BUSINESS GAME

Business Game

Business Game

Introduction

Strategy is basically a game plan for any business. Businesses that focus more on strategic planning, shows better and efficient results. The strategy of a business includes sound thought out approach for positioning the business, efficient usage of resources, customer satisfaction, competitiveness of the business in the market and a process for achieving great business.

Starting Situation

Firm A operates in the automobile industry and it has competitors B, C, D and E operating competitively in the industry. Firm A has its own set of policies that it follows in order to run its operations and fulfill its objectives. In period 1, it is worth noting that firm A has asset turnover ratio of 0.161 which means that, every $1 asset is producing $0.161 of income. Following table shows the ratios more clearly,

Return on Assets

0.161

0.36

0.294

0.162

0.167

Firm B has a ratio of 0.36 which is the highest in the industry and it shows that firm B has so much efficient assets that they are capable of generating $0.36 of income on every $1 asset. Our firm is trying to compete in the industry so to give better performance and compete in the industry. To cater the need of competence and bring better results, a great strategic plan is required which could assist firm A to achieve its ultimate objectives and get increased confidence, good image and better performance in the industry. Following is the great plan designed by the experts of firm A.

Business Definition

The company (Firm A) has a wide range of vehicles including cars, SUVs, minivans and even trucks. Our target market is to capture every type of customer irrespective of any discrimination. We deal in a wide variety of utility, economy, family, luxury and sports cars. Moreover the market that requires minivan or even trucks, we provide them everything as per their requirements. We want to cater the needs of every of our potential customer and give him all the very best possible from our end. It is because we have an objective to achieve all time success through viral marketing i.e. word of mouth advertising and achieve success in every market we enter and get the highest share in that market. It has been made possible through our well designed strategic plans and continuous research for the development of our business (Bergen & Peteraf, 2002, pp. 157-169).

Firm A has a great product line in order to cater its consumer market providing them with exclusive and outrageous varieties of vehicles. The table gives a snapshot of the product line of Firm A.

Vehicle

Class

Unit Share

MSRP

Size

Eng.(HP)

Alec

Economy

0.136

15351

14

135

Alfa

Family

0.074

24084

28

165

Awesome

Utility

0.072

21149

40

220

Beaut

Luxury

0.04

38385

62

240

Boffo

Family

0.023

35003

49

200

Buzzy

Sports

0.033

34652

54

190

Cafav

Family

0.045

31361

49

165

Camini

Minivan

0.042

24144

82

200

Climax

Luxury

0.028

45997

74

240

Defy

Family

0.097

25921

43

165

Delite

Economy

0.078

11293

5

85

Detonka

Truck

0.088

19572

66

185

Efizz

Family

0.098

18869

35

140

Estruck

Truck

0.07

21843

75

280

Euro

Utility

0.077

26528

59

200

Following table shows different segments of consumers that firm A deals with.

Segment

Units(000's)

Chg

A

Value Seekers(1)

813

-0.04

0.196

Families(2)

1598

0.05

0.402

Singles(3)

812

0.05

0.324

High Income(4)

347

0.05

0.043

Enterprisers(5)

572

0.08

0.134

 

 

Total

4142

0.04

0.279

Competitive Advantage

Any business has some particular competitive advantage with which it outstands in the market. It may either be any management efficiency or any other advantage such as bulk raw ...