Chucker Cabs

1
Chucker Cabs

• The Cab company to take you from your party to
  your cave.

With unique hoseable rear cage.
2
Your Task

• You will be divided into small groups to run the
  Chucker Cab company for at least eight periods.

You will use your own micro-computer to simulate
the effect of your decisions.
3
The Good News

• Chucker Cab is a totally new service
• and there is no competition
• Potential sales are 1,000,000 miles each period
• Each cab can run for 10,000 miles each period
• It only costs 0.50 per mile to run
• but you should be able to sell it for 2.00 per
  mile

4
The Bad News

• Eventually competition will arrive.
• No one knows about Chucker Cabs.
• Fixed Costs (each period) are 20,000.
• And each cab costs 2,500 per period
• Every very cab that you run requires a one time
  investment of 20,000
• And you cannot dispose of surplus cabs

5
The Even Worse News!

• You only have 400,000 to fund your growth.
• If you over spend on
• Purchasing cabs
• Initial losses
• You may go bankrupt!

6
Your Decisions

• PRICE 1.90
• PROMOTION 75000
• CABS TO RUN 7
• Besides illustrating the decisions, these have
  been tested and a forecast of the results
  produced.

7
Your Results
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!