Car Production Deliverables - Business Decision Making - ثاني ثانوي

وزارة التعليم Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 437 Car Production Deliverables At the start of this project, you learned about the challenges associated with car production businesses who need to remain profitable, while also following the government's environmental regulations. Companies must consider the impact of such regulations on how they plan their business activities. In this project, the car production company needs to decide how to best manage its product mix to achieve its cars' overall performance while maintaining a healthy profit margin. To help them with this, you have produced a base case, modeling a conservative view of future performance, and an extension case to model a more ambitious prediction of how the business may perform in the future. For each case, the marketing department wants to know: the number of each type of vehicle to make and sell the total gross profit . the gross profit percentage. The goal is to meet the KPL requirement and to maximize gross profit. You need to answer the following question: How many of each kind of vehicle should the company try to make and sell in five years? You may find it useful to copy out Table 12-6 and fill in the missing information. TABLE 12-6: Car Production Project results Truck SUV Type of vehicle Sedan Compact Company data Electric Gross margin Gross margin percentage Fleet KPL Base case Extension case The Car Production Project 437 30/06/2023 14:29

It is now time to present your findings to the marketing team in the form of a short report. Scan the QR code to access the report template (Report template. dotx). In this chapter, you will be guided through the report and asked to fill in some key details along the way. In future chapters, you will need to write the report on your own! 1. Start by scanning the QR code and opening the report template. 2. Click on the text "Report Title." Use the drop-down menu to select the report title. You can see the report title drop-down menu in Figure 12-23. FIGURE 12-23: The report title drop-down menu Report Title Car Production Project Report Ski Resort Project Report Ilectric Car Project Report Airline Project Report EXECUTIVE SUMMARY Use the Summary section of the report to briefly explain the background of the company you are writing the report for. If you need help, go back and read the introduction to Lesson 1. You should include: ⚫ the type of information you have gathered a summary of your findings your recommendation. QUICK TIP You can click on the "Today" button to automatically select today's date. 3. Click on the text "Your Name" and enter your full name. 4. Click on the text "Date." Use the calendar menu to select the correct date, as shown in Figure 12-24. FIGURE 12-24: Entering the date <1 Teby Car Production Project Report Your Name Date S M T W Th F S 19 20 21 22 23 24 25 5 6 18 VALE TIVE SUMMARY ummary section of the report to briefly explain the background of the company you are writing the r. If you need help, go back and read the introduction to Lesson 1. You should include: 438 12 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 438 • the type of information you have gathered • a summary of your findings . your recommendation. 30/06/2023 14:29

وزارة التعليم Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 439 5. First, complete the Problem Statement section. DEFINITION Problem statement: A brief explanation of a problem that needs to be solved. To complete this section you need to explain, in your own words, the project you have been working on. You could say: The car production business needs to know how many vehicles of each type to make to maximize profit while following the government's envi- ronmental regulations. How many of each kind of vehicle should the company try to make and sell in five years? (see Figure 12-25). FIGURE 12-25: The completed Problem Statement section PROBLEM STATEMENT The car production business needs to know how many vehicles of each type to make to maximize profit while following the government's environmental regulations. How many of each kind of vehicle should the company try to make and sell in five years? 6. You now need to explain the techniques you used to get your results. Complete the Methodology section of the report. DEFINITION Methodology: A description of the techniques used to complete a task. To complete this section you need to explain, in your own words, the project you have been working on (see Figure 12-26). You could say: I created two spreadsheets: one for the base case and another for the extension case. I used these to calculate: . an optimized product mix • gross margin and gross margin percentage ● fleet KPL. The Car Production Project 439 30/06/2023 14:29

440 12 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 440 FIGURE 12-26: The completed report Methodology section METHODOLOGY I created two spreadsheets: one for the base case and another for the extension case. I used these to calculate: ● an optimized product mix • gross margin and gross margin percentage • fleet KPL. 7. Next, complete the Results section. To complete this section (see Figure 12-27), enter the following text, filling in the blanks: According to the base case the company should produce trucks. According to the extension case, the company should produce sedans. According to the base case, the company should produce compacts. According to the extension case, the company should produce margin percentages would be electric cars. The company's gross % in the base case, and % in for the extension the extension case. The base case fleet KPL is case it is FIGURE 12-27: Complete the Results section and fill in the blanks RESULTS According to the base case the company should produce case, the company should produce produce trucks. According to the extension sedans. According to the base case, the company should compacts. According to the extension case, the company should produce. electric cars. The company's gross margin percentages would be. % in the base case, and extension case. The base case fleet KPL is for the extension case it is % in the 8. Now, complete the Analysis section. To complete this section you need to answer the question asked by the exec- utives at the start of the project. This means you need to decide how many cars the company should try to make and sell in five years. The easiest way to do this is to recommend that the company uses the base case or the extension case for their future plans. You could say: I recommend that the company uses the their production plans over the next five years. case to model 30/06/2023 14:29

وزارة التعليم Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 441 You will need to decide carefully which of the cases you want to recom- mend. Whatever you decide, you need to explain the reasons for your rec- ommendation. You could say: I have chosen the base case because the company needs to protect itself from changes in the market and in consumer preferences. or, I choose the Extension case because it yields the highest gross margin. while still maintaining management's goal of a 30% margin percent- age. You should try to write one more sentence on your own, further explaining your choice. FIGURE 12-28: Complete the Analysis section and fill in the blanks ANALYSIS I recommend that the company uses the years. case to model their production plans over the next five I have chosen the extension case because I think the company should choose an ambitious plan for the future, and work hard to achieve its goals. Further, I think 9. Now you have completed the body of the report, you can complete the Executive Summary section. This section is placed at the top of the document, because sometimes com- pany executives are so busy, they will only have time to read this part. Because of this, it needs to be brief, and include only the most important information (see Figure 12-29). You could write: This report contains: . . . conservative and speculative modeling for the company's next five years evidence that the company's gross margin percentages could be either % or % a recommendation that the marketing department chooses the case in this project. The Car Production Project 441 30/06/2023 14:29

442 Chapter 12 Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 442 FIGURE 12-29: Complete the Executive Summary section and fill in the blanks EXECUTIVE SUMMARY This report contains: . conservative and speculative modeling for the company's next five years evidence that the company's gross margin percentages could be either • • a recommendation that the marketing department chooses the % or % case in this project. 10. Your report is now complete, so don't forget to save it! Because the report template file is a template (.dotx) you will be prompted to save the report with a new file name automatically. Select Save from the file menu and use the file name format: YourName - CarProduction - Report.docx. 30/06/2023 14:29