Simulation Report Of Practical Experience As A Manager Formulating Strategic Decisions Essay

In about all the parts of the universe I have been through, across the 7 continents, transit installations is an issue. There are really many signifiers of manners of transit. This happened to be and will still be of high concern to peculiar society in an attempt to build-up their economic systems and better their support.

I and my friends were given the undertakings of managing houses which had to run the motor vehicle fabricating companies in the StratSim industry. When we started, there has been 7 houses which were supposed to vie so as to do more income is achieved, large market portion and maximize stockholder return. To accomplish the aims mentioned before, each had to do the best schemes which will do them make the intended ends together as a squad.

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About in every class, such as selling, pricing, production, selling & A ; distribution and farther developments a set of clear of schemes are needed so as to take any house in the right way. Therefore, Strategy is defined as, ‘The action stairss by which an organisation intends to achieve its strategic ends. ‘ ( Daft, 2000: pg.210 )

Good about this, from my point of position, there was n’t any sort of favor from the start of the game due to the ground that all the 7 houses had been positioned at the same degrees of fundss, market portion, market value and all other points. During the class of the game, the smart group will stand on top by sing its public presentation in general.

2.0 Concluding Simulation Consequences

( A full transcript of the consequences can be found in the Appendix )

The concluding twelvemonth simulation consequences were as follows:

Performance Summary for house C

Gross saless for the twelvemonth: $ 19.03 billion

Market value: $ 1.14 billion

Gross saless in units: 1.16 million

Tax return on gross revenues: -33.6 %

Net income: $ -6.4 billion

Tax return on assets: -19.0 %

Accumulative net income: $ -1 trillion

Debt: $ 4.16 trillion

Stock monetary value: $ 2.28 million

Ending Cash: $ 638 million

Firm C was executing ill with negative incomes which prove that it was holding full of debts to cover to its assorted stakeholders. Poor returns on gross revenues and assets were noted. It was n’t truly at success but jobs.

3.0 Strategy Thinking

To get down, allow specify the term scheme. ‘Strategy is the way and range of an administration over the long term, which achieves advantage in a changing environment through its constellation of resources and competencies with the purpose of carry throughing stakeholder outlooks. ‘ ( Johnson et al 2009, p.3 )

Strategic thought from my apprehension is concerned with cognizing the purposes of a house and seeking difficult to do certain how and when they are traveling to be met. Henceforth, to do this happen, a house should come with a mission statement that addresses to its stakeholders its ground of being and a vision statement that tells straight-away the hereafter programs of such a house. Knowledge of the two statements will let even Firm C employees to work actively and besides experience a shared sense of belonging. These are existent statements likely to travel the administration in good way.

Strategically, from the layout given by StratSim Management it was upon every house to come with schemes that will assist it to pick from the foundation which was every bit laid to all the 7 houses. For my house it was really of import to keep the place it started with and if possible grow steadfastly but the antonym could be a mark of danger.

Similarly, house C idea of the thought of increasing the market it had before by doing betterments such as styling, safety, quality and inside which will make more value to its clients. Once value bringing is high, it means so many clients will turn for such motor vehicles.

3.1 Strategic Analysis

Before make up one’s minding on anything, I think the best manner for any house is to non merely implement any scheme which they are non certain of. Alternatively it is of import to hold a proper apprehension of the environment the concern is surrounded by so as understand on assorted scenarios and their deductions. I wo n’t bury something I learnt long clip ago that people or administrations depend upon one another for their presence to be meaningful. Firm C like any other operates its auto concern in a dynamic environment which is determined by forces of demand and supply.

So this analysis is greatly expected to uncover the varying demands of the motor vehicle clients. A careful analysis will salvage a company from merely transporting out production which subsequently on bends to be unsold. If watched carefully, a house would lose market portion and a uninterrupted licking by rivals in the StartSim industry.

3.1.1 Mission & A ; Vision


“ A mission is a general look of the overall intent of the administration, which ideally, is in line with the values and outlooks of major stakeholders and concerned with the range and boundaries of the administration. ” ( Johnson, Scholes and Whittington 2005, p 13 )

Firm C mission is to ;

‘Meet stakeholder outlooks in this dynamic universe so as to play portion in modernizing life through cars. ‘


This is a statement which must be established in the first topographic point so as to state the house stakeholders where it stands, where and how it would make its aims in a close hereafter.

