Nx448 Business Game Report

contents expound 1 insane asylum3 1. 1 transaction Objective3 P nontextual matter 2 fel downheartedship death penalty4 2. 1 overmuch or less 14 2. 1. 1 divergence analysis4 2. 2 circular down 26 2. 2. 1 Business dodge6 2. 2. 2 Round 2 image7 2. 2. 3 Discrepancy Analysis7 2. 3 Round 38 2. 3. 1 Business outline8 2. 3. 2 Round 3 Forecast9 2. 3. 3 Discrepancy Analysis9 2. 4 Round 49 2. 4. 1 Business St countgy9 2. 4. 2 Round 4 Forecast10 2. 4. 3 Discrepancy Analysis10 2. 5 headstone capital punishment Indicators11 2. 6 instruction execution Evaluation Comments12 Part 3 nurture14 3. 1 Financial Management14 3. 2 Human Resource Management15 3. 3 Ope proportionalityn Management16 3. selling Management17 Part 4 Team procedure18 4. 1 Team18 4. 1. 1 Management Team18 4. 1. 2 Decision-making Process19 4. 1. 3 Leadership19 4. 1. 4 Team Role19 4. 2 Individual20 4. 2. 1 My Contribution20 4. 2. 2 My learning roughly effective team up get and finishing making20 4. 2. 3 Sugge stions for bust My Performance21 Part 5 Conclusion21 Part 6 Reference22 Part 7 Appendices23 7. 1 Design and Options23 7. 2 Warranty toll24 7. 3 Other Key Performance Indicators25 Part 1 Introduction This report go out give a clear analysis and explanation of the company performance during the melodic phrase game.Learning about tetrad primary(prenominal) vexation moldal argonas (Finance, Marketing, Ope dimensionn and Human Resource) will be discussed in part 3. Team performance and individual sound judgement will be critically evaluated in part 4. 1. 1 Business Objective Moon Star Motors aims to provide nodes with the capability to own a railroad automobile and lead the customers to experience comfort and quality at an low- supercharged price. We intend to create a distinctive place in the securities industry for our products and build up brand take account of quality and reliability in the mind of customers.The initial business objectives set up by management tea m is * Increase double-dyed(a) revenue annually * Maximise our internet * portion out out 98% of our autos for every bike of drinks * Obtain 16% echo on investment by the end of beatnik 4 metropolis Car TIKI Large Car police cruiser fit Forecast mathematical product (Units) 85,000 35,000 120,000 sales Income (? m) 850 833 1,683 Post Tax clear (? m) - - 20 Bank match beforehand Loan (? m) - - -74 Closing Bank Balance (? m) - - 26 add-in 1. 0 Forecast for year 1 Part 2 community Performance 2. 1 Round 1 2. 1. 1 Discrepancy analysisUnsold pullulate In expand 1, we forecast to cheat out some(prenominal) TIKI and cruiser. However, precisely 80% of TIKI is sold, with 17,393 units left. We concluded ternary principal(prenominal) reasons as pastime * write out over demand. We atomic number 18 over confident to sell big volumes with low price, but the merchandiseplace veridically benefited saturation. * Unattractive and inflexible options. In crop to maintain low material greet, we only offer both options for customers to select. It aptitude affect the popularity of our TIKI and straighten out it less competitive comp atomic number 18d with different gondola manufacturers. * non enough promotion.We invested 23 one billion simple machinedinal on marketplace place promotion via telecasting and internet, which is about ? 200for every single elevator car. We didnt invest too much(prenominal) for this locomote beca design we want to firstly evaluate the effect of advertisement. Net turn a salary We forecast 20 million net services and unquestion fitting propose is negative 116 million. This is mainly over collectable to the large summation of unsold tune and ineffective pricing dodging. The occur contribution is unable to recover our touch on appeal. In other words, the break-even point is set up too high-pitched and our gross revenue volume did not reach BEP.Meanwhile, some overheads such as professi onal charges and warranty claims are not properly calculated. Gross marge The difference among forecast and solvent for earthy brink of TIKI and CRUISER is 3. 21% and 7. 08% respectively. It is mainly ca mapd by the unexpected extra direct comprise. For example, the p part strike meliorater our labor exist of both models and the option pull is more(prenominal) than our estimate. Market region Our rear end market share is 1. 5% for TIKI and 1. 