Table of Contents

1. EXECUTIVE OVERVIEW 3
RESEARCH & DEVELOPMENT (R&D) 3
MARKETING 3
PRODUCTION 4
FINANCE 4
COMPANY SUCCESS 5

2. THE SENSOR INDUSTRY 5

SENSOR CUSTOMERS 5
SEGMENT BUYING CRITERIA 5
POSITIONING 6
PRICE, AGE AND RELIABILITY (MTBF) 7 , ,
CRITERIA BY SEGMENT 7

3. THE CAPSTONE COURIER 8

USING THE COURIER 8
FRONT PAGE, STOCK & BOND SUMMARIES, FINANCIAL STATEMENTS AND PRODUCTION
ANALYSIS 8 , ,
SEGMENT ANALYSIS 9
MARKET SHARE REPORT AND PERCEPTUAL MAP 10
HR/TQM REPORT 10 /

4. PROFORMAS & ANNUAL REPORTS 11

BALANCE SHEET 11
CASH FLOW STATEMENT 11
INCOME STATEMENT 11

5. THE PURCHASE DECISION 12

THE ROUGH CUT 12
POSITIONING IN THE ROUGH CUT 12
PRICE IN THE ROUGH CUT 12
RELIABILITY IN THE ROUGH CUT 12

THE FINE CUT 13

POSITIONING IN THE FINE CUT 13
PRICE IN THE FINE CUT 14
RELIABILITY IN THE FINE CUT 14
AGE 14
MARKETING FACTORS 15

SELLERS MARKET 15
MARKET SIZES AND GROWTH 15

MARKET SIZE BY UNIT 15

MARKET SIZE BY DOLLAR 16

6. OPERATIONS 16
RESEARCH & DEVELOPMENT 16
CHANGING PERFORMANCE, SIZE AND MTBF 16 ,
PRODUCT INVENTION 17
PROJECT MANAGEMENT 17
A PRODUCTS AGE 18

MARKETING 18
PRICING PRODUCTS 18
PROMO AND SALES BUDGETS 18
SALES FORECASTING 20

PRODUCTION 20
CAPACITY 20
DISCONTINUING A PRODUCT 20
AUTOMATION 20
CHANGING AUTOMATION 21

FINANCE 21
CURRENT DEBT 21
BONDS 22
STOCK 22
EMERGENCY LOANS 23
CREDIT POLICY 23

7. ADDITIONAL MODULES 24
HUMAN RESOURCES 24
TOTAL QUALITY MANAGEMENT 24
LABOR NEGOTIATIONS 25
ADVANCED MARKETING 25

8. SITUATION ANALYSIS 26
PERCEPTUAL MAP 26
IDEAL SPOTS 26
PLOTTING SEGMENT CENTERS FOR EACH YEAR 27

INDUSTRY DEMAND ANALYSIS 28

CAPACITY ANALYSIS 28
MARGIN ANALYSIS 29
MARGIN POTENTIAL 30

CONSUMER REPORT 31

9. FORECASTING 31

BASIC FORECASTING METHOD 32

QUALITATIVE ASSESSMENT 32
DECEMBER CUSTOMER SURVEY 32

12

FORECASTS, PROFORMAS AND THE DECEMBER 31 CASH POSITION 33

, 12 31
WORST CASE/ BEST CASE 33 /

10. SIX BASIC STRATEGIES 34

COST LEADER WITH PRODUCT LIFE

CYCLE FOCUS 34

DIFFERENTIATION STRATEGY WITH A PRODUCT OF LIFE CYCLE FOCUS 34

BROAD COST LEADER 34

BROAD DIFFERENTIATION 35
NICHE COST LEADER (LOW TECHNOLOGY) 35 ()
NICHE DIFFERENTIATOR (HIGH TECHNOLOGY) 35 ()

11. BALANCED SCORECARD 36

GUIDING YOUR COMPANY 36

INDEX 37
START OF PAGE 3
1. EXECUTIVE OVERVIEW _____________________________________
, . ,
. .
, . , ,
, .
, :

, (R&D)

!!! TIP:

: : , , ,

.
__________________________________
UPPER LEFT BOX ON PAGE 3: IN THE NEXT EIGHT YEARS
, 165%. ,
, .
END OF UPPER LEFT BOX ON PAGE 3
_____________________________________
MID LEFT BOX ON PAGE 3: YOUR CUSTOMERS MANUFACTURE A
, , ,
, .
END OF MID LEFT BOX ON PAGE 3
____________________________________
RESEARCH & DEVELOPMENT (R&D) ()
. ,
.
:

: ;

: ;

: ;

: .

, . ,
. , (
), , , .
!!! TIP:

: .

. ;
. . ,
: 6 $500,000; 12 $1,000,000.
, .

MARKETING

: ;

:
100%;
: ,

100%
.
END OF PAGE 3
START OF PAGE 4
. ,
. , , .
, .
. , :

PRODUCTION

. , :

.
, ;

.
, . ,
, 50%.

.
, :

, ;

,
.

. ,
.
.

FINANCE

, , .
. ,
. , .
:
1.

: 20%.

2.

: . ,
. , 75%,
50%.

3.

(): 10 .
1.4%, , .
80%.

: , ();

: ;

: .

END OF PAGE 4
START OF PAGE 5
, ,
, (BIG AL).

, . 7.5%
. , .
.
COMPANY SUCCESS
,
. , .
:

. !
2. THE SENSOR INDUSTRY

_____________________________

. , 13%.
, ,
.
SENSOR CUSTOMERS

________________________

. ,
, , .
. 8 .
, :

SEGMENT BUYING CRITERIA

_______________

()

END OF PAGE 5
START OF PAGE 6
POSITIONING

(), ().
.
THE PERCEPTUAL MAP

,
. . 2.1
. , . ,
.
A SENSORS POSITION ON THE PERCEPTUAL MAP

2.1 , , 8, 12;
8 12 .
!!! TIP: : , .
MARKET SEGMENT POSITIONS ON THE PERCEPTUAL MAP

. ,
. . 2.2
. .
.
__________________________________________________
FIGURE 2.1 THE PERCEPTUAL MAP USED IN THE SIMULATION

2.1

WORDS ON MAP: A SENSOR WITH A PERFORMANCE OF 8 AND A SIZE OF 12 IS

POSITIONED HERE
8, 12

FIGURE 2.2 BEGINNING SEGMENGT POSITIONS

2.2

, .
WORDS ON MAP:
Low End:

Performance:
Traditional:

Size:

High End:

