'Nx448 Business Game Report\r'

'Contents graphic symbol 1 Introduction3 1. 1 Business Objective3 office 2 Comp all exertion4 2. 1 corpulent 14 2. 1. 1 edition abstract4 2. 2 some 26 2. 2. 1 Business scheme6 2. 2. 2 Round 2 bode7 2. 2. 3 edition Analysis7 2. 3 Round 38 2. 3. 1 Business st ordaingy8 2. 3. 2 Round 3 foreshadow9 2. 3. 3 deviation Analysis9 2. 4 Round 49 2. 4. 1 Business Strategy9 2. 4. 2 Round 4 Forecast10 2. 4. 3 Discrepancy Analysis10 2. 5 get word exertion Indicators11 2. 6 Performance paygrade Comments12 Part 3 education14 3. 1 Financial focal point14 3. 2 Human imagination Man timement15 3. 3 Ope proportionalityn heed16 3. market placeplaceplace Management17 Part 4 squad Performance18 4. 1 police squad18 4. 1. 1 Management Team18 4. 1. 2 Decision- reservation Process19 4. 1. 3 Leadership19 4. 1. 4 Team Role19 4. 2 Individual20 4. 2. 1 My Contri thation20 4. 2. 2 My fulfill ining to the tall gear-pitchedest degree forceive police squad up live and symmetrycina tion making20 4. 2. 3 Suggestions for Improving My Performance21 Part 5 Conclusion21 Part 6 Reference22 Part 7 App destroyices23 7. 1 Design and Options23 7. 2 indorsement speak to24 7. 3 different Key Performance Indicators25 Part 1 Introduction This report pass on give a clear analysis and exbroadcastation of the fri wipeoutship cognitive functioning during the clientele line coarse-grained.Learning ab turn out four chief(prenominal) note working(a) beas (Finance, merchandiseing, Operation and Human Resource) entrust be discussed in part 3. Team mental process and item-by-item assessment will be critically evaluated in part 4. 1. 1 Business Objective stagnate Star Motors captures to set aside clients with the ability to own a railway auto and lead the customers to get under ones skin comfort and woodland at an afford satisfactory damage. We intend to create a distinctive place in the market for our products and digit up brand value of lumber and relia bility in the mind of customers.The initial railway line objectives portion up by focusing squad is: * growing tax income revenue one-yearly * Maximise our earn * stag out 98% of our railroad gondolas for all obese * buzz off 16% restitution on enthronization by the end of turgid 4 | City cable railcar †TIKI| Large Car †cabin cruiser| Total| Forecast Production (Units)| 85,000| 35,000| 120,000 | Sales Income (? m)| 850| 833| 1,683| Post Tax take in (? m)| -| -| 20| Bank Balance in the beginning loan (? m)| -| -| -74| Closing Bank Balance (? m)| -| -| 26| board 1. 0 Forecast for year 1 Part 2 Company Performance 2. 1 Round 1 2. 1. 1 Discrepancy analysisUnsold contrast In smoo past 1, we judge to consider out most(prenominal) TIKI and CRUISER. However, only 80% of TIKI is sold, with 17,393 units left. We concluded three of import reasons as fol downhearteding: * Supply over demand. We ar over confident to sell big volumes with unkept scathe, besides the market essentially r individuallyed saturation. * Unattractive and stiff options. In fiat to hold up low solid personify, we only walk two options for customers to select. It might match the popularity of our TIKI and bear it less belligerent comp ard with otherwise car manufacturers. * Not enough promotion.We invested 23 billion on market promotion via television and internet, which is about ? 200for e actually single car. We didn’t invest as intimately oftentimes for this one shot beca hire we want to firstly evaluate the effect of advertisement. Net salary We visualize 20 gazillion net values and actual figure is electronegative 116 one one one thousand thousand million million million. This is alphaly overdue to the giving amount of unsold stock and in in force(p) de shapeine strategy. The descend office is unable to deduct our better court. In other words, the break-even point is set up too heights and our egregious gros s gross gross revenue volume did non reach BEP.Mean charm, some overheads much(prenominal) as professional charges and warrant claims ar not decently calculated. unrefined depone The passing amidst foretell and result for gross bound of TIKI and CRUISER is 3. 21% and 7. 08% respectively. It is mainly ca utilise by the un fancyd extra direct comprise. For example, the thespian strike amplification our labor cost of both warnings and the option go down on is much than our estimate. Market sh ar Our derriere market piece is 1. 5% for TIKI and 1. 2% for CRUISER. We sold out all our CRUIER and give the large car sales target. However, market administer for TIKI is a large 0. % less than we anticipate due to our unsold stock. 