System Feedback Loops, SLP: Time Normal



System Feedback Loops, SLP: Time Normal

Introduction

In continuation of Time Wrap 3, whose results emphasized on taking some crucial decisions in the forthcoming years, which are, reducing the price of X5 in order to boost sales and grab more customers. X6 found to be a good performer over all and earned a reasonable and adequate volume of revenues that proved to be profitable for the organization. X7's product is required to be stopped as it results in losses and no growth at all to the company.

Now, the company aims to continue this trend of forecasting, analyzing, designing and implementing strategies for the benefit of business in terms of growth of profits, market, and revenues. It is an essential element of every business and is comprised of a procedure where actual or real output is yet to be disclosed (Kepner, C. H. & Tregoe, B. 1965). In this procedure, business determines and analyzes all those factors in market that could affect the price of product, market share of the company, Customer base, operations, investments and other core business process. This is an effective step for making decisions regarding organization's products and business plans for future that could lead to positive results. It is a way of making strategic decisions where both aims and objectives are clear, and organizations operate by analyzing market drivers utilizing futuristic approach to attain the desired goals (George J K.. and Snyder, J., 1994).

In this regard, Clipboard Tablet Company has used various set of analytical tools and techniques to forecast the trend of market and internal operations that affect their three products X5, X6, and X7 such as CVP, which is a calculator and can be used to calculate the profits and revenues of the different models, and this calculation can help in taking decisions of the company.

Discussion

In an effort to make better business and managerial decision, it is must to compare and analyze the difference of the results from SLP 4 and SLP 5 regarding Tablet products growth and price in the market over the five years to move forward and make another analyzed, detailed and thoroughly studied business strategy. The company aims to compare the results of products X5, X6 and X7 from 2011 to 2015, which is given below in chart and graphical form:

Comparison between sales and price of X5, X6 and X7

 

2011

2012

2013

2014

2015

X5

 

 

 

 

 

Price

323

285

285

285

285

Revenue

276159075

469563809

611502211

528155442

274676048

Sales

968979

1647595

2145622

1853177

963776

X6

 

 

 

 

 

Price

430

430

430

430

430

Revenue

242073200

554269513

918020206

1016546240

480801048

Sales

562961

1288999

2134931

2364061

1118142

X7

 

 

 

 

 

Price

215

190

190

190

190

Revenue

0

31461253

45068365

64305057

91167056

Sales

0

165585

237202

338448

479627

Comparative Analysis

The price of X5 has decreased from 323 to 285 from 2011 to the years 2012 and onwards because market saturation has increased from 15% to 27% indicating decline in the demand of the product over the upcoming four years despite of having enormous growth and profits in the year 2011. Therefore, it can be said that the product X5 is considered as a successful product but requires a little bit of addition at advanced features each year in order to retain customers. Its moderate demand level is evident from the increase in customer base for the product but only in case of first time ...