Week 5

Since we already finishing uploading the decision for the previous quarter last week Thursday, Mrs. Durdana gave us tips on our upcoming oral defense and helped us prepare for it. We also updated our report; we all typed down our job descriptions and duties in each department and to the organization as a whole.


I printed the new reports for the Year 3 Quarter 4 on Tuesday. Astonishingly, all our units were completely sold out in Mericas 1, Merica 3, and Sereno, and we were left with 43,000 units in Merica 2. Our Marketing managers didn't anticipate such a huge amount of sales in those areas (although we did increase sales price by $1 in all those areas, except for Sereno which remained the same.) We noticed that two of our competitors obtained model 3 this quarter, and after looking and their R& D, we noticed that both of them are the only ones that invested over $500,000 this year.

We needed a new model if we are to achieve our goals of aiming to be the very best with most up to date features and quality. In order for us to meet the assumed requirements for a new model, we invested $190,000 in R & D. A salesperson resigned in Merica 1, we debated about the cause of his resignation. We all agreed that he either left because he felt underpaid, or because he was greedy and wanted a higher pay (although this was an increase from the previous quarter.) So we decided to higher two new salespeople in Merica 1, and also increased the salaries and commission in Merica.

As always, we paid dividends, but due to us having a tighter budget this quarter, and the fact that the dividends we pay are already quite high, I was left with the choice to decrease the dividends by $50,000 or keep it at $300,000. I decided to keep it at $300,000, because if we decrease it, our shareholders may interpret it as that we aren't doing as well as we were before.
As always, we decided to buyback 500,000 shares. With our shares price soaring, depending on our cash next quarter, we may have to issue bonds to be able to buy more shares. I also decided to invest less in CD's ($700,000) because of our lower budget.

The next day, we revised our decisions and forecasts in case of any mistakes inputted or miscalculations, fortunately, everything seems alright, and we hope for everything to go smoothly.