Market analysis of Stratsim management simulations

Market analysis of Stratsim prudence simulationsStratSim management simulations atomic number 18 on-line games pioneered by Michael Deighan and Stuart W.James from Virginia USA aimed at giving students a wider expo positive(predicate) in the real gentleman business arna. The initiators observed students to experience the simulations as a unique learning event where the knowledge attracted so far within the academic years could be now do into practices.Quintessenti in all in ally, apart from creation a learning experience it was anticipated to down a challenge to both managers and executives. According to the case, This is far easier to say than to achieve.1.1. pains OverviewStratSim management simulation was a game-like, all about different cockeyeds operate(a) in an automobile diligence whose managers compete to the level best by riding horse goals and objectives that are intended to outwit its immediate and within industry competitors. The managers use efforts to t he lofty hat of their abilities so as to ensure right decisions are pull forward just to earn superb profits referable to great sales ascribed by the management.Altogether, through and throughout the simulations in that location had been a total second of seven (7) besotteds ranging from firms A, B, C, D, E, F A and G. The initial alphabets of each firm meant that its individual vehicles began with either of them from A until G. All these firms had a similar starting establish to commence its operations including funds.Among the firms, the best one was to be judged on feat bases mainly in terms of mart place share, market value, income generated as wellspring as efficiency in playing with the merchandise in additionls i.e. marketing strut (4 Ps).1.2. soakeds Overview starchy F was a group formed by quartette members who are Raya Nassor, Sarah Alley, Shahista Hasmani and I, the author of this report. Firm F comprised of three (3) vehicles which were Fantasy, Fast and tilt while their rankes were Family, Truck and Economy respectively.I worked hand-in-hand with my colleagues in making the best decisions for our firms survival in an ocean of high waves of competition. The firms utmost plan was to define itself as a market leader by reading clean markets and meeting the inevitably and desires of customers through vehicle attri exceptes.However, on that point was a class which wasnt served by around all the rival firms. It was known as AEV which moldiness be summateressed as technology modern with integrated marketing efforts. As far as Firm F is implicated, my colleagues and I unyielding not to opt for it as our firm was keen enough on cost minimisation and not spendthrifts of resources.2.0. Mission and hatfulMission argumentMission rehearsal aims to provide employees and stakeholders with clarity about the overall map and raison dtre of the organisation. (Johnson et al 2009, p.112)According to Peter Drucker (father of modern manag ement), what is our business? is all about its mission. It is also known as creed of statement.Firm Fs statement of goal could beTo address different consumer segments desires through value psychiatric hospital with respect to their financial capability when it comes to automobiles and eventually ending-up with immense profits generated from sales.Vision StatementA vision statement is concerned with what the organisation aspires to be. Its purpose is to set out a view of the future so as to enthuse, gain commitment and stretch performance. (Johnson et al 2009, p.112)Therefore, firm Fs dream is as fol humiliatedsTo be a company of the masses, for the people and by the people in the automobile industry.3.0. External and Internal AnalysisThese are the fashion models employ to strike out an analysis of an organisations progress by examining two major extremes, the inward (internal) as well as the outer (external) environss.3.1. PESTELThe PESTEL framework categorises environmenta l influences into cardinal main types political, economic, social, technological, environmental and legal. (Johnson et al 2009, p.25)The external environment is much to a greater extent complex than internal because the earlier could exert enormous pressure to firm F to the extent of determining its ways to carry on its operations. straightaway let me examine all the six factors while reflecting firm F. governmentalThis refers to the roles played by the government together with the degree of countries stability which get out influence production of the tug vehicles for firm F to move on or lag behind. Also, this factor will determine whether the firm is undermined by a particular set of restrictions in its business such as not manufacturing vehicles which are similar to those possessed by the government.Throughout my analysis, all the firms including firm F were operating in a peaceful environment for the fol outseting reasonsFirms were increasingly thinking on product developme nt and except production.Various customer categories continued to buy automobiles of their desire as they did not doubt the political situation in their areas.Increase in the quash of dealers in all the extremes of a compass attention.Economic at heart the agate line of the game, the business cycle wasnt predictable due to the fact that pricing structures occupied by the automobile firms was different to one an early(a).Firm F and other were aggressive towards increasing the dealer discount rates thinking that it would rising its motor vehicle sales and hence plus its mercenaryness.However, the economy of the firms operating in the simulation kept on deteriorating with reference to the starting market shares, market values, stock price and overall net income. At the end, economies were severely shaped.SocialThis refers to the society in which the firms are operating their automobile business. Within the society, people differ in culture and demography. Some had been consid ering others as their shoot for of reference in buying certain cars.Also, its obvious that as there are many automobile firms means to a greater extent vehicles down the roads and hence more traffic collisions to the extent of delaying people planned activities during the day.technicalAdvancement in technology was restricted among the firms as there were maximum limitations of technological capabilities in interior, styling, safety and quality extremes for which not a integrity firm could exceed.Above all, the firms were given an opportunity to make developments and marketing for a new class i.e. AEV which at the start had no introduced vehicle. The AEV being technology-driven, it is doable that it could use electricity, gas or other means. From my narrow view, I perceive AEV development to be more risky.EnvironmentalHere Im greatly concerned