ARCHIVES: Quarter 1 Year 2018

 

Congratulations on successfully launching your firm into the competitive phase of the simulation! All firm history is now cumulative and building each week (NO more starting over). Therefore, please remember to set stock issue and capacity decisions to zero if you do not wish to repeat these decisions again this quarter. Here are some additional reminders...

 

ADMIN NOTES:

1. Remember to set all change variables to ZERO to maintain "Current" numbers listed in their decision menus. Stock Issue, Long Term Loans, Plant Capacity, sales rep Salary and Commissions must be set to zero to maintain existing numbers. If you want to increase, enter the amount by which you want to increase or (-) to decrease current numbers.

 

2. If you hired trainees in Quarter 1, 2018, do not forget to place them as sales reps in Quarter 2, 2018 by entering the NEW TOTAL number of sales reps for the area in which you are placing the sales rep. Enter a zero into the trainees decision to prevent hiring additional trainees. If you enter a negative value you will fire these sales reps and trainees.

 

3. Remember that you do NOT need to negotiate a contract with Peacock (Advanced Firm 18). For the first two quarters of the simulation, Peacock will supply your firm with finished goods in any quantity without first negotiating the contract. Any firm other than Peacock must first have agreed to the terms of the contract before it can be submitted to the database. Also note that Peacock does not sell raw materials or plant capacity. To purchase raw materials use the "Raw Materials" decision form. To begin construction on a manufacturing plant, use the "Capacity" decision menu.

 

4. To access the chat room/message board forum, please request the general forum password from 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. The special report is the only additional report available outside of the simulation menus.

 


 

ECONOMIC NEWS:

The EU unemployment data indicates that the recovery has finally reached lower income workers, especially in depressed areas of Greece and Spain.  This is especially true in the tourism sector.  Housing markets throughout the EU have increased demand and prices are slowly accelerating upward.

 

GDP increased about 1% for the quarter.  Economists and central banks see the slower rate of growth as good news.  A 4% annual rate can be maintained with a minimum of inflationary pressures.  Some point to the rate and suggest the tighter monetary policy is working.  Other economists suggest the rate is simply ‘the calm before the storm’.  They say the slower rate is an anomaly and probably due to bad weather during the holiday season and the realignment of consumer needs and wants with their now increasing levels of income.  T-bill rates rose as did corresponding rates in the EU.  The coordination of NAFTA/EU monetary policy have kept exchange rate movements in a narrow range.

 

NAFTA unemployment data shows continual quarter-to-quarter improvement.  Canada’s personal income levels are increasing at a faster rate than in the United States.  Some suggest the rapid increase is due to their growing export in the energy sector, mainly oil, gas and electricity.  Also, increased tax revenues are being invested in infrastructure, both new and refurbished.

 

U.S. corporate tax rates were left at current levels as Congress focuses a major tax overhaul on personal incomes.

 

Japan had a marked improvement in GDP growth during 2017. 

 

China reported upper-end consumers are favoring foreign made products over Chinese equivalents as seen in a host of products from autos to perfume.  While exports are much larger than imports, the government voiced concern about the trend.

 



INDUSTRY:

 

Demand for scents has increased 40% since Q1, 2016 (with the exclusion of P2 in the EU).  This has been a remarkable period of recovery.  Higher demand has also led to higher prices, and in most firms, growing profits.  The year 2018, according to industry analysts, should see a strong, but more moderate rate of growth.  They anticipate higher profits on average throughout the industry, but warn that individual firms may falter as they attempt to preserve market share and profitability as they face ever increasing cost pressures.  Firms need to pass costs on to their customers. However, it should be accomplished within a strategy, not as a knee-jerk reaction to external cost pressures.


 

CONTRACT

 

No Firm-to-Firm Contracts this quarter.

 

Peacock Prices

P1 = $56 per unit

P2 = $99 per unit

 

*Remember that Peacock does NOT sell raw materials or plant hours. To purchase raw materials, use the "Raw Materials" decision form. These materials must be ordered one quarter in advance of using them in production. These will always be your cheapest source of raw materials.

 

To order plant hours, use the "Capacity" decision form to order stage 1 and stage 2 plant hours in the area or areas of your choice.


