Scenario 14C3 guide
Before reading this guide for scenario 14C3, please read general guide with tips for new version of GMC simulator, which describes basic rules and principles for preparing a strategy. Also, read game review of scenario 14C3 in World Cup 2014. This guide shows key features of scenario 14C3, which are important to consider for achieving high result. If any of decision parameters are not specified, then in this case follow tips from general guide.
Scenario description - 14C3 is survival scenario, it is difficult to earn profit and company's strategy is costs optimization and preserving your own positions, but not market expansion. Total share of Nafta and Internet markets occupied by teams in 1 period is already about 60-70%, which is high and any ways to increase demand will be ineffective. In 5 period total market share of Nafta and Internet occupied by teams grows to 70-80%, i.е. elasticity of demand factors is minimal. Hence, any investment in production is metered and only if necessary. EU market with occupied share 40-50% in 1 period in this situation becomes the most attractive for sales growth of your products. Company's total sales are distributed among markets as EU - 55%, Nafta - 15%, Internet - 30%. Thus, main efforts should be focused on EU market, which will bring more than half of total income. It should be remembered that this guide is intended for group with medium and high competition, where active struggle for market share. In group with an incomplete number of playing teams or weak competition, large investments in production and increasing demand are permissible.
Advertising - forcing advertising budget does not make much sense, direct advertising should be limited to 6-7% of administrative expenses. Pay the most attention to EU market.
Prices - in 1 period prices should be slightly reduced to level of 370 - 585 - 935. Starting from 2 period prices can be reduced to level of 320 - 540 - 860, then according to the situation.
Product quality - in 1 period do not forget to implement MAJOR development for 3 product, which is hidden in history of the company and has not been implemented before. There are no hidden products for other products. Quality of company's products is 3 stars for 1 and 2 product, 4 stars for 3 product. Get MAJOR developments on this scenario quite easy and they will allow to significantly increase demand, especially if opponents are behind you in R&D development. Choose plan where there will be at least 10 MAJOR developments and plan your production by periods. HQRM are inefficient, cost of materials is high, and increase of demand will be small, it is preferable not to use HQRM at all.
Subcontracting - purchase enough components in 1 period, so that your machines can work in 1 shift level starting from 2 period. For example, 2 and 3 product can be purchased until the end of the game, and by partially purchasing components for 1 product, balance load of machines.
Agents and distributors - 6 agents for EU and 4 agent for Nafta is sufficient to maintain sales. Popular version of commission is 9% - 9% - 5%. For EU and Nafta can be chosen commision 13% for first periods as long as market is not enough loaded and elasticity factors will be minimal.
Operations - wage rate is extremely high - 15,00 and significantly increases cost of production. It is important, as soon as possible to switch production to work in 1 shift level and reduce costs. For this, in 1 period we are forced to leave production in 2 shifts, but we buy stock of components and starting from 2 period we switch to production in 1 shift. Do not forget about machines maintenance. Their efficiency is 86%, so spend minimum 50-60 in 1 period to increase efficiency of machines to 90%, it will reduce production time of parts and cost of production.
Personnel - there are many free assembly workers on labor market, therefore it is not necessary to raise wage rate or train assembly workers, you can hire the required number of personnel without any difficulty.
Finance - basic scenario shares to issue is 10% in 1 and 5 period. If desired, you can experiment and then repurchase 10% in 2 period to issue again in 4 period. More than 2 000 000 have been accumulated in company's reserves, therefore dividends must be paid each period starting from 1 period. Dividends should go with increasing, but make sure that in 5 period you have enough cash (at least 20% of liquidity). Buy or sell machines is not required.