2% for CRUISER. We sold out all our CRUIER and hit the large car gross sales target. However, market share for TIKI is a staff 0. % less than we expected due to our unsold contrast. 2. 2 Round 2 2. 2. 1 Business Strategy New Pricing Strategy The management team decided to admit average pricing dodge in pulsation 2 for 2 main reasons * We already access successfully to target market. * Low price high volumes strategy did not comprise avail. Sales income must be add-ond in pitch to recover all overheads in this crook and near of the sacking in front bout. Based on this, TIKI gain brink plusd 2% to 14. 24%, while CRUISER gross circumference summationd 4. 3% to 25. 25%. laborProduction for TIKI in this rotary has to moderate due to 17,393 units in stock, and we try to sell them out in round 2. Meanwhile, results of round 1 indicated that CRUISER won thepopularity in the market so we intend to developmentthe turnout by 10,000 units. Based on the performance trying on and market predictions, the market share of CRUISER will increase from 1. 2% to 1. 5%, while TIKI maintains 1. 2% market share. Under this situation, our forecast sales will reach ? 2058 million in round 2. Redundancy The harshest ending do by management team is to cut down 574 thespians.Even though we understand this name negative effects on industrial relations, it is farther beyond our business objective to over produce the cars and bear on unsold stock by the end of the year. Therefore, we forecast a 2. 4 million o f redundancy cost within numerate overheads. 2. 2. 2 Round 2 Forecast round 2 forecast TIKI CRUISER Total production/ units 51,000 45,000 96,000 selling price ? 11,800 27,800 gross edge % 14. 24% 25. 25% sales income ? m 807 1,251 2,058 total overhead ? m 262 bureau task profit ? 82 closing bank balance ? m 12 2. 2. 3 Discrepancy Analysis There are three main differences between round 2 forecast and results (1) production (2) Sales (3) pre-tax profits. Production Production (units) TIKI CRUISER total Target 51,000 45,000 96,000 Actual 49,668 44,467 94,135 Difference 1,865 Our target production is 96,000 units but we actually produced 94,135 units, with 1,865 units missing. This is mainly because the redundancy decision initiated serious worker strike, which is recorded as 41 days in our company report. Thus, the actual production did not hit our target.Sales Sales (? m) Total forecast 2,058 2,058 actual 2,017 difference 41 41 The discrepancy between forecas t sales and actual sales is 40 million. We view as 387 units CRUISER in stock which could increase our sales by 11 million if we can sell them out. And we will get 29 million more if we are able to hit the target production of 96,000 unites and sell them up. Pre-tax profit The actual pre-tax profit is less than the forecast due to wrong calculation on ongoing account interest and loans interest. We adjudge closing bank balance of electronegative 270 million last round.According to overdraft facility, we forecast to pay 11% of 270 million as overdraft interest which is around 30 million, but it actually is 15% of that amount and cost us 40 million. Besides, an extra 8 million is deducted as the interest of 100 million bank loans of round 1 and is cut when we did financial forecast. 2. 3 Round 3 2. 3. 1 Business Strategy Personnel Decisions Management team decided to maintain the size of manpower and to increase wages by 8% and cultivation investment by 25% in assign to remed iate worker satisfaction and commitment, oddly afterwards we suffer a great loss caused by 41 days strike.We hope to effectively envision the strike in this round and expect the improvement of productiveness. Automation Investment Management team made a decision of doubling the automation investment due to two main reasons. Firstly, it is recognized that automation can effectively increase the productivity and decrease the high wage bill. Secondly, the profit we made in previous round increases our confidence and financial capacity to introduce raw(a) equipment. 2. 3. 2 Round 3 Forecast round 3 forecast TIKI CRUISER Total production/ units 65,500 40,500 106,000 selling price ? 12,270 28,600 gross adjustment % 15. 25% 28. 98% sales income ? m 804 1,169 1,973 total overhead ? m 281 post tax profit ? m 118 closing bank balance ? m 158 2. 3. 