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Write report of CESIM simulation of marketing n logistic department - Essay Example

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Summary
The current market operations and developments in the handsets industry continue to experience mixed trends in view of the contextual occurrences involving market changes and demands for the products. Conspicuously, the factors of the demand for phones in the various markets…
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Write report of CESIM simulation of marketing n logistic department

Download file to see previous pages... Various news such as the safety of using phones n airplanes and quality of the mobile phones to withstand pressure. For instance, the case of a phone exploding in airplane reported in China influenced the USA market demand for phones, decreasing it by 3%, and in Asia it decreased by 7%. Europe, case is conspicuous as demand remains unchanged. Further, as the oil wars diminish, the transportation costs reduce by 6%. Nonetheless, product costs remain unchanged. The factor of outsourcing in USA stand at capacity of 13% while in China is 19%. This results in reduction of up to 6% in outsourcing costs.
Additionally, another elemental factor of consideration is the macro environment of the department in handling the handset sales. The factors within the global context, such including the finance industry, affect the organisation performance. The corporate tax rate raises to 22%, as aspects of competitiveness of the various economies impact the markets. Consequently, currency rates fall against the USD such as the Rmb, which fell by 10%. The EU rebounds, bringing the interest rates in Europe down. However, the rates in USA and China increase by quarter and half respectively. Thus, such developments present Europe as the destination for the organisation, as the market is viable and stable. The influence of these factors in the macro environment influence the outcome of the business environment remarkably as the department pursues its establishment in the various sectors of operation within the industry (Kotler 2013, p. 67). Thus, in view of these factors affecting the macro environment of the department, the effect is visible on the results presented by the department. The poor results in the marketing and establishment of the department to success are evidence of the impacts within the micro and macro environments within the industry.
The CESIM model entails several strategic simulations to evaluate and formulate perceptions of the ...Download file to see next pagesRead More
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