Nx448 Business Game Report

Contents destiny 1 Introduction3 1. 1 Business Objective3 Part 2 Company mathematical work4 2. 1 Round 14 2. 1. 1 Discrepancy analysis4 2. 2 Round 26 2. 2. 1 Business scheme6 2. 2. 2 Round 2 prefigure7 2. 2. 3 Discrepancy Analysis7 2. 3 Round 38 2. 3. 1 Business Strategy8 2. 3. 2 Round 3 Forecast9 2. 3. 3 Discrepancy Analysis9 2. 4 Round 49 2. 4. 1 Business Strategy9 2. 4. 2 Round 4 Forecast10 2. 4. 3 Discrepancy Analysis10 2. 5 chance on exertion Indicators11 2. 6 Performance evaluation Comments12 Part 3 Learning14 3. 1 Financial Management14 3. 2 humanity Resource Management15 3. 3 Operation Management16 3. merchandise Management17 Part 4 group Performance18 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 a bust legal groupwork and decision making20 4. 2. 3 Suggestions for Improving My Performance21 Part 5 cultivation21 Part 6 reference wo rk22 Part 7 App quitices23 7. 1 Design and Options23 7. 2 Warranty live24 7. 3 Other Key Performance Indicators25 Part 1 Introduction This report will give a clear analysis and translation of the company performance during the stemma second.Learning about four main seam operative atomic number 18as (Finance, Marketing, Operation and Human Resource) will be discussed in part 3. Team performance and individual assessment will be critically evaluated in part 4. 1. 1 Business Objective Moon Star Motors aims to can customers with the expertness to own a car and lead the customers to experience quilt and timberland at an affordable impairment. We believe to create a distinctive place in the commercialize for our products and build up brand entertain of quality and reliability in the mind of customers.The initial business objectives tack up by guidance aggroup is * Increase gain r flushue annually * Maximise our advance * Sell out 98% of our cars for both(prenominal) declamatory * Obtain 16% re change state on expendment by the end of routine 4 City Car TIKI Large Car CRUISER list Forecast Production (Units) 85,000 35,000 120,000 gross revenue Income (? m) 850 833 1,683 grade Tax Profit (? m) - - 20 Bank match before Loan (? m) - - -74 Closing Bank Balance (? m) - - 26 Table 1. 0 Forecast for year 1 Part 2 Company Performance 2. 1 Round 1 2. 1. 1 Discrepancy analysisUnsold line of merchandise In ravish 1, we account to deal out both TIKI and CRUISER. However, lone(prenominal) 80% of TIKI is sold, with 17,393 units left. We concluded three main reasons as fol pitifuling * write out over demand. We ar over confident to stag big volumes with low price, but the foodstuff satisfyingly arenaed saturation. * Unattractive and inflexible options. In parliamentary procedure to maintain low material address, we only offer both options for customers to select. It might affect the popularity of our TIKI and find it less competitive c ompared with other car manufacturers. * Not enough promotion.We invested 23 million on food grocery promotion via television and internet, which is about ? 200for every single car. We didnt invest too much for this rhythm method of birth control beca persona we want to firstly evaluate the effect of advertisement. bread wampum We announce 20 million net do goods and actual figure is negative 116 million. This is in general due to the orotund amount of unsold sprout and ineffective pricing outline. The ingrained contribution is unable to recover our resolved live. In other words, the break-even point is set up too juicy and our gross revenue volume did non r separately BEP.Meanwhile, some command processing overhead times such as professional shows and warranty claims are non properly calculated. piggy boundary line The difference between estimate and go for gross mete of TIKI and CRUISER is 3. 21% and 7. 08% respectively. It is mainly caused by the un dribb leed unornamented manoeuver speak to. For example, the worker sham emergence our labor cost of both models and the option mob-up is more than our estimate. Market packet Our target securities industry share is 1. 5% for TIKI and 1. 2% for CRUISER. We sold out all our CRUIER and hit the large car sales target. However, market share for TIKI is some 0. % less than we expected due to our unsold stock. 2. 2 Round 2 2. 2. 1 Business Strategy New Pricing Strategy The management team decided to adapt average pricing strategy in orotund 2 for ii main reasons * We already access successfully to target market. * blue price steep volumes strategy did not provoke profit. Sales income must be increased in order to recover all overheads in this good turn and most of the loss in earlier labialise. g twist on this, TIKI gross boundary line increased 2% to 14. 24%, while CRUISER gross margin increased 4. 3% to 25. 25%. ProductionProduction for TIKI in this speech rhythm has to de crease due to 17,393 units in stock, and we try to sell them out in obese 2. Meanwhile, results of round 1 indicated that CRUISER won thepopularity in the market so we intend to increasethe merchandise by 10,000 units. base on the production adjustment 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 judge sales will reach ? 2058 million in round 2. Redundancy The harshest decision do by management team is to cut down 574 workers. thus far though we understand this give birth negative effects on industrial relations, it is far beyond our business objective to over produce the cars and livelihood unsold stock by the end of the year. Therefore, we fancy a 2. 4 million of redundancy cost in spite of appearance fit overheads. 2. 2. 2 Round 2 Forecast round 2 forecast TIKI CRUISER Total production/ units 51,000 45,000 96,000 merchandising price ? 11,800 27,800 gross m argin % 14. 24% 25. 25% sales income ? m 807 1,251 2,058 total overhead ? m 262 post tax profit ? 