SLP Overview: You will use a business simulation of the MIT Solar Power Pricing. Your task is to analyze the performance of the company and develop a strategy that will improve its profitability. This strategy is more of a market-focused strategy, which includes pricing and product development budgets for its products in comparison with its competitors. Here you will need to use your knowledge of cost structures and cost analysis as well as relevant marketing and pricing theories.
Module 2
Determine the best OD model to use for diagnosing a specific organization.
Analyze a company’s financial performance and determine a modified strategy.

Module 2
Falletta, S. V. (2013). Organizational diagnostic models: an integrative review & synthesis. Organizational Intelligence Institute (www.oi-institute.com).
Henderson, R. M., Conkling, J., & Roberts, S. (2007). MIT Sloan Management. Retrieved from http://forio.com/simulation/solar-test/downloads/SunPower-Henderson.pdf
Sveiby, K-E. (2010). Methods for measuring intangible assets. Retrieved from http://www.sveiby.com/articles/IntangibleMethods.htm
Systems Thinking and Learning Organizations (n.d.). National Defense University. Retrieved from http://www.au.af.mil/au/awc/awcgate/ndu/strat-ldr-dm/pt1ch4.html

Module Overview
As the Capstone course, BUS599 is intended to test your ability to perform in real-world activities. Try to recall and use the knowledge you have gained in previous courses in the MBA program.
An important tip for success in this final course is to read everything carefully.
READ THE SYLLABUS – It will give you a good Course Overview of what you will be doing in the Case and SLP assignments. Also, by knowing what the Course Outcomes are, you will have a better understanding of your end goals and what you need to do to get there. Review the Course Requirements, in particular the description of the Case Assignment (Case Study).
SCAN THROUGH THE COURSE – You will get a better idea of what you will be doing and how the various assignments integrate knowledge. Look for ways you can optimize your research of your chosen organization. Pay attention to the Module Outcomes: they provide the goals of the assignments.
REVIEW YOUR PREVIOUS KNOWLEDGE – You may need to go back to earlier courses to review analytical tools and models (such as calculating key financial ratios, economic theory concerning supply-and-demand, models of marketing mix, product life cycle, etc.). In addition, there are many sites on the Internet that can serve to refresh your memory. You will be expected to draw upon your knowledge of Organizational Behavior, Marketing, Information Systems, Strategy, Economics, Finance, Accounting, Production/Operations, and Statistics.
DEMONSTRATE YOUR ABILITY to do the kind of analysis that employers expect when they hire MBAs. Think of these assignments not so much as “homework” assignments, but as a sample of the type of work MBAs are asked to do in private business every day. See your audience not as a professor and the outcome as a grade, but the audience as top management and the outcome a promotion. This should give you a better idea of the quality of analysis we are looking for in this class. In other words, the quality of your work should equal the quality of the final product you would give to your employer as a newly hired MBA.
USE CRITICAL THINKING when doing the assignments for the Case (and also the SLP). Demonstrate good Critical Thinking (Precision, Breadth, Depth, and Clarity); use good grammar and spelling; and cite your sources appropriately. If you need more information on critical thinking (definition, process, outcomes), review the following: http://www.criticalthinking.org/pages/college-and-university-students/799
FORMATTING – Review the Well-Written Paper guide that is embedded within this course. This guide was compiled as a reminder that the writing standards for graduate level work are well beyond any that you may have become familiar with in most undergraduate programs. To this extent, the aforementioned guide provides useful information concerning key and critical writing requirements, including the use of Times New Roman 12 point font, proper use of APA Style, double spacing of papers, appropriate use of section headings, and proofreading for syntax, spelling, and punctuation errors.
USE OF SECTION HEADINGS – I require (and insist upon) the use of section headings in all papers. For instance, in this particular assignment, you might use a separate section heading for each of the major requirements, and then fill in the white space with your response(s). Minimally, each major requirement of the assignment should constitute a major section of your paper (other major sections should include the Introduction, Conclusion, and References sections). Restated, each major section of your papers must include section headings – which must be clearly set apart from the rest of the text constituting the body of the paper (i.e., use italicized, bolded, or underlined font).