FIGURE 2.3 SEGMENT POSITIONS AT THE END OF YEAR 1

2.3

: . 12
.
WORDS ON MAP:
Low End:

Performance:
Traditional:

Size:

High End:

10

FIGURE 2.4 SEGMENT POSITIONS AT THE END OF YEAR 8: VERY LITTLE OVERLAP
REMAINS.
2.4
: .
WORDS ON MAP:
Low End:

Performance:
Traditional:

Size:

High End:

END OF FIGURES 2.1-2.4 ON PAGE 6

__________________________________________
(STILL PAGE 6, OVER TIME, CUSTOMERS WANT PRODUCTS THAT ARE SMALLER
AND FASTER.)
, .
. , . 2.3
; 2.4 .
, , ,
. , , .
, .
. ,
. , !
END OF PAGE 6

11

START OF PAGE 7
!!! TIP: : .
. ,
, . ,
, . 16 .
PRICE, AGE AND RELIABILITY(MTBF)

, (MTBF)

, :

: ;

: ;

MTBF(): .

_______________________________
BOX ON RIGHT OF PAGE 7
A REAL WORLD PERCEPTUAL MAP

, . ,
. ,
, 36 , 36,000 .
. 12 , 100,000 ( 12
100,000 ), 60 , 15,000
( 15,000 ).
WORDS IN THE MAP:
MONTHS:
MILES (IN THOUSANDS): ()
A 36 MONTH, 36,000 MILE WARRANTY IS POSITIONED HERE
36 , 36,000

12

AREA WHERE CUSTOMERS HAVE HIGHEST INTEREST IN EXTENDED WARRANTIES:

END OF BOX ON RIGHT OF PAGE 7

_________________________________

CRITERIA BY SEGMENT
( 0 ).
$0.50. , $19.50 - $29.50,
$19.00-$29.00. ( 26 ). (MTBF)
, .
____________________________
BOX ON LEFT OF PAGE 7
EACH MARKET SEGMENT EXPECTS
:

(, MTBF)

END OF BOX ON LEFT OF PAGE 7

______________________________

TRADITIONAL SEGMENT CRITERIA

13

, 2 , -- 47%

, $20.00-$30.00, -- 23%

, 5.0, 15.0, -- 21%

(MTBF), 14,000-19000, -- 9%

LOW END SEGMENT BUYING CRITERIA

, , .

, $15.00-$25.00, -- 53%

, 7 , -- 24%

, 1.7, 18.3, -- 16%

(MTBF), 12,000-17,000, -- 7%

HIGH END SEGMENT BUYING CRITERIA

, .

, 18.9, 11.1 -- 43%

, 0 , -- 29%

(MTBF), 20,000-25,000 -- 19%

, $30.00-$40.00, -- 9%

END OF PAGE 7
START OF PAGE 8
PERFORMANCE SEGMENT BUYING CRITERIA

, .

(MTBF), 22,000-27,000 -- 43%

, 9.4, 16.0 -- 29%

, $25.00-$35.00, -- 19%

, 1 , -- 9%

SIZE SEGMENT BUYING CRITERIA

14

, 4.0, 10.6 -- 43%

, 1.5 , -- 29%

(MTBF), 16,000-21,000 -- 19%

, $25.00-$35.00, -- 9%

3. THE CAPSTONE COURIER ____________________

.
, :

!!! TIP:

, , ;

CAPSTONE.XLS, (COURIER).

: . , ,

. , 0 . 0 , .
USING THE COURIER

________________________________

, . ,
, .
FRONT PAGE, STOCK & BOND SUMMARIES, FINANCIAL STATEMENT AND
PRODUCTION ANALYSIS

, , ,

( 3.1).
, . ,
.
, , , .
.
4 , , , , ,
, . .
( 31 ).

15

.
? , ,
.
!!! TIP: : , , ,
MTBF. MTBF .
_______________________________________________
MID LEFT BOX PAGE 8
FIGURE 3.1 SELECTED FINANCIAL STATISTICS FROM THE FRONT PAGE OF THE
COURIER
3.1 .

WORDS IN CHART:
Selected financial statistics:
ROS:
Turnover:
ROA:
Leverage:
ROE:
Emergency loan:
Sales:
EBIT:
Profits:
Cumulative profits:
SG&A % sales: %
Contrb. Margin %
16

Percent of sales:
Var costs:
Depr:
SGA:
Other:
Profit:
Market share

Lilys note: for company names, its better to keep the original English names. Therefore there
is no translated terms for company names; also, the items (such as ROS, etc.) can be kept in
English in the figure(as the Chinese translations takes more space), but we can add the Chinese
translation to the end or side of the figure for students to check against.
END OF MID LEFT BOX PAGE 8
_________________________________________________
_______________________________________________
BOTTOM RIGHT BOX PAGE 8
ARE YOUR COMPETITORS INVESTING IN .
?

END OF BOTTOM RIGHT BOX PAGE 8

_________________________________________________
END OF PAGE 8
START OF PAGE 9
, .
, .
; 150% 200% ,
(ROA).
!!! TIP: : ():

17

SEGMENT ANALYSIS

5-9 ( 3.2), .

UPPER LEFT BOX ON PAGE 9

FIGURE 3.2 TRADITIONAL 3.2

Market segment analysis

CAPSTONE COURIER
Traditional Segment:
Top products in segment:
END OF UPPER LEFT BOX ON PAGE 9
___________________________________
MID RIGHT BOX ON PAGE 9
FIGURE 3.3 SEGMENT ANALYSIS 3.3

18

ACCESSIBILITY:
Market share Actual vs. potential:
Actual:
Potential:
END OF MID RIGHT BOX ON PAGE 9
____________________________________
, , ,
. ( 7
):

: 12 31 , (
, );

: 1 1 , $0.5;

: ;

: MTBF .

