|Facilitator: Before Companies make their first decision, notify each Company about its number.|
|Company Teams: Be sure to get your Company number before you start entering Quarter 1 decisions.|
|A. The "normal" sequencing of decisions (i.e., the earliest time you can make various fundamental decisions) is indicated in the Datalog of the Guide on pp. 103.|
|B. Industrial/Scientific Parks available in Q1? Implementation of this accelerated run enabling chip plants in EU and US to go "on stream" with production in Q1 requires Facilitator assistance.|
|Participant Quickstart Memo (Case 2B above)|
|This schematic of earliest possible major decisions applies to area operations in accelerated runs of INTOPIA. Many other combinations than those illustrated are thinkable. In Home Office, all kinds of operations are possible from Q1 on, except Citi Bank loans (typically available only a few Qs later).|
|Assumption: Co. 2 PC Plants in Europe are sourcing chips from Co. 1 chip plants in the US.|
||Co. 1 builds a chip plan in USA industrial park, and one chip plant in standard routine.
||(Co. 2 builds PC plant in EU, see Note below.)
||Co. 1 ships chips from ind. parks by air to Co. 2. Also builds inventory to have sufficient units for surface shipment in Q3-4.
||Co. 2 builds another PC plant in EU.
||Co. 1 ships chips to Co. 2 by air and additionally by surface. Co. 1 sells excess chips in US consumer market.
||Co. 2 makes PC from air-freighted units (perhaps supplemented by Nippon component expediting).
||Co. 1 ships chips by surface to Co. 2. Continues consumer sales in USA.
||Co. 2 makes PC from surface units received in Q3. Co. 2 markets PC in EU and/or for export.
NOTE: In some runs, Nippon Electronics may have temporary excess inventory of chips available in Q1, making modest PC production by Co. 2 possible in Q2.
- QUICKSTART MEMO (if applicable)
- STANDING CONTRACTS -- ADVANCE NETWORKING
- NIPPON OFFER Gazette Q1 (See Fac.)
- MKTG NIPPON AIR-FREIGHTED GOODS (Form A1)
- PLANTS. CHIP PLANTS IN US AND EU INDUSTRIAL PARKS. See Gazette Q1. Tell Facilitator if you want such plants - do NOT record them on Form F2!
ALL OTHER PLANTS YOU MAY PLAN FOR Q1 MUST BE RECORDED ON FORM F2. Remember Brazil extra deposit requirement of R 2.5M per plant for Q1-3. Record on Form F3.
- PRODUCTION UNITS IN CHIP INDUSTRIAL PARK PLANTS (FORM F2). (No other plants can produce in Q1)
- LOCAL CURRENCY (LC) AMOUNT - NIPPON, PLANTS, CUSHION (FORM F3). (For chip plants in industrial parks, add manufacturing cost)
- TRANSFER STARTING CAPITAL (FORM F3). See Gazette.
- INVEST AREA SURPLUS FUNDS AND BRAZIL PLANT DEPOSITS IN LC SECURITIES F3. IN Q1, SAY "YES" TO END-OF-Q LOCAL CURRENCY OPTION F3. See Gazette.
- H0 COMMUNICATION
- R&D (FORM H1)
- MKTG RESEARCH (FORM H1) (E.g., characteristics of higher grade, MR 31-69)
- CAPITAL TRANSFER TO AREA(S) (FORM F3). ONLY ONE F3 PER AREA!
- BOND ISSUE (FORM H2)
- INVEST IN GOVT. SECURITIES - BUT KEEP SF 20K CASH (FORM H2)
- SUCH SECURITIES IN SF AND/OR OTHER CURRENCIES? (FORM H2)
- IF SECURITIES IN OTHER CURRENCY, BUY IT (FORM W3)
- COMPANY NAME TO REGISTER ON FORM H0
- DELIVER COPY OF STANDING CONTRACTS TO FAC.
- REGISTER TO BECOME WHOLESALER
- STRATEGIC SIGNALING, ADS, PR. PUBLICITY!
- FILL IN "DEFINING YOUR NICHE" SURVEY (VOLUNTARY). HAND IT IN!
Use forms in Q1: F1, F2, F3, H0, H1, H2, W3 (+ NIPPON uses H6)
IF BRAZIL PLANT(S): INVEST COUNTERPART FUNDS IN BRAZIL GOVT. SECURITIES, R 2.5M PER PLANT IN Q1-3.
Facilitator Memo on Industrial Parks for Chip Plants in Q1
|The distinction has to be made between chip plants in EU and the US ordered from industrial parks and those plants ordered in the "normal" way in Q1. To make this distinction, the Faciliator will have to handle the industrial park plants by using "virtual company" 99 to sell the plants, using Form W2. The price is the standard € 1 M in EU and $2 M in the US. Plants sold by Co. 99 will automatically be "on stream" the same Q. The Facilitator will also handle the "temporary expense" (€ 180K in EU, $250K in US), again using Co. 99, Form W1. Note that only the Facilitator can input Co. 99 forms.|
|Note: Remind teams regarding Form F2 that they must leave No. of new X plants (in industrial parks) BLANK, as they are buying it from Co. 99. A 1 or 2 in the Form F2 "Number of plants" field will indicate a desire to build additional "normal" plants. Also make clear that the "temporary expense" (moving costs) will be deleted from area cash by Co. 99.|
|Companies who want to build chip plants in the "normal" way in Q1 will do so in the standard manner, that is, by using Form F2. Chip plants built in the "normal" way can begin production (to inventory) only in Q2, and will not be able to ship chips to PC producers until Q3. (The Q2 statement in Gazette Q1, third paragraph, is applicable only to plants in industrial parks - you may wish to point this out to participants.)|
|Ideation by Prof. Robert Green, Thammasat University, Bangkok.|
|We assume that your operating areas will be Japan, U.S., and China.|
|The greatest challenge we have is to prevent China (C) from just flooding the rest of the world. The key here is to delay its entry (entirely realistic, as is the case of Brazil in Standard version), and, if necessary, have the US raise tariffs (if you raise them in Q6 you let WTO worry about it for the rest of the game).|
|Here are some suggestions for parameter dimensioning:|
- For economic & infrastructure reasons, there will be no plant construction in C in Q1 and Q2. Plant build period will then be the normal one (for tech. lag reasons you may consider that only MNC can build plants in Q3). This also delays outsourcing to C, and imports from C
- Necessary infrastructure improvements may boost plant construction cost (Brazil +)
- On F3 permit only currency conversion in C, and maybe add to local conversion cost
- When the flooding of C goods in US & Japan finally begins, they may perhaps erect tariff barriers (added to shipping cost), and this may have WTO ponder legality for Q6-9
- Greater difference in price for std vs delux models than even in Brazil?
- Prod cost of CHIP plants relatively high in C (skilled manpower, expensive tech.) Outsourcing of chips by US or Jap. Cos should not be particularly attractive. The reverse may well be the case in re PC-C. cost might even be lowest in your world
- Outright sales of patents from U.S. and Jap. Cos should be favored due to lack of C respect for intellectual property (You might just put it like that in your alternative Exec. Guide, or even ban quarterly payments for patents.)
- There is clearly no room for Fac operation of a Nippon Electric. If you want to have outside competitors, we would suggest Taiwan Electronix