APPLICATION OF THE THEORY – You need to bring in the business theory you have learned throughout the program, and clearly show how it applies to the Case and/or SLP. Application of theory is not only important in this course, it is critical. Throughout the MBA program, you will be required to demonstrate that: 1) You have read the theory; 2) You understand the theory; and 3) You are able to apply it appropriately to the organization at issue. Application of business and organization theory is central to the MBA process.
RESPONSIVENESS TO REQUIREMENTS – Respond clearly, directly, and fully to all requirements (this is the “Precision” criterion upon which your work is in large part graded). This is the only means by which I can be assured that you have read, understood, and (most importantly) can apply the theory. It is always best that you respond to the requirements in succession.
LENGTH REQUIREMENTS – It is critical that you adhere fully to minimum length requirements, and if possible, exceed them. However, meeting length requirements by no means “guarantees” an A-level paper.
PROOFREAD – Graduate-level papers require advanced critical analysis. In addition, the MBA program requires that business students write formally and expertly. Therefore, careful proofreading is required. A poorly formatted paper and/or syntax and spelling errors will distract the reader from what you are trying to convey. As stated above, treat each assignment as if you are presenting a project to the CEO of your company.
The SLP for this course involves participating in a simulation exercise. Unlike cases, which are static, simulations are interactive and you can see the results of your decisions. Additionally, you can repeat the simulation to improve the quality of your decisions.
GENERAL SLP SCENARIO:
The 4-module SLP sequence for BUS599 requires that you run a simulation over an 18-year period, and that you analyze the outcome of the decisions you make at each decision point.
In this course, we will be using the MIT Solar Power Pricing Simulation.
The Industry Evolution Management Flight Simulator portrays the growth and competition of firms as an industry evolves. Playing the role of chief executive for one of the firms in the industry, you make key decisions involving pricing, investment and marketing in order to succeed in the marketplace.
This version of the simulator has been customized to portray the solar power industry, specifically SunPower and other manufacturers of photovoltaic panels (PVs). While historically the cost of electricity from PV panels has limited them to niche applications, there is massive potential for growth in the market if solar power could become a viable alternative to traditional sources of electricity.
In the simulator, your job is to maximize SunPower’s cumulative profit over a period of eighteen years. To do this, you make pricing and investment decisions each simulated time period.
As a young company with a new innovation, you will start the game with a technology that you hope stays proprietary. In theory you can reap the benefits of technological advancements from the rest of the industry while spreading your advancements to them.
In addition, you (or your administrator) have the option of setting several other competitive and market scenarios, including the sources and rates of learning, the strength of knowledge spillovers, entry of new competitors, and external incentives that help to drive consumers towards using solar power.
You will receive periodic reports including your income statement and industry data. You need to select your strategies based on those reports, your understanding of the underlying industry structure, and your best judgment about how your competitor and customers may respond.
Though the model has been carefully calibrated and tested, it is not designed to predict the future or exactly match the history and special circumstances of SunPower. Rather, it is used to illustrate competitive dynamics important not only in the photovoltaic panel industry but in other contexts you may face. Instead of merely “beating the game,” focus on understanding the underlying industry structure so you can develop robust, successful strategies.
*** Source: Sterman, J. (2014). Eclipsing the competition: The Solar PV industry simulation. Forio.  Retrieved on November 23, 2014 from http://forio.com/simulation/solar-test/index.htm#page=market_research
GET FAMILIAR WITH THE SIMULATION
Familiarize yourself with the simulation. This will require that you get an in-depth understanding of the terminology used in the simulation, as well as the pricing and cost structure of the product. As you begin this simulation (Year 1), your market share is only 2.40%. Your role with the company is to expand your company’s market share over the multi-year period of operations – while recognizing the highest possible cumulative profit. To do this, you must make favorable pricing decisions, and you must ensure that you are improving your product while simultaneously lowering unit costs. Product improvements are determined by the % of revenue allocated to process improvement (i.e., technological advancement = lower unit costs).
Be sure to review the SunPower case study, as it will provide you with background and context for the simulation: http://forio.com/simulation/solar-test/downloads/SunPower-Henderson.pdf
Then, visit the simulation here:
http://forio.com/simulation/solar-test/index.htm#page=market_research
At the landing page, click on “Play as an INDIVIDUAL.” Then, choose a Screen ID and click “Submit.”