?
12 31 .
ACCESSIBILITY, MARKET SHARE, AND TOP PRODUCTS IN SEGMENT

19

( 3.3) .
, . . 100%
.
( 3.3) .
.
. , ,
. , ,
, .
, :

()

END OF PAGE 9
START OF PAGE 10
MTBF

12 31

()

AWARENESS AND CUSTOMER SURVEY

( 3.4) ,
. . 100%.
12 ( 3.4).
. . 100 :

(, );

20

100%

100%

.
12

!!! TIP:

_____________________________________________
UPPER LEFT BOX ON PAGE 10
FIGURE 3.4 CUSTOMER AWARENESS 3.4
. 12 ; ,
.
CUSTOMER AWARENESS:
DECEMBER CUSTOMER SURVEY: 12

END OF FIGURE 3.4 ON UPPER LEFT OF PAGE 10

____________________________________________________
______________________________________________
MID LEFT BOX ON PAGE 10
PERFECT SCORES ARE
. 50 .
END OF MID LEFT BOX ON PAGE 10
__________________________________________________
___________________________________________________
21

LOWER LEFT BOX ON PAGE 10

ACCOUNTS RECEIVABLE POLICY
(), .
END OF LOWER LEFT BOX ON PAGE 10
_____________________________________________________
MARKET SHARE REPORT AND PERCEPTUAL MAP

,
. ?
, . ,
, .
( 3.5) .
?
________________________________
LOWER RIGHT BOX ON PAGE 10
FIGURE 3.5 THE PERCEPTUAL MAP, DISPLAYS THE POSITIONING OF ALL THE
PRODUCTS IN EVERY SEGMENT. 3.5 , .

SIZE:

22

PERFORMANCE:
END OF LOWER RIGHT BOX ON PAGE 10
____________________________________
HR/TQM REPORT

/ .
, , ( 24 ).
END OF PAGE 10
START OF PAGE 11
4. PROFORMAS & ANNUAL REPORTS 4. ________
:

? ,
. CAPSTONE.XLS
.
!!! TIP:

: , CAPSTONE.XLS ;

, CAPSTONE.XLS . , ,
.
________________________________________
UPPER LEFT BOX ON PAGE 11
THE PROFORMA REPORTS ARE ONLY AS
. ,
. 31
.
END OF UPPER LEFT BOX ON PAGE 11

23

________________________________________
________________________________________
LOWER LEFT BOX ON PAGE 11
DEPRECIATION
, .
. ,
. , , .
, . ,
.
15 .
END OF LOWER LEFT BOX ON PAGE 11
________________________________________
__________________________________________
UPPER RIGHT ON PAGE 11
FIGURE 4.1 THE PROFORMA BALANCE SHEET 4.1
.
ASSETS:
LIABILITIES AND OWNERS EQUITY:

END OF UPPER RIGHT ON PAGE 11

_________________________________________
24

BALANCE SHEET

(), (),
() .

, . ()
, , . . ,
(, 20 ).
, , . ,
; 10 . .
; , .
!!! TIPS: : ; .
CASH FLOW STATEMENT

, ,
. .
.
INCOME STATEMENT

. ()
, . .
. $0, ,
. , .
, ( 31 ).
.
, , . .
END OF PAGE 11

25

START OF PAGE 12
, , EBIT.
, , , . , , ,
, .
!!! TIP:

: ,

. , .
5. THE PURCHASE DECISION _______________________
:

, ;

, .

THE ROUGH CUT

_____________________________________

, :

:
;

: ;

: (MTBF).

.
POSITIONING IN THE ROUGH CUT

, ().
( 5.1).
.
!!! TIP: : 11 12 31 .
__________________________________________
LEFT BOX ON PAGE 12
26

FIGURE 5.1 POSITIONING ROUGH CUT.

5.1 / : , 4 .
, 2.5 .
THE OUTER CIRCLE INDICATES THE POSITIONING ROUGH CUT.
.
THE INNER CIRCLE INDICATES THE POSITIONING FINE CUT.
.
END OF LEFT BOX ON PAGE 12
_____________________________________________

PRICE IN THE ROUGH CUT

. , .
. , .
$5.00 .
RELIABILITY IN THE ROUGH CUT

(MTBF),
.

27

 MIBF 5000 ,
.
END OF PAGE 12
START OF PAGE 13
!!! TIP:

: .

THE FINE CUT

______________________________________

, .
(12 ). ,
. ,
.
: , , MTBF
. .
__________________________________________
FIGURE 5.2 5.2
5.2 5.6 .
. 26 8.1, .
. .
.

FIGURE 5.3

5.3

28

FIGURE 5.4

5.4

FIGURE 5.5

5.5

FIGURE 5.6

5.6

END OF FIGURES ON PAGE 13

29

_____________________________________________

POSITIONING IN THE FINE CUT

, .
. (, 5.2-5.6).
(, , ).
, , , .
().
, , . .
. 12 31
.
(), ()(,
5.2-5.6). . , 1%;
, 50%; , 99%.
END OF PAGE 13
START OF PAGE 14
PRICE IN FINE CUT

, : ,
( 5.7).
$1.00, 20%.
$1.00, 20%.
$5.00, .
_____________________________
FIGURES 5.7-5.12 ON PAGE 14
FIGURE 5.7 5.7

: , .

PRICE:
APPEAL (SALES VOLUME): ()
30

FIGURE 5.8 5.8

2 ().

SCORE:
AGE IN YEARS: ()

FIGURE 5.9 5.9

7 ().

SCORE:
AGE IN YEARS: ()

31

FIGURE 5.10 5.10

().

SCORE:
AGE IN YEARS: ()

FIGURE 5.11 5.11

1 ().

SCORE:
AGE IN YEARS: ()

32

FIGURE 5.12 5.12

1.5 ().

SCORE:
AGE IN YEARS: ()

END OF FIGURES ON PAGE 14

__________________________________

RELIABILITY IN THE FINE CUT

MTBF MTBF . ,
MTBF , .
MTBF 1,000 , 20%.
1000 , 20%, 5000 ,
.

33

AGE

, , . ,
2 , 2 10 ( 5.8).
( 5.8-5.12). , ()
; ( 18 ).
!!! TIP:

.
END OF PAGE 14
START OF PAGE 15
MARKETING FACTORS

( 18
).
_______________________________
UPPER LEFT BOX ON PAGE 15
IF THE TOTAL QUALITY MANAGEMENT
, . 24
.
END OF UPPER LEFT BOX ON PAGE 15
_________________________________
AWARENESS

. .
, .
, , .
, , .
, ,
. 0%, 100%.

34

, 100%
.
ACCESSIBILITY

:
. ,
. , 0%.
, .
, 0%,
100%, 100%
.
SELLERS MARKET ________________________________
. , ,
. , , .
, , , :

$4.99 , $5.00,
, ;

MTBF MTBF 4999 5000 ,

.

