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Strategic Management Simulation Report

The simulation helped the strategy value champion learn about strategic management. In round 1, focusing on premium customers led to a loss, with high defective units and unused inventory. In round 2, targeting lower income customers with basic quality and just-in-time delivery achieved a profit. Improvements included reducing costs by eliminating unused materials, lowering the defective rate, and choosing low-cost employees. The simulation demonstrated how to analyze a firm's functions and make quality, production, and delivery decisions to maximize profit.

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SoorajKrishnan
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316 views8 pages

Strategic Management Simulation Report

The simulation helped the strategy value champion learn about strategic management. In round 1, focusing on premium customers led to a loss, with high defective units and unused inventory. In round 2, targeting lower income customers with basic quality and just-in-time delivery achieved a profit. Improvements included reducing costs by eliminating unused materials, lowering the defective rate, and choosing low-cost employees. The simulation demonstrated how to analyze a firm's functions and make quality, production, and delivery decisions to maximize profit.

Uploaded by

SoorajKrishnan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Strategic Management

Simulation Report
Strategy Value Champion
Round 1
Strategy – Round 1
WAREHOUSE FACTORY SHOWROOM

Quantity to order - 3000 units All stations - 4 employees were In order to increase the demand for
Material quality - 50 per unit employed for on time delivery in all the product we have added Shoelace
stations because the price paid for protector and Customized flag
Lesser quantity of 3000 was taken any shoes received after the 10-week add-on to the product.
with premium material quality of deadline will be reduced by 20%.
100 rating focusing to target The shoelace protector was added to
premium customers. Employees were selected with an increase the demand for the product
assumption that they will do the job and customized flag add-on was
Fulfillment method - Single fast as possible with minimal added assuming that it will help to
shipment defects. create a premium image in the
minds of customers.
With an aim to reduce the cost
incurring in transporting in batches,
single shipment was chosen.
Round 2
Strategy – Round 2
WAREHOUSE FACTORY SHOWROOM

Quantity to order - 6000 units All stations - 3 employees were Compared to round 1 in round 2 in
Material quality - 20 per unit employed for on time delivery in all order to increase the demand for the
stations because the price paid for any product we have added only Shoelace
Maximum quantity of 6000 was taken shoes received after the 10-week protector to the product which
with basic material quality of 20 rating deadline will be reduced by 20%. involved with minimum cost since we
focusing to target middle and lower are targeting a lower income people
income customers. Additional employee options like who prefer more reliable product at
Receive Just in time delivery - For Training and Overtime was not selected lower cost.
lowering the warehousing cost involved as we focused more into cost reduction
in holding the product There was no warranty given to the
Delivery method - In House Employees were selected with an product. Also there was no product
Fulfillment method - Single shipment assumption that they will do the job fast launch which further helped to reduce
as possible with minimal defects and the cost involved.
With an aim to reduce the cost incurring the cost involved for paying them per
in transporting in batches, single hour.
shipment was chosen.also the cost of
delivery can be reduced by an in house
delivery team.
Improvement from Round 1 to Round 2
ROUND 1 ROUND 2 IMPROVEMENTS

As a result of the strategies chosen, As a result of the decision made As changing the strategy from
the firm incurred a loss of ($11,470). in this round we gained profit of premium to low quality and
Selling Quantity is around 2123 with $25299 profit. implementing just in time practice, the
premium quality. Selling quantity is around 3907 firm to achieved a total profit of
Defective units of 208 and 669 with low quality. $13829. Also this practice helped to
unused. Defective units of 243 and only eliminate the unused materials from
one unused material. 669 to 1 units.
And we also reduced the defective rate
by removing most defect causing
employee.
Learnings from the simulation
● Helped us to understand and analyze different functions of firm to earn maximum
profit.
● In first round we incurred a loss of 11470 - the reason was high warehouse
expense,so in round 2 we reduced the the warehouse expense to earn more profit.
● We choose the employees with moderate defects and lowest cost to organize the
production.
● Help us to take various decisions based on the number of shoes to be produced,the
cost related to it ,quality decisions and the features of the product.
● Help us to understand various options like just in time delivery to reduce the cost of
inventory , in order to maximize the profit of the firm.

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