W.Tech

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W.Tech by Mind Map: W.Tech

1. Miscellaneous Costs

1.1. Bank Loan

1.2. Bad Debt

1.3. Administration

1.4. Carriage & Packing

1.5. Bank Loan

2. Production Cost

2.1. Product Development Investments

2.1.1. Success is not 100% guaranteed

2.1.1.1. Random factor

2.1.1.2. How much you have invested in the TP

2.1.1.3. Average investment made to date

2.1.2. Benefits

2.1.2.1. % for each product

2.1.2.2. Super-Product

2.1.2.2.1. 10%-14%

2.1.2.3. Super-Plus Product

2.1.2.3.1. 25%-34%

2.2. Sequence of Supply

2.2.1. Contract

2.2.1.1. B2B

2.2.1.1.1. B2C

2.3. Costs

2.3.1. Fixed Costs

2.3.1.1. Given capacity, these costs remain the same, irrespective of the quantities produced, even zero

2.3.1.1.1. C = 8 + (350,000 - X) / 100,000

2.3.1.1.2. Minimum of C = 5.5

2.3.2. Variable Costs

2.3.2.1. Plant

2.3.2.1.1. No residual value, nor 2nd-hand market

2.3.2.1.2. scrap at the 10th trading period

2.3.2.1.3. 550,000 units = 55 plants * 10,000 units

2.3.2.1.4. £65,000 for a new plant (payment first, delivered in the following trading period)

2.3.2.1.5. Depreciation

2.3.2.1.6. Excess plant can be permanently decommissioned

2.3.2.2. Labour

2.3.2.3. Materials

2.3.2.3.1. Alpha

2.3.2.3.2. Delta

2.3.2.3.3. Production is limited to Stocks of materials brought forward + 75% of the materials units purchased

2.3.2.3.4. Delta > Alpha (priority)

2.3.3. Costs of Goods Sold

2.3.4. Plant Depreciation

2.3.5. Warehousing

2.3.6. Cost Reduction

2.3.6.1. Nothing is guaranteed

2.3.6.2. Only one investment in cost reduction is required to cover both products

2.3.6.2.1. Labour

2.3.6.2.2. Materials

3. Market & Marketing

3.1. Contract market

3.1.1. Contract factor = contract price / product image

3.1.2. Contract can be divided between 2 or more companies

3.1.2.1. If your company cannot supply the whole of the contract then you will not be awarded any part of it

3.2. Marketing investment

3.2.1. For AI & DI

3.2.1.1. 70% take effect now

3.2.1.2. 30% take effect in the following TP

3.2.2. For AW

3.2.2.1. 65% now

3.2.2.2. 35% future

3.2.3. 0 spend = 0 orders + 0 sales + 0 profit

3.2.4. affect both 'total market' & 'company's share of the market'

3.3. Drop out of one of the markets

3.3.1. re-entry penalty

3.4. Marketing consultancy investment

3.4.1. £50,000 maximum

3.4.2. market information

3.4.2.1. market prices

3.4.2.2. competitors balance sheet

3.4.2.3. market research

3.5. Product Image

3.5.1. 1.0

3.5.1.1. fail to fulfil order -0.1

3.5.2. multiplying factor in the calculation of the market shares

3.6. Market Price

3.7. Market Size

3.8. Market Share

4. Taxation

5. Board of Directors

5.1. Cost Reduction

5.2. Investment Decisions

5.2.1. Product Development

5.2.2. Marketing Activities

5.3. Customers Relationship

5.3.1. Fulfil orders

5.4. Production Requirements

5.4.1. Suppliers

5.4.2. Bank Manager