________________________________
MID LEFT BOX ON PAGE 15
HOW CAN A COMPANY BE SURE OF A .
? ,
, , . ,
, .
, 28
.
END OF MID LEFT BOX ON PAGE 15

35

________________________________
___________________________________
TABLES 5.1-5.3 AT BOTTOM OF PAGE 15
TABLE 5.1

5.1

Traditional:

Low End:

High End:

Performance:
Size:

TABLE 5.2

5.2

Traditional:

Low End:

High End:

Performance:
Size:

TABLE 5.3

5.3

Traditional:

Low End:

High End:

Performance:
36

Size:

END OF TABLES 5.1-5.3 ON PAGE 15

____________________________________
________________

MARKET SIZE AND GROWTH

MARKET SIZE BY UNIT

()( 0 )
( 5.1). , , ,
( 5.2). , , ,
( 5.3).
END OF PAGE 15
START OF PAGE 16
MARKET SIZE BY DOLLAR

() 0 ( 5.4).
, , . 5.5
( 0 ).
______________________________________________________
TABLE 5.4 LAST YEARS DOLLAR PERCENTAGES
5.4

Traditional:

Low End:

High End:

Performance:
Size:

37

TABLE 5.5

5 YEAR DOLLAR FORECAST: IF CURRENT PRICES WILL NOT CHANGE.

5.5

5 :

Traditional:

Low End:

High End:

Performance:
Size:

END OF TABLES 5.4 & 5.5 ON PAGE 16

_________________________________________________

6. OPERATIONS ________________________________________________
, . .
. .
, . ,
. ,
CAPSTONE.XLS .
RESEARCH & DEVELOPMENT

_________________

38

.
( 6 2.1).
.
!!! TIP:

: ,

. 30 .
1 1 . ,
. , , 12 31
, ( CAPSTONE.XLS ,
).
_____________________________
LEFT BOX ON PAGE 16
YOUR R&D DECISIONS ARE FUNDAMENTAL
. , :

(MTBF )

, :

END OF LEFT BOX ON PAGE 16

________________________________

CHANGING PERFORMANCE, SIZE AND MTBF

, (MTBF)

, .
, ().
/. ,
()().
39

( 6.1). , . ,
, $1.00; , $10.00.
3% 4%.
____________________________________
LOWER RIGHT ON PAGE 16
FIGURE 6.1 6.1 : .
, $1.00;
$10.00.

PERCEPTUAL MAP:
(Y) SIZE:
(X) PERFORMANCE:
Traditional:
Low End:
High End:
Performance:
Size:

40

END OF LOWER RIGHT FIGURE 6.1 ON PAGE 16

_________________________________________
END OF PAGE 16
START OF PAGE 17
, MTBF, . (MTBF)
$0.0003 . 20,000 , $6.00
($0.0003 X 20,000 = $6.00).
!!! TIP: : MTBF .
!!! TIP: : , .
!!! TIP: : , , MTBF
.
PRODUCT INVENTION

( NA ), ,
MTBF. , .
41

.
. . .
!!! TIP:

: , .

. ,
.
!!! TIP:

: , !

20 .
________________________________________
BOX LEFT PAGE 17
ALL NEW PRODUCTS REQUIRE CAPACITY AND .
, .
7 1 ,
. .
END OF BOX LEFT PAGE 17
_______________________________________
_________________________________________
BOX UPPER RIGHT PAGE 17
R&D ENTRIES
BEFORE R&D ENTRIES
Name

New Pfmn
New Size
MTBF

Revision Date
Age at Revision
R&D Cost ($000)

42

AFTER R&D ENTRIES

Name

New Pfmn
New Size
MTBF

Revision Date
Age at Revision
R&D Cost ($000)

CAPSTONE.XLS . (R&D).
, ; , .
, MTBF . 5.5 5.9,
14.5 14.1, MTBF 17,500 15,000. 2007 5 28 ,
1.8 ( 18 ), $410,000.
, . (5.5 14.5).
5 28 (5.9 14.1).
, .
. CAPSTONE.XLS
.

43

END OF BOX UPPER RIGHT PAGE 17

________________________________________

PROJECT MANAGEMENT

0.7 1.3 . ,
, . , ,
.
____________________________________
BOX LOWER LEFT PAGE 17
IF THE PROJECT LENGTH TAKES MORE THAN
, . ,
, MTBF ; , .
END OF BOX LOWER LEFT PAGE 17
___________________________________

3 , 3 .
, ,
. ( 20 6.3).
. 6 $500,000;
$1,000,000.
END OF PAGE 17
START OF PAGE 18
, , . ,
. , 18 , ,
, .
A PRODUCTS AGE

44

 4 2 . ?
, ,
. , , .
. , 2 .
47% . 3 ,
( 14 , 5.8). , , 3 1.5 ,
.
MARKETING

____________________________

. .
PRICING PRODUCTS

14 , . ,
$5.00 , . , .
$0.50. , 0 , $20.00 -$30.00 .
, $19.50-$29.50 ; , $19.00-$29.00 .
. .
PROMO AND SALES BUDGETS

. 15 .
!!! TIP:

: . 9 .

________________________________________
LOWER RIGHT BOX ON PAGE 18
MARKETING DECISION ENTRIES

Name:
Price:
Promo budget:
Sales budget:
Computer prediction:

45

Your sales forecast:

Gross Revenue Forecast:
Variable Cost:
Contrib. Margin Forecast:
Less Promo & Sales:

CAPSTONE.XLS, . . ,
, , .

POLICY

( 31 ).
:

, , .

, .

. 23 .
. CAPSTONE.XLS
.
END OF LOWER RIGHT BOX ON PAGE 18
________________________________________
END OF PAGE 18
START OF PAGE 19
PROMOTION

46

.
. 50%. ,
.
(33%X ) =
50%, 33% .
33%.
+ 6.2 =
6.2 $1,500,000 36%,
69% (33% + 36% = 69%).
6.2 , $3,000,000 50%,
$1,500,000 14% (33%+50% = 83%).
. 100%,
$1,400,000 . 100%.
_________________________________________
UPPER LEFT PAGE 19
FIGURE 6.2 6.2 . $1,500,000
36% ; $1,500,000 ( $3,000,000) 50%.
, $1,500,000 14% .

47

END OF FIGURE 6.2 ON PAGE 19

__________________________________________
__________________________________________
LOWER LEFT BOX ON PAGE 19
THESE NUMBERS CHANGE WHEN
, . 25 .
END OF LOWER LEFT BOX ON PAGE 19
___________________________________________

. , .
, $250,000 .
50%.
!!! TIP:

: . 10 3.4.

SALES

.
. , ,
. , , .
, . ,
.
,
.
1.

, (SUPPORT
SYSTEMS).

2.

100% . .
$3,000,000 . ,
$4,500,000 (, ,

48

 $2,250,000). 100% ,
$3,300,000 , 100% .
!!! TIP:

: .