 

STOCKS

 

    List of firms in order of net present value 

             Stock No.    NPV    Index  
               136        5.18      1   
               153        4.45      2   
               146        4.07      3   
               174        3.57      4   
               163        2.72      5   
               105        1.54      6   
               116        1.33      7   
               154        0.95      8   
               101        0.90      9   
               132        0.85     10   
               143        0.59     11   
               144        0.57     12   
               126        0.53     13   
               151        0.45     14   
               125        0.32     15   
               103        0.11     16   
               161        0.10     17   
               121        0.05     18   
               134        0.01     19   
               114       -0.01     20   
               172       -0.01     21   
               123       -0.02     22   
               142       -0.03     23   
               156       -0.04     24   
               111       -0.07     25   
               124       -0.08     26   
               162       -0.09     27   
               152       -0.11     28   
               112       -0.14     29   
               122       -0.17     30   
               164       -0.21     31   
               141       -0.22     32   
               102       -0.25     33
               115       -0.29     34   
               131       -0.30     35   
               104       -0.41     36   
               133       -0.80     37   
               173       -0.99     38   
               171       -1.00     39   
               113       -1.33     40   

Stock  
Numbe   D  a  t  e  s
        20174  20181 
=====  =====  =====  
  101    3.91   5.05 
  102    2.70   2.57 
  103    3.05   3.32 
  104    2.54   2.24 
  105    3.82   5.63 
  111    2.94   3.01 
  112    2.78   2.77 
  113    4.31   3.13 
  114    2.89   3.02 
  115    2.73   2.56 
  116    3.54   5.11 
  121    2.86   3.06 
  122    3.72   3.73 
  123    2.48   2.58 
  124    2.66   2.71 
  125    3.14   3.53 
  126    4.21   4.98 
  131    2.89   2.72 
  132    2.96   4.00 
  133    3.50   2.84 
  134    3.09   3.25 
  136    3.96   9.60 
  141    3.02   2.94 
  142    2.96   3.08 
  143    2.60   3.35 
  144    2.90   3.64 
  146    3.73   8.19 
  151    3.86   4.53 
  152    3.64   3.71 
  153    3.50   8.35 
  154    3.84   5.03 
  156    2.64   2.73 
  161    2.84   3.09 
  162    2.61   2.65 
  163    3.65   6.69 
  164    2.70   2.61 
  171    3.50   2.62 
  172    3.50   3.66 
  173    3.50   2.64 
  174    3.50   7.42 

  Mkt    3.36   2.11 
TBill  0.0200 0.0000 


          Stock        Shares        Closing                 
         Number        Traded         Price           Change 
         ======      ========        =======         ========
           101              0          5.05            1.14  
           102              0          2.57           -0.13  
           103              0          3.32            0.27  
           104              0          2.24           -0.30  
           105              0          5.63            1.81  
           111              0          3.01            0.07  
           112              0          2.77           -0.01  
           113              0          3.13           -1.18  
           114              0          3.02            0.13  
           115              0          2.56           -0.17  
           116              0          5.11            1.57  
           121              0          3.06            0.20  
           122              0          3.73            0.01  
           123              0          2.58            0.10  
           124              0          2.71            0.05  
           125              0          3.53            0.39  
           126              0          4.98            0.77  
           131              0          2.72           -0.17  
           132              0          4.00            1.04  
           133              0          2.84           -0.66  
           134              0          3.25            0.16  
           136              0          9.60            5.64  
           141              0          2.94           -0.08  
           142              0          3.08            0.12  
           143              0          3.35            0.75  
           144              0          3.64            0.74  
           146              0          8.19            4.46  
           151              0          4.53            0.67  
           152              0          3.71            0.07  
           153              0          8.35            4.85  
           154              0          5.03            1.19  
           156              0          2.73            0.09  
           161              0          3.09            0.25  
           162              0          2.65            0.04  
           163              0          6.69            3.04  
           164              0          2.61           -0.09  
           171              0          2.62           -0.88  
           172              0          3.66            0.16  
           173              0          2.64           -0.86  
           174              0          7.42            3.92  

           Mkt              0          2.11           -1.25