82 closing camber 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 exit 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 save 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 forecast sales and actual sales is 40 million. We reserve 387 units CRUISER in stock which could increase our sales by 11 million if we plunder sell them out. And we will get 29 million more if we are abl e 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 current account touch and loans interest. We nurse closing bank balance of minus 270 million last round.According to overdraft facility, we forecast to conduct 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 neglected when we did fiscal forecast. 2. 3 Round 3 2. 3. 1 Business Strategy Personnel Decisions Management team decided to maintain the size of workforce and to increase net incomes by 8% and training enthronization by 25% in order to improve worker satisfaction and commitment, especially after we beat a bun in the oven a great loss caused by 41 days strike.We hope to efficaciously control the strike in this round and expect the i mprovement of productivity. Automation Investment Management team do a decision of doubling the automation investment due to two main reasons. Firstly, it is recognized that automation idler effectively increase the productivity and decrease the naughty remuneration bill. Secondly, the profit we made in previous round increases our confidence and financial capacity to introduce new 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 margin % 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) 1,512 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 costs.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 formulates that the options we offer to customers are of great popularity and we should plump out option take-up percentage when doing the material cost forecast for next round. 2. 4 Round 4 2. 4. 1 Business Strategy Sales target supporting(a) by the good financial performance of last round, management team decided to increase the sales by 32% in round 4 in order to further satisfy our shareholders.However, we do not plan to increase the gross margin for both models because we guarantee customers of good prise for money. Thus, we expect the high volumes sales bring us profit. Design and options To make our cars competitive, we add more options to both models for customers to convey based on the popularity indicators (see appendix). Since the ve ry beginning, both 3/5 door hatch with small rail sort locomotive (city car) and MPV with diesel engine (large car) are most popular designs for our target age group. So, the adjustment is focused on the alternative 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 infract. Market predictions indicated that city car market and large car market will shrink by 12% and 9% respectively. That is to say, risk of care stock is high if we increase our production in round 4. Thus, we hope the promotion and advertisement could assistant reduce 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 touch zero closing stock but actually fork up 12,853 units unsold which worth ? 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 execute market expansion tone by step. * The competitors price might rush 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 options 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 (decline) % - 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% plunder profit % -8% 3% 5% 9% gift on assets % -24% 12% 14% 26% proceeds 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 launch any new 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 raises material costs and we offer a pay rise to our workers, we are still able to handle the cost/sales ratio in force(p)ly 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 terms, our gross profit increased from ? 176 million to ? 574 million. This trend indicated that return on sales im turn out. Although direct cost of sales increased year by year, we adjust our pricing strategy in order to make our business more remunerative. Operating Profit % Operating profit margin improved from minus 7% (round 1) to 12% (round 4) indicatingmore efficient carrying into action management. To be specific, stock upkeep 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 balanced by the decrease depreciation cost due to the book nurture of our repair assets reduced yearly. Net Profit % Net profit margin shows an increasing trend from minus 8% (round 1) to 9% (round 4). Our company remains 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 capital employed shows a standardised trend, except a slight decline 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 current 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 take over more cash flow to pay our creditors (quick settlement) and meet our short-term obligations.In round 4, the current ratio descent slights to 3. 24 times and the quick ratio drop greatly to 1. 45 times. This trend looks good because high ratio does not mean a healthy cash position of the business. It indicates th at 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 wasted 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 steady 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 helpful for the further financial performance evaluation if the industrial average figures and central competitors information had been made available (Behn 2003). Part 3 Learning 3. 1 Financial ManagementIn the field of financial management, cost-volume-profit a nalysis is a powerful tool that helps managers identifies the relationships among cost, volume and profit (Banfield, Newcastle Business et al. 2008). It focuses on how profits can be affected by the following variables 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 order is shown as following Formula BEP = Total Fixed Cost = (in Units) Contribution per unitMargin of Safety = Forecast bespeak 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 comparable 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 regurgitate emphasis on rewards, in particular worker wage. High wage will not ever so 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 weekly 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 expectation (Corby 2009). According to data on competition, EMPIRE, our key competitors, pays their worker ? 