!!! TIP:

: . 9 3.3.

___________________________________________
RIGHT BOX ON PAGE 19
BEFORE AND AFTER THE SALE

. ,
. , .
. , , , .
, .
END OF BOX ON PAGE 19
______________________________________________
END OF PAGE 19
START OF PAGE 20
SALES FORECASTING

. /
. ,.
31 .
PRODUCTION

_____________________________________

. ,
, . .
, , .
, .
CAPACITY

:
49

(
). , . ,
2,000,000 , ,
4,000,000 .
$6 $4 . Capstone.xls
. ,
.
,, $0.65.
, . ,
, . ,
. ( 11 ).
DISCONTINUING A PRODUCT
, ,
.
. , , ,
.
AUTOMATION

1.0 10.0 , 1.0 , 10.0 .

, 3.0 5.0 . ,
.
____________________________________________________________________
P20 UPPER LEFT BOX PAGE 20:
,
:



END OF UPPER LEFT BOX PAGE 20
50

____________________________________________________________________
MIDDLE LEFT SECTION OF PAGE 20:
FIGURE 6.3: 6.3: 10
: , 0.25 ()
1.0 () . ,
. , .
, , , ,
, .

WORDS USED IN FIGURE 6.3:

AUTOMATION LEVEL:
YEARS:
DISTANCE: /
UNITS:

END OF FIGURE 6.3, LEFT ON PAGE 20

___________________________________________________________________
PAGE 20, RIGHT BOX

51

PRODUCTION DECISION ENTRIES

SCHEDULE

UNIT SALES FORECAST ()

INVENTORY ON HAND
PRODUCTION SCHEDULE
PRODUCTION AFTER ADJ
PHYSICAL PLANT
1ST SHIFT CAPACITY
BUY/SELL CAPACITY
AUTOMATION RATING
NEW AUTOMATION RATING
INVESTMENT ($000)
CAPSTONE.XLS (DECISION MENU). .
:

()

()

( )

52

 . CAPSTONE.XLS
.
END OF BOX ON RIGHT OF ORIGINAL PAGE 20
BEGINNING OF ORIGINAL PAGE 21
1.0 , . 10.0 ,
90%. , 10%.
, :

: $4 , 1.0 10.0,
$36;

,
, ( 20 6.3).
. , 2.5
3.0 .

CHANGING AUTOMATION

, , $4. ,
1,000,000 , 5.0 6.0, $4,000,000.
. ,
. , .
______________________________________________
Page 21, boxes on upper left corner
If you reduce automation

, .

. ,
, . END OF BOX
______________________________________________
Box in the middle left of page 21
The dollar value of capacity ,
:

53




END OF BOX IN THE MIDDLE LEFT OF PAGE 21
_____________________________________________________________
RIGHT BOX ON PAGE 21
LABOR COSTS INCREASE EACH YEAR
, . , ,
. END OF BOX ON THE UPPER RIGHT OF PAGE 21.
_______________________________________________________________________

FINANCE

_____________________________________________________

:
1.

. :

2.

, .

3.

()

4.

, .

5.

TIP: : .
, .
TIP! : .
, .
.
_____________________________________________
LEFT BOTTOM BOX PAGE 21
54

AS A GENERAL RULE , , ,
, . END OF BOX
______________________________________________

CURRENT DEBT
. CAPSTONE.XLS
. ,
. .
. , ,
, .
END OF PAGE 21
BEGINNING OF PAGE 22
, 70%, 50%.
, , , .
( 11 ).
BONDS
10 . 5% .
, . . S , S
(SERIES). , 12.6S2009 , 12.6%, 2009 12 31 .
____________________________________________________________________
PAGE 22, UPPER LEFT BOX
AS A GENERAL RULE ,
. END OF BOX
______________________________________________________________________
() 80%.
, . 12.6S2009
$1,000,000, , $126,000 . ,
$1,000,000 . , AAA (
55

) D (). ,
.
, 1.4%.
12.1%, 13.5%.
. 1.5% .
.
. . ,
.

( 11 ).

, .
.
12 31 , .
. .
____________________________________________
LEFT BOX IN MIDDLE OF PAGE 22
WHEN BONDS COME DUE
12.6S2009 $1,000,000,
: 2009 12 31 ,
$1,000,000, $1,000,000.
2009 , 2009 1 1 ,
. 2010 $1,000,000,
.
END OF BOX IN MIDDLE OF PAGE 22
----------------------------------------------------------------------________________________________________________
UPPER RIGHT BOX PAGE 22
BOND RATINGS
, AAA . -
, . 0.5%,
. , 10%, 10.5%,
AA , AAA .

56

END OF UPPER RIGHT BOX PAGE 22

_________________________________________________
LOWER RIGHT BOX PAGE 22
WHEN BONDS ARE RETIRED EARLY

$10,000,000 ,
, $11,000,000. 1.5% .
.
END OF RIGHT BOX PAGE 22
__________________________________________________

STOCK
. 5% .
20%.
:

_____________________________________________________
LEFT BOTTOM BOX PAGE 22
AS A GENERAL RULE, STOCK
, .
END OF BOX
_______________________________________________________
___________________________________
RIGHT BOTTOM BOX PAGE 22
EMERGENCY LOANS DEPRESS
, .
.
END OF RIGHT BOTTOM BOX PAGE 22
________________________________________
END OF PAGE 22
START PAGE 23

57

BOOK VALUE
.
. . ,
$50,000,000, 2,000,000, $25.
(EPS) (NET PROFIT) .
.
, . , EPS $1.5,
$2.00, $1.5 , , .
. ,
. (EPS).
. :

5%, ;

, .

