Bulk 0 100

Feature 0 100
Performance 0 100
Convenience 0 100
Price
units cost Depreciation
1 unit of plant 100,000 150,000 10%

Base balacne Above base Below base D/E

50,000 2% Return 25% Emergecy loan 2,1

R&D Amrotization Momdification Investment UCL Loan of 10 Mn

3 years Liquidation 200,000,000 No R&D

Product parameters

High is better High is better High is better High is better

0-100 0-100 0-100 0-100
Bulk Features Performance Convenience

Low Earners – People in this segment have practically zero knowledge about the product and are
only concerned about the price.

High Earners – People in this segment are highly qualified, demand value and also willing to pay
money for it. They demand Lighter, Great Features, Maximum Performance and Most Convenient
product! And if someone can provide it cheaper, then it will be icing on the cake.

Geeks – People in this segment are extremely knowledgeable about the products in the market.
They prefer more features with high performance albeit at lower price.

Elite – People in this segment are elitist. They will demand the best thing but will have the least
knowledge of the product, comparable to Low Earners. If you can dish out a product which is Light,
has Great Features with Maximum Performance, then you can end up charging high premium on the
price front! Such naivety stems from the fact that the segment believes more in brandishing the
product than actually using it.

Others – People in this segment cannot be considered to belong to any other segment. They would
be happy with a product, which is slightly bulky, not too many features, delivers average
performance at so-so convenience. The price, which they would pay, would also be greater than too
low and lesser than too high.

Chief production officer plant capacity

maintenance investment
production volume
CFO decisions receivable policy
payable policy
Source of financing
Dividend
Share buyback
minimum cash balance= 500,000
extra money yields a return of 2%
shortfall - penal rate of 25%
D/E to 2:1
loan rates- 10%-20%
share bought back- 10%, sold at 10% discount

Chief sales officer Opening/closure of company-owned showrooms

recruitment/salespeople marketing
Company-owned Geeks, high earners, elites(only from here)
Speciality high service, tech support,
Mass Merchandisers low earners
Margins
Margin to company should be less than S and MM

Chief marketing officer Advertising budgets,

media channels
awarness increase by media channels
willingness by perception of product characteristics

Chief research officer only 1 product can be modified

1 product can be launched
1 R & D can be started
Investment- 200,000,000

Emergency loan- 10,000,000

Chief executive officer CSR- brand localty increase

ethical dilemas
 Invenotry
20% of inventory holding

Loan rates range Shares repurchase and buy

10,20 10% discount or premium

Low is better
0-100
Price

e product and are

also willing to pay

d Most Convenient

cts in the market.

will have the least

oduct which is Light,
high premium on the
n brandishing the

egment. They would

o be greater than too

100000 units at a cost of 150000

Inventory cost= 20% of inventory holding

at 10% discount

owned showrooms

gh earners, elites(only from here)

ice, tech support, expensive, high performance products Geeks, high earners, others

less than S and MM

roduct characteristics
gh earners, others