iBizSim: International Business Simulations: Management Report November 28, 2022

Industry 1 Company 1: Benchmark company, Industry 1 Period number 0

1. Company

1.1 Decisions with effect in this period

Lean management 70,000 Euro

Payment of dividends 2 %

1.2 Results

Company fixed costs 600,000 Euro

Total throughput time

Single shift 40 days
Double shift 25 days

1.3 Indices

Lean management [accumulated value] 350,000 Euro

2. Sales

2.1 Decisions with effect in this period

Product policy
Alesa 200,000 Euro
Bordo 200,000 Euro
 Germany U.S.A. China India

Planned demand
Alesa 36,000 24,000 18,000 21,000 units
Bordo 15,000 10,000 5,000 7,500 units

Price policy: Sales price

Alesa 165 237 1,617 11,301 CU
Bordo 225 320 2,192 15,421 CU

Communication policy: Advertising, sales promotion

Alesa 210,000 309,130 913,291 5,885,749 CU
Bordo 100,000 165,606 410,981 3,531,449 CU

Distribution policy - Marketing logistics: Planned transport quantities

Alesa 35,000 23,000 17,000 19,000 units
Bordo 14,000 9,000 3,500 5,000 units

Training of sales personnel 65,000 99,363 182,658 1,177,150 CU

Sales branches 530,000 552,005 2,566,338 20,953,269 CU

Market research reports

Type 1 yes
Type 2 yes
Type 3 yes
Type 4 yes

2.2 Results

Germany U.S.A. China India

Backlog of unfilled orders from the previous period

 Alesa 0 0 0 0 units
Bordo 0 0 0 0 units
Total 0 0 0 0 units

New orders in this period

Alesa 36,000 24,000 18,000 21,000 units
Bordo 15,000 10,000 5,000 7,500 units
Total 51,000 34,000 23,000 28,500 units

Sales
Alesa 36,000 24,000 18,000 21,000 units
Bordo 15,000 10,000 5,000 7,500 units
Total 51,000 34,000 23,000 28,500 units

New unfilled orders at the end of this period

Alesa 0 0 0 0 units
Bordo 0 0 0 0 units
Total 0 0 0 0 units

Turnover
Alesa 5,940,000 5,688,000 29,106,000 237,321,000 CU
Bordo 3,375,000 3,200,000 10,960,000 115,657,500 CU
Total 9,315,000 8,888,000 40,066,000 352,978,500 CU

Total in Euros 9,315,000 6,078,503 4,007,081 5,196,549 Euro

Inventory

Alesa

Initial stock 2,000 1,500 1,500 3,000 units

Transport deliveries +35,000 +23,000 +17,000 +19,000 units
Sales -36,000 -24,000 -18,000 -21,000 units
Final stock 1,000 500 500 1,000 units

Stock value 120.0000 120.0000 120.0000 120.0000 Euro per unit

Bordo
 Initial stock 1,500 1,600 2,000 2,800 units
Transport deliveries +14,000 +9,000 +3,500 +5,000 units
Sales -15,000 -10,000 -5,000 -7,500 units
Final stock 500 600 500 300 units

Stock value 134.7795 134.7327 134.5492 134.5532 Euro per unit

Transport costs
Alesa 70,000 138,000 153,000 153,900 Euro
Bordo 56,000 72,000 37,800 49,500 Euro

2.3 Indices

Product policy (accumulated value)

Alesa 400,000 Euro
Bordo 300,000 Euro

Germany U.S.A. China India

Communication policy: Advertising, sales promotion (accumulated value)

Alesa 300,000 441,614 1,826,582 11,771,498 CU
Bordo 200,000 331,212 1,369,936 11,771,498 CU

Training of sales personnel (accumulated value) 130,000 198,726 365,316 2,354,300 CU