Explore the interface and get familiar with it and the information it provides. The menu on the left-hand side shows these options:
NEED TO BRUSH UP ON CVP ANALYSIS?
You were introduced to this method in your previous courses, but this link will provide a refresher.
Rehman, A. (2014, March 24). Accounting for Management.com Cost-Volume-Profit Relationship (CVP Analysis). Retrieved from http://www.accountingformanagement.com/cost_volume_profit.htm
Should you need to brush up on financial analysis, the following presentation provides a very good overview of financial statement analysis:
http://vrpacioli.loyola.edu/ac102/chapter17/chapter17.ppt
Optional Reading and Resources
Remember that in preparing the assignments for this module (as those that follow), you must demonstrate that you know how to use the appropriate business tools for such an analysis. This will require you to integrate learning from courses throughout the MBA program.
Other Useful Resources
You may access some useful Internet and other resources relating to such matters as financial ratios and processes for measurement of organizational resources (both tangible and intangible) through the following links:
http://www.investopedia.com/university/ratios/#axzz2JNe7QCr3
http://www.sveiby.com/articles/IntangibleMethods.htm
SLP Assignment Expectations
Your paper will be evaluated based on the Grading Rubric.
Please note the following tips and suggestions:
Include a cover page and reference page, in addition to the 5-6 pages of analysis described above.
Include headings for all papers greater than two pages (basically all papers), but do not use headings as “space fillers.”
Cite and reference all sources that you use in your work, including those that you paraphrase. This means include citations and quotation marks for direct quotes of more than five words, and citations for that information which you have “borrowed” or paraphrased from other sources.
Hints for success!
Throughout this SLP, you will be asked to make business decisions under conditions of incomplete information and uncertainty. To do so, you will need to make assumptions based on what you have learned throughout the MBA program about how markets operate. Thus, your strategies in approaching this decision need to rely on models, financial analysis, and theories from such classes as Economics, Finance, Accounting, Marketing, Strategy, and Quantitative Analysis. In addition, the simulation will give you some additional market information as you progress.
Be sure to explicitly draw on concepts and theories from the courses you have taken throughout the MBA program. That means you need to “think like an MBA” and use the financial data you are given. You will have to crunch some numbers and present your data analysis professionally by creating some simple tables, charts and graphs.
Module 2 – Home
Organizational Diagnostic Models
Modular Learning Outcomes
Upon successful completion of this module, the student will be able to satisfy the following outcomes:
SLP
Analyze a company’s performance and use appropriate theories to develop a pricing and product strategy.
Apply OD models to analyze a business organization.
There are no reading assignments for the SLP.
However, if you need a refresher on various theories (product life cycle, pricing, price elasticity, market saturation, product development, etc.) there are a multitude of articles on the Internet.
Optional Review Materials
Once again, this small sample of Useful Internet Sites  may help you throughout the course, and can serve as a complement to previous course materials. You are encouraged to supplement this list if you need additional refreshers.
TIPS AND SUGGESTIONS
You may use a simple diagram to highlight important factors. However, do not use the diagram in lieu of valuable analysis (or to take up valuable writing space) – it should be in addition to your 5-7 pages of analysis.
Just because you have written the minimum five pages does not mean that you have adequately covered the topic. Err on the side of writing more rather than less.
Choose the data you use carefully. Is it relevant and important?
Include a cover page and reference page, in addition to the 5-7 pages of analysis described above.
Include headings within the paper.
Cite and reference all sources that you use in your work, including those that you paraphrase. This means include citations and quotation marks for direct quotes of more than five words, and citations for that information which you have “borrowed” or paraphrased from other sources.
Module 2 – SLP
Organizational Diagnostic Models
Module Overview
SLP 2: Based on each of the four decision points of simulation, you are required to analyze the impact of Module Price on market share and total profits. You are also required to determine how process improvements yield a reduction in unit costs and make strategic recommendations.
Overview
In SLP2, you will again be provided the numbers to be input for each of four decision points. For purposes of SLP2, pricing will be more conservative (lower) than the pricing strategy reflected in the Module 1 SLP.
