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The Module 2  requires that you con

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The External Environment, Internal Profile, and SWOTSimulation

The Module 2  requires that you continue with the scenario and simulation you began in the Module 1 .


SLP2 ? It is New Year's Day, 2016. You have finished analyzing the performance of Clipboard Tablet Co., and you have submitted the report requested by your CEO, Sally Smothers. You are ready to move forward to 2016, but?..

?.as you turn on the TV, you notice something very strange. You recognize that the date is January 1, 2012, and that you get to make the decisions for the Clipboard Tablet Co. for the 4-year period beginning with 2012. Your challenge is to do better than Joe Thomas.

At the beginning of each year (2012-2015), you will determine your pricing, your R&D allocations, and whether or not to discontinue any products. You are required to make your decisions for each year, and to report your results to see what happened. You must keep track of your decisions, making specific notes supporting each of your decisions.

Run the Clipboard Tablet Co. simulation through the end of 2015. When you are finished, the date will be December 31, 2015. What is your total Score? Did you do better than Joe Thomas?

You organize your notes about your decisions, your analysis, and your reasoning into a well-written report.

Session Long Project

Run the Clipboard Tablet Co. simulation with your strategy, making decisions year by year for prices and R&D allocations. Write a 6-7 page paper, not including cover and reference pages, in which you discuss the decisions and the results for each year. Discuss why you did better (or worse) than Joe Thomas.


The key aspects of this assignment that should be covered and taken into account in preparing your paper include:

  • As you run the simulation, keep track of your decisions and the results ? both financial and marketing. Copy and paste the results into Excel or into a Word document. You will also want to record the information that you get from the Advisor. Make a note of your Final Total Score.
  • Include your Final Total Score, some tables, and/or graphs showing key results. Using sound logic, be sure to clearly explain the differences from Joe.
  • Remember that the key here is quality of analysis.
  • Time Line Summary:


  • 2015: You are hired on December 15th.
  • Turned in first report to Sally on December 30th.


  • You find yourself in a Time Warp that takes you back to January 1, 2012.
  • You recognize that you can now revise the decisions made by Joe for 2012 ? 2015.
  • January 2, 2012 - input decisions for 2012.
  • January 2, 2013 - input decisions for 2013.
  • January 2, 2014 - input decisions for 2014.
  • January 2, 2015 - input decisions for 2015.
  • December 31, 2015 ? You have gone through all four years, and you write your report to summarize how you did.

Running Head: CLIPBOARD TABLE COMPANY; STRATEGIC MANAGEMENT PROCESS Clipboard Tablet Company: Strategic Management Process


By student name


Institution affiliation






Date 1 CLIPBOARD TABLE COMPANY; STRATEGIC MANAGEMENT PROCESS 2 Clipboard Tablet Company: Strategic Management Process




In any organization that is business oriented, the project managers and key stakeholders


are entrusted with the sole obligation to execute a series of critical decisions at every level


depending on the stage of the product lifecycle. The products and technological developments as


well as positioning in the markets are most crucial activities in the market that needs to be


evaluated on a regular basis to make the intelligent and informed decisions as well as adjust the


strategy at every stages. The decisions involved are extremely uncertain ad requires plenty of


strategic interventions and proliferations that call for the optimal combine strategy to meet the


consumers? requirements, product necessities and improvements (Hill & Jones, 2010). The


markets for the products { X5, X6 and X7) are perceived to be demanding, promising quality and


only higher performing products can penetrates and hold its markets positions depending on the


probability of the product development and the product lifecycle must be optimized with a better


certainty and cost efficacy that will take into consideration; the end user requirements, strategies


and technological opportunities, cost reductions and profits maximizations approaches, the


existing resources geared towards optimization of the structures of the developmental phases, the


prices offered by the product at every phase, acceptance of the products and technology to the


target population.


The Clipboard Table Company is operating to maximize its cumulative profits for the


three products over the five years; the products include X5, X6, and X7. Joe Thomas has


maintained the pricing levels at a constant value over the five years despite the changes in the


market competitions, changes in consumer?s preferences and tastes; X5 is priced at 285, X6 at CLIPBOARD TABLE COMPANY; STRATEGIC MANAGEMENT PROCESS 3 $430 and X7 at $190 while research and development allocations has maintained at 33% for X5,


34% for X6 and 33% for X7 over the five years? operation period. However, the customers have


become worried about the X5 product performance after the three years of operation while the


X6 product customers have equally cared so much of the product performance as the same time


caring for the performance and prices of x7 in the markets.


