Each student, independently of the team will prepare a brief summary for the week’s simulation efforts. This report will include the following information:
- What was your one corporate generic strategy as reviewed from our text for the week? Break this down by your target market and your competitive advantage. Why? Did your overall strategy change since week 1? Why?
- What was your strategic action plan going into the rounds detailed in Blackboard including the reasons for the moves and how it relates to your overall strategy? What are your objective and measurable goals for the moves? Did you have to make operationally reactive moves not related to your strategy? Why?
- What was the objective, fact-based results compared to your intended moves and the reasons of these moves generally? How did your moves advance your one Generic Strategy? Be specific. Did you get the objective results you expected? Why/why not? Share any objective measures from the simulation program that are pertinent to the strategic implementation results and note any purely operational moves. How did your competition and the external environment impact your moves? What is your analysis of this data results compared to your intended results?
- What do you think the next set of objective and measurable moves you will have to consider, and what will you suggest to your partners regarding next week’s moves?
- What have you learned and how does this relate to other lessons in this course and to your career?
- Provide a log regarding the specific dates and times that you accessed the simulation system including specifically when and how you and your teammate reviewed and discussed the simulation system data and decided on your moves to make. A sample is provided in week 1.
Your report this week should cover periods 7 thru 8 inclusively with fact-based objective data that you analyze from both periods. DO NOT copy from your other papers. Each paper must be written in your own words with proper APA referencing.Your grade for each of the simulation report papers will be based on your analysis and critical thinking around the selection and implementation of the corporate strategy for your company. Your analysis must be increasingly more thorough with each paper as you become more familiar with the simulation program and with the concepts from our course. The grade will also include a portion based on your team’s current position and your team’s work together. Review the required components in the grading rubric for the simulation paper.Submission Details: Your assignment will be between 1000 and 1500 words and follow APA Guidelines. Include a cover page and at least your course text as a reference.
Stratsim 7:
Stratsim 8
StratSim
Team D
1. Do we need to adjust the cost of the cars?
2. check what competitors are doing
3. focus on the region for marketing advertising
4. I think we should create aev vehicle because there’s no competitors (only now we saw there is team c) but we might need to go ahead of government regulations with electric car
5. All vehicles are above value 4?
6. open to any suggestions
YEAR 1:
·
Strategy: to be leaders in the automobile industry while promoting quality and safety cars.
· Objective/ mission statement?
· Minor update for Defy: family car 33% market share – a lot of competitors but we are leading in this category
· justify why this car
· Create Luxury car “Deluxe” – on market Y3
· Upgrades: Interior, Safety and Quality
· Development of Deluxe begins – idea why we did that? Segment: high income and enterprise
YEAR 2:
· Open new distribution center
· 3 dealers set to open in North and South
· 1 dealer set to open in East
· 1 dealer set to open in West
· Increased capacity available +1 because we were underproducing
· justify the decisions
YEAR 3
· improve all cars even minor
· Deluxe on market – Set price above 35K (competitors are set at 40.3K and 40.7K) maybe due year 4
· create EAV vehicle
· creation of an additional Plant Automation otherwise it might be a disadvantage???
· Make sure all vehicles are above 4 in safety to avoid fine – detonka will reach 3 in 2 years
· Increased delite price by 1K
· readjust promotion and marketing ads based on consumers
· increased dealers N and S mainly
· issued 100 M in bonds
·
YEAR 4:
· Economy: increased safety, quality and interior. Size and horsepower.
· Truck: Detonka: increased safety and styling
· Deluxy: increased size and quality
· Electric car: Delectric.
· Marketing:
· Defy (family): increased adv to 60 and decreased promotion to 40
· Delite (economy): increased avd to 35 and decreased promotion to 24
· Deluxe (luxury): increased adv by 37 and no changes. We changed the advertising theme to Styling.
· Detonka (truck): increased adv to 35
· North to 35, the rest remaining the same. Social media to 11, and direct marketing decreased to 6.
· Increased dealer 5 in North, the rest remaining the same since we didn’t increase budget.
· Increased production in Defy and Detonka. We avoid overproduction, especially since we are making changes in all vehicles.
· Financing: 3 M in CD @ 3.5% and 3 M in loan repayment.
· special decision: invest in plan automation (10% cost to build current capacity)
YEAR 5:
· Delectric launching in Y6.
· Increase safety and Horsepower for Delite (Economy)
· Increase size, style, interior and quality for Deluxe (Luxury)
· Increased in adv in Delite by 38
· Decreased the price of Deluxe by 37,999
· Increased dealer discount in Deluxe by 15%
· Increased dealer discount in Delite by 10%
· Increased the price of Delite by 13,298
· Increased adv in Deluxe to 35 and decreased
· Increased adv in Detonka to 40 and decreased
· Increased price Detonka 19,669
· Increased marketing in North by 40
· Increased dealers 4 in North, 2 in South, 1 in East and 1 and West.
· Inventory: Delite 450, Detonka 515, Deluxe: 110, Defy: 750
· Technology: Interior and Style
Decisions:
12/19 – Description: Technology – Invest in Safety
12/ 19 – Description: Product Development – New Development Center
12/19 – Description: Consumer marketing – Direct marketing (5) and Advertising in East (18)
12/19 New project for Delite – minor upgrade
12/19 – Description: Consumer marketing – Advertising in the South (22)
12/19 – Description: Marketing for Delite: Quality
12/19 – Description: Marketing for Detonka: Performance
12/19 – Description: Distribution – New East Dealerships
12/19 – Description: Manufacturing:
12/29: Decision
01/02: Decision Making
Detonka 400K
Delite 300K
Defy 550K
Capacity change 1K
12/19 – Description: Finance:
Sell bonds: $100M
Loan repayment: $2M
12/19 – Description: Manufacturing:
Scheduled Production for Detonka: 420 K
Simulation Report2 2
Simulation Report week 5-6
Student’s Name
Institutional Affiliation
Course
Instructor’s Name
Date Due
Simulation Report week 5-6
In weeks five through six, while using the StratSimManagment Simulation too, there has been significant improvement in maneuvering and utilization of the inputs in the simulation process and even making changes to meet market needs, to reach a greater output, and to manage competition to maintain market leadership when it comes to the automotive industry. Thus, the main objectives that were focused in the simulation process were making changes to the automotive management process mainly on the type of automotive vehicles the team is operating (Gonzalez-Fuentes et al., 2021). The original strategy for team D is to promote quality and safety in car manufacturing while remaining the market leader. The strategy used and is still being used is now focusing on price changes and design inputs to control and compete from various manufacturing and distribution channels.
Strategy
The team has a strategy categorized on the inputs that will happen over six years and the changes that will be made in the strategic inputs for each year to ensure sustainability is assured and that management of different inputs is made as effective as possible. The main strategy is to remain competitive in the market as the leader, and all the other yearly strategies are focused on how to make each input meet strategic measures. For instance, the strategy for year one is to be the leading automobile industry in promoting quality and safety (Gonzalez-Fuentes et al., 2021). For year two, the strategy means opening new distribution centers; for year three it means, creating improvements in all cars, even the minor cars. In year four, the strategy is focused on economic quality and interior (Gonzalez-Fuentes et al., 2021). The other factors are size and horsepower. In year six, the main input based on the simulation is based on the launching of an electric vehicle.
The changes that came along in weeks five through six are attributed to the need for adjustment in some of the strategies to compensate for remaining competitive and responding to changes in the market. For instance, the first question was on the need to adjust the cost of the cars. The cost of the cars in the initial part was based on the car’s value and what competitors are selling in the market and the changes that come along in making a competitive advantage work.
The second change in strategy was based on factors affecting some regions, such as advertisement. Some regions require heavy marketing, unlike other regions making it a challenge to treat all regions the same while being the market leader. The input has been controlled in such a way to make sure consumers’ needs have been dealt with appropriately.
The third change in strategy is based on the need for electric vehicles, mainly with a competitive team in C having electric vehicles in production. It means that the need to stay ahead of government regulations in the production process is very primary to lead to the development of change. The last change strategy is to make sure that all vehicles are above the value of 4, which will boost the value of products entirely in the market.
In general, objectives that have been highly categorized in weeks five and six mainly seem to be coming from the set strategies for years three and five. That will directly correlate with the production of improved cars and the production of electric cars.
In producing improved cars, the strategy is to improve the vehicle in terms of value, marketing, and competition. It means the cars will have to work based on yar on the strategy of upgrading the interior, safety, and quality of luxury cars to appeal to more consumers. The improvement will lead to an improvement in prices which is a good deal for the company and is among the strategies that have been highlighted and developed strategically based on the input for weeks five and six. Thus, for Deluxe on the market, it will mean setting the price above 35K, which will create an even process with competitors who are at 40.3K and 40.7K, and that will create value for money as people will choose the brands over the competitors based on the fact that it will boost sustainability.
The issue of safety is also highlighted among the first elements for change that make it possible to maintain safety. Improving cars to be above the value of four will make all manufactured vehicles shoot. One of the best examples is Detonka which reached the value of three in two years and increased in prices by 1K. Thus, if the change happens strategically to all values of 4 in terms of safety, it will mean it will be possible to maintain strategic goals in terms of income generated by the prices and the quality of products that are associated with the organization contributing to the overall strategy of maintaining the position of business leaders and having a big market share (Gonzalez-Fuentes et al., 2021).
On the aspects of manufacturing electric vehicles, which will help stay ahead of government regulations and meet the competitive constrain from group C, which also focuses on the development of electric vehicles, it will mean a great improvement in aspects in the value of ratings in the company. To compensate for the changes, it will need to develop marketing strategies that all work together to achieve sustainable goals depending on the market needs. A good example is Defy which is under the family category of vehicle, which will mean increasing advertisement to 60 while decreasing promotions to 40. At the same time, Delite, which is under economy, will mean increasing advertisement to 35 while decreasing promotion to 24. In the case of Deluxe, which is under luxury will mean increasing advertisement by 37 while promotion remains constant. In the case of Detonka, all the rest remains the same (Gonzalez-Fuentes et al., 2021).
The changes in the advertisement, marketing, electrifying, and improvements in safety and horsepower, will mean that since a luxury car like Deluxe will be increased in year five in terms of style, size, interior, and quality, advertising will increase to 35. At the same time, the promotion will decrease while the price will go by 37 999. In terms of dealer discount for deluxe will increase by 15%. The case for the other vehicles will be different such as Delite, which will increase advertisement by 38, while dealer discount will need to increase by 10%. The price for Delite will, in turn, increase by 13 298.
Conclusion
In conclusion, the main strategy that will be in place is the main strategy for staying ahead of the market in terms of market share, competition, and automobile manufacturing. It means looking for areas of improvement such as innovation and electrifying vehicles has been the main objectives of weeks five