V2 Dulari - Business Simulation
.docx
School
Colombo International Nautical and Engineering College**We aren't endorsed by this school
Course
LOGISTICS 112
Subject
Management
Date
Dec 22, 2024
Pages
22
Uploaded by chamodya1994
ASSIGNMENT ‐01 MANAGEMENT PRACTICE BSS063-6INDIVIDUAL REPORT
Table of Contents1.Introduction.........................................................................................................................................32.Critical Analysis of the application of theories, models, and frameworks into practice at Fiber cycle and usefulness of such tools........................................................................................................................42.1Critical Evaluation of organizing the business.............................................................................42.2Critical analysis of establishing the strategic direction................................................................62.3Critical analysis of the test markets.............................................................................................72.3.1Critical analysis of the adjustment to the marketing strategy to improve performance........72.3.2Critical evaluation of the marketing plan and investment appraisal...................................132.3.3Critical evaluation of the expansion strategy.....................................................................152.3.4Critical Analysis of the performance..................................................................................153.Conclusion.........................................................................................................................................164.Recommendations.............................................................................................................................17References.................................................................................................................................................18Appendix...................................................................................................................................................192
Executive Summary1st Para; Orient the reader on how important it is to evaluate the existing company strategyto make it more competitive and also to better perform in the market as this assignment isaboutstrategyformulation andbringingbetter results.2ndPara : Purposes of the assignment is to present the analysis of the effectiveness of thegroupanditsindividualsinapplyingtheories,modelsandframeworksintopracticeinrespectof running the simulation of the company with evidence and also to critically evaluatetheusefulness of the tools and theories that were applied in running the business . Finallythisreport provides a set of recommendations how the author and the group could haveusedtools,modelsandframeworksmoreeffectivelytoobtainbetterresults.3rdPara :Summary of key findings includes the brand performance and pricing strategy,advertising strategy and adjustments to the marketing tactics and investment appraisal withthefinal outcome. ( conclusion )4thPara:Summaryofkeyimplications(recommendations)Should write executive summary (300 words – excluded from word count)3
1. IntroductionFor market-savvy companies, process management, efficiency and productivity are king.According to Buil, Catalán, and Martínez (2018), determining the market performance of acompany requires evaluating how well it manages key categories. To address and improvebusiness plans, it is essential to examine and iterate. Thus, to accomplish the intended resultsand evaluate the firm's competitiveness in a particular market, it is essential to run a businesssimulation (Matute-Vallejo & Melero-Polo, 2019). The effect on carbon fiber bike prices is themost striking feature of this innovation. Now, carbon fiber bicycles are somewhat expensive.By leveraging 3D printing technology, the new bikes may be made at a fraction of the cost ofcompeting carbon fiber bikes. The new bikes will be able to compete with more costly metalbikes because of their inexpensive price range. Negatively, the buyer must endure a three to five day waiting period while the bike is beingmade. Considering the present and future worldwide markets, the carbon bike industry isexperiencing tremendous and unparalleled growth. While keeping the same 3D carbon bike idea, Smart Rider will be releasing a new line ofcarbon fiber bicycles into certain North American, European, Latin American, MiddleEastern, and African regions, as well as the Asia-Pacific area. Practical applications oftheoretical ideas, models, and frameworks are the focus of this paper's critical examination. Itdelves into the specifics of how they were used throughout the course of eight quarters ofSmart Rider simulations, with an emphasis on the team's individual decision-makingprocedures. The results of using the ideas, models, frameworks, and methods for makingthem even more effective in reaching peak performance. Over the course of eight quarters, this study evaluates the new board's strategic leadership ofSmart Rider in detail. It also lays out the goal's constituent parts, such as segmentation,pricing, sales, funding, advertising, investment, and branding. Also, make sure to examinetools like the SWOT, Ansoff Matrix, Competitive Analysis, and Segmentation.4