Operational Period ending 2011


The income statements for the ending 2011 shows that X5 cost more than most of other


products in its category and for the product to penetrate in the markets, the pricing strategy


should be relatively different from other products in the market. Joe should have scheduled the


market price to be lower than the prices offered for the other competing products for the product


to penetrate in the market. Last year [2010] being the growth phase of the product, the product


should price should be similar to the other products in the market that will ensure that the


company increase its sales, total income, profitability while reducing the cost of operations. The


performance of the X6 is better than that of the competing tablets; the company should


implement the product differentiations that will create the brand image for the product. However,


at this level, the company should invest on the differentiating features and characteristics that are


considered vital for the tablets in order to ensure the largest market share for the product, thus,


incurring the revenues, cumulative profits and profitability levels beyond 16% (table one)


Table one: Income statements for the year ending 2011


Variable Name










Variable costs Total income X5 X6 X7 $1,531,940


$518,232,275 $968,979


$276,159,075 $562,961


$242,073,200 0


0 $300,161,138 $145,346,882 $154,814,256 $0 CLIPBOARD TABLE COMPANY; STRATEGIC MANAGEMENT PROCESS


Fixed costs


R&D Costs


Total cost




Total profit


Profitability 4 $112,500,000




$436,661,138 $75,000,000




$232,167,777 $37,500,000




$204,493,360 $0




$0 $81,571,138


16% $43,991,298


16% $37,579,840


16% $0


0% Operational period ending 2012


In the year 2012, X5 and X6 have gained the market position with each having a


profitability level 30% and 28% respectively, Joe Thomas ought to have considered reducing the


cost the variable cost instead of increasing the cost despite the fact that the products have gained


their market penetrations. Alternatively, the research and development cost may be bound to


increased rather than holding its at a constant value; it would mean that the increased cost in the


research and development should be focused on increasing distinctive features that have been


identified in the markets as a determinant to consumptions and investing in appropriate


innovative technology to integrate the features. Thus, it will create a change in the profitability


levels and income statements elements; thus, the company will increase its sales, revenues,


reduce or minimize variable cost and increase the cumulative profits beyond the current state of


the income statement for the year ending 2012 (table two)


Table two: Income statements for the year ending 2012


Variable Name










Variable costs


Fixed costs


R&D Costs


Total cost




Total profit


Profitability Total income X5 X6 X7 $3,102,177


$1,055,294,575 $1,647,592


$469,563,809 $1,288,999


$554,269,513 $165,586


$31,461,253 $610,720,740






$784,720,740 $247,138,847






$330,058,847 $354,474,689






$400,134,689 $9,107,205






$54,527,205 $270,573,835


26% $139,504,962


30% $154,134,825


28% $-23,065,952


-73% CLIPBOARD TABLE COMPANY; STRATEGIC MANAGEMENT PROCESS 5 According to the market research, customers pay more for the X6 than for the other


products in the same category meaning that the product is gaining its market position; however,


the company should focus on developing the desired features that are considered crucial or vital


for the products in the same category. Since the product is in the growth phase of the product life,


Joe Thomas should consider investing more on the brand awareness while highlighting the key


features of the product that are considered appealing for the customers. Considering the market


position for the X5, the performance is relatively stable ac compared other similar products in the


market, though, Joe ought to have integrated more differentiable features. If Joe ought to have


considered differentiated features as well as innovative characteristics to ensure the company


products maintains its market share and profitability levels.


Operational Period ending 2013


According to the fiscal period ending 2013, the X7 handheld is priced higher than


completing products and the total variable costs exceed revenue for the X7 handheld, the product


is in its growth state while there are many potential customers remaining in the market. The


product customers are new and Joe Thomas should consider the features that are valued for the


product in the markets to facilitate the market penetration and share in the market. Joe should


emphasis on the beneficial aspects of the products to ensure that the product reputation is created


in the market. It would mean that if the brand obtains its market image and reputations, the


profitability level for the product will be bound to grow from the negative percentage to positive


percentage that would mean that the company will obtain high revenues in the markets from the


sales of the products. Similarly, the x5 and X6 have high profitability percentages, 34% and 31%


respectively. Therefore, the company should focus on maintaining the percentages, either by


reducing its product cost for instance from $285 to $270 for X5 and from$430 to $420 CLIPBOARD TABLE COMPANY; STRATEGIC MANAGEMENT PROCESS 6 (Appendix). The change in the market prices will stimulate proportionate changes in demand


levels in favor of the products; therefore, the quantity that will be demanded for product x5 and


X6 will increase thus, increasing sales, revenues and lowering cost as compared to the current


values (table three)


