1. New Product Alert - New Product Alert - New Product Alert SOUPER HOT The innovative self-heating soup for busy people on the move. A short computerised simulation to explore essential marketing and financial concepts. To build skills in analysis, decision-making and team working.

2. You will be divided into small groups to run the Souper Hot company for at least eight periods. The Task You will use your own micro-computer to simulate the effect of your decisions.

3. The Good News Souper Hot is a totally new product and there is no competition Each period, potential sales are 1,000,000 It only costs £0.50 to make but you should be able to sell it for £2.00

4. The Bad News Eventually competition will arrive. No one knows about Souper Hot. Fixed Costs (each period) are £20,000. Every time you increase production you invest £2 per unit of new capacity. Souper Hot has a limited shelf-life and so you lose half any inventory remaining at period end.

5. The Even Worse News! You only have £400,000 to fund your growth. If you over spend on –production capacity –inventory –initial losses You may go bankrupt!

6. Your Decisions PRICE 1.90 PROMOTION 75000 PRODUCTION 70000 Besides illustrating the decisions, these have been tested and a forecast of the results produced.

7. Your Results Penetration5 Market Share100 Unit Sales50000 Inventory (units)10000 Sales Income 95000 Net Profit-30000 Fixed Assets 140000 Inventory (value)5000 Cash225000 Cum Profit -30000

8. Using the Computer Enter a team name –to identify your data and demonstrate creativity, aggression etc. Enter Decisions into the template & confirm Results will be printed and displayed Analyse and make your next decisions

9. YOUR OBJECTIVES run the business for at least eight periods make the greatest possible cumulative profit without going bankrupt explore essential marketing & finance practice your decision-making skills work as a team sharing understanding HAVE FUN!