Industry data are missing. Please refer the sample assignment and the “points discussedin class” doc and rewrite accordingly. Take Ansoff matrix and BCG matrix from thepresentation.2. Critical Analysis of the application of theories, models, andframeworks into practice at Fiber cycle and usefulness ofsuch tools 2.1Critical Evaluation of organizing the business Putting people on a team and expecting them to perform at their peak right away is notfeasible. In any case, getting everyone to relax and trust one another and establish a settingwhere they can give their all will take time. We reached this level of group development andperformed exceedingly well with the support of the Tuckman model (1965).StageImplications to Smart RiderFormingThe first phase is when new team members join, sometimes unclearabout the team's mission, roles, and integration. They become curiousand eager to learn from leaders. A knowledgeable leader guides theteam.The Smart Rider team understood the importance of money and strategyin company development. We chose a finance- and strategy-savvy CEO.We made this choice since finances greatly affect a startup's success andlongevity.Smart Rider formed the executive committee to start and manage ouroperations, assigning tasks based on experience.StormingThis is the hardest and most important step. Due to unclear teamobjectives, conflicts, and subgroups, team effectiveness may suffer. To surpass the team leader, one must lead in problem-solving and role5
clarification. Smart Rider defines team goals and individual duties. Wealso chose the best communication method, an online video meetingevery other day. To answer inquiries and improve understanding, we usetone of voice, facial expressions, and body language. It helped us graspour roles and overcome our disagreements. Furthermore, it encouragedactive engagement. NormingAfter surviving the Storming stage, team members resolved theirconflicts and gained respect for each other. They also showed teamcomfort. Members show strong unity. The stage team must make decisions methodically. The Smart Ridersimulation models decision-making and team norms. Team memberslearned the decision-making process. The team showed remarkable competence and inventiveness, as well astremendous Smart Rider team loyalty.PerformingWell-established team cooperation and consensus indicate maturity andtrue interdependence. Team members show more flexibility. This stage isextremely productive personally and professionally. Smart Rider has greatly improved group performance and capacity.Team members understand each other's strengths and shortcomingsduring the group process and work together to achieve goals. Together,they completed tasks in subgroups, exhibiting shared leadership. Wecommunicated and provided comments via WhatsApp and Zoom.AdjourningAt this juncture, the team frequently achieves its objective and is readyto dissolve from the task and from one another. The team thatsuccessfully completes the four preceding phases will be dissolved uponachieving its team objectives. We have successfully executed the designated simulation task in SmartRider and accomplished our respective duties from Q1 to Q8. Eachperson exhibited their grief and lack of energy. It exemplifies the6
established correlation that was formed in previous stages. 1.1Critical analysis of establishing the strategic direction The PESTEL is crucial approaches used in strategic decision-making. These elementsenhance comprehension of the external environment and facilitate evaluation of thecompetitive landscape of the market. Smart Rider is a newly founded company, and its boardof directors has recently been appointed. To gain a thorough comprehension of the presentcarbon fiber bicycle market, encompassing its catalysts and patterns, as well as theadvantages and disadvantages of Smart Rider, it is advantageous to conduct a PESTELanalysis (Appendix A) along with a SWOT analysis (Appendix C). Consequently, SmartRider will be able to optimize opportunities and leverage its diverse capabilities. Vision of Smart RiderTo be the most sought-after bicycle company in the world (refer the ppt presentation)7
Mission of Smart Rider1.2 Critical analysis of the test markets 1.2.1Critical analysis of the adjustment to the marketing strategy to improveperformance.1.2.1.1 Marketing StrategyThis section assesses the company performance and strategy planning of Smart Riders, aswell as the possible impact of numerous factors on the overall market dynamics of SmartRider. This section discusses the concept of evaluating Smart Riders' commercialperformance in terms of sales and marketing management.To effectively promote their products or services, engage with their target audience, andachieve their business objectives, a firm needs to formulate a marketing plan. Organizationstypically employ a diverse range of methods when it comes to their product or serviceofferings. McCarthy and Perreault (1987)describe the marketing mix as the controllableelements that a firm may manage to meet the needs of its target market.8Empowering active, healthy lives through innovative bicycles, filling every journey with joy andwell-being.