1.5%.
________________________________________________
UPPER RIGHT BOX PAGE 23
FINANCE DECISION ENTRIES

58

PLANT IMPROVEMENTS:
Total investments ($000):
Sales of Plant & Equipment
Common Stock
Shares Outstanding (000)
Price per share 1/1/2007
Earnings Per Share
Max Stock Issue ($000)
Issue Stock ($000)
Max Stock retire ($000)
Retire Stock ($000)
Dividend per share
Current Debt
Interest Rate
Due this year
Borrow ($000)
Cash Positions

December 31, 2006: 2006 12 31

December 31, 2007: 2007 12 31
Long term debt

Retire long term debt ($000) ($000)

Issue long term debt ($000) ($000)
Long term interest rate
Maximum issue this year
CAPSTONE.XLS, . . :

()

( 10 )
59

, :

. CAPSTONE.XLS

.
END OF UPPER RIGHT BOX PAGE 23
_______________________________________________
EMERGENCY LOANS

, . ,
.
, .
, . ,
7.5%, . , 10%, 12 31
$10,000,000 . $10,000,000 ($1,000,000), 7.5%
$750,000 .
. ,
. , (, , ).
, .
________________________________________
LEFT TOP BOX PAGE 23
CAPSTONE.XLS COMBINES.
(CAPSTONE.XLS) .
.
END OF LEFT TOP BOX PAGE 23
________________________________________
LEFT MIDDLE BOX PAGE 23
EMERGENCY LOANS ARE OFTEN ENCOUNTERED

60

: ;
.
END OF LEFT MID BOX PAGE 23.
___________________________________________
CREDIT POLICY
. , 30
(), 60 ().
A/R () , 30 15 , . ,
A/P () , 30 45 , .
. ,
65%. 30 , 92%. 60
, 98.5%. 120 , . ,
.
___________________________________________
LEFT BOTTOM BOX ON PAGE 23
CUSTOMER AND SUPPLIER
(CAPSTONE.XLS).
END OF LEFT BOTTOME BOX PAGE 23
----------------------------------------------------------------END OF PAGE 23
STARTING PAGE 24
. , ,
. 30 , 1%. 60 , 8%.
90 , 26%. 120 , 63%. 150 , .
, , .
7. ADDITIONAL MODULES

7. _____________________________

61

: , , ,
. . , .
. .
HUMAN RESOURCES _____________________
, :
1. ():
.
2. (): , .
. ,
$5,000. , $1,000,
. , .
3. (): ,
. $20.
(), ,
. ,
. 100%.
_____________________________________________
LEFT BOX PAGE 24
HUMAN RESOURCES DECISION ENTRIES

62

Workforce:
Complement:
Last year:
Needed:
This year:
1st shift:
2nd shift:
overtime:
STAFFING

LAST YEAR

THIS YEAR

Needed Complement:
Complement:
1st shift complement:
2nd shift complement:
Overtime%:
Turnover rate:
New Employees:
Separated Employees:
Recruiting Spend:

63

Training Hours:
Productivity Index:
Recruiting cost:
Separation cost:
Training cost:
Total HR Admin costs:
Login to Capstone.xls and click the decisions menu
CAPSTONE.XLS . , .
, .
END OF LEFT BOX PAGE 24
______________________________________________

TOTAL QUALITY MANAGEMENT

(TQM) , :

, $500,000 ; $2,000,000
. $5,000,000 ,
.
______________________________________________
LOWER RIGHT BOX PAGE 24
TOTAL QUALITY MANAGEMENT DECISION

64

Process Management Initiatives

CPI Systems:

CPI

Vendor/JIT:

Quality Initiative Training:

Channel Support Systems:

Concurrent Engineering:

TQM Initiatives:

Benchmarking:

Quality Function Deployment Effort:

CCE/6 Sigma Training:

CCE/6

Total Expenditures ($000):

Projected Cumulative Impacts:

Material cost Reduction:

Labor Cost Reduction:

Reduction R&D Cycle Time:

Reduction in Admin Costs:

65

Demand increase:

Login to Capstone.xls and click the

CAPSTONE.XLS, . TQM . .
.
End of lower right box page 24
_______________________________________________________
START OF PAGE 25
, /.
. . 12 ,
/( 8 ).
LABOR NEGOGIATIONS
.
. , ,
. ()
.
:

, 10%.
, . . 84
. 7 :

$1

$300

1%

1%

66

!!! : .
____________________________________________________
UPPER LEFT BOX PAGE 25
NEGOTIATION DECISION ENTRIES

LABOR NEGOTIATION:
Current Contract:
Labor Demands:
Negotiation Position:
Starting:
Ceiling:
Hourly Wage:
Benefits:
Profit Sharing %: %
Annual Raise:
CAPSTONE.XLS, . .
END OF UPPER LEFT BOX PAGE 25
____________________________________________________

ADVANCED MARKETING

.
:

67

, , .
!!! TIP: : , 18 .
____________________________________________
LEFT BOTTOM BOX PAGE 25
ADVANCED MARKETING DECISION ENTRIES
(LOGIN TO CAPSTONE.XLS AND CLICK. )
CAPSTONE.XLS . ,
. .
. (PROMO SALES)
(, ).
, .
END OF LEFT BOTTOM BOX PAGE 25
_______________________________________________________
END OF PAGE 25
START OF PAGE 26
8. SITUATION ANALYSIS _____________________________
, .
:

68

!!!TIP:

: .

, , .
0 . :

!!!TIP:

, , ;

CAPSTONE.XLS, (THE COURIER) .

: , , ,

. , 0 . 0 ,
(, 0 ).
PERCEPTUAL MAP

__________________________________

,
.
(, ).
. , 2.5 .
, . , , .
, 4 . ,
.
IDEAL SPOTS
. ,
,

. 12 31 .

. ,
, , .
__________________________________________________
LEFT OF PAGE 26
TABLE 8.1 Ideal Spot Offsets: customers prefer products located this distance from the center of
the segment circle. 8.1 : :

69

Segment

Performance

Size

Traditional
Low end
High end
Performance
Size
END OF TABLE 8.1
__________________________________________________
RIGHT OF PAGE 26
FIGURE 8.1 Use the information in Table 8.1 and mark the . 8.1 8.1
( X ) .

70

(X) Performance
(Y) Size
CIRCLES:
Low End
Performance
Traditional
Size
High end
END OF RIGHT OF PAGE 26
__________________________________________________
END OF PAGE 26
START OF PAGE 27
___________________________________________
Form 1:

71

 1: , 8.2 (%), .
, 0 , 5.0 15.0. , 5.7 ( 0.7)
14.3 ( 0.7).
WORDS IN FORMS
Traditional Segment Center
Low End Segment Center
High End segment Center
Performance Segment Center
Size segment Center
Round
Pfmn
Size
---------------------------------BOX IN THE MIDDLE OF PAGE 27 BUT PART OF FORM 1:
REMEMBER, THESE ARE THE CENTERS
, , .
.
---------------------------------END OF FORM 1 ON PAGE 27
_____________________________________________________
TABLE 8.2 ON PAGE 27
8.2
: , , .

72

Segment

Performance

Size

Traditional
Low End
High End
Performance
Size
END OF TABLE 8.2 ON PAGE 27
________________________________________________________
, . , ,
8.1 . , (
0.0). 8.1 , 15, 5.
. , 8.1 8.1
.
!!! TIP: : ().
PLOTTING SEGMENT CENTERS FOR EACH YEAR

. 1 (,
) .
8.2 . , 0 (
), 5.0, 15.0. ,
+0.7(), -0.7(
).