2. 2 Round 2 2. 2. 1 Business Strategy wise determine Strategy The worry team decided to change average determine strategy in rotary 2 for two main reasons: * We already gateway successfully to target market. * Low price high volu mes strategy did not make utility. Sales income moldiness be appendd in hostelry to re bilk all overheads in this labialize and most of the going away in previous rhythm method. Based on this, TIKI gross gross profit margin sum upd 2% to 14. 24%, plot of land CRUISER gross margin appendd 4. 3% to 25. 25%. ProductionProduction for TIKI in this heartbeat has to decrease due to 17,393 units in stock, and we try to sell them out in go 2. Meanwhile, results of plump out 1 indicated that CRUISER win thepopularity in the market so we intend to growththe execution by 10,000 units. Based on the turnout margin and market predictions, the market shargon of CRUISER will increase from 1. 2% to 1. 5%, while TIKI maintains 1. 2% market shargon. Under this situation, our forecast sales will reach ? 2058 million in round 2. periphrasis The harshest termination make by focus team is to cut down 574 workers.Even though we understand this concord negative effects on industrial transaction, it is distant beyond our trading objective to over recrudesce the cars and persevere unsold stock by the end of the year. on that pointfore, we forecast a 2. 4 million of redundancy cost within summarize overheads. 2. 2. 2 Round 2 Forecast round 2 forecast| TIKI| CRUISER| Total| business/ units| 51,000 | 45,000 | 96,000 | sell price ? | 11,800 | 27,800 |  | gross margin %| 14. 24%| 25. 25%|  | sales income ? m| 807| 1,251 | 2,058 | total overhead ? m|  |  | 262| pip tax pelf ? |  |  | 82| remainder deposit balance ? m|  |  | 12| 2. 2. 3 Discrepancy Analysis There argon three main differences between round 2 forecast and results: (1) outturn (2) Sales (3) pre-tax loots. Production Production (units)| TIKI| CRUISER| total| Target| 51,000| 45,000| 96,000| Actual| 49,668| 44,467| 94,135| Difference| | | 1,865| Our target production is 96,000 units but we genuinely produced 94,135 units, with 1,865 units missing. This is mainly beca was ting disease the redundancy decision initiated serious worker strike, which is pictureed as 41 days in our union report. Thus, the actual production did not hit our target.Sales Sales (? m)| Total| forecast| 2,058 2,058 | actual| 2,017 | difference| 41 41 | The variableness between forecast sales and actual sales is 40 million. We ca-ca 387 units CRUISER in stock which could increase our sales by 11 million if we commode sell them out. And we will get 29 million to a greater extent if we ar able to hit the target production of 96,000 unites and sell them up. Pre-tax good The actual pre-tax profit is less than the forecast due to ravish calculation on current account delight and loans interest. We contrive oddment bank balance of subtraction 270 million last round.According to overdraft facility, we forecast to pay 11% of 270 million as overdraft interest which is around 30 million, but it actually is 15% of that amount and cost us 40 million. Besides, an extra 8 million is deducted as the interest of 100 million bank loans of round 1 and is ignored when we did pecuniary forecast. 2. 3 Round 3 2. 3. 1 Business Strategy Personnel Decisions Management team decided to maintain the size of workforce and to increase employs by 8% and nurture investment by 25% in order to alter worker expiation and commitment, especially after we suffer a long damage caused by 41 days strike.We try for to effectively control the strike in this round and expect the improvement of productivity. Automation Investment Management team made a decision of manifold the automation investment due to two main reasons. Firstly, it is recognized that automation can effectively increase the productivity and decrease the high wage bill. Secondly, the profit we made in previous round increases our sureness and financial capacity to introduce naked as a jaybird equipment. 2. 3. 2 Round 3 Forecast round 3 forecast| TIKI| CRUISER| Total| production/ units| 65,500 | 40,500 | 106,0 00 | sell price ? 12,270 | 28,600 |  | gross margin %| 15. 25%| 28. 98%|  | sales income ? m| 804| 1,169 | 1,973 | total overhead ? m|  |  | 281| post tax profit ? m|  |  | 118| closing bank balance ? m|  |  | 158| 2. 3. 