Is this table relevant to this section? I cannot see any relevanceSmart Rider employed essential promotional strategies to effectively reach a wide range ofpotential customers. Three marketing strategies were implemented namely Reach, Frequency,and Gross Rating Points (GRP). Our products were systematically pushed globally throughonline marketing and print media. Data was collected on the frequency of advertisementviews among the intended audience to generate statistics. Based on this information, weassessed the GRP percentage and made necessary modifications to the promotional plan forthe next products. Thanks to Smarts Rider's proficient financial team, the companysuccessfully established an appropriate budget for marketing and promotions. Bike it up hadnotable online success, evident from the statistics that support the effectiveness of ourgroup's decision about the advertisement promotion.This sentence is not clear.1.2.1.2 Pricing StrategyThe pricing decisions of Smart Rider were mostly determined by the price range that theywere willing to accept. These judgments were based on the market research data that they hadacquired. Value-based pricing is implemented in specific market segments, where the price ofa product is established by identifying the highest price that aligns closely with the buyer'swillingness to pay. Initially, price reductions for basic goods (is this correct?) are9
implemented, considering both price sensitivity and market entry. The price is typically set tobe just below the maximum amount that the buyer is willing to spend.To arrive at the prices, the most important factors were. (this sentence is incomplete). Eachindividual unit's production expenses were proportionate to the number of units that weremanufactured. Acquiring adequate market exposure was essential. Due to the upfrontexpenses associated with creating marketing, newer products generally come with a higherprice. The pricing was additionally influenced by the supplementary expenses linked toadvertising through other kinds of media. The procedure of opening and leasing storescontributed to the overall cost. Some of the operational expenses were designated for therecruitment of sales and service personnel. Review this paragraph. Some sections are notclear.Smart Rider aims to make affordable, versatile bicycles. We base discount quantities on salesand demand. We base our pricing strategy on competitiveness. Smart Rider bicycles arecheaper and have more features than comparable products in their categories. We create adiverse portfolio that can compete in its market location.10
11
1.2.1.3 Competitive BenchmarkingThis approach can be used to evaluate and measure the performance of an organizationcompared to other companies, industries, or divisions. This method is quite advantageous foridentifying areas that necessitate enhancement and defining performance goals.Benchmarking can be conducted across various domains, including as operational efficiency,customer satisfaction, financial performance, performance indicators, and product quality,among others.Smart Rider, acknowledging its smaller market share across all categories, chose to compareitself to the organization that possesses the largest market share in terms of advertising,product qualities, and diversity.1.2.1.4 ProfitabilityThe aim of this analysis is to conduct a financial assessment in order to analyze theprofitability and financial performance of the company or product. The primary goal is toevaluate and examine the business's ability to generate profits through the utilization of dataand doing matrix analysis. Moreover, it discerns the specific regions where we mightdecrease costs without affecting the overall revenue or profits. At the conclusion of the eighthquarter, Smart Rider had generated a total profit of 2,075,534/-, which had a negative effect.Smart Rider achieved a satisfactory gross profit margin from the seventh to eighth quarters.However, despite increasing sales to offset expenses, the company only achieved moderategrowth. Despite the considerable potential demand, Smart Rider's market share wasexceedingly low in all segments. This suggests that the marketing plan should be revised totarget a broader segment of the market and generate additional revenue. Furthermore, the netprofit trend indicates a significant lack of efficiency in decision-making concerning operatingexpenses and revenue generation. Nevertheless, the company's research and developmentexpenses did not generate equivalent income during this period as the amount spent on R&Din the latter half of the term, starting from Q6. Smart Rider allocated a substantial budget onresearch & development to align their approach with their status as pioneers in the industry.12
Please include a table as in the sample assignment summarizing the results.1.2.2Critical evaluation of the marketing plan and investment appraisal1.2.2.1 Investment StrategyThe organization's investment plan plays a crucial role in its ability to sustain operations. Thisis a financial allocation strategy aimed at creating future revenue, maximizing wealth forshareholders, and satisfying fund suppliers.Smart Rider allocated funds towards research and development and the creation of a newstore. Despite earning a profit of 2,075,534/-, the company still has 2,706,382/- remaining forfurther investment. It has been found that the provided monies are not being fully utilized togenerate profits. While competitors established numerous brands and stores during the initial13
