December 2008, Year 0/5

IndustryMasters Pharma

Simulation Run Time
The simulation will run for 5 Years (5 years), at a screen-refresh rate of 10 minutes per simulated Year. The simulation round therefore lasts 50 minutes - plus some start up time, as you familiarise yourself with the screens.
Topics Covered
Marketing, Strategy, Competitive Advantages, Mergers and Acquisitions.

Your Starting Position
The intial seed capital is 100M$ and your available investment budget is 242M$. Your company has already invested into 1 product lines: Vitamin Pills. You are competing against 4 virtual competitors: BaseMed Inc., BioMax Inc., H-Pharma Inc. and Q-Care Inc.

Pharma

Pharma
Allergy Pills

Investment: 55M$
Monthly Capacity: 100,000
Time to Market: 5 months

Sales Price: 38$
Monthly Revenues: 3.84M$
Gross Margin: 43.75%
Staff: 195
Antibiotics

Investment: 90M$
Monthly Capacity: 200,000
Time to Market: 5 months

Sales Price: 32$
Monthly Revenues: 6.48M$
Gross Margin: 43.58%
Staff: 332
Cold Medicine

Investment: 50M$
Monthly Capacity: 240,000
Time to Market: 3 months

Sales Price: 14.40$
Monthly Revenues: 3.46M$
Gross Margin: 45.00%
Staff: 167
Headache Pills

Investment: 75M$
Monthly Capacity: 1,000,000
Time to Market: 4 months

Sales Price: 5.16$
Monthly Revenues: 5.16M$
Gross Margin: 44.17%
Staff: 258
Vaccines

Investment: 180M$
Monthly Capacity: 600,000
Time to Market: 6 months

Sales Price: 23.40$
Monthly Revenues: 14M$
Gross Margin: 43.33%
Staff: 725
Vitamin Pills

Investment: 20M$
Monthly Capacity: 80,000
Time to Market: 3 months

Sales Price: 17.40$
Monthly Revenues: 1.39M$
Gross Margin: 45.42%
Staff: 66
Marketing Mix
Market ResearchPOS PromotionsWeb MarketingPrint CampaignTV Campaign
Cust.Satisfaction +20.00%
Overhead Costs +20.00%
Demand +8.00%

Marketing Budget 0$
Staff Cost +10.00%
Material Cost +4.00%
Cust.Satisfaction +10.00%
Demand +12.00%

Marketing Budget 0$
Cust.Satisfaction +10.00%
Overhead Costs +20.00%
Demand +5.00%

Marketing Budget 0$
Demand +10.00%

Marketing Budget 0$
Demand +15.00%

Marketing Budget 0$
Additional Investments
1.0x Integrated IT System1.0x Vertical Integration1.0x Process Automation1.0x Global Sourcing1.0x Energy-Efficiency
Investment: 25M$Investment: 35M$Investment: 40M$Investment: 35M$Investment: 30M$
Staff Cost -9.0%
Receivable Days -40.0%
Demand +15.0%
Staff Cost +5.0%
Staff Cost -8.0%
Material Cost -4.0%
Material Cost -6.0%
Payable Days +30.0%
Demand +2.0%
Material Cost -5.0%