3 Discrepancy Analysis Gross profit Gross hitition| forecast| actual| difference| Sales (? m)| 1,973| 1,973|   0| cost of sales (? m)| 1,512| 1,577|   65| gross profit (? m)| 461| 396| 65| The actual gross profit is 65 million less than our forecast, even though our sales reach the target. This is mainly caused by exceeded materials costs.It is indicated on family report that design and options cost for CRUISER is ? 7572 per unit, but we only count it as ? 6186 when we forecast. In this situation, we ar charged ? 1386 more for producing every(prenominal) CRUISER. It reflects that the options we offer to customers are of great popularity and we should enlarge option take-up function when doing the material cost forecast for next r ound. 2. 4 Round 4 2. 4. 1 Business Strategy Sales target Encouraging by the dandy financial performance of last round, management team decided to increase the sales by 32% in round 4 in order to further satisfy our shareholders.However, we do not plan to increase the gross margin for both models because we contract customers of good value for money. Thus, we expect the high volumes sales exploit us profit. Design and options To make our cars hawkish, we add more options to both models for customers to choose based on the popularity indicators (see appendix). Since the very beginning, both 3/5 access hatch with small locomotive locomotive (city car) and MPV with diesel engine (large car) are most popular designs for our target age gathering. So, the adjustment is focused on the alternative options. furtherance Expenditure progression expenditure will increase by 34% to ? 40 million. This decision is made by management team with attempt to make our products sold better. Mark et predictions indicated that city car market and large car market will shrink by 12% and 9% respectively. That is to say, risk of keeping stock is high if we increase our production in round 4. Thus, we hope the promotion and advertisement could help reduce that risk. 2. 4. 2 Round 4 Forecast round 4 forecast| TIKI| CRUISER| Total| production/ units| 70,000 | 44,550 | 114,550 | selling price ? 13,900 | 26,800 |  | gross margin %| 15. 34%| 30. 73%|  | sales income ? m| 973| 1,639 | 2,612 | total overhead ? m|  |  | 308| post tax profit ? m|  |  | 235| closing bank balance ? m|  |  | 412| 2. 4. 3 Discrepancy Analysis Unsold Stock We expect to light upon zero closing stock but actually need a bun in the oven 12,853 units unsold which worth ? 246 million. As a result, we are unable to reach target sales, post-tax profit and target market share. Market care| TIKI| CRUISER| round 3 result| 1. 20%| 1. 51%| round 4 target| 1. 46%| 1. 80%|After evaluation, we con clude two possible reasons which throw to this result: * We over estimate our capacity and are hurry to expand the market share. As shown on the table, we increase 0. 26% for TIKI and 0. 34% for CRUISER. It seems better if we cause market expansion step by step. * The competitors’ price might have negative impact on our sales. In terminal round, in order to offer more alternative choices and high fiber lie with to customers, we added more popular and high cost options for both TIKI and CRUISER, which increase our direct cost per car and make it hard to decrease the selling price. . 5 Key Performance Indicators Performance indicators| round 1| round 2| round 3| round 4| Sales | 1509 | 2017 | 1973 | 2274 | Sales harvest-tide (decline) %| -| 34%| -22%| 15%| Cost of sales| 1333 | 1599 | 1577 | 1700 | Cost of sales ratio %| 88%| 79%| 80%| 75%| favorableness| Gross profit margin %| 12%| 21%| 20%| 25%| Operating profit %| -7%| 6%| 6%| 12%| Net profit %| -8%| 3%| 5%| 9%| go o n assets %| -24%| 12%| 14%| 26%| Return on investment %| -23%| 21%| 18%| 36%| Liquidity| stream ratio| 0. 64| 1. 26| 3. 52| 3. 24| Quick ratio| 0. 13| 1. 1| 3. 52| 1. 45| 2. Performance Evaluation Comments In general, sales increased from ? 1509 million in round 1 to ? 2274 million in round 4 †an increase of 51%. Over this period, we did not launch any new model and enlarge the sales volumes too much. The main reason for sales increase is the growth of our selling price. Direct cost of sales rock-bottom yearly from 88% in round 1 to 75% in round 4. Even though pomposity raises material costs and we offer a pay rise to our workers, we are still able to handle the cost/sales ratio efficiently by adapting smart and efficient pricing strategy.Profitability: Gross Margin % The gross margin has doubled from 12% (round 1) to 25% (round 4). In real money terms, our gross profit increased from ? 176 million to ? 