Table three: Income statements for fiscal year ending 2013


Variable Name










Variable costs


Fixed costs


R&D Costs


Total cost




Total profit


Profitability Total income X5 X6 X7 4,517,754


1,574,590,782 2,145,622


611,502,211 2,134,931


918,020,206 237,202


45,068,365 921,995,320






1,095,995,320 321,843,269






404,763,269 587,105,945






632,765,945 13,046,106






58,466,106 478,595,462


30% 206,738,942


34% 285,765,945


31% -13,397,740


-30% Operational period ending 2014 and 2015


According to the income statement for the year ending 2014, the profitability percentages


has gone dropped by 3% for product x5 while x6 has increase by 1%, meaning that the customers


for the two products have purchased the products and the company has achieved a balance


between the quantity demanded for the products and quantity supplied in the markets. In the


fiscal year ending 2015, the demand for the products has decrease that has compelled the sales to


reduce from $1,853,177 to $963,776 for product x5 while sale capacity for product x6 has


reduced from $2,364,061 to $1,118,142 and x7 increasing from $338,448 to $479,827 between


the year ending 2014 and 2015 respectively (Table four)


Table Four: Combined income statement for the period ending 2014 and 2015 respectively CLIPBOARD TABLE COMPANY; STRATEGIC MANAGEMENT PROCESS


2014: Variable Total income X5 X6 X7 Sales 4,555,686 1,853,177 2,364,061 Revenue 1,609,006,739 528,155,442 Variable costs 946,707,952 Fixed costs 2015 7 Total income X5 X6 X7 338,448 2,561,744 963,776 1,118,142 479,827 1,016,546,240 64,305,057 846,644,152 274,676,048 480,801,048 91,167,056 277,976,548 650,116,782 18,614,622 478,445,847 144,566,341 307,489,042 26, 390,464 150,000,000 75,000,000 37,500,000 37,500,000 150,000,000 75,000,000 37,500,000 37,500,000 R&D Costs 24,000,000 7,920,000 8,160,000 7,920,000 24,000,000 7,920,000 8,160,000 7,920,000 Total cost 1,120,707,952 360,896,548 695,776,782 64,034,622 652,445,847 227,486,341 353,149,042 71,810,000 Total profit 488,298,787 167,258,894 320,769,459 270,435 194,198,305 47,189,707 127,652,006 19,356,593 Profitability 30% 32% 32% 0% 23% 17% 27% 21% Name Revenue Cost Profit Wong approaches, Differentiated, psychological pricing strategy and low-cost




The Joe Thomas strategy was fundamental in the penetration of the product, however, the


fact that he failed to modify and implements realignment of the business strategy along the


product life cycles affected the whole business strategy in the five years of operations. According


to the scenario in 2014, the customers pay about the same price for your products as they do for


similar competing products and X5 handheld has reached the shakeout phase of the product


lifecycle; new sales for X5 are declining. In this scenario, Joe Thomas should employ extensive


development of the product or integrate modification characteristics on the products. In the fiscal


year ended 2015, customers pay about the same price for your products as they do to similar


competing products, sales for the X5 have reached maturity; you are mostly selling only


replacements for the X5 (Mockler, 1993). Therefore, for product X6 and X5, Joe Thomas ought to CLIPBOARD TABLE COMPANY; STRATEGIC MANAGEMENT PROCESS have employed the differentiated strategy and low-cost strategy; for the differentiated strategy,


the company will include product unique features that will make the product to stand out from


the competitors? products and the company will communicate the message to the potential


customers emphasizing that the X5 and X6 are positively different from all other similar


products available in the markets. Under the psychological pricing strategy, the price is so fixed


that is appears to be somewhat lesser and influence the mind of the buyer to buyer the product.


For instance, if Joe Thomas ought to have set the prices as $284 instead of $285 or $429 instead


or $430 respectively for X5 and X6 References


Hill, C. W. L., & Jones, G. R. (2010). Strategic management theory: An integrated approach.


Boston, MA: Houghton Mifflin. 8 CLIPBOARD TABLE COMPANY; STRATEGIC MANAGEMENT PROCESS Mockler, R. J. (1993). Strategic management: An integrative context-specific process.


Harrisburg, PA, U.S.A: Idea Group Pub. Appendix One


Company operational Trends


Clipboard Table Company Sales trends 9 CLIPBOARD TABLE COMPANY; STRATEGIC MANAGEMENT PROCESS Clipboard Table Company Profit Trends Clipboard Tablet Company Revenue Trends 10 CLIPBOARD TABLE COMPANY; STRATEGIC MANAGEMENT PROCESS 11


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