Week 4

On Sunday, we reviewed our reports for Year 3 quarter 2. We also started working much better as a team. Our marketing manager decided to increase the price of our products by $1.01 (to $12,) and we all immediately agreed to the price and implemented it; the price in Sereno was also slightly increased to 85 Pesos. Even with the increase in salespeople salaries two people still resigned, and so we decided to recruit more salespeople everywhere by 1 (except for Merica 1, we decided to hire 3 more there.) We also decided to increase their salaries to $4000 in Mericas and to 12000 Pesos in Sereno. Commissions were increased slightly to adjust with the rising inflation.

The next day, our marketing manager made a sales forecast and decided to order less units everywhere due to the increase in price. The production managers also decided to slightly increase investment in the R&D department and invest heavily in training. By the time they were done with their projections and calculations, I, the CEO and Financial manager, worked on the estimated cash flow and income statement. Once again, we decided to buy back 500 stocks (and will continue to do so in every quarter) and paid $250,000 worth of dividends. After everything was sorted, I suggested that we invest $1,500,000 in dividends, but hesitated and decided to invest $1,100,00 in case of calculation errors and/or wrong projections.


On Tuesday and Wednesday, we worked on all worked on our parts of the report and reviewed everything one last time before submitting the decision.

On Thursday, the new results were in, and so we immediately started working on our parts of the decision making process. After much debate, we decided to increase by $0.50 only in Merica 1 and 3. Advertisements were increased by $5,000 and by 20,000 in Sereno (since this is the busiest season.) More salespeople were hired everywhere except for Sereno and salaries were increased by $250 in Mericas and by 2000 in Sereno. We also increased the commission by 5 cents and 10 in Sereno. Heavily invested in training and R&D, and sales orders were adjusted to better suit the season. I also found a mistake in a formula used in the income statement from the previous quarter and so I amended the error and surely will achieve a more accurate result. Bought back 500 shares and paid 50 more dividends than the previous quarter. Due to a more accurate projection, I also decided to take the risk and invest $1,400,000 in CD's.