Week 2 Assignment - Decisions for Quarter One and Quarterly Business ReviewPart I: Decisions for Quarter One. Prior to working on your Decisions for Quarter One, review the following through the Growi

Functional Managers FROM:

William Sellums (Marketing Manager) Market Analysis and Quality Surveys Marketing Analysis Associates (MAA), which covers our industry in depth, has provided us with survey results and forecasting data which we have found useful in the past year . We assume our competitors receive the same data.

MAA estimates that there are approximately 5,349 hospitals in the United States suitable for our product. The nature of the equipm ent (technical and computer integrated) and the distribution channels available for hospital equipment suggest that we will sell most effectively through equipment distributors. The optimum use of the product is one Reader for every ten hospital beds. Initially we should target hospitals of 100 beds or more because the product requires an existing computer system in place. The following table illustrates demand potential.

# Beds/Hospital # Hospitals Total # Beds* Total # Readers 100-199 2,209 331,425 33,143 200-299 1,155 288,750 28,875 300-399 720 252,000 25,200 400-499 477 214,500 21,450 500 or More 788 472,500 47,250 Total 5,349 1,559,175 155,918 MAA offers quality surveys of our product and those of our competitors. For a small fee, MAA will analyze the product's technical quality in independent laboratories and survey the product's perceived quality among current and potential customers and users. In the future, it hopes to also provide demand projections in the service.

Whether or when this will happen is not yet certain.

A sub scription to the survey reports costs $5,000 per quarter . Once we subscribe, we do not need to request it again each quarter; it will be delivered automatically . To start the subscription service, simply check the “Marketing Report” check box on the “Qtrly Decisions” tab in the quarter in which you want to start the service. Below is a complimentary demand forecast at the end Q4 2020.

I highly recommend subscribing to this service. We will only have access to limited competitive information if we do not subscribe, which will put us at a competitive disadvantage and negatively impact our ability to complete the Quarterly Business Report. I cannot overemphasize the value this survey will add to our understanding of the market. / The graph shows the market forecast as of Q1 2021 with a 90% confidence level. It shows actual total market demand for prior quarters, and expected demand for future quarters based on low , expected, and high estimates.

Q3 2020 shows 2,091 units of actual total demand. Q4 2020 shows 2,485 units of actual total demand. For Q1 through Q4 of 2021, the low demand estimate is 2,934, 3,702, 4,743, and 6,166. For Q1 through Q4 of 2021, the expected demand estimate is 3,1 18, 4,003, 5,330, and 7,088. For Q1 through Q4 of 2021, the high demand estimate is 3,438, 4,638, 6,289, and 8,718. Contact Us (mailto:[email protected]) © 1991-2020, T ri Corporation. (http://www.tri-simulation.com/) 0 2,250 4,500 6,750 9,000 Q3.2 0 Q 4.2 0 Q 1.2 1 Q 2.2 1 Q 3.2 1 Q 4.2 1 2,091 2,485