BADM 2001 Introduction to Business

Dr. Randa El Bedawy

Assignment (1)

MODEL ANSWER

Look at the accompanying FastTrack, which shows the results for Round 3 for a
Foundation industry. Answer the following questions, explaining the reasons
and justification for your answers.
1) Which company had the biggest difference between actual and potential market share in
the Low Tech segment? Choose the company which has potential greater than actual
(Look at pages 5 & 7)
Chester
2) Why did this difference happen? In other words, is the difference a result of stock-outs
and therefore lost sales? Or is the difference due to selling more than the companys fair
share? Look at page 7
Chester :potential greater than actual
Stocked out

*Actual greater than potential means company was able to gain market share from other
competitors
*potential greater than actual: it means company should have produced more, they stocked out

3) Calculate the quantity (in units) of lost sales

Actual-potential

19%* 6708- (16.8%*6708)= 147.58

4) How could the company you named in Q(1) have avoided this situation?

*better forecasting

*more production

5) Which company is selling the top product (in terms of customer appeal) in the Low tech
segment? What is the products name? look at page 5

Eat , Erie

32 CSS

6) What was the products actual market share in 2018 (Rd3)? Look at page 7 (Refer to
Question #5)

17%

7) What was the products potential market share in 2018 (Rd 3)? Look at page 7 (Refer to
Question #5)

16%

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 BADM 2001 Introduction to Business
Dr. Randa El Bedawy

8) What is the products potential market share in the beginning of next year 2019 (Rd 4)?
Show your calculations. (Refer to Question #5)

Customer survey score 32/166 =19.2%

9) Why is the answer of Q(8) different from the answer of Q(7)? Explain.

Q7 is based on the past performance (actual) while q8 is based on customer survey score

10) How many products do you expect to find in the Low Tech segment in 2019 (Rd4)?

11) If all the products in the Low Tech Segment are equally attractive to the customers, what
would the market share of each product be in 2019 (Rd4)?

100/9= 11.11%

12) Follow the steps from 12a to 12d to calculate a sales forecast for product Able in the Low
Tech segment in 2017:

a) Set appropriate assumptions for what you expect company Andrews to do with
product Ables design and marketing in 2019. Set appropriate assumptions.

*Lower prices slightly

*increase accessibility

b) Set appropriate assumptions for what you expect each of Andrews competitors will
do with their Low Tech segment products design and marketing in 2019 (Rd4).

*eat should increase accessibility

*daze increase awareness and accessibility, lower prices slightly

*cake , lower prices and increase awareness and accessibility

*fast , lower prices a lot and increase awareness and accessibility

c) Forecast the expected Low Tech market share for Able in 2019 based on (a) and (b).

31/166= 0.18

18%

d) Calculate and show the steps for obtaining your Low Tech sales forecast for Able in
2019.

6708*1.10* 0.18= 1328.14

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