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. 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. 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. 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. 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. 5. What have you learned and how does this relate to other      lessons in this course and to your career?
6. 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)

 

4/6/22, 11:51 AM StratSimManagement @ Interpretive Simulations

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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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