKET DATA Merica Sereno | ---Credit Rating--- GDP Index (Nominal) 102.90 105.10 | Interest Rates: No. 1 No. 2 No. 3 Consumer Price Index 100.10 101.40 | Long-Term 4.20 4.90 5.60 Stock Market Index 113.30 | Short-Term 4.50 4.80 5.90 3-Month Time CD Rate 3.24 | ---------------------------------------------------------------------------- REAL GROSS DOMESTIC PRODUCT FORECAST Actual Values, Last 4 Quarters Forecast Values, Next 4 Quarters Qtr 7 Qtr 8 Qtr 9 Qtr 10 Qtr 11 Qtr 12 Qtr 13 Qtr 14 Merica 100.10 100.00 101.70 102.80 103.17 104.13 106.63 105.91 Sereno 98.28 100.00 101.98 103.65 106.42 108.46 111.51 113.60 ---------------------------------------------------------------------------- EXCHANGE RATE FORECAST Sereno 6.00 6.00 6.00 6.00 6.07 5.96 6.06 5.91 ---------------------------------------------------------------------------- Inves- Stock Earn- Divi- tor Shares Bank Time Credit Co. Price ings dends ROI Issued Bonds Loans Cash CDs Rating 1 1.15 0.038 0.000 -15.2 6000 2000 0 3308 1000 2 2 1.13 0.043 0.000 -16.2 6000 2000 0 1493 1000 2 3 1.13 0.015 0.000 -16.5 5700 4000 0 3799 500 2 4 1.09 -0.002 0.000 -18.7 6000 3000 0 4426 0 2 5 1.12 0.008 0.000 -17.0 6000 2000 0 3525 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 1 227 8929 15248 12154 1.5 1.9 6.3 23.4 16.5 11.7 2 258 10174 15196 11967 1.7 2.2 6.9 24.4 16.7 12.2 3 83 9567 16516 11325 0.5 0.7 2.7 19.0 35.3 5.5 4 -13 8851 15903 11534 -0.1 -0.1 -0.3 23.4 26.0 4.4 5 50 8448 14723 11829 0.3 0.4 1.9 17.6 16.9 5.5 ---------------------------------------------------------------------------- Key: Company 1 San Jose State University Company 2 Shantou University Company 3 CSU Sacramento Company 4 Cal Poly Pomona Company 5 CSU Long Beach World 3 QUARTERLY INDUSTRY REPORT, Page 2 02-13-2018 Year 3 Quarter 2 BUSINESS POLICY GAME, 7TH EDITION 07:07:17 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 3575 22.4 352 103 96 94 59 9.85 9.85 9.85 70 2 3714 23.1 363 100 101 100 62 9.85 9.80 9.85 73 3 3130 17.7 277 68 76 78 55 11.00 11.00 11.00 75 4 3726 22.5 353 106 93 98 56 10.00 10.10 10.00 80 5 2587 14.3 224 52 57 52 63 11.50 11.50 11.50 70 ---------------------------------------------------------------------------- Model Model New Plant Expansion AltmanZ Co. No. Avail Lines M1 M2 M3 S Year 1 1 2 1 0 0 0 0 2.27 2 1 2 0 0 0 0 4 2.14 3 1 2 1 0 0 0 4 2.02 4 1 2 2 0 0 0 2 1.96 5 1 2 0 0 0 0 0 2.20 ---------------------------------------------------------------------------- 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 ----------------- ----------------- ----------------- ----------------- | | | | | | | | 3 | | | | | | | | | | | | | | | | ----------------- ----------------- ----------------- ----------------- |1,2,3| |1,2,3| |1,2,3| |1,2,3| 2 |4,5 | |4,5 | |4,5 | |4,5 | | | | | | | | | ----------------- ----------------- ----------------- ----------------- | | | | | | | | 1 | | | | | | | | | | | | | | | | ----------------- ----------------- ----------------- ----------------- ---------------------------------------------------------------------------- Key: Company 1 San Jose State University Company 2 Shantou University Company 3 CSU Sacramento Company 4 Cal Poly Pomona Company 5 CSU Long Beach