574 million. This trend indicated that return on sales improved. Althoug h direct cost of sales increased year by year, we adjust our pricing strategy in order to make our business more profitable. Operating Profit % Operating profit margin improved from minus 7% (round 1) to 12% (round 4) indicatingmore efficient operation management. To be specific, stock bread and butter cost and redundancy cost are well managed.The R&D investment and warranty costs are effectively controlled. Even though the investment on promotion and training increase yearly, this cost is balanced by the decreasing dispraise cost due to the book value of our fixed assets trim yearly. Net Profit % Net profit margin shows an increasing trend from minus 8% (round 1) to 9% (round 4). Our society remains profitable since round 2. This indicated that our business is successful in consistency of earning. Return on Assets % The return on assets grows dramatically from minus 24% (round 1) to 26% (round 4).This indicates that management is more and more efficient in using business as sets to try profit. Return on Investment % The return on capital employed shows a similar trend, notwithstanding a slight decline of 3% in round 3. The ROI is 36% by the end of round 4, which has actually achieved our business objective. Liquidity: From round 1 to round 3, the current ratio increase from 0. 64 to 3. 52 times, and the quick ratio increase from 0. 13 to 3. 52 times. The increasing ratio indicates that we have more change in flow to pay our creditors (quick settlement) and get word our short-term obligations.In round 4, the current ratio drop slights to 3. 24 times and the quick ratio drop greatly to 1. 45 times. This trend looks good because high ratio does not mean a healthy cash position of the business. It indicates that we do not use our capitals properly and efficiently. In conclusion, according to our current liquidity situation, our company is suggested to reduce the stock levels and to invest surplus cash in longer term investments. Market Share From roun d 1 to round 4, market share of TIKI increased from 1. 21% to 1. 35%, despite a slight decline in round 2.Market share of CRUISER increased sharply in round 2 compared with round 1, then showed a fine increase trend year by year. It indicated that we are successful in persistently and steadily provide products to the market. Overall, our company’s performance has been improved in several ways, (e. g. sales, profit, creditors, market share, and so on ) In addition, it would have been more helpful for the further financial performance evaluation if the industrial average figures and signalize competitors’ selective information had been made obtainable (Behn 2003). Part 3 Learning 3. 1 Financial ManagementIn the field of financial management, cost-volume-profit analysis is a powerful tool that helps managers identifies the relativeships among cost, volume and profit (Banfield, Newcastle Business et al. 2008). It focuses on how profits can be affected by the followin g variables: selling price, sales volume, unit variable costs, total fixed costs, etc. (Banfield, Newcastle Business et al. 2008). Break even analysis and margin of safety is the important part of cost-volume-cost analysis. The formula is shown as following: Formula: BEP = Total Fixed Cost = (in Units) Contribution per unitMargin of Safety = Forecast Demand †BEP Forecast Demand In round 1, we forecast our total fixed cost and depreciation charge is 241 million, and the contribution per unit is 2316. By using formula, the forecast BEP is 104,000 units. So we decided to produce 120,000 units after evaluating market demand. Our forecast margin of safety is then around 13. 3%. However, we underestimated the total fixed cost and overestimated our sales volumes. Thus, we suffered a loss of 116 million in the first round. In round 2, we re-evaluate the cost, volume and profit, and then set up 32. % of margin of safety. Financial performance is improved in this round so we adapted th e similar progress for round 3 and 4, in which our margin of safety is about 39. 1% and 52. 8% respectively. It has been proved that high margin of safety makes profit less undefended to demand drops (Jacobs 2002). Even though we have 12,853 units unsold stock, we still make a profit of 198 million in round 4. From the business blue, we have dependable how to price products and how much volume of products we must sell in order to make a profit. 3. 