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16.12.2014
Game mechanics - Demand elasticity
We have already understood How to test demand factors, now lets look at basic principles of market mechanic in the GMC simulator. Experienced players know that impact of demand factors to increase sales of their products is very different between groups with weak and strong competitors. In first rounds of the championship experienced teams have not got worthy opponents in the group and sales go up the hill. But in semifinal weak teams eliminated and teams begin a persistent struggle for the leadership. In this case, if we make the same decisions as in first rounds, sales will grow less. That is because elasticity of the demand factors decreased, competition in the group became stronger. Why it happens and how to forecast sales in future periods?
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14.12.2014
Demand factor - Website development
Website rating by analogy with product quality estimation is also estimated not by fixed number of stars (1, 2, 3, 4, 5), but numerically. But in contrast to the product quality estimation, sheet “W” with original data for management report does not contain such information.
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12.12.2014
Demand factor - Ports
As sales in Internet increase, so does the number of visitors that come to the website. If the number of Internet ports is not enough to process all visits, then some visitors will not be able to place an order. The percentage of visitors who were unable to access the website is directly proportional to the number of unregistered orders in Internet in current period. It is important to minimize the percentage of visitors who could not enter the website (failure rate) - as this is a reserve for increasing sales. For example, if the failure rate was 3%, but became 1%, then sales in Internet will additionally grow by: 3 - 1 = 2%
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08.12.2014
Game mechanics - Product quality estimate
In new version of GMC simulator appeared important innovation in management reports - sheet "W", which stores data for formation of the remaining sheets (useful in calculation model development). However, if you parse each row in sheet "W", then you will see, that part of rows remains unused data in lines - 102, 103, 104, 105, 106, 107. For example:
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02.12.2014
Demand factor - Direct advertising
Impact of direct advertising on market is different from corporate advertising. It has less cumulative effect, but affect acts immediately in the current period. Impact of direct advertising on sales does not depend on the type of product or market, the dependence is identical for all cells of the matrix of demand (3x3).
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27.11.2014
How to test demand factors
If you want to win in Global Management Challenge, you need to know not only exclusive tips and hints, but also you must correctly forecast sales for each product. This topic describes basic method of testing demand factors.
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21.11.2014
Demand factor - Corporate advertising
Corporate advertising effects on market very long period of time, but does not effect on sales immediately. Also, corporate advertising has a strong cumulative effect, so the strategy of investments should be planned for all 5 periods. Effect on sales is different for each market. The greatest effect will be in the Internet. EU and Nafta have the same effect, but is less than in the Internet.
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11.11.2014
Demand factor - Management budget
Management budget is used to increase production efficiency. Management budget has the strongest effect on:
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24.10.2014
Game mechanics - Maintenance map
Maintenance (MT) is not the most expensive part in company budget, but can save a couple thousand with proper planning. To do this, you need to invest in maintenance as much - as you really need and no more.
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23.10.2014
Game mechanics - Agents and distributors recruitment map
Choosing the best plan for agents and distributors recruitment becomes very easy when you analyze the main factors that affect it. The exact number of agents available in the next period depends on several factors: