Simple Global Network

Simple Global Network

Presimulation Facts

I was very conservative on my spending. I spend little on sales people. I had a total of 5 sales people for at lease 6 locations. This was not enough. My other competitors had at 8 per market. I was afraid to spend on market research thinking that this was not a necessity and will just create an additional expense. I refuse to understand my customer's need so I created brands that did not meet the customers needs. In quarter one to four my business becomes under funded because I invested heavily in CD (100,000 per quarter) that leaves me with less cash available on hand to spend. I underestimate my competitors so I was very willing to open many sales offices and to product lots of units for sale without first taking steps to study the market to see who were my competitors and the price and quality of goods they were offering. I spend a very small amount of advertising because thinking that I do not have any need to because I was supplying a product that customers already demand without looking at the specific features of the product. I paid little attention to my inventory so in my first quarter I over produce. I projected to produce 350 units before even setting up a sales office and hire sales staff. I should have product less units in my first quarter. This lead to substantial amount of waste in my inventory, throughout the entire simulations.

Relationship Between Simulation and Actions

My above actions towards my simulation caused a negative out come on the overall simualtion. My actions caused inventory waste and loss of profits. Waste was (-947 units) and loss of profit margin of (-$942,884)

Success Comparison with Competitors

My competitors were far successful in business than I was. For example Creative Computers and Powerhouse Technology were marketing products both in areas Ny-North America and Paris-Europe where customers need. Olympus and Creative computer have a very strong sales force in Sao-Paulo and Tokyo-Asia. (A total of 8 for both market areas). I had 5 covering all six markets. All my competitors have a least 2 sales offices. I had 6. Power house Technology have a gross profit margin $1,967, 171, Creative Computer $2,075,254 and Olympus profit margin of $1,677,964 on the other hand my profit margin was 875,976.

Possioble Alternatives

If I should re-take the simulation, I would invest a large amount of money. This will allow me to spend enough to investigate all my markets before setting up sales offices. I would hire a more sales people, create good adverting campaign to display my products and most of all spend time to make sure that my brands are what the customers need.

Simulation Analysis

Explain How You Determine Your Brand Design Decisions

I selected Work Force and Traveler because, these brands fall in line with the theme of the company, and it says what the company tries to say. The company's motto is:

“Simple Global Network is the ...