Delivery capacity of sales branch 53,750 37,000 24,285 30,000 units

Adherence to delivery dates

Alesa 100 100 100 100 index
Bordo 100 100 100 100 index

Image
Alesa 100 100 100 100 index
Bordo 100 100 100 100 index
Product life cycle
Alesa 100 100 100 100 index
Bordo 100 100 100 100 index

State of economy 100 100 100 100 index

Exchange rates
Spot rate 1.000000 0.683900 0.100012 0.014722 Euro per CU
Forward rate 1.000000 0.684400 0.100421 0.014754 Euro per CU

3. Purchasing

3.1 Decisions with effect in this period

Aurit Bekat Calot

Urgent orders of raw materials 0 0 0 units

Market research reports yes

3.2 Decisions with effect in the next period

Aurit Bekat Calot

Orders of raw materials 300,000 180,000 90,000 units

Alesa Bordo

Orders of bought-in goods 0 0 units

3.3 Results

Aurit Bekat Calot

Raw material inventory

Initial stock 1,000 500 3,000 units

Urgent delivery 0 0 0 units
Normal delivery +290,000 +170,000 +70,000 units
Used in production -288,000 -168,000 -72,000 units
Final stock 3,000 2,500 1,000 units

Stock value 12.0000 24.0000 25.0000 Euro per unit

Alesa Bordo

Delivery of bought-in goods 0 0 units

3.4 Indices

Raw materials Aurit Bekat Calot

Base purchase price of orders in this period 12.00 24.00 25.00 Euro per unit
Actual purchase price of urgent delivery 0.00 0.00 0.00 Euro per unit
Actual purchase price of normal delivery 12.00 24.00 25.00 Euro per unit

Bought-in goods Alesa Bordo

Base purchase price of orders in this period 130.00 190.00 Euro per unit
Actual purchase price of delivery 0.00 0.00 Euro per unit

4. Production
4.0 Messages

Single shift.

4.1 Decisions with effect in this period

Alesa Bordo

Planned production quantity 96,000 36,000 units

Production priority 1 2 priority number

Total quality management 80,000 Euro

Production technology 180,000 Euro

Total overtime per period 0 hours

Sale of machines 0 machines

Personnel appointed 11 persons

Training of personnel 80,000 Euro

4.2 Decisions with effect in the next period

Purchase of machines 0 machines

Notice of dismissal of personnel 0 persons

Start using the 2nd shift in the following period? no

4.3 Results

Machine capacity

Capacity in previous period 175 machines

Installation of new machines 0 machines
Sale of machines 0 machines
Capacity in this period 175 machines

Personnel capacity

Fully trained in previous period 350 persons

Newly trained personnel +11 persons
Retired or left -11 persons
Dismissals from previous period 0 persons
Fully trained in this period 350 persons

Newly appointed personnel +11 persons

Total personnel in this period 361 persons

Alesa Bordo

Production time 45.00 20.00 minutes

Rejection rate 5.00 10.00 %

Quantity produced 96,000 36,000 units

Variable cost of production 120.0000 135.5556 Euro per unit

Finished goods inventory

Initial stock 65,000 26,000 units

Delivery from production +91,200 +32,400 units
Delivery of bought-in goods 0 0 units
Transported to sales branches -94,000 -31,500 units
 Final stock 62,200 26,900 units

Stock value 120.0000 134.8630 Euro per unit

4.4 Indices

Sectional fixed costs 580,000 Euro

Total quality management (accumulated value) 400,000 Euro

Production technology (accumulated value) 280,000 Euro

Continued training of personnel (accumulated value) 400,000 Euro

Turnover of personnel 3.00 %

Deliverable part of produced goods 33.33 %

Product quality 100.00 index

5. Finances

5.1 Decisions with effect in this period

Germany U.S.A. China India

Factoring no no no no

Exchange rate fixing no no no no

Application for long-term loans 0 Euro

Fixed-term deposits with banks 0 Euro

5.2 Decisions with effect in the next period

Redemption of long-term loans 0 Euro

5.3 Results

5.3.1 Closing balance

Assets

Land and buildings 4,283,880 Euro

Plant and machinery 21,000,000 Euro
Raw, auxiliary and operating materials 121,000 Euro
Finished products 11,707,686 Euro
Fixed-term deposits with banks 0 Euro
Accounts receivable 24,597,133 Euro
Cash 6,149,283 Euro

