Decision Points-

1. Demand:

The total market demand was estimated based on the market outlook figures- USA
(20%), Asia (30%), Europe (15%). These figures were used to estimate our market share
in each of the regions :

USA

Tech 4 - 5.1%

Tech 2 - 5.3 %

Asia

Tech 3 - 5%

Tech 2 - 5%

Europe

Tech 4 - 5%

Tech 2 - 5.1%

2. Production:

Contract manufacturing of Technology 4 is given out to the USA since Tech 4 will be
introduced only in the USA and Europe. Producing it in Asia will increase the tariffs
costs. . Also renewable energy utilization has been increased to 100% in both USA and
Asia

Technology 2 and 1 are produced in the USA , 1366 units of tech 4 given out for contract
manufacturing. Technology 1 and Technology 3 produced in Asia with tech 3 (1777)
units being given out for contract manufacturing in Asia as tech 3 currently will be
introduced only in Asia, this will help in keeping tariffs low.

3. HR:

Keeping people at 710 to invest in R&D. Increased the wages along with the training
budget to keep the voluntary turnover rate low. Training priorities and labor policies
were
 chosen based on the information provided in the market outlook which focused on equal
opportunities and non-discriminatory activities at workplace.

4. R&D:

All new features were produced in-house in the last round. Further R&D investments
made for technology 3 , technology 4 and technology 2.

5. Marketing:

USA - focus on brand. We priced tech 4 (4 features) at $305 and tech 2 (8 features) at
$280. This is a promotion-sensitive market, so we allocated $64000k for its promotion.
The prices for other markets were determined and influenced by the given exchange
rates. Also, the prices were kept a low level given the ongoing price war

Asia - Focus on Balanced and low price marketing strategy.We priced tech 3 (3 features)
at 2240 RMB and tech 1 (7 features) at 1699 RMB. This is a price-sensitive market, so
we are focusing on keeping the price low and promoting it to be at $12500k.

Europe - Focus on Brand and Balanced. We priced tech 4 (4 features) at 310 EUR and
tech 2 (9 features) at 280 EUR. For promotion, we used $33900 K .

Reintroduced Technology 1 in Asian market given its high market share.

6. Logistics

Priorities were decided based on unit margins and tariff costs: USA, Asia, and Europe

7. Tax

Using transfer pricing, the effective tax rate was reduced to 5. With losses $96150 K
carried forward in the next round

8. Finance

400000 K USD cash was transferred from Asia to the USA(Internal Loan) to reduce the
loss being carried forward.Cash was also transferred from the USA to Europe for
promotions.