Goal Seeking (return to DSS home)

Another option is for managers to start with their goal and work backwards. To do this, they can use the spreadsheet model to perform a goal seek. This way they can change either the advertising or firm's price variable to get the market share they want.

Starting with the average industry values for price and advertising, the managers want to know how much they would have to drop their price or raise their advertising to get the market share up to 11.5%.

After performing a goal seek they got the following results.

Advertising at 110000

Price would have to be 350. Dropping it 13 dollars.

Price at 363

Firm Advertising would have to be 193430 raising it 83430.

Speaking in dollars, the firm's advertising amount seems much more sensitive. However, managers would have to consider other factors such as volume sold, volume discounts, etc. to determine which option would be best.

(click here to go to Sensitivity Analysis)

(click here to go to Scenario Analysis)