December 2008, Quarter 0/12

IndustryMasters Cosmetics

Simulation Run Time
The simulation will run for 12 Business Quarters (3 years), at a screen-refresh rate of 5 minutes per simulated Quarter. The simulation round therefore lasts 60 minutes - plus some start up time, as you familiarise yourself with the screens.

Topics Covered
Strategy, Product Lifecycle, Competitive Advantages.

Your Starting Position
The initial share capital is 50.00M$ and your available investment budget is 82.75M$. Your company has already invested into 1 product lines: Shampoo. You are competing against 4 virtual competitors: SkinLine Inc., EcoShop Inc., Aloe-X Inc. and Q-Care Inc.

Cosmetics

Body Lotion

Initial Investment: 99.60M$
Capacity: 150,000 / Month
Product Life Cycle: 15 months

Sales Price: 52$
Revenue: 7.80M$ / Month
Staff: 240

Bubble Bath

Initial Investment: 30.11M$
Capacity: 95,457 / Month
Product Life Cycle: 15 months

Sales Price: 24.70$
Revenue: 2.36M$ / Month
Staff: 73

Perfume

Initial Investment: 69.72M$
Capacity: 120,000 / Month
Product Life Cycle: 15 months

Sales Price: 46$
Revenue: 5.46M$ / Month
Staff: 168

Shampoo

Initial Investment: 40.09M$
Capacity: 120,762 / Month
Product Life Cycle: 15 months

Sales Price: 26$
Revenue: 3.14M$ / Month
Staff: 97

Sunscreen

Initial Investment: 133M$
Capacity: 100,000 / Month
Product Life Cycle: 15 months

Sales Price: 104$
Revenue: 10.40M$ / Month
Staff: 320

Toothpaste

Initial Investment: 53.12M$
Capacity: 200,000 / Month
Product Life Cycle: 15 months

Sales Price: 20.80$
Revenue: 4.16M$ / Month
Staff: 128

Strategic Positioning

Customer Service	TQM/Product Quality	R&D/Innovation	HR/Training
Staff Expenses +10.00% Cust.Satisfaction +50.00% Demand +4.00%	Staff Expenses +8.00% Material Cost +8.00% Production +2.00% Demand +7.00%	Staff Expenses +8.00% Material Cost +8.00% Demand +10.00%	Staff Expenses +4.00% Material Cost +4.00% G&A Expenses -25.00% Production +2.00%

Additional Investments
Integrated IT System	Vertical Integration	Global Sourcing	Energy-Efficiency

Investment: 10.00M$	Investment: 12.50M$	Investment: 12.50M$	Investment: 10.00M$
Staff Expenses -9.0% Receivable Days -40.0%	Demand +10.0% Staff Expenses +5.0%	Material Cost -6.0% Payable Days +30.0%	Demand +2.0% Material Cost -5.0%