Topic

Simulation Analysis Report

Instructions

Write a simulation analysis report.

Answer preview

The strategy used for Andrews at the beginning was Broad Differentiator, which is to focus on all segments by investing in R&D for all segments. Also, abundant investment flows into promotion budget and sales budget in the very beginning. At first 3 rounds Andrews’ return on sales was negative and contribution margin was low. Then the strategy added more flexibility, investment was spreaded in production department and training of employees. From round 4, Andrews’ net income started to increase and all the data became positive(Figure.1).

Word count: 845