ARCHIVES: Quarter 3 Year 2019

ADMIN Notes:

 

1. WHEN FORECASTING DEMAND: Remember to view the "Contracts" section of this news report for important information relevant to calculating your "Real Market Share" (market share figures adjusted to remove Business-to-Business sales within a market group). The "Advanced Topics" section of the simulation user guide explains several forecasting methods to use depending on your firm's risk tolerance. Also, do NOT forget that the "Overview" section of the user guide contains the quarterly demand ratios you will need to use when calculating quarterly demand per product type.

 

2. Please be aware that "TOTAL UNIT SALES" INCLUDE "WHOLESALE SALES" in your Firm's Sales Report. Subtract any Wholesale Sales totals from the "Total Unit Sales" figures to determine sales to the simulated retail market.

 

3. Every Quarters 2 & 4 provide additional two-quarter cumulative reporting. To view this additional reporting information per firm, click on the firm you wish to review in the "Stock Market Report".

 

4. To access the chat room/message board forum, please request the general forum password from your instructor, Professor Manjuris, or your simulation administrator, Kristi. Kristi will send you the general forum password that will allow you to enter the platform. You may then register for an individual firm account with the forum to post messages or enter the chat room. The chat room/message board forum is how your simulation administrator Kristi will make special announcements mid-week, so it is important that all firms have an account set up.

 

5. To request a Special Report, please contact your simulation administrator, Kristi. The Special Report contains additional reporting data on all firms within a given market group (ROI, ROE, Current Ratio, Production Efficiency Factor, Average Compensation, and more). The report is updated each quarter with new data and we do not archive old reports, so please request the special report for a given quarter before the following quarter's deadline, or the report may not be available. There is a $2000 simulation dollar fee for each report, billed as a miscellaneous expense in the following quarter.

 

ECONOMIC NEWS:

 

NAFTA has numerous negotiations taking place between management and labor.  Major strikes in airlines and trucking have been avoided with settlements reached in multiyear contracts.  Given the rate of inflation, most agree some upward salary adjustment is needed.

 

The EU is amazingly quiet in terms of labor unrest.  Some economic writers feel the euphoria about economic growth and employment far overshadows the impact of inflation … so far. 

 

Money policy marches forward with another increase in the T-bill rate. 



INDUSTRY:

 

Raw material prices, as previously reported, increased this quarter 3, 2019. The exact amount of increase was: Type 1 by $.98 and Type 2 by $.35.

 

Demand for scents exploded in Q3 (seasonally speaking) as many stores sought to increase inventories for the expected burst of demand in Q4 holidays. Q3 demand shot up 15% to 30% over Q3 of 2018. Firms are cautioned not to use Q3 data for forecasting purposes as the increase in demand was a one time only supply chain adjustment. Instead, use Quarter 2, 2019 sales figures.

 


 

CONTRACT:

 

Firm-to-Firm Product Sales This Quarter:

          Industry  2 
          Accepter  Buyer  Seller    Item               Quantity    
              22      22     52   Finished Goods   P1A1      760    
              22      22     52   Finished Goods   P2A1     1825    
              22      22     52   Finished Goods   P2A1     1000    
              26      53     26   Finished Goods   P1A1     3250    
              26      53     26   Finished Goods   P2A1     6500    
              26      22     26   Finished Goods   P1A1     3250    
              21      36     21   Finished Goods   P2A2     2640    
              21      36     21   Finished Goods   P2A2     5360    
              21      36     21   Finished Goods   P1A2      660    
              26      53     26   Finished Goods   P1A1     3250    

          Industry  3 
          Accepter  Buyer  Seller    Item               Quantity    
              33      53     33   Finished Goods   P2A1     4000    
              33      53     33   Finished Goods   P1A1     1500    
              33      53     33   Finished Goods   P1A1     1500    
              36      36     21   Finished Goods   P1A2     1340  
			  
			  
Peacock is now closed to all firms. If your firm does not have a manufacturing plant to produce your own products then you will need to purchase finished goods from other firms. If you have not already done so, you will need to set up an individual account in the chat room/message board system. You may ask your professor or simulation administrator for the general forum password.


STOCKS:

     List of firms in order of net present value 

             Stock No.    NPV    Index 
                44        0.69      1   
                53        0.63      2   
                51        0.59      3   
                56        0.54      4   
                22        0.51      5   
                35        0.51      6   
                34        0.23      7   
                23        0.13      8   
                32        0.12      9   
                46        0.03     10   
                26       -0.18     11   
                33       -0.48     12   
                52       -0.55     13   
                24       -0.59     14   
                21       -0.69     15   
                54       -0.80     16   
                43       -1.29     17   
                41       -1.59     18   
                45       -1.91     19   
                31       -1.95     20   
                36       -1.97     21   
                42       -2.73     22   
                55       -2.94     23   
                25       -3.87     24   


Stock  
Number        D  a  t  e  s
        20184  20191  20192  20193 
=====  =====  =====  =====  =====  
   21    2.82   3.01   2.94   2.46 
   22    3.11   3.49   3.78   4.04 
   23    2.65   2.90   3.07   3.22 
   24    2.91   2.87   2.83   2.69 
   25    4.40   2.32   1.30   0.61 
   26    3.08   3.05   3.04   3.36 
   31    2.77   2.39   2.06   0.95 
   32    2.62   2.86   3.11   3.02 
   33    2.85   3.02   2.98   2.74 
   34    3.18   3.56   3.36   3.69 
   35    2.67   3.01   3.27   3.34 
   36    3.65   3.30   1.81   1.94 
   41    3.08   2.85   2.64   1.72 
   42    4.03   3.12   2.21   1.23 
   43    3.83   3.54   4.07   2.94 
   44    2.89   3.19   3.43   4.15 
   45    2.86   2.18   1.35   1.10 
   46    2.75   3.53   3.64   2.95 
   51    2.69   2.93   3.25   3.27 
   52    2.91   3.09   2.98   2.73 
   53    2.84   3.04   3.59   3.77 
   54    2.42   2.75   1.89   1.88 
   55    3.55   2.47   1.16   0.71 
   56    2.93   3.59   3.82   3.51 

  Mkt    3.06   3.00   2.82   2.58 
TBill  0.0200 0.0025 0.0037 0.0050 


          Stock        Shares        Closing                 
         Number        Traded         Price           Change 
         ======      ========        =======         ========
            21              0          2.46           -0.48  
            22              0          4.04            0.26  
            23              0          3.22            0.15  
            24              0          2.69           -0.14  
            25              0          0.61           -0.69  
            26              0          3.36            0.32  
            31              0          0.95           -1.11  
            32              0          3.02           -0.09  
            33              0          2.74           -0.24  
            34              0          3.69            0.33  
            35              0          3.34            0.07  
            36              0          1.94            0.13  
            41              0          1.72           -0.92  
            42              0          1.23           -0.98  
            43              0          2.94           -1.13  
            44              0          4.15            0.72  
            45              0          1.10           -0.25  
            46              0          2.95           -0.69  
            51              0          3.27            0.02  
            52              0          2.73           -0.25  
            53              0          3.77            0.18  
            54              0          1.88           -0.01  
            55              0          0.71           -0.45  
            56              0          3.51           -0.31  


           Mkt              0          2.58           -0.24