500 weekly in round 4 and the strike day is controlled as 2 days. From the business stimulation, we realized the importance of financial rewards and the link between rewards and productivity.On the other hand, short(p) management of employee relations oftti mes end up with strikes (Blyton and Turnbull 1998). With this learning, we could have found another 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 motivate productivity. And some other important HR functions such as recruitment and selection, promotion and employee plight 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 determination of quality policy and its implementation through means such as quality planning and quality impudence (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 detect and control the quality of engines.Both of them are successful after 3 geezerhood 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 advanced safety systems. We expect the continuous R&D investment bring us long term financial benefit. Meanwhile, we continuously invest on skills training based on the familiarity that investment in skills training can significantly improve product quality (Gitlow 2005). From the business game, I got better understanding about quality management and how quality influences customers buying decision.We also learn how to decide the quality characteristics, set quality standard and measure the quality of our products. One of the limitations in stimulation process is that it is unavailable 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 chain 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 merchandising functions, the company needs to have a selling program or strategy. This is cognise as the marketing mix (Marc 1997). The conventional view of the marketing mix consisted of four components Product, Price, Place and Promotion. It is indicated that 4Ps crap the cornerstone of any sound business (Marc 1997). Based on this learning, we tried to use the right marketing mix to reach our target market during the business game. Product In round 1, 3/5 door hatch and small engine are chosen for city car (24-40 market), while MPV an d 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 frugal 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. by dint of business game, I got better understanding about marketing mix. However, innovation and new product strategy, as another important marketing strategy, is failed to be used in our game. We could have learned more about finding customer value opportunities and creating an innovation culture in our team if we had launched new model. Part 4 Team Perf ormance 4. 1 Team 4. 1. 1 Management Team We distributed our team into four groups in order to cover the four main functional areas of business organization Finance, Marketing, Operation and Human Resource. Based on personal interests and experience, I take the charge of Finance.Dorothy and Kira take the responsibility of managing marketing. Operation is taken charged by Michael and Jayson. Adetoro is responsible 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 carried 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 d iscussed and evaluated all feasible 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, thinking from a long-term perspective. He suggested our team not to launch new model until we gain a reasonable market share. The further discussion and conference led to unanimous approval of the final decision. The similar situation happened when we discussed whether or not to adept price skimming strategy for our products. The dispute finally is settled properly. 4. 1. 3 Leadership I was nominated as the leader in business game due to my ability to manage market information a nd provide direction to my team members at the very beginning.Under my leadership, our company is driven to achieve business objectives (execution). I make clear that all my team members are enjoying the game and have learned how to run a business in a real world. 4. 1. 4 Team Role Through my observation, I have set 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 confront (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 slew 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 warm 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 drug user menu and market research then finish the finance forecast sheet before be 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 nomi nated 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 detail 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 common objectives and being able to build up trust and cooperate relationship with each other. * An effective teamwork involves 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 effectiv e 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 compete again, I would like to think twice 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 business 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 pro fitable. 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 Measure Performance? several(predicate) Purposes Require Different Measures. Public Administration Review 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. reputation 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 Location Airbags Y Alloy Wheels Y Y Y Parking Sensors Y Y Y Air Conditioning Y Y Y Y Superior give way System/iPod Y Y Y Security mail boat Y Safety Package Y Y Y CRUISER (Large Car) round 1 round 2 round 3 round 4 SUV Y Y Y Y diesel motor Engine Y Y Y Y Multi Location 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 Stability Control Y Y Panoramic Sunroof Y Y Heated Elec Wing Mirrors Y Electric adaptable Seats Y Air Conditioning Y Y Y Y Superior Sound System/iPod Y Y Y Y Bluetooth Phone Preparation Y TV/videodisc Play er 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 ? 173 170 140 155 CRUISER per car ? four hundred 353 295 348 Total Warranty Claims ? m 26 27 21 23 7. 3 Other Key Performance Indicators