2 Human Resource ManagementWhen we practice the Human Resource function in business game, we put focus on rewards, in particular worker wage. last wage will not always improve the work performance from long-term perspective, but annual pay increase works (Banfield and Kay 2008). Based on this learning, we decide to pay our worker ? 355 weekly in round 1 and to increase that wage annually. However, we suffered a loss due to bad company performance in round 1, so wage did not increase even though inflation rate is around 3%. In round 2 , company performance is improved and we make profit. Thus, wage increase by 9% ahead of 4% inflation rate in round 3.In round 4, wage increase by 5% to ? 404. Overall, from round 1 to round 4, wage increase by 14%, but the strike days only reduced 1 day (8 days in round 1 and 7 days in round 4). It is indicated that a reward cannot help to improve work performance if the pay increase does not meet the employee expectation (Corby 2009). According to data on competition, EMPIRE, our key competitors, pays their worker ? 500 weekly in round 4 and the strike day is controlled as 2 days. From the business input, we realized the importance of monetary rewards and the crosstie between rewards and productivity.On the other hand, poor management of employee relations often end up with strikes (Blyton and Turnbull 1998). With this learning, we could have represent another solution to allocate our workers instead of redundancy. There are some limitations of business game in terms of HR mana gement. last wage and training investment seems to be the only way to cue productivity. And some other important HR functions such as recruitment and selection, promotion and employee engagement are not covered in the game. Learning get laid will improve if those issues are made available in the game. 3. 3 Operation ManagementQuality management refers to the management activities involved in determination of quality indemnity and its implementation finished means such as quality planning and quality assurance (Gitlow 2005). High quality puts costs down and revenue up (Banfield, Newcastle Business et al. 2008). Based on this learning, in order to control product quality, we focus on the R&D (Research and Development) and skills training when we practice the operation function during business game. From round 1, we keep commit on projects of fuel efficient engine and low emissions in order to detect and control the quality of engines.Both of them are successful after 3 year s of research and development. This help to reduce our warranty cost efficiently (see appendix). Due to safety factor, we started to invest on the project of advanced safety systems. We expect the regular R&D investment bring us long term financial benefit. Meanwhile, we constantly invest on skills training based on the knowledge that investment in skills training can significantly improve product quality (Gitlow 2005). From the business game, I got better disposition about quality management and how quality influences customers’ buying decision.We also learn how to define the quality characteristics, set quality bill and measure the quality of our products. One of the limitations in stimulation process is that it is unavailable to evaluate and select the suppliers by ourselves. If this is made available, I believe that the operation cost would be controlled autonomously and learning experience of students about bestow chain would be improved. 3. 4 Marketing Managem ent Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value (Kotler and Keller 2011).In carrying out the marketing functions, the company ineluctably to have a marketing program or strategy. This is known as the marketing smorgasbord (Marc 1997). The stately view of the marketing mix consisted of four components: Product, Price, emplacement and Promotion. It is indicated that 4Ps constitute the cornerstone of any sound business (Marc 1997). Based on this learning, we tried to use the amend marketing mix to reach our target market during the business game. Product: In round 1, 3/5 door hatch and small engine are chosen for city car (24-40 market), while MPV and diesel engine are chosen for large car (41-55 market).Options are selected due to the factors such as safety, comfort and style. From round 2, we detect the popularity index and aim to offer t he most appropriate products to our customers (see appendix). Price: We use market penetration in round 1. In the next three round, we adapt average pricing strategy. The economic trend and income status of our target customers are also taken into account as well. Promotion: We keep increasing our promotion investment from 23 million to 40 million via various media. In round 1, we invest ? 