stages, Smart Rider entered the new market at a later point, specifically in the seventh quarter.It could be given a high priority in the first quarter.1.2.2.2 Financial StrategyHaving a funding strategy is crucial for all levels of a firm. Financial management involvesthe strategic allocation and optimization of financial resources to achieve the business's goals.Financial strategy ensures the company's future growth, financial stability, and operationalefficiency by effectively utilizing and allocating resources.14
Smart Rider did not incur any debt to meet its operational requirements; instead, the companyonly relied on internally generated cash. Consequently, there were no financial expensesincurred because of this. Furthermore, it ensured the availability of funds for any potentialfuture expansion that could be required.1.2.3Critical evaluation of the expansion strategySmart Rider is progressively increasing its market presence in all three regions to strengthenits position as a worldwide brand. Furthermore, we allocated a sum of around one milliondollars towards advertising and marketing endeavors to facilitate the distribution of theproduct to consumers. Direct sales, commonly referred to as face-to-face sales, accounts for asubstantial proportion of the overall marketing expenditure. Moreover, due to Smart Rider'simplementation of novel brands and establishments throughout diverse regions, thecompany's revenue had a commensurate growth. Ultimately, Smart Rider will accumulatesurplus funds, enabling them to venture into untapped regions and diversify their productofferings. Smart Rider will be able to expand its range of products. Smart Rider recognizedthe importance of research and development and made investments in developing productfeatures that properly meet the needs of their clients. This strategic approach resulted in quickgains in the subsequent quarter consistently. However, there was a notable expense incurredin the sixth quarter. Nevertheless, the outcome is expected to have a positive effect on sales inthe subsequent quarters. The primary demands of the customers in different sectors areconsistently considered during the development of subsequent product designs. These severalvariables collectively contributed to Smart Rider obtaining a favorable brand evaluationrating universally.1.2.4Critical Analysis of the performanceA communication process that takes place between an employee and supervisor on acontinuous basis throughout the year with the purpose of facilitating the achievement ofstrategic goals and objectives for those organizations is one definition of performancemanagement in organizations (Alves, et al., 2020). According to this definition, performancemanagement is a process that takes place in organizations. At the conclusion of the 9thquarter, the information that was presented in this section highlighted the numerous15
accomplishments that Tirenetic what is this word? had accomplished in terms of marketdemand, market share, and profitability.There has never been a figure that has suggested that the regional profitability for NorthAmerica and Europe is 36% of total sales revenue. This is even though regional profits havebeen highlighted at 1,524,258 and the Latin America region has incorporated 32% profit fromsales revenue that has amounted to 886,216 respectively. Never number has also brought tolight the fact that the Latin America region's regional profitability included a 36% profit fromsales revenue that has totaled 886,216. (Asia Pacific region is not here? This para is notclear to me.Regional ProfitabilityReport ItemNORAM - EUROPELATAM - MEASales Revenue4,282,6632,746,441- Rebates120,235149,240- Cost of Goods Sold1,640,5671,243,613= Gross Margin2,521,8611,353,588Store Leases168,00058,000+ Sales Force Expenses253,782118,471+ Brand Promotions15,00014,300+ Special Programs60,52957,166+ Point of Purchase Display2,4002,400+ Internet Marketing Expenses96,76351,516+ Brand Advertising381,129145,519+ Market Research20,00020,000= Regional Expenses997,603467,372Regional Profit1,524,258886,216% from Sales Revenue363216
2. ConclusionThis study examines the application of theoretical concepts, models, and frameworks toSmart Rider, a firm that has introduced 3D carbon bikes. The focus lies on the individualdecision-making processes within the team, strategic leadership, segmentation, price, sales,financing, advertising, investment, and branding. The study employs many analyticaltechniques, including Competitivecompetitor analysis, Segmentation, SWOT analysis, andAnsoff Matrix, to evaluate the company's level of achievement. Take Ansoff matrix and BCG matrix from the presentation.The strategic orientation of Smart Rider was determined by conducting PESTEL and Porter'sFive Forces analyses, with a specific focus on the carbon fiber bicycle market. Thecorporation employed three marketing tactics, namely Reach, Frequency, and Gross RatingPoints (GRP), to effectively target potential clients. The company's pricing strategy was17