because while vehicles are developed who knows how the waste materials are damped. This may eat up greatly deteriorated the soil and the species inhibiting in and on. These vehicles emit green house gases which add more health concerns to its own users through befoulment after the give the sack has been burnt in the engines.LegalIt is up to the government to make sure that, a firm which goes against the labour laws, health and safety regulations, environmental rescue and trade practices are debarred from operating in the automobile industry.The government should ordinate laws which limit the number of vehicles to be owned by a integrity person unless it is big company with large operations in-order to play down pollution on air, land and water sources.3.2. Porters Five Forces ModelAccording to Michael Porter, there are five cut-throat forces that demonstrate the rules of competition within the automobile industry and which determine both industry attractiveness and the degree of profitability. These forces are panic of new EntrantsThroughout my analysis, I realised that for a firm to enter into automobile indu stry is not that much easy due to the reasons that, too much investment funds will be required to arrest a successful starting point as a way out of fact its not all about producing but knowing the needs of the market through Research and Development (RD) which costs greatly.For late movers, enjoying economies of outperform will be highly minimal because there are giants already operating in large scales. Some of the giants may have do either backward or forward integration which may deflect new entrants.Hence, the threat of new entrants in the automobile industry is petty(a) but firms need to be extra careful as the world is dynamic.Threat of SubstitutesThere are plenty of substitutes to vehicles but it doesnt mean people will shift towards them i.e. bicycles, scooters and walking. I dont expect people to abandon automobiles due to increasing costs instead people will shift to more economical ones from luxurious.Hence, the threat of substitutes is medium.Bargaining power of S uppliersSuppliers degree of power is funky due to the existence of a big number of components and parts distributors in the automobile industry. It is likely for a manufacturer to switch from one supplier to the other. On the other side, firms at StartSim are likely to enjoy low prices of components because suppliers are many.Bargaining power of BuyersIn the StratSim world, this is high as customers are likely to navigate from one manufacturer to another if their needs and desires are not well addressed considering the fact that, there are almost seven (7) firms operating in automobiles.Reluctantly, firms will be forced to annoy on customers decisions on the requirements, pricing and other vehicle attributes. Customers are the heart and soul and a major reason for the firms existence.Rivalry IntensityThis is very high because of the presence of many firms including firm F operating in the automobiles. These firms used various business strategies which have got differing effects to the competition intensity. Hence, the degrees of profitability and market shares will differ at large.3.3. SWOT ANALYSISThis is a framework used to examine internal and external environment.Strengths (Internal)Firm Fs names of its motor vehicles were unique i.e. Fantasy, Fast and Fish which couldnt be easily imitated by its rivals.Weaknesses (Internal)distraction of stocks which had a greater fall in value together with more inventory days.Failure to make proper use of the marketing tools i.e. promotions and prices.Firm Fs product ranges didnt compete effectively with those of its competitors.Opportunities (External)The AEV class vehicles could be a weapons platform for firm F to maximise its market share and sales growth. lamentable performance in other firms could allow firm F to gain more customers who couldnt benefit from the earlier firms.Moving into markets which were not served before through market and product development.Threats (External)Continuous technological develo pments for which firm F couldnt cope. worldwide economic recessions resulting to fall in currencies and slowing vehicles demands.Automobile industry being competitive, firm Fs employees may have been head-hunted by other rival firms conduct moving away the company secrets.4.0. Strategic be afterStrategy is the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations. (Johnson et al 2009, p.3)Planning refers to making decisions on which strategic choices to carry forward in the rail of the business.4.1. Basic StrategyFirm Fs long term strategy is to shot vehicles with the lower possible investments but in maximum numbers with the intention of increasing the net cumulative income and market share from period 1 until period 4 with much focus on the Family class.4.2. TechnologyFirm F thought that to go hand-in-hand with advan cing technology as not necessary because it could lead it away from high profitability. Instead minor upgrades in the vehicle attributes are considered. Technology will be used to minimise wastage so as to increase productivity.4.3. Financial ControlThe management of firm F aspires to have immense sales and increasing profitability but at same time controlling Research Development as it rule like to spend a lot for it. It looks forward to increase assets held while decreasing liabilities including debts.4.4. MarketingFirm F intend to puddle awareness to both society and potential customers through advertisements and promotions. Also, efforts will be done to review pricing structures and the vehicles with related products to be of value to customers. dissemination points will be monitored too.4.5. Future DevelopmentThe management of firm F looks forward to do major upgrades in its motor vehicles if the level of profitability will permit it to do so. Otherwise, the kind of develop ment which is expected could be maximising of the firms plant production capacity.5.0. Lesson I learnt from simulation exerciseI came with a mindset that a firms market share could be reciprocally proportional to net cumulative income. Also, it wasnt a good idea at times to discuss with members from rival groups as my group was at net decision mislead by another group leading to its low income and stock price too.Teamwork is the essence towards achieving success as decisions were jointly make by group members who differed in knowledge, background and experience.6.0. ConclusionTo me, it was much lucrative due to the fact that I had been exposed from theoretical to practical because the simulations do me think outside the box as to whether the strategies I took part in could outwit competitors.Finally, I agree that a business without strategy wont have a direction.