Assignment
Run the simulation, entering the following numbers at each of the four major decision points:
1) Decision 1: For Years 2008-2012
a) Pricing – Manual
b) Module Price – $0.13
c) Revenue to Process Improvement – 5%
d) Years to Advance – 5 years
2) Decision 2: For Years 2013-2017
a) Pricing – Manual
b) Module Price – $0.11
c) Revenue to Process Improvement – 5%
d) Years to Advance – 5 years

3) Decision 3: For Years 2018-2022
a) Pricing – Manual
b) Module Price – $0.09
c) Revenue to Process Improvement – 5%
d) Years to Advance – 5 years

4) Decision 4: For Years 2023-2025
a) Pricing – Manual
b) Module Price – $0.08
c) Revenue to Process Improvement – 5%
d) Years to Advance – To end
NOTE: Do not change the numbers displayed in the “Settings” tab!
At each of the four (4) decision points above, you are required to analyze the impact of your Module Price on market share and total profits. You are also required to determine how process improvements yield a reduction in unit costs. Be sure to copy tables and charts to support your analysis. You may need t use Excel to edit the charts and tables. However, do not use figures and tables as “space fillers” – use these only to support your analysis.
Keys to the Assignment
The key aspects of this assignment that should be covered and taken into account in preparing your 5-6 page paper include:
1. Include discussion and analysis of key metrics at the end of each decision point (e.g., among other data, be sure to include total market share, revenue, cumulative profit, consumer net price, modular price, unit cost, etc.). As an MBA, it is your job to identify cause and effect!
2. For each decision point, be sure to include comparative tables that include what you believe to be the most important data. Don’t merely recite the data, however – instead, analyze the data! As an MBA, what does it tell you?
3. Make recommendations. What would you have done differently as it relates to pricing, process improvement, or other?
4. Compare and contrast the pricing decisions made in SLP1 and SLP2. Give key metrics that demonstrate how the different pricing decisions have affected market share, cost to the customer, cost of goods sold, revenue, profits, etc., etc.
Be sure that you retain all SLP2 notes, tables, and figures, as you will be comparing the results of SLP2 with those of SLP3 in the next module.
**** NOTE: The 5-6 page requirement includes written analysis and all supporting tables, figures, and graphics. However, it does not include Cover or Reference page. Be sure to adhere to the TUI Writing Guide for formatting of all papers. If you are unsure how to complete a financial analysis, please review the following sample report:
Gilbert O’Neil Mushure. (2014). Financial analysis report: Malaysia airlines 2007 – 2011. International Journal of Sciences : Basic and Applied Research, 14 (2), 148-153.
Also refer to the following source on business writing:
O’Hara, C. (2014, November 20). How to improve your business writing. Harvard Business Review. Retrieved from https://hbr.org/2014/11/how-to-improve-your-business-writing?utm_campaign=Socialflow&utm_source=Socialflow&utm_medium=Tweet
SLP Assignment Expectations
Your paper will be evaluated based on the Rubric.
Please note the following tips and suggestions:
Include a cover page and reference page, in addition to the 5-6 pages of analysis described above.
Include headings for all papers greater than two pages (basically all papers), but do not use headings as “space fillers.”
Cite and reference all sources that you use in your work, including those that you paraphrase. This means include citations and quotation marks for direct quotes of more than five words, and citations for that information which you have “borrowed” or paraphrased from other sources.
Hints for success!
Throughout this SLP, you will be asked to make business decisions under conditions of incomplete information and uncertainty. To do so, you will need to make assumptions based on what you have learned throughout the MBA program about how markets operate. Thus, your strategies in approaching this decision need to rely on models, financial analysis, and theories from such classes as Economics, Finance, Accounting, Marketing, Strategy, and Quantitative Analysis. In addition, the simulation will give you some additional market information as you progress.
Be sure to explicitly draw on concepts and theories from the courses you have taken throughout the MBA program. That means you need to “think like an MBA” and use the financial data you are given. You will have to crunch some numbers and present your data analysis professionally by creating some simple tables, charts and graphs.
Module 2 – Outcomes
Organizational Diagnostic Models
SLP
Analyze a company’s performance and use appropriate theories to develop a pricing and product strategy.
Apply OD models to analyze a business organization.