Simulation Report
Individual Simulation Report
This week’s learning activities will focus on the Strategy Management Simulation. For this week, meet with your team to complete Decisions. Finally, each student will independently prepare a brief summary for the week’s simulation efforts.
Learning Outcome:
- Apply strategic business decisions using Interactive Strategy Management Simulation.
Learning Objectives:
- Apply strategic business decisions through strategic simulation for the auto industry.
Learning Materials:
- Interactive Simulation
Grading Deliverables:
- StratSim Decisions
- Assignment: Individual Simulation Report (attached decisions, results and summary from simulation account, we are Team A (a)).
Each student, independently of the team will prepare a brief summary for the week’s simulation efforts.
Prepare a report which will include the following information:
- 1. What was your one corporate generic strategy as reviewed from our text for the week? Break this down by your target market and your competitive advantage. Why? Did your overall strategy change since week 1? Why?
- 2. What was your strategic action plan going into the rounds detailed in Blackboard including the reasons for the moves and how it relates to your overall strategy? What are your objective and measurable goals for the moves? Did you have to make operationally reactive moves not related to your strategy? Why?
- 3. What was the objective, fact-based results compared to your intended moves and the reasons of these moves generally? How did your moves advance your one Generic Strategy? Be specific. Did you get the objective results you expected? Why/why not? Share any objective measures from the simulation program that are pertinent to the strategic implementation results and note any purely operational moves. How did your competition and the external environment impact your moves? What is your analysis of this data results compared to your intended results?
- 4. What do you think the next set of objective and measurable moves you will have to consider, and what will you suggest to your partners regarding next week’s moves?
- 5. What have you learned and how does this relate to other lessons in this course and to your career?
- 6. Provide a log regarding the specific dates and times that you accessed the simulation system including specifically when and how you and your teammate reviewed and discussed the simulation system data and decided on your moves to make. A sample is provided in week 1.
· Your report this week should cover periods 1 thru 4 inclusively with fact-based objective data that you analyze from all 4 periods.
· Your grade for each of the simulation report papers will be based on your analysis and critical thinking around the selection and implementation of the corporate strategy for your company.
· Your analysis must be increasingly more thorough with each paper as you become more familiar with the simulation program and with the concepts from our course. The grade will also include a portion based on your team’s current position and your team’s work together.
Submission Details:
· Your assignment will be between 1000 words and follow APA Guidelines.
· Include a cover page and at least your course text as a reference.
· Provide Plagiarism report
Textbook:Thompson Jr. A. A, Peteraf, M. A., Gamble, J. E., and Strickland III, A. J. (2022). Crafting & Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases. 23rd Edition. McGraw-Hill. ISBN: 978-1-260-73517-8 link:
Crafting & Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases, 23rd Edition | Thompson, Arthur, Peteraf, Margaret, Gamble, John, Strickland, A. | download (u1lib.org)
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Decisions / Decision Summary
Interior Styling Safety Quality Total
Maximum 10 12 10 12
Firm Maximum 5 5 5 6
Cost to Increase by 1 (mill.) $189 $229 $263 $301 $982
Est. cost savings of increase
(mill.) $12 $4 $25 $7 $47
Increase Attribute: No No No No
Curr. Expenditure (mill.) $0 $0 $0 $0 $0
Technology
Dev.
Center Project Class Size HP Interior Styling Safety Quality
Base
Cost*
Current
Expense
(mill.)
Maximum: 5 5 5 6
1 no project
2 no project
Construct a new center for $643 Million
Total Expense: $0
* Base cost only; use the Pro-Forma for a projection of the unit cost when you launch the upgrade.
Product Development / Projects
No concepts were created in this year
Product Development / Concepts
Corporate Advertising Millions
North $25
South $25
East $25
West $25
Social Media $6
Direct Marketing $2
Total $108
Ad Themes
Segment Targets
Marketing / Corporate
Interior Styling
✓ Safety Quality
Performance
✓ Value Seekers (1) ✓ Families (2)
Singles (3) High Income (4)
Enterprisers (5)
Showroom
StratSimManagement Past Start 1 Year 2 4
Stock Price: $50.60Introduction Company Market Competition Tools Decisions
Firm A
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Vehicle Class MSRP
Dealer
Discount
Advertising
(millions)
Advertising
Theme
Promotion
(millions)
Sales
Forecast
(000’s)
Remove
From
Market
Alec E $15,351 9.0% $40 Styling $20 612 No
Alfa F $24,084 11.0% $80 Interior $40 344 No
Awesome U $21,149 14.0% $60 Quality $30 315 No
Totals $180 $90 1,272
Marketing / Products
Total North South East West
Full Coverage 800 200 250 150 200
Established 515 150 120 125 120
Sched. Change 0 0 0 0 0
Coverage 64.4% 75.0% 48.0% 83.3% 60.0%
Dealer Inc./Dec. (0% limit: ±0) 0 0 0 0 0
Coverage with Current Decisions 64.4% 75.0% 48.0% 83.3% 60.0%
Training and Support (mill.) $30 $9 $7 $7 $7
Per Dealer $58,252
Note: The estimated cost of opening or closing a dealership is $2 million. Average overhead per dealer is estimated at $300 thousand.
Distribution
Prev.
Sales
(000’s)
Current
Inventory
(000’s)
Scheduled
Production
(000’s) Flex
Retooling
Costs
Mill. $
Alec 612 0 611 Yes $95
Alfa 344 63 400 Yes $0
Awesome 315 66 335 Yes $0
Total 1,272 129 1,346 $95
Capacity (000’s) 1,200
Scheduled Production 1,346
Over Capacity Charge (mill.) $335
Est. Plant Cost for Add’l 100k Mill. $ $724
Capacity Change (000’s) 0
Manufacturing
Est. Plant Cost Mill. $ n/a
Est. Plant Sale Price Mill. $ n/a
Book Value Mill. $ n/a
Loss on Sale of Plant Mill. $ n/a
Current Cash Balance $9,138M
Purchase 1 Year CD @ 3.0% $0M
Finance / Cash
Current Stock Price $50.60
Current Shares Outstanding 365M
Current Market Value $18,469M
Issue Stock (Negative value is repurchasing.) $0M
Dividends Paid $100M
Finance / Stock
Short-Term Debt
Finance / Debt
Showroom
StratSimManagement Past Start 1 Year 2 4
Stock Price: $50.60Introduction Company Market Competition Tools Decisions
Firm A
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Loan Balance @ 7.5% $10,539M
Loan Repayment $0M
Long-Term Debt
Current Bond Rating B
Issue Bonds @ 5.5% $0M
Total Debt $10,539M
There is no special decision this period.
Special Decisions
Showroom
StratSimManagement Past Start 1 Year 2 4
Stock Price: $50.60Introduction Company Market Competition Tools Decisions
Firm A
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