Total 67,858,982 Euro

Capital

Ordinary share capital 31,000,000 Euro

Reserves 1,704,103 Euro
Long-term liabilities 27,500,000 Euro
Short-term liabilities 7,654,879 Euro

Total 67,858,982 Euro

5.3.2 Profit and loss account for this period

Income from sales 24,597,133 Euro

Change in stock value -1,594,914 Euro

Material costs
Raw materials -9,288,000 Euro
 Purchase of bought-in goods 0 Euro

Personnel costs
Direct labor costs -2,688,000 Euro
Training of personnel -80,000 Euro
Personnel appointment/dismissal -55,000 Euro

Reinvestment of depreciation -525,000 Euro

Other income
Exchange rate gain 0 Euro

Other costs
Variable costs -3,360,000 Euro
Fixed costs -1,264,480 Euro
Storage costs for finished goods -297,300 Euro
Lean management -70,000 Euro
Total quality management -80,000 Euro
Production technology -180,000 Euro
Loss from sale of machines 0 Euro
Communication policy -905,755 Euro
Product policy -400,000 Euro
Training of sales personnel -168,552 Euro
Sales branches -1,472,655 Euro
Transport costs -730,200 Euro
Market research reports -155,000 Euro
Exchange rate fixing costs 0 Euro
Factoring costs 0 Euro
Exchange rate loss 0 Euro

Interest income
Fixed-term deposits with banks 0 Euro

Interest costs
Interest on long-term loans -343,750 Euro
Interest on overdrafts -175,000 Euro

Profit/Loss 763,527 Euro

5.3.3 Tax for the current tax period

Gross profit for the current tax period 763,527 Euro

Tax for the current tax period -381,764 Euro

Net profit for the current tax period 381,763 Euro

5.3.4 Liquidity account for this period

Outgoing payments

Purchase of raw materials 9,310,000 Euro

Purchase of bought-in goods 0 Euro
Direct labor costs 2,688,000 Euro
Variable costs 3,360,000 Euro
Fixed costs 1,264,480 Euro
Storage costs for finished goods 297,300 Euro
Lean management 70,000 Euro
Total quality management 80,000 Euro
Production technology 180,000 Euro
Training of personnel 80,000 Euro
Personnel appointment/dismissal 55,000 Euro
Purchase of machines 0 Euro
Reinvestment of depreciation 525,000 Euro
Communication policy 905,755 Euro
Product policy 400,000 Euro
Training of sales personnel 168,552 Euro
Sales branches 1,472,655 Euro
Transport costs 730,200 Euro
Exchange rate fixing costs 0 Euro
Factoring costs 0 Euro
Interest on long-term loans 343,750 Euro
Redemption of long-term loans 0 Euro
Interest on overdrafts 175,000 Euro
Redemption of overdrafts 10,000,000 Euro
 Fixed-term deposits with banks 0 Euro
Market research reports 155,000 Euro
Dividends 155,000 Euro
Tax 381,764 Euro

Total outgoing payments 32,797,456 Euro

Receipts

Accounts received 24,258,360 Euro

Factoring income 0 Euro
Interest on fixed term deposits 0 Euro
New long-term loans 0 Euro
Sale of machines 0 Euro
Return of fixed term deposits 0 Euro

Total receipts 24,258,360 Euro

Cash balance

Cash at the start of period 7,033,500 Euro

Total receipts +24,258,360 Euro
Total outgoing payments -32,797,456 Euro
Cash on hand -1,505,596 Euro

Overdraft granted +7,654,879 Euro

Cash at the end of period 6,149,283 Euro

5.4 Indices

Liabilities to equity ratio 107.49 %