determined by the customers' willingness to pay, and price reductions were implemented inresponse to changes in demand and sales.Competitive benchmarking enables firms to assess their performance relative to others,pinpointing areas that require enhancement and establishing performance objectives. SmartRider's financial review indicated a moderate increase in the gross profit margin. Thecompany's expansion plan, which included direct sales and new brands, increased revenue,and growth.Challengesfacedbyindividualsandthegroup Howeffectivearethetoolsyouused3. RecommendationsSmart Rider's reputation and future growth prospects have been negatively impacted by thecompany's failure to retain a significant portion of its intended market and enhance itsprofitability. The previous suggestions have been summarized and are presented in thesubsequent paragraphs to facilitate understanding. We trust that they will guarantee aseamless execution of the surgery, greatly satisfying our expectations. Hence, the corporationmust eliminate the current brand and promptly commence the process of constructing a newone. Hence, the company expects that forthcoming profits will exceed the initial expectations.The company's divisional losses have worsened due to the growing marketing budget. Thecumulative losses incurred by the company's divisions have been increasing as well. Thisdiscovery can be attributed directly to the escalating expenses associated with advertising aproduct or service. To mitigate these challenges and reduce losses, the company shouldcompensate its senior leaders for the investments made during the second quarter. Theremuneration will be allocated to higher-ranking managers. As a result of this occurrence, thecorporation will start to see a decrease in the amount of money it loses. Because of this, thecompany will initiate the process of observing a decrease in the total losses that it experiencesover the accounting period.This para is not very clear. Break paragraphs Recommendtheoreticalmodelsthatarebetterapplicable(theoreticaldebate)18
ReferencesAlves, P. et al., 2020. Strategic talent management: The impact of employer branding on the affective commitment of employees. Sustainability, 12(23), p. 9993.Buil, I., Catalán, S. & Martínez, E., 2018. Exploring students' flow experiences in business simulation games. Journal of computer-assisted learning, 34(2), pp. 183-192..Matute-Vallejo, J. & Melero-Polo, I., 2019. Understanding online business simulation games:The role of flow experience, perceived enjoyment and personal innovativeness. Australasian Journal of Educational Technology, 35(3), p. 35.McCarthy, E. J. & Perreault, W. D., 1987. Basic Marketing : A Managerial Approach. 9th ed.,Irwin: Homewood Ill.Tuckman, B., 1965. Bruce Tuckman’s Team Development Model., s.l.: Open Journal of Business and Management.References are not enough. Minimum 20 references19
Appendix (refer the presentation and include those points as well in different words in addition to below points . Pls amend accordinglyAppendix A: PESTE Framework Political FactorsThe impact of Ukraine's conflict with Russia on itsrelationship with other countries, particularly Russia, couldsignificantly affect the export and import of carbon fibermaterial.Economic FactorsUnbalanced Demand and SupplyCompetitors Always lowering the price.Opening Worldwide Sales channelsSocial FactorsSpecialized TrainingsTechnological FactorsEase in the capacity expansionLight weight carbon fiber bikesEnvironmental FactorsVarious products with different setups serving several purposesAppendix B: VRIO Framework for Smart Rider (is the term VARIO correct?)Value PropositionIt is important to determine the primary value propositionsthat the VARIO framework provides to the carbon fiberbike manufacturers. A reduction in costs, improvements inperformance, sustainability, and possibly even otherconsiderations could fall under this category.Affordability and CostSavingsDetermine the extent to which the VARIO framework allowsfor the reduction of the costs associated with the production of20
carbon fiber bicycles. Materials, production techniques, andtechnological efficiencies are some of the aspects that should betaken into consideration to attain cost savings.PerformanceandQualityAssess how the VARIO structure influences carbon fiber bikeperformance and quality. Check for improvements in structuralintegrity, weight reduction, aerodynamics, and otherperformance parameters.MarketCompetitivenessExamine how VARIO positions carbon fiber motorcycles inmarket. Consider whether the advancements make carbon fiberbikes more competitive than other materials or productionprocesses.AccessibilityandMarket ReachExamine how the VARIO architecture affects carbon fiber bikeaffordability. Determine if it makes high-quality carbon fiberbikes more inexpensive and accessible.SustainabilityandEnvironmental ImpactExamine VARIO's environmental sustainability. Considerwhether carbon fiber bike production reduces waste or energyuse.Industry Collaborationand AdoptionExamine whether important parties have accepted the VARIOframework and whether it promotes industry collaboration.This may suggest widespread acceptance and integration.RegulatoryComplianceEnsureVARIO framework developments meet industryrequirements and laws. Consider how the framework coverssafety, quality, and other regulations.Consumer ResponseWatch consumer reactions to VARIO-made carbon fiber bikes.Analyze market feedback, reviews, and consumer preferencesto assess innovation adoption and success.21
Appendix C: SWOT Analysis (refer the presentation and include those points as well in different words in addition to below points . Pls amend accordingly22Strenghts* Good Repotation* Able to increase product demand through promotional campaigns* Wide selection of recreational and mountain bikesWeakness* Law price target compaired to competitors* Delaying the invention of bigger markets* Didn't filled all custormers demandOpportunities* Available huge market sector for mountain and speed bikes* The massive growth of the marketThreats* Substitute productsSegmentation of several competiors * Short product life cycle