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Goodwill factor Agents and Distributors

Factor “Agents and Distributors” is 1 out of 8 factors that GMC simulator uses to calculate the company's goodwill value. Below are presented parameters from decision and management report that are most correlated with goodwill factor “Agents and Distributors” when calculating company's goodwill value.

Parameters include direct and inverse correlation:

  1. Number of EU agents: 0.49

  2. Number of Nafta distributors: 0.53

 

It is extremely simple factor that is influenced only by total change in the number of agents and distributors of your company. Diagrams below show dependence of the factor “Agents and Distributors” on change in the number of agents and distributors of the company for 14C1 scenario in 1 period. 

The first diagram shows the dependence on reducing the number of agents and distributors.

 

The second diagram shows the dependence on increasing the number of agents and distributors.

 

Increasing the number of agents and distributors by 1 increases factor “Agents and Distributors” by 0.0662, while the upper limit of the factor is equal to 1.070. Reducing the number of agents and distributors by -1 reduces the factor “Agents and Distributors” by -0.0662, while the lower limit of the factor is equal to 0.000.

 

Hints:

  1. Factor “Agents and Distributors” may vary between 0.000 - 1.070.

  2. Value of the factor “Agents and Distributors” does not depend on value in previous period or decisions of competitors in the group.

  3. Optimum strategy is to hire 2 agents or distributors in the last period to get maximum value of the factor “Agents and Distributors” (1,070).