Essay on Business Game

Contents 1. Introduction 4 1.1 Business Objectives 4 1.2 Summary of the company’s performance 4 1.2 The Performance Table 4 2. Company Performance 5 2.1 Round 1 5 2.1.1 Forecast 5 2.1.2 Finance 5 2.1.3 Stock 7 2.1.4 Market Share 8 2.1.5 Rationale for Round 2 decisions 8 2.2 Round 2 10 2.2.1 Forecast 10 2.2.2 Finance 10 2.2.2 Competition Data 12 2.1.5 Rationale for Round 3 decisions 14 2.3 Round 3 15 2.3.1 Forecast 15 2.3.2 Finance 15 2.3.3 Market Shares 16 2.3.4 Rationale for Round 4 decisions 16 2.4 Round 4 17 2.4.1 Forecast 17 2.4.2 Finance 17 2.5 KPI Trends 18 3. Learning 22 3.1 Finance 22 3.1.1 Budgeting 22 3.1.2 Balanced Scorecard 22 3.2 Operations 22 3.2.1 Total Quality Management 22 3.2.2 Performance benchmarking 23 3.3 Marketing 23 3.3.1 Target Marketing 23 3.3.2 Innovation and New Product Strategy 23 3.4 Human Resource Management 24 3.4.1 Performance Management 24 3.4.2 Human resource planning 24 4. Team Performance 25 4.1 Team Organisation 25 4.2 Roles 25 4.3 Teamwork 26 4.4 Decisions 27 4.5 Leadership 27 4.6 Effective Teamwork 28 6. References 29 7. Appendices 30

Figures

Fig 1: Forecast VS Results for Round 1 finance
Fig 2: Forecast VS Results for Round 1 stock
Fig 3: Forecast VS Results for Round 1 Market shares
Fig 4: R1 VS R2 finance
Fig 5: R1 VS R2 Sales Income
Fig 6: R2 Productivity Comparison between Competitors
Fig 7: R2 Weekly Salary VS Strike days
Fig 8: R2 VS R3 finance
Fig 9: R3 VS R4 finance
Fig 10: Round 1-4 Gross Margins
Fig 11: Round 1-4 Market Shares
Fig 12: Round 1-4 Shareholders Funds
Fig 13: Round 1-4 Warranty Costs
Fig 14: Round 1-4 Productivity (car/worker/year)

Tables
Table 1: Companies performance over the four rounds
Table 2: Forecast for the Round 1 decisions
Table 3: Forecast for the Round 2 decisions
Table 4: R2 Unsold Stock Comparison between Competitors
Table 5: Forecast for the Round 3 decisions
Table 6: Forecast for the Round 4 decisions
Table7: Round 4-1 Medium and Luxury car prices

1. Introduction 1.1 Business Objectives

Our long-term business objectives were as follows: * Attain a minimum of £650m profit after tax in the fourth year alone. * Attain a minimum of 1.5% of the entire industry market share after the fourth year. * Attain the highest profit out of the four new entrants in the fourth year. * Become a self-sustaining company by the end of the second year.
1.2 Summary of the company’s performance

Overall our company performed well despite the problems faced in the first round, our shareholders funds increased (Fig12) over the course of the game. However we were only able to achieve half of our four-year objectives, partly because some objectives like £650m were too optimistic. Other reasons include conservative strategies towards market shares and selecting the wrong demographics. We faced major problems because of the decisions made in the first round, therefore had to redesign our models, demographics and strategies in the second round which proved to be successful. Warranty costs and not enough investment in automation were other major problems faced throughout the game. 1.2 The Performance Table

The following table shows the performance of the our company at the end of each round.

| Round 1 | Round 2 | Round 3 | Round 4 | Total Production | 17220 | 51365 | 97324 | 111610 | Total sales | 17220 | 42889 | 97324 | 111610 | Total Unsold stock | 0 | 8476 | 0 | 0 | Shareholder funds (£m) | 447 | 634 | 693 | 734 | Closing bank balance (£m) | -20 | 125 | 231 | 84 | Outstanding loan (£m) | 136 | 136 | 136 | 62 |
Table 1: Companies performance over the four rounds

2. Company Performance
2.1 Round 1

2.1.1 Forecast

| Silva (Medium) | Splendor (Luxury) | Total | Production (No of cars) | 15200 | 2020 | 17220 | Sales (No of cars) | 15200 | 2020 | 17220 | Sales

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