View the step-by-step solution to:

Traditional Low End High End Performance Size Rate Rate Rnd Demand (%) Rate And Demand (%) Rate Rnd Demand [%) Rate Rnd Demand (%) Rnd Demand (%)...

alculating Market Demand


The Industry Demand Analysis will help the Marketing and Production Departments understand future demand. Marketing can use the total demand for each segment as it creates a sales forecast. Production can use the results when making capacity buy and sell decisions.


  • You will need:The Segment Analysis reports (pages 5-9) of the Capstone Courier for Round 0
  • The Industry Conditions Report.

  • At the top of each Segment Analysis page you will find each segment's statistics (see example below). The top line is the total demand for the segment for last year (the Courier reports last years data). The fourth line tells you next years growth rate for the segment.

  • To find out the coming years total demand, simply apply the growth rate to last years total demand.

  •  

* The above growth and demand figures are for example only. Your industry growth rates and demand may differ, but the process to calculate next years total segment demand is identical.

For example, in the High End segment analysis on the left, Total Demand is 2554 and next years growth rate is 16.2%


Next years demand is calculated as follows:


 

Total demand2554+Growth (Total Demand x 16.2%)414Total Segment Demand next year (rounded to nearest whole number)2968



Industry Demand Activity


For your purposes, complete the form below with the "average" scenario. Assume the Round 1 growth rates will continue into the future unchanged. This will give you some idea for potential market size. If you have time, try a worst case and best case scenario for Rounds 2 through 8. For worst case, assume, say, half the growth rate. For best case assume, say, 1.5 times the growth rate.


Use the information in the Courier to calculate the Round 1 demand for each of the segments. Once you have successfully entered the correct demand for Rounds 0 and 1, then the rest of the table will fill automatically. Screen Shot 2019-05-01 at 2.47.41 PM.pngScreen Shot 2019-05-01 at 2.47.49 PM.png

Screen Shot 2019-05-01 at 2.47.41 PM.png

Traditional
Low End
High End
Performance
Size
Rate
Rate
Rnd Demand
(%)
Rate
And Demand
(%)
Rate
Rnd Demand
[%)
Rate
Rnd Demand
(%)
Rnd Demand
(%)
7387
090t
0
T
980
T
T
2
2
2
2
2
3
3
3
3
3
4
46.7
4
4
4
5
5
5
5
5
6
9
6
9
9
7
7
7
7
7
8
8
B
8
The Round 0 Capstone Courier

Screen Shot 2019-05-01 at 2.47.49 PM.png

Demand Analysis
Calculating Market Demand
The Industry Demand Analysis will help the Marketing and Production Departments understand future demand . Marketing can use the total
demand for each segment as it creates a sales forecast . Production can use the results when making capacity buy and sell decisions
You will need ."
* The Segment Analysis reports (pages 5 -9) of the Capstone Courier for Found !
* The Industry Conditions Report .*
* At the top of each Segment Analysis page you will find Each segment's statistics (SEE Example below ) . The top line is the total demand for the
SEGMENT for last year (the Courier reports last years date ) . The fourth line tells you next years growth rate for the segment .
To find out the coming years total demand , simply apply the growth rate to last years total demand .
High End Segment Analysis
COU
For example , in the High End Segment analysis on the left . Total
Demand is 25.54 and next years growth rate is 15. 29'
High End Statistics
Next years demand is calculated as follows :"
Total Industry Unit Demand*
2.554\
Actual Industry Unit Salas`
2.554
Segment to of Total Industry
1 1. 2%
Total demand
25.54
Next Year's Segment Growth Rate
16. 2%6\
Growth (Total Demand* 15. 236)
47.4
* The above growth and demand figures are for example only ."Your industry*
Total Segment Demand next year (rounded to
growth rates and demand may differ , but the process to calculate next years
nearest whole number !*
total segment demand is identical .
Industry Demand Activity*
For your purposes , complete the form below with the " average " scenario . Assume the Found I growth rates will continue into the future
unchanged . This will give you some idea for potential market size . If you have time , try a worst case and best case scenario for Rounds ? through

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