Capsim Simulation 6 Years

In: Business and Management

Submitted By jazo1
Words 290
Pages 2
Year 3

* Challenging year * Educational year

Round 3, Year 2014
Year 2014 was a challenging, yet educational year for Team Andrews. We learned that our strategies implemented during this year were not fruitful. Our main setback during year 2014 was the emergency loan we had to take in order to maintain operations. This lack of liquidity as well as the high interest rates of the emergency loan impacted negatively our financial performance during this year and also slowed down our growth in the years to come.
The stock price for Team Andrews rose $2.98 to $30.05. This change in stock price
Although sales for the year 2014 were relatively strong in all of our products combining for a total of 124,347,000 and a capture of 14.23% of the market, we made on strategically incorrect decision. We decided not to issue any Long-term Debt. This decision affected drastically the cash flow of the company.
During year 2014 we were also unable to liquidate a large portion of our inventory, specifically products Adam, Aft, and Agape, leaving us with overstock of more than 1,500,000 units. This overstock was primarily due to the lack of competitiveness in the products aforementioned.
Another factor that was detrimental to our cause was labor negotiations. During year 2014 Team Andrews’ workers were on strike for 13 days. The reason for this event was the fact that the wages paid by Team Andrews were the lowest out of all the other companies at $21.82 and we also provided with the least benefits to employees. As previously mentioned, Year 2014 would be educational for the years to come, as we would have to implement corrective strategies in year…...

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