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Imagine that you are a marketing manager in charge of developing a marketing campaign for Lenovo Computers




Imagine that you are a marketing manager in charge of developing a marketing campaign for Lenovo Computers ( Your company is currently selling products in fifty (50) different countries around the world. Lenovo just launched a new notebook. One (1) of the issues that you face is whether Lenovo should employ a multicountry strategy or a global strategy for the new notebook. Your job as a marketing manager requires you to first use an analytical tool to forecast Expected Commercial Value - Net Present Value (NPV) over the next ten (10) years.? NPV is used to determine the value of future cash in today’s dollars. NPV is simply the value of the expected future returns of an investment minus the value of expected future cost expressed in today’s dollars.;Section 1: Expected Commercial Value Forcast;1. Utilize the Expected Commercial Value Excel Calculator to estimate the potential commercial success of the new notebook. Note: The Expected Commercial Value Excel Calculator can be found in the online course shell.;a. Fill in the Cashflows section (column FY 13 through FY 23) found in the MS Excel sheet to project an NPV of above $10,000,000.?;Development Costs;Launch and Marketing Costs;Forecasted Units Sold;Assuming the following parameters remain the same in the Excel calculator.;Probability of Commercial Success;0.8;Probability of Technical Success;1;Unit Sales Price;$400;Discount Rate;0.06;b. Estimate the commercial success of the new notebook, based on your quantitative analysis from 1a of this assignment.;*************************************************************************;Expected Commercial Value (ECV) Calculator V.05;The ECV Calculator provides a quick estimate of a project's commercial viability. It is not meant to be the only decision tool when evaluating the;desirability of a project. It does provide insight as to whether a project warrants further review and justification as well as point to potential issues.;Instructions;The following information is needed to perform this project analysis;* Cost of Capital (Discount Rate) the company experiences.;* Estimated Unit Sales Price;* Estimated Development cost of the project;* Launch and Marketing Costs for a 10 year period;* Forecast of Unit Sales for a 10 year period;* Estimate of technical success probability;* Estimate of commercial success probability;This data is completed in the rows with Blue Titles on the Input Tab. Cells with "Green" text are calculated and should not be overwritten.;1) Enter values for Probabilities & Cost of Capital in the first table on the Input tab;2) Enter values for Development Costs, Launch Costs, and Estimate Unit Sales in the second table on the Input tab;Estimated Commercial Value of project will be displayed at top of the Input tab and on the Output tab. The Output tab also displays the Expense /;Revenue Chart.;Support;Dr. George J. Gannage Jr.;Strayer University;;Expected Commercial Value (NPV);$0.00;Probability of Commercial Success;Probability of Technical Success;Unit Sales Price;Discount Rate;0.8;1;$400;0.06;Cashflows;Development Costs;Launch and Marketing Costs;Forecasted Units Sold;Forecasted Revenue (Unit Sales Price x Units Sold);FY13;Discounted Cashflows (10 Year);NPV Income;NPV Development Costs;NPV Launch and Marketing Costs;FY 14;FY15;Calculated;FY16;FY17;FY18;FY19;FY20;FY21;FY22;FY23;$-;$-;$0.00;$0.00;$0.00;Marketing Cost Ratio;Success Probability;0.2;0.4;0.6;0.8;1;1.2;1.4;1.6;1.8;2;2.2;2.4;2.5;2.6;2.8;3;3.2;3.4;3.6;3.8;4;0.2;0.4;0.6;0.8;1;Cost of Capital;0.06;0.08;0.1;0.12;0.14;0.16;0.18;0.2;0.22;0.24;0.26;0.28;0.3;$-;$-;$-;$-;$-;$-;$$-;$-;$-;$-;$-;$-;$-;$ 1.00;$ 0.90;$ 0.80;$ 0.70;$ 0.60;Development Costs;Launch and Marketing Costs;Forecasted Revenue (Unit Sales Price;x Units Sold);$ 0.50;$ 0.40;$ 0.30;$ 0.20;$ 0.10;$FY13 FY 14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23;Expected Commercial Value (NPV);$0.00;Attachments;ExpectedCommericalValueCalculator.xlsx (22.81 KB)


Paper#30779 | Written in 18-Jul-2015

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