BOT Exercise

Heber MF Panjaitan (29119109)

Nur Indah (29119233)
Case Study 1: The Problem with Price Promotions

1. Event description lists: 4. BOT Graph: 5. Behavior of variables:

 §1: slowdown population growth  smaller increases in  PGR: decrease steadily
USD
consumer consumption  product innovation slacked off  over time
price-cutting promotions  CCR: decrease steadily
 §2: price-cutting promotions  erode brand image  shop over time
solely on price  short-term promotions  PCP: increase steadily
 §3: power for supermarket to control the promotions  over time
promotion fee  forward buying (boost profit margin: buy  RPM: increase steadily
more discounted product & sell at regular price; diverted low- over time
price shipments at a slight markup to non promotion  CS: steady over time
year
supermarkets)  YES = retails’ pocket; NO = discounts 1800 1810 1820 1830 1840 6. Relationship among
for consumers variables:
2. Deepest problem: smaller increases in consumer % controllable input
consumption results in the emergence of a price-cutting + output
PCP CS
promotion strategy that is ultimately not on target, the -
discount which should be for consumers is instead used as a -
way to increase profit by retail. + RPM
3. Five most important variables:
Intermediate variable
No. Variable Unit Color
1 Population Growth Rate (PGR) % per year CCR
year
2 Consumer Consumption Rate (CCR) % per year 1800 1810 1830 1840 +
1820
3 Price Cutting Promotion (PCP) USD per year +
4 Retail Profit Margin (RPM) USD per year PGR
5 Consumer Sales (CS) USD per year uncontrollable input
Case Study 2: The Energy Drain

1. Event description lists: 4. BOT Graph: 5. Behavior of variables:

 §1: 06.00 AM  a cup of coffee  fulfill the energy  CCR: increase steadily
 §2: 10.30 AM  a cup of coffee  keep awake and get rid of cups hours over time
groggy  EL: cycle (up & down)
 §3: the way Runway Models keep their energy up is daily  ESR: sudden upswing
exercise and a lots of sleep then decrease steadily
 §4: there is no time to daily exercise/workout over time
 §5: 03.30 PM  a cup of coffee  fulfill the energy  very  HC: sudden upswing
dependent on coffee then decrease steadily
over time
2. Deepest problem: maintain excellent energy that should be 0 1 2 3 … 6. Relationship among
through a healthy lifestyle (regular exercise and lots of sleep) day variables:
replaced by consuming coffee. scale controllable input - output
100 CCR HC
3. Four most important variables:
- Intermediate variable +
No. Variable Unit Color
1 Coffee Consumption Rate (CCR) cups per day + EL
2 Energy Level (EL) 0-100 (scale)
+
3 Exercise & Sleep Rate (ESR) hours per day
4 Healthy Condition (HC) 0-100 (scale) ESR
day
0 1 2 3 … +
controllable input
Case Study 3: The Audio-Electronic Roller Coaster

1. Event description lists: 4. BOT Graph: 5. Behavior of variables:

 §1: rapid growth & raising revenue mid-1980s  maintaining high  TIR: increase steadily
tech innovation  steady stream of new products USD
over time
 §2: rapid growth problem  financial trouble  weak management  CEC: increase steadily
(1990-1991)  not focus on R&D  corporate expenses exploded;
over time then sudden
productivity plummeted
 §3: limited new products  losing market strength  deteriorate upswing
number of dealer (1994)  net income skidded sharply (1992);  NPR: cycle (up & down)
sales slump (1993)  SL: cycle (up & down)
 §4: laying off the work force  sales rebound  cannot meet new  NI: cycle (up & down)
demand 6. Relationship among
year
 §5: releasing new products (2nd semester 1994)  core products 1980 1984 1988 1992 1996 variables:
become more dated
 §6: net income rebound (1995), sales increase (1994)  continuing controllable input + output
Types
cycle  uncertain future NPR NI
2. Deepest problem: continuing cycle of ups and downs that followed + +
+
AudioMax’s rapid growth suggest an uncertain future for the output
company. + SL
3. Five most important variables:
-
No. Variable Unit Color
1 Technology Innovation Rate (TIR) USD per year CEC Intermediate variable
2 Corporate Expense Cutting (CEC) USD per year
year
3 New Products Rate (NPR) Types per year 1980 1984 1988 1992 1996 +
4 Sales (SL) USD per year TIR
5 Net Income (NI) USD per year uncontrollable input
Thank You