200 for every car and it increase to ? 450 in round 4.Through business game, I got better understanding about marketing mix. However, trigger and new product strategy, as another important marketing strategy, is failed to be used in our game. We could have learned more about finding customer value opportunities and creating an innovation culture in our team if we had launched new model. Part 4 Team Performance 4. 1 Team 4. 1. 1 Management Team We distributed our team into four congregations in order to cover the four main functional areas of business brass instrument: Finance, Marketing, Operat ion and Human Resource. Based on face-to-face interests and experience, I take the charge of Finance.Dorothy and Kira take the province of managing marketing. Operation is taken charged by Michael and Jayson. Adetoro is liable for HR. It does not mean that we make decisions and take righteousness separately. Actually, those functional areas are linked with and supported by each other. And everybody of the team is required to know simply the whole process of our business. In reality, the main target of functional areas is to ensure that all important business activities are carried out efficiently. This is essential for a company to achieve its business objectives (Marcouse 2010). . 1. 2 Decision-making Process The general decision-making was a collective process. During the business game, we discussed and evaluated all workable solutions and make sure every decision is made to help settle the current problems and lead to business objectives. The controversy, however, is somet imes unavoidable. For instance, Dorothy, marketing manager, proposed to launch new model in round 3 due to market attractiveness. I cannot agree with that because we are still experiencing financial difficulty. Our net cash position is minus ? 371 million with poor ability to pay our creditors.Adetoro is standing by my side, thinking from a long-term perspective. He suggested our team not to launch new model until we move on a reasonable market share. The further reciprocation and communication led to unanimous approval of the final decision. The similar situation happened when we discussed whether or not to superstar price skimming strategy for our products. The dispute in the long run is settled properly. 4. 1. 3 Leadership I was put forward as the leader in business game due to my ability to manage market information and provide direction to my team members at the very beginning.Under my leadership, our company is driven to achieve business objectives (execution). I make cle ar that all my team members are enjoying the game and have learned how to run a business in a real world. 4. 1. 4 Team Role Through my observation, I have set the strengths/weaknesses and work pick outence of my team members: * Jayson and Michael prefer to analyze the current situation and raise the issues that we have to face (analysis). Michael is a good team worker who communicates and cooperates effectively with others.Jayson, as a monitor evaluator, has a high critical thinking ability but lacking of expression. * Dorothy and Kira are intuitive about the market information, and they often give the creative ideas (plan). Both of them represent as plant. Dorothy prefers change and innovation. She can work more effectively when cooperate with the battalion who are identified as implementer in Belbin team social occasion framework. * Adetoro used to reflect all our decisions we have made for every round and make everything reasonable and explainable (reflection). He is enthusi astic and logic thinker. 4. 2 Individual . 2. 1 My Contribution I have little knowledge about car industry when I take this project, but I quickly realize that I have special interest on be and budgeting due to my previous work experience. So, I went through the user menu and market research then finish the finance forecast sheet before attending the group meeting. In round 1, I am responsible for both Finance and Marketing. During the group meeting, I proposed my ideas about cost/price, most of which are accepted by my team members and I therefore am nominated as manager of Finance. We suffered a loss in round 1.After analysing the discrepancy between forecast and results, I suggest to adapt new pricing strategy and set a high gross margin. The strategy is adapted by management team and makes profit for our company by the end of round 2. I am nominated as team leader due to my hard-working, efficiency and reliability. And I actively get up team relation and motivate our team mem bers. I play the role of implementer successfully. I monitor every process of the game and every detail of our decisions, and put emphasis on improving efficiency of every group meeting, and record the minutes. 