Comparing Figure 1 And Figure 6: Technology Maximums

Technology Strategy
For the first two periods, we did not make any investments in technology. As seen in Figure 6: Technology Maximums, we were slow to invest in technology and improve our firm maximums, which is also related to our initial lack of vehicle upgrades. In periods three through six, we invested in all aspects of technology each period, as we wanted to be competitive; however, once we realized that we were not noticing any increased preference for our vehicles or any decreased costs, we stopped investing in technology. When comparing Figure 1 and Figure 6, it becomes evident that our stock price tended to increase when we were investing in technology and decrease once we stopped investing. Product Strategy
In the beginning of the
We learned the importance of always striving to deliver the best possible product to the consumer. Another mistake we made was not paying closer attention to our competitors from the start of the simulation. During period one, we only really focused on Firm E. Once we began trying to compete, firms like Firm D were so far ahead in nearly all aspects. Had we focused more on competitors from the beginning and realized just how competitive Firm D would be, we may have been able to make stronger strategic actions and
In response to large amounts of inventory in one period, we would decrease our production for the next period, and would then often experience shortages. Trying to forecast demand more accurately through better understanding consumer needs and purchasing reports could have benefitted us. As a related mistake, we had trouble with our plant capacity. In period 5, we did not have enough capacity to produce the number of vehicles that we needed. As a result, we increased capacity significantly, to 1,725, but never produced more than 1,190 in the remaining periods. We ended up selling off our excess capacity in a later period, but at a loss. Better planning for how many vehicles we needed to produce each period would have been crucial. Another major mistake we made was purchasing a $10,000 (M) bond in the beginning of the simulation but not making adequate use of the cash. Because of this bond, we had a high long-term debt and a low bond rating, but never made the investments or innovations that would have benefitted our firm; this bond essentially added to our debt and was a missed opportunity, since we paid high interest every