73

, , 5.7, 14.3.
0 () 7.5, 12.5.
+0.9, -0.9.
, , 8.4, 11.6 (7.5+0.9=8.4, 12.50.9=11.6). , .
!!! TIP

: 1 . , 0

, , .
.
END OF PAGE 27
START OF PAGE 28
!!! TIP

: 2.5 , .

INDUSTRY DEMAND ANALYSIS

.
. (,
31 , ). ,
.
( 5-9 ). ,
( 0 ) , .
, .
, 2 0 . , , 0
, 0 .
. , 2 .
!!! TIP: : , . , :
=
1:
1
+

0.092

9.2%=

0.092

1.092
74

 0 1.092.
. 1.092, , .
8 , 2 .
FORM 2: INDUSTRY DEMAND ANALYSIS

2:

FIRST ROW:
Segment:
Round 0: 0
Growth rate:
Round 1:
Round 2:
Round 3:
Round 4:
Round 5:
Round 6:
Round 7:
Round 8:
FIRST COLUMN:
Segment:
Traditional:
Low End:
High End:
Pfmn:
Size:

75

BOX ON THE LEFT: (REMEMBER, THESE NUMBERS ARE) ,

. , 0 7,387,
7,387,000 .
END OF FORM 2 ON PAGE 28

CAPACITY ANALYSIS

_____________________________

.
.
29 3, .
0 .
. , FOOTRACE
, ANDREWS COMPANY .
, .
().
29 3 , , (COMPANY)
.
END OF PAGE 28
START OF PAGE 29
________________________________________________
FORM 3 CAPACITY ANALYSIS 3

Words in 1st row

Segment:

76

Product name:
First shift capacity:
First & Second shift capacity:
Automation level:
Cost to Double Capacity:
Cost to Raise Automation to 10.0: 10.0
Words in 2nd row
Company:
Industry:
Company:
Industry:
Words in 1st column
Segment:
Traditional:
Low End:
High End:
Pfmn:
Size:
Upper left box linked to Form 3: Remember, these numbers are in thousands! ,
!
END OF FORM 3
_________________________________
, (
). ,
. .
_____________________________________
LEFT BOX ON PAGE 29, INCREASES IN CAPACITY AND CHANGES IN AUTOMATION
REQUIRE A YEAR TO IMPLEMENT.
.
END OF LEFT BOX ON PAGE 29
77

___________________________________
, .
2, , .
, 2, ,
.
, .
, 10.0 .
= x [$6+($4 x )]
10.0 = x [$4+(10 x )]

MARGIN ANALYSIS ____

, , .
, .
, .
30 , 4, , .
0 , .
.

, FOOTRACE

, ANDREWS COMPANY .
, , , , (Y/N).
:
=

-(+)

END OF PAGE 29
START OF PAGE 30
4 .

78

MARGIN POTENTIAL

4 . 0
, , ,
(MTBF) ( MTBF ). (
4 ):
=

($0.0003 x MTBF) +
8.3

($11.20 .
).
=

[$11.20-(1.12X )]+1.12
:

8.0

10.0

5.0

6.0

6.0

(+)

________________________________________________________________
TABLE 8.3 MATERIAL POSITIONING COMPONENT COSTS 8.3

79

Words in first row:

Trailing edge:
Leading edge:
Words in first column:
Traditional:
Low End:
High End:
Performance:
Size:

__________________________________
UPPER LEFT BOX PAGE 30
THE TRAILING EDGE POSITIONING COSTT INDICATES
, ,
. , (), , .
. 16 6.1.
END OF UPPER LEFT BOX PAGE 30
__________________________________
TABLE 8.4 MINIMUM MATERIAL COSTS FOR THE TRADITIONAL SEGMENT

8.4

80

Words in First column:

Minimum Reliability component cost:
Trailing Edge Positioning component Cost:
Total:
____________________________________________________
FORM 4 MARGIN ANALYSIS 4

Words in First row:

Product name:
Price:
Material cost:
Labor cost:
Second shift (Y/N): ( / )
81

Contribution Margin:
Words in 7th row:
Margin potential:
Maximum Price:
Minimum Price:
Minimum labor:
Contribution margin:
Words in 1st column:
Traditional:
Low End:
High End:
Performance:
Size:
Traditional:
Low End:
High End:
Performance:
Size:
END OF FORM 4
_________________________________________
END OF PAGE 30
START OF PAGE 31
CONSUMER REPORT

_______________________________

,
, , .
0 , 0 .
5 , G (GOOD), F (FAIR), P (POOR).

82

: , GOOD;
, FAIR,

, POOR. .

: MTBF , GOOD, , FAIR,

, POOR.
: 12 31 , 0.5 , GOOD, 0.6
1 , FAIR, 1 , POOR.
: 0.5 , GOOD, 0.6
1.5 , FAIR, 1.5 , POOR.
: 80%, GOOD, 50% 80% , FAIR,
50% , POOR.
: 80%, GOOD, 50% 80% ,
FAIR, 80% , POOR.
, GOOD,
FAIR, GOOD.
!!! TIP

: 12 ( 10

).
_____________________________________________
FORM 5 CONSUMER REPORT

Words in 1st row:

Traditional:
Low End:
High End:
Performance:

83

Size:
Words in each column (column 1, 3, 5, 7, 9)
Price:
Reliability:
Age:
Positioning:
Awareness:
Accessibility:
Overall:
END OF FORM 5 ON PAGE 31
_________________________________________________

9. FORECASTING

__________________________________________

. , ,
? , , MTBF
, , .
, , ?
, , MTBF , ,
.
END OF PAGE 31
START OF PAGE 32
BASIC FORECASTING METHOD

______________

. , 1,100,000
, , , , ,
9.2% .
1,100,000 X 0.092 = 101,200

84

 101,200 1,100,000 , ,
1,201,200 .
, ,
, 10 . ,
.
? . ,
, - . ,
, .
, ,
. 10 .
, ,
.
_______________________________________
UPPER LEFT BOX PAGE 32
THE STATISTIC BOXES ( 5-9 ),
. ,
, .
END OF UPPER LEFT BOX PAGE 32
_____________________________________
MID LEFT BOX PAGE 32 AT THE BEGINNING OF ROUND 1, THE .
, ( 0 ) . 2 ,
, , , , .
END OF MID LEFT BOX PAGE 32
______________________________________
UPPER RIGHT BOX PAGE 32
ENTERING FORECASTS

85

 CAPSTONE.XLS, . .
, .
.
,
.
COMPUTER PREDICTION:
Your SALES FORECAST:
END OF UPPER RIGHT BOX PAGE 32
_____________________________________

QUALITATIVE ASSESSMEMT

_____________________

, . ( 11
) . .
. ( 5-9 ). :
?
MTBF ?
, ( 4 )
? (, $0.5.)
, ,
?
.
DECEMBER CUSTOMER SURVEY 12
, ? ,
, 12 . . , 12
86

, 32, 28, 22, 14 ( 96), 32 / 96

33%.
/ = 32 / 32+28+22+14 = 32 / 96 = 33%
, ?
, , , .
(END OF PAGE 32
.

