Wednesday, April 10, 2013

Pharmasim Trial Run - Profits are going up



So the first session, I went with increasing the individual drug stores and wholesalers while decreasing the advertising and decreasing the discount for wholesales and large orders. This jumped the  revenue and stock prices to 55 from 38.  The next session I increased the advertising amount, trial sample, amount, added wording to the add but forwent the  change in formula.  This increased sales but to a lesser amount so it dropped the stock price.  I decided to replay this session two.

In the second try for session two, I changed the formula the medication and increased the price though the cost did not increase. This is still increased the profits but didn't increase the stock prices.

Then I rethought about what we learned in class and went back to the formals of financial statements to review the other aspects of the market and what I failed to see with the changes to the product and market structure.



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