4. 2. My learning about effective teamwork and decision making Through business game, along with the knowledge I learn from Developing Self module and the experience of residential weekend, I have better understanding about: * An effective teamwork involves in a group of people with common objectives and being able to build up trust and cooperate relationship with each other. * An effective teamwork involves in a group of people who have complementary strengths/weaknesses with each other. * An effective team should have a leader who is able to provide direction, open mind to different opinions, ake right decision and take risks. * An effective decision should create the competitive advantage for make-up and bring short term profit along with long term development. * An effec tive decision builds up the core competency of organization and turn competitive advantage into sustainable competitive advantage. 4. 2. 3 Suggestions for Improving My Performance * If the game could be played again, I would akin to think double before adapting market penetration strategy in round 1 and try to avoid that loss as much as possible. I would like to pay more attention on developing my leadership capability and making better use of the abilities of my team members in order to build up a powerful and effective team. Part 5 Conclusion Overall, our company is successful in the exercise of business objectives. By the end of round 4, our sales have increased by 50%, and our profit is showing a trend of growth. Even though the unsold stock percentage is larger than what we expect, we are still able to control the inventory and keep profitable. Return on investment in round 4 is 36% which is much more than our target.Part 6 Reference Banfield, P. and R. Kay (2008). Introduct ion to human resource management. New York, Oxford University Press. Banfield, P. , S. Newcastle Business, et al. (2008). Managing for competitive advantage, McGraw-Hill custom publishing. Behn, R. D. (2003). â€Å"Why Measure Performance? Different Purposes Require Different Measures. ” Public establishment Review 63(5): 586-606. Blyton, P. and P. Turnbull (1998). The dynamics of employee relations. Basingstoke, Macmillan. Corby, S. (2009). Rethinking reward. Basingstoke, Palgrave Macmillan. Gitlow, H. S. (2005). Quality management. New YorkLondon, McGraw-Hill. Jacobs, T. (2002). â€Å"The margin of safety. ” NATURE BIOTECHNOLOGY 20(12): 1191-1191. Kotler, P. and K. L. Keller (2011). Marketing management. Harlow, Pearson Education. Marc, L. (1997). â€Å"Marketing mix customization and customizability. ” Business Horizons 40(6): 39. Marcouse, I. (2010). â€Å"BTEC First Business. ” 1. 4 The main functional areas within business organisations Ed. Retrieve d 06/01, 2012, from http://www. teachmebusiness. co. uk/page29/page16/page18/assets/Functionalareas. pdf. Part 7 Appendices 7. 1 Design and Options TIKI (City Car) | | round 1| round 2| round 3| round 4| /5 Door Hatch| Y| Y| Y| Y| Small Engine (4 Cylinder)| Y| Y| Y| Y| Multi Location Airbags|  |  |  | Y| stretch Wheels|  | Y| Y| Y| Parking Sensors| Y| Y|  | Y| Air instruct| Y| Y| Y| Y| higher-up go away System/iPod|  | Y| Y| Y| shelter parcel|  |  |  | Y| Safety pile|  | Y| Y| Y| CRUISER (Large Car) | | round 1| round 2| round 3| round 4| SUV| Y| Y| Y| Y| Diesel Engine| Y| Y| Y| Y| Multi Location Airbags|  |  | Y| Y| debauch Wheels|  |  | Y| Y| Security Tracker|  |  |  | Y| cruise manoeuvre| Y| Y|  |  | Automatic infection| Y| Y|  |  | Parking Sensors| Y| Y| Y| Y| Electronic Stability Control| Y| Y|  |  |Panoramic Sunroof| Y| Y|  |  | Heated Elec Wing Mirrors|  |  |  | Y| galvanizing Adjustable Seats|  |  |  | Y| Air Conditioning| Y| Y| Y| Y| Superior Sound System/iPod| Y| Y| Y| Y| Bluetooth Phone Preparation|  |  |  | Y| TV/DVD Player| Y| Y|  |  | gold Paint|  |  | Y| Y| Security Package|  |  | Y| Y| Safety Package| Y| Y| Y| Y| Luxury Package|  |  |  | Y| 7. 2 Warranty Cost Warranty Cost| round 1| round 2| round 3| round 4| TIKI per car ? | 173| 170| 140| 155| CRUISER per car ? | 400| 353| 295| 348| Total Warranty Claims ? m| 26| 27| 21| 23| 7. 3 Other Key Performance Indicators\r\n'