3 Discrepancy Analysis Gross profit Gross Profit forecast actual difference Sales (? m) 1,973 1,973 0 cost of sales (? m) 1,5 12 1,577 65 gross profit (? m) 461 396 65 The actual gross profit is 65 million less than our forecast, even though our sales reach the target. This is mainly caused by exceeded materials be.It is indicated on company report that design and options cost for CRUISER is ? 7572 per unit, but we only count it as ? 6186 when we forecast. In this situation, we are charged ? 1386 more for producing every CRUISER. It reflects that the options we offer to customers are of great popularity and we should magnify option take-up percentage when doing the material cost forecast for succeeding(a) round. 2. 4 Round 4 2. 4. 1 Business Strategy Sales target Encouraging by the good financial performance of last round, management team decided to increase the sales by 32% in round 4 in order to encourage live up to our shareholders.However, we do not plan to increase the gross margin for both models because we guarantee customers of good value for money. Thus, we expect the high volumes sales ex ercise us profit. Design and options To make our cars competitive, we add more options to both models for customers to elect based on the popularity indicators (see appendix). Since the very beginning, both 3/5 approach hatch with small engine (city car) and MPV with diesel engine (large car) are almost popular designs for our target age conference. So, the ordinatement is focused on the alternating(a) options. Promotion ExpenditurePromotion expenditure will increase by 34% to ? 40 million. This decision is made by management team with attempt to make our products sold better. Market predictions indicated that city car market and large car market will shrink by 12% and 9% respectively. That is to say, bump of alivenessing stock is high if we increase our production in round 4. Thus, we hope the promotion and advertisement could help precipitate that risk. 2. 4. 2 Round 4 Forecast round 4 forecast TIKI CRUISER Total production/ units 70,000 44,550 114,550 selling price ? 13,900 26,800 gross margin % 15. 34% 30. 73% sales income ? m 973 1,639 2,612 total overhead ? m 308 post tax profit ? m 235 closing bank balance ? m 412 2. 4. 3 Discrepancy Analysis Unsold Stock We expect to achieve zero closing stock but actually have 12,853 units unsold which worth(predicate) ? 246 million. As a result, we are unable to reach target sales, post-tax profit and target market share. Market Share TIKI CRUISER round 3 result 1. 20% 1. 51% round 4 target 1. 46% 1. 80%After evaluation, we conclude two possible reasons which contribute to this result * We over estimate our capacity and are hurry to expand the market share. As shown on the table, we increase 0. 26% for TIKI and 0. 34% for CRUISER. It seems better if we serve market expansion step by step. * The competitors price might have negative impact on our sales. In final round, in order to offer more alternative choices and high quality experience to customers, we added more popular and high cost opt ions for both TIKI and CRUISER, which increase our direct cost per car and make it hard to decrease the selling price. . 5 Key Performance Indicators Performance indicators round 1 round 2 round 3 round 4 Sales 1509 2017 1973 2274 Sales growth ( descent) % - 34% -22% 15% Cost of sales 1333 1599 1577 1700 Cost of sales ratio % 88% 79% 80% 75% Profitability Gross profit margin % 12% 21% 20% 25% Operating profit % -7% 6% 6% 12% Net profit % -8% 3% 5% 9% overstep on assets % -24% 12% 14% 26% Return on investment % -23% 21% 18% 36% Liquidity Current ratio 0. 64 1. 26 3. 52 3. 24 Quick ratio 0. 13 1. 1 3. 52 1. 45 2. Performance Evaluation Comments In general, sales increased from ? 1509 million in round 1 to ? 2274 million in round 4 an increase of 51%. Over this period, we did not transmit any refreshing model and enlarge the sales volumes too much. The main reason for sales increase is the growth of our selling price. Direct cost of sales decreased yearly from 88% in round 1 to 75% in round 4. Even though inflation promotes material costs and we offer a pay rise to our workers, we are dormant able to handle the cost/sales ratio efficiently by adapting smart and efficient pricing strategy.Profitability Gross Margin % The gross margin has doubled from 12% (round 1) to 25% (round 4). In real money verges, our gross profit increased from ? 176 million to ? 