START OF PAGE 33 )

, .

/ , ?
.
!!! TIP

: .

( 4 ).
!!! TIP

: .

, . ? ,
.
!!! TIP:

: 28 .

, .
FORECASTS, PROFORMAS AND THE DECEMBER 31 CASH POSITION

, 12 31
,
:

(, , );

()

, .
, , .
!!! TIP: : 12%.

87

, , ;
:

, , .

12 31 . ,
() .
_____________________________________________
LEFT BOX PAGE 33 FORECASTS ARE USED BY THE PROFORMAS TO ..
( 11 ).
, .
END OF LEFT BOX PAGE 33
_____________________________________________
WORST CASE / BEST CASE

/ ______________

, / .
.
, 1,200,000 , ,
, 100,000 . ,
, 300,000, , , , .
, 1,200.
, , 1,500 (,
1,500 ). , , 1,200,000 , 300,000
. , 1,500,000 , .
, .
. , 12 31 , (END
OF PAGE 33, START OF PAGE 34) , , , 12 31
. .
10. SIX BASIC STRATEGIES

10.

88

COST LEADER WITH PRODUCT LIFE CYCLE FOCUS

____
, .
, , .
, ,
. , ,
.
SAMPLE VISION STATEMENT

: . ,
, .

DIFFERENTIATION STRATEGY WITH A PRODUCT LIFE CYCLE FOCUS

, , .
, , .
, . ,
. .
.
SAMPLE VISION STATEMENT
: . ,
, .
BROAD COST LEADER

. ,
, . .
, .

89

SAMPLE VISION STATEMENT

: . , ,
.
END OF PAGE 34
START OF PAGE 35
BROAD DIFFERENTIATION
. ,
, . .
, . . ,
.
SAMPLE VISION STATEMENT
: . , ,
.
NICHE COST LEADER (LOW TECHNOLOGY) ()
. ,
, .
. , .
SAMPLE VISION STATEMENT
: .
, , , .
NICHE DIFFERENTIATOR (HIGH TECHNOLOGY) ()

90

(, , ).
, , .
, . , .
. .
SAMPLE VISION STATEMENT

: . ,
, .
END OF PAGE 35
START OF PAGE 36
11. BALANCED SCORECARD

11. _______________________

.
:

, , ;

,, , ,
;

- ,
.

CAPSTONE.XLS , (PROFORMA)
. ; , (REPORTS).
GUIDING YOUR COMPANY

______________________________

. , ,
, .
, ,
.

91

, , ,
.

92

PAGE 37
INDEX
A
Accessibility 3, 9, 10, 19, 31

Accounts Payable (A/P) 5, 21, 23

Accounts Receivable (A/R) 5, 10, 21, 22, 23

Actual Sales 9, 32

Advanced Marketing Module 25

Age 7, 9, 10, 14, 16, 18, 31
Annual Reports 11

Automation 4, 16, 20, 21, 29

Awareness 3, 10, 19, 31

B
Balance Sheet 11, 22

Balanced Scorecard 36

Benefits 25

Bonds 4, 21, 22

Book Value 22

Buying Criteria 7, 9, 10, 14

C
Capacity 4, 21, 28, 29

Capacity Analysis 28

Capstone Courier 8, 16, 17, 26

Cash Flow Statement 11

Computer prediction 18, 32

Consumer Report 31

Create a Product 3, 9, 16, 17, 19

Current Debt 4, 21, 22, 23

Customer Survey 10, 13, 31

Customers 5, 6, 7, 10, 12

93

D
December Customer Survey 10, 13, 31

Demand Analysis 28

Discontinue a Product 4, 20

Dividend 4, 21, 22
Drift 6, 27

12

E
Earnings Per Share (EPS) 22

Emergency Loan 5, 23

F
Finance 4, 21

Fine Cut 12, 13, 14, 26

Forecasting 4, 28, 31
H
High End 7, 14, 15, 16

Human Resources 24

I
Ideal Spot 9, 13, 26

Income Statement 11, 20 /

Industry Demand Analysis 28
Invent a Product 3, 9, 16, 17, 19

L
Labor 4, 16, 20, 21, 24, 25

Labor Negotiations 25

Long Term Debt 4, 21

Low End 7, 15, 16

M
Margin Analysis 29

Market Segment Analyses 9

94

Market Segments 5, 6, 7, 9, 12, 13, 15, 17, 18, 26, 27

Market Share 9, 15

Marketing 3, 18

Material 16, 17, 24, 30

Mean Time Between Failure (MTBF) 7, 9

N
Negotiation Ceiling 25

New Product 3, 9, 16, 17, 19

P
Perceptual Map 6, 9, 10, 12, 16, 21, 26

Performance, product attribute 6, 7, 9, 12 ,

Performance, segment 7, 14, 15, 16

Positioning 6, 7, 9, 12, 26, 30, 31

Potential Sales 9, 32

()

Price 3,7, 9, 12, 16, 18,31

Production 4, 8, 20

Productivity Index 24

Proformas 11, 33

Promotion Budget 3, 10

R
Reliability 7, 9, 10, 12, 14, 17, 31

Research & Development (R&D) 3, 16, 17, 21

Rough cut 12, 26

()

S
Sales budget 3, 9, 10, 18, 19

Sales Forecasting 28, 31

Segment Analysis 9

Segment Drift 6, 27

Segment Positions 6, 26, 27

95

Segments 5, 6, 7, 9, 12, 13, 15, 17, 18, 26, 27

Sellers Market 15
Situation Analysis 26

Size, product attribute 6, 7, 9, 12

Size, segment 7, 14, 15, 16

Starting Position 25
Stock 4, 21, 22

Strategies 34

T
Terminate a Product 4, 20

Total Quality Management (TQM) 10, 15, 24

Traditional 7, 15, 16
W
Wages 25

96