Firm C vision would be ;

‘To find everyone in good cars and hike development without destructing our beautiful environment. ‘

3.1.2 External Environment ( Including Industry )

This is chiefly concerned with the state of affairs outside the administration. There are strong forces nowadays in the outside environment probably to act upon an administration due to the alterations happening. The alterations can be traced through the undermentioned macro-environment factors:


The authorities is expected to hold in topographic point Torahs and ordinances that safeguard the society despite the attempts of auto makers and traders to maximize gross revenues.

For case, environmental issue had been a great concern due to the air pollution by the motor vehicles emanations. I suppose Torahs which tie up a maker who do n’t obey this have been enacted. Besides, the authorities is the topographic point where the spell in front is issued which means a peculiar house has met all the fulfillments.

Without the authorities intervention, no concern like cars will predominate because it acts as peace moderator which guarantees the concern people with safety and support.


This can be extremely controlled or planned one to countries of which free market is more of import.

It seems at StratSim, the economic system was n’t a job in footings of exchange rates, currency fluctuation and rise or falling monetary values because as yearss went by the gross revenues of the motor vehicles went higher and higher. This industry was a great one to carry on car concern operations.


This is force per unit area exerted by the society in relation to their demands. Some society members were influenced by celebrated icons or the known to reflect their lives through similar sorts of vehicles possessed by them. My analysis proves this in the great demand of household category autos in all houses than any other category of cars.


Refers to how far the production processes has progressed, degrees in cognition promotion and the gait of using that cognition to heighten efficiency and effectivity. At my house, this was aimed at bring forthing more appealing motor vehicles and besides cut downing resource wastage.

The concern environment is surrounded by beds which are:

The administration itself – illustration could tauten C

The macro-environment – analysed through PEST above

Industry ( sector ) – the StratSim where different houses are viing

Rivals markets – countries or domains where a rival aspires to take their merchandises.

Industry ( sector )

This is a aggregation of houses making the same concern like cars. At StratSim, all the houses had the similar starting points but merely alone house names and motor vehicles. It required upon each house direction to do schemes that will back up its aims and how activities will be carried on.

Honestly, the industry was extremely competitory to the extent of necessitating maximal attending of the troughs so as to do proper determinations. To me it was like being in a existent universe seeking to guarantee that our vehicles are built in with specifications and desired clients ‘ properties.

Car industry has every ground to execute better in the StratSim universe because despite conveyance being a major concern, it is thought as one that reflects persons ‘ lives.

It is hard for a new entrant to come into car industry as it requires monolithic influxs of capital to get down a company devising vehicles. As if it is non plenty, Research and Development ( R & A ; D ) is the worst affecting tonss of hard currency.

Firms in an industry are likely to copy things like the vehicle attributes such as interior designs and manners. This is attracts replacements to the present clients in instance they are non satisfied by the first auto maker.

3.1.3 Internal Environment

In this, analysis is carried out by traveling through the Strengths and Weaknesses of the company. Internal environment is within the control of the administration itself. Bing effectual in the internal personal businesss, the hereafter of an administration can be determined.

Strengths refer to countries where a company is good at by holding competencies which make it stand steadfastly in forepart of other houses. From what I experienced in house C, there were a few strengths to advert compared to the failings. The failings involve hapless public presentation, bad fiscal control and inability to do usage of the selling tools and techniques.

4.0 Decision Making ( and personal acquisition )

In my group, I took portion together with other members to organize determinations for the good of our company, house C. Decisions on how should our house move were done every hebdomad before the deadline was on. Before doing any determination, I and my friends had to look into the old consequences including of our rivals so as to maintain path of concern patterned advance. The determinations had been critically studied before concluding poster because the effects might be really serious if it was n’t carefully done. To my idea, this was n’t tough because most of us in our group were already directors at topographic points of work. At work I took portion in difficult determinations which ate my encephalons.

I learned more than so much due to the ground that I had been used to merely theory in category. This clip I got an chance to transform what I learned in the schoolroom environment into practical. Besides, I gathered an apprehension that a successful company or house is that which comes with alone schemes than its rivals. Furthermore, I made myself believe that directors deserve to acquire more than they do due to the hard determinations they are required to do and implement most of the times.

5.0 Decision

Arriving about to an terminal, I thought better to accept that, ‘a concern without a scheme is like a ship without radio detection and ranging ‘ . From the beginning towards the terminal, it was all about schemes made use so as to differ from close rivals. There are so many schemes in the class of pull offing a concern but non all could outdo because the pick of schemes will depend on the demands and desires of a house. To add on, I had truly enjoyed the teamwork which made my group non on top but instead competitory to some extent.


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