574 million. This trend indicated that return on sales alter. Although direct cost of sales increased year by year, we adjust our pricing strategy in order to make our business more profitable. Operating Profit % Operating profit margin improved from minus 7% (round 1) to 12% (round 4) indicatingmore efficient physical process management. To be specific, stock keep cost and redundancy cost are well managed.The R&D investment and warranty costs are effectively controlled. Even though the investment on promotion and training increase yearly, this cost is balance by the decreasing depreciation cost due to the book value of our fixed assets cut back yearly. Net Profit % Net profit margin shows an increasing trend from minus 8% (round 1) to 9% (round 4). Our company remain profitable since round 2. This indicated that our business is successful in consistency of earning. Return on Assets % The return on assets grows dramatically from minus 24% (round 1) to 26% (round 4).This indicates that management is more and more efficient in using business assets to generate profit. Return on Investment % The return on cap employed shows a alike trend, except a slight come down of 3% in round 3. The ROI is 36% by the end of round 4, which has actually achieved our business objective. Liquidity From round 1 to round 3, the topical ratio increase from 0. 64 to 3. 52 times, and the quick ratio increase from 0. 13 to 3. 52 times. The increasing ratio indicates that we have more cash flow to pay our creditors (quick regulatement) and meet our short- boundary obligations.In round 4, the cu rrent ratio drop slights to 3. 24 times and the quick ratio drop greatly to 1. 45 times. This trend looks good because high ratio does not entertain a healthy cash post of the business. It indicates that we do not use our capitals properly and efficiently. In conclusion, according to our current liquidity situation, our company is suggested to reduce the stock levels and to invest surplus cash in longer term investments. Market Share From round 1 to round 4, market share of TIKI increased from 1. 21% to 1. 35%, despite a slight decline in round 2.Market share of CRUISER increased sharply in round 2 compared with round 1, then showed a tiny increase trend year by year. It indicated that we are successful in persistently and steadily supplying products to the market. Overall, our companys performance has been improved in several ways, (e. g. sales, profit, creditors, market share, etc. ) In addition, it would have been more adjuvant for the further financial performance evaluation if the industrial average figures and notice competitors information had been made available (Behn 2003). Part 3 Learning 3. 1 Financial ManagementIn the field of financial management, cost-volume-profit analysis is a powerful beast that helps managers identifies the family relationships among cost, volume and profit (Banfield, Newcastle Business et al. 2008). It focuses on how profits can be affected by the following inconsistents selling price, sales volume, unit variable costs, total fixed costs, etc. (Banfield, Newcastle Business et al. 2008). Break even analysis and margin of safety is the important part of cost-volume-cost analysis. The formula is shown as following Formula BEP = Total Fixed Cost = (in Units) Contribution per unitMargin of Safety = Forecast Demand BEP Forecast Demand In round 1, we forecast our total fixed cost and depreciation charge is 241 million, and the contribution per unit is 2316. By using formula, the forecast BEP is 104,000 units. So we decided to produce 120,000 units after evaluating market demand. Our forecast margin of safety is therefore around 13. 3%. However, we underestimated the total fixed cost and overestimated our sales volumes. Thus, we suffered a loss of 116 million in the first round. In round 2, we re-evaluate the cost, volume and profit, and then set up 32. % of margin of safety. Financial performance is improved in this round so we adapted the similar approach for round 3 and 4, in which our margin of safety is about 39. 1% and 52. 8% respectively. It has been proved that high margin of safety makes profit less vulnerable to demand drops (Jacobs 2002). Even though we have 12,853 units unsold stock, we still make a profit of 198 million in round 4. From the business game, we have practiced how to price products and how much volume of products we must sell in order to make a profit. 3. 2 Human Resource ManagementWhen we practice the Human Resource function in business game, we put emphasis on rewards, in s pecial(prenominal) worker wage. lofty wage will not always improve the work performance from long-term perspective, but annual pay increase works (Banfield and Kay 2008). Based on this learning, we decide to pay our worker ? 355 hebdomadary in round 1 and to increase that wage annually. However, we suffered a loss due to bad company performance in round 1, so wage did not increase even though inflation rate is around 3%. In round 2, company performance is improved and we make profit. Thus, wage increase by 9% ahead of 4% inflation rate in round 3.In round 4, wage increase by 5% to ? 404. Overall, from round 1 to round 4, wage increase by 14%, but the strike days only reduced 1 day (8 days in round 1 and 7 days in round 4). It is indicated that a reward cannot help to improve work performance if the pay increase does not meet the employee view (Corby 2009). According to data on competition, EMPIRE, our key competitors, pays their worker ? 500 hebdomadal in round 4 and the strike d ay is controlled as 2 days. From the business stimulation, we witnessd the importance of monetary rewards and the link between rewards and productivity.On the other hand, poor management of employee relations often end up with strikes (Blyton and Turnbull 1998). With this learning, we could have found other solution to allocate our workers instead of redundancy. There are some limitations of business game in terms of HR management. High wage and training investment seems to be the only way to stir up productivity. And some other important HR functions such as enlisting and selection, promotion and employee engagement are not covered in the game. Learning experience will improve if those issues are made available in the game. 3. 3 Operation ManagementQuality management refers to the management activities involved in closing of quality policy and its implementation through means such as quality planning and quality assurance (Gitlow 2005). High quality puts costs down and revenue up (Banfield, Newcastle Business et al. 2008). Based on this learning, in order to control product quality, we focus on the R&D (Research and Development) and skills training when we practice the operation function during business game. From round 1, we keep investing on projects of fuel efficient engine and low emissions in order to happen upon and control the quality of engines.Both of them are successful after 3 years of research and development. This help to reduce our warranty cost efficiently (see appendix). Due to safety factor, we started to invest on the project of march on safety systems. We expect the continuous R&D investment solve us long term financial benefit. Meanwhile, we continuously invest on skills training based on the knowledge that investment in skills training can significantly improve product quality (Gitlow 2005). From the business game, I got better perceptiveness about quality management and how quality influences customers buying decision.We also lea rn how to define the quality characteristics, set quality metre and measure the quality of our products. One of the limitations in stimulation process is that it is untouchable to evaluate and select the suppliers by ourselves. If this is made available, I believe that the operation cost would be controlled autonomously and learning experience of students about supply compass would be improved. 3. 4 Marketing Management Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value (Kotler and Keller 2011).In carrying out the marketing functions, the company needs to have a marketing program or strategy. This is known as the marketing swagger (Marc 1997). The conventional view of the marketing mix consisted of four components Product, Price, Place and Promotion. It is indicated that 4Ps constitute the cornerstone of any sound business (Marc 1997). Based on this learning, we act to use the right marketing mix to reach our target market during the business game. Product In round 1, 3/5 inlet hatch and small engine are chosen for city car (24-40 market), while MPV and diesel engine are chosen for large car (41-55 market).Options are selected due to the factors such as safety, comfort and style. From round 2, we detect the popularity index and aim to offer the most appropriate products to our customers (see appendix). Price We use market penetration in round 1. In the next three round, we adapt average pricing strategy. The economic trend and income status of our target customers are also taken into account as well. Promotion We keep increasing our promotion investment from 23 million to 40 million via various media. In round 1, we invest ? 200 for every car and it increase to ? 450 in round 4. through business game, I got better apprehensiveness about marketing mix. However, innovation and new product strategy, as another important ma rketing strategy, is failed to be used in our game. We could have intentional more about finding customer value opportunities and creating an innovation polish in our team if we had demonstrateed new model. Part 4 Team Performance 4. 1 Team 4. 1. 1 Management Team We distributed our team into four groups in order to cover the four main operating(a) areas of business face Finance, Marketing, Operation and Human Resource. Based on personal interests and experience, I take the charge of Finance.Dorothy and Kira take the indebtedness of managing marketing. Operation is taken charged by Michael and Jayson. Adetoro is amenable for HR. It does not mean that we make decisions and take responsibility separately. Actually, those functional areas are linked with and supported by each other. And everybody of the team is required to know exactly the whole process of our business. In reality, the main purpose of functional areas is to ensure that all important business activities are carri ed out efficiently. This is essential for a company to achieve its business objectives (Marcouse 2010). . 1. 2 Decision-making Process The overall decision-making was a collective process. During the business game, we discussed and evaluated all operable solutions and make sure every decision is made to help settle the current problems and lead to business objectives. The controversy, however, is sometimes unavoidable. For instance, Dorothy, marketing manager, proposed to launch new model in round 3 due to market attractiveness. I cannot agree with that because we are still experiencing financial difficulty. Our net cash position is minus ? 371 million with poor ability to pay our creditors.Adetoro is standing by my side, intellection from a long-term perspective. He suggested our team not to launch new model until we gain a probable market share. The further discussion and communication led to unanimous approval of the final decision. The similar situation happened when we discu ssed whether or not to adept price skimming strategy for our products. The dispute finally is settled properly. 4. 1. 3 Leadership I was nominative as the attraction in business game due to my ability to manage market information and provide direction to my team members at the very beginning.Under my leaders, our company is driven to achieve business objectives (execution). I make clear that all my team members are enjoying the game and have intentional how to run a business in a real world. 4. 1. 4 Team Role Through my observation, I have identified the strengths/weaknesses and work preference of my team members * Jayson and Michael prefer to analyze the current situation and raise the issues that we have to face (analysis). Michael is a good team worker who communicates and cooperates effectively with others.Jayson, as a monitor evaluator, has a high critical thinking ability but lacking of expression. * Dorothy and Kira are intuitive about the market information, and they often give the creative ideas (plan). Both of them play as plant. Dorothy prefers change and innovation. She can work more effectively when cooperate with the people who are identified as implementer in Belbin team role framework. * Adetoro used to reflect all our decisions we have made for every round and make everything reasonable and explainable (reflection). He is enthusiastic and logic thinker. 4. 2 Individual . 2. 1 My Contribution I have little knowledge about car industry when I take this project, but I quickly realize that I have special interest on costing and budgeting due to my previous work experience. So, I went through the user menu and market research then finish the finance forecast sheet before attending the group meeting. In round 1, I am responsible for both Finance and Marketing. During the group meeting, I proposed my ideas about cost/price, most of which are accepted by my team members and I therefore am nominated as manager of Finance. We suffered a loss in round 1.After analysing the discrepancy between forecast and results, I suggest to adapt new pricing strategy and set a higher gross margin. The strategy is adapted by management team and makes profit for our company by the end of round 2. I am nominated as team leader due to my hard-working, efficiency and reliability. And I actively build up team relation and motivate our team members. I play the role of implementer successfully. I monitor every process of the game and every token of our decisions, and put emphasis on improving efficiency of every group meeting, and record the minutes. 4. 2. My learning about effective teamwork and decision making Through business game, along with the knowledge I learn from Developing self module and the experience of residential weekend, I have better understanding about * An effective teamwork involves in a group of people with ballpark objectives and being able to build up trust and cooperate relationship with each other. * An effective teamwork i nvolves in a group of people who have complementary strengths/weaknesses with each other. * An effective team should have a leader who is able to provide direction, open mind to different opinions, ake right decision and take risks. * An effective decision should create the competitive advantage for organization and bring short term profit along with long term development. * An effective decision builds up the core competency of organization and turn competitive advantage into sustainable competitive advantage. 4. 2. 3 Suggestions for Improving My Performance * If the game could be played again, I would like to think double before adapting market penetration strategy in round 1 and try to avoid that loss as much as possible. I would like to pay more attention on developing my leadership capability and making better use of the abilities of my team members in order to build up a powerful and effective team. Part 5 Conclusion Overall, our company is successful in the achievement of bus iness objectives. By the end of round 4, our sales have increased by 50%, and our profit is showing a trend of growth. Even though the unsold stock percentage is larger than what we expect, we are still able to control the inventory and keep profitable. Return on investment in round 4 is 36% which is much more than our target.Part 6 Reference Banfield, P. and R. Kay (2008). Introduction to human resource management. New York, Oxford University Press. Banfield, P. , S. Newcastle Business, et al. (2008). Managing for competitive advantage, McGraw-Hill custom publishing. Behn, R. D. (2003). Why cadency Performance? Different Purposes Require Different Measures. Public Administration survey 63(5) 586-606. Blyton, P. and P. Turnbull (1998). The dynamics of employee relations. Basingstoke, Macmillan. Corby, S. (2009). Rethinking reward. Basingstoke, Palgrave Macmillan. Gitlow, H. S. (2005). Quality management. New YorkLondon, McGraw-Hill. Jacobs, T. (2002). The margin of safety. NATUR E BIOTECHNOLOGY 20(12) 1191-1191. Kotler, P. and K. L. Keller (2011). Marketing management. Harlow, Pearson Education. Marc, L. (1997). Marketing mix customization and customizability. Business Horizons 40(6) 39. Marcouse, I. (2010). BTEC First Business. 1. 4 The main functional areas within business organisations Ed. Retrieved 06/01, 2012, from http//www. teachmebusiness. co. uk/page29/page16/page18/assets/Functionalareas. pdf. Part 7 Appendices 7. 1 Design and Options TIKI (City Car) round 1 round 2 round 3 round 4 /5 Door Hatch Y Y Y Y Small Engine (4 Cylinder) Y Y Y Y Multi fixing Airbags Y Alloy Wheels Y Y Y Parking Sensors Y Y Y Air Conditioning Y Y Y Y Superior Sound System/iPod Y Y Y Security tract Y Safety Package Y Y Y CRUISER (Large Car) round 1 round 2 round 3 round 4 SUV Y Y Y Y Diesel Engine Y Y Y Y Multi jam Airbags Y Y Alloy Wheels Y Y Security Tracker Y Cruise Control Y Y Automatic Transmission Y Y Parking Sensors Y Y Y Y electronic Stabi lity Control Y Y Panoramic Sunroof Y Y Heated Elec Wing Mirrors Y Electric Adjustable sit Y Air Conditioning Y Y Y Y Superior Sound System/iPod Y Y Y Y Bluetooth Phone Preparation Y TV/DVD Player Y Y Metallic Paint Y Y Security Package Y Y Safety Package Y Y Y Y Luxury Package Y 7. 2 Warranty Cost Warranty Cost round 1 round 2 round 3 round 4 TIKI per car ? 173 170 140 clv CRUISER per car ? 400 353 295 348 Total Warranty Claims ? m 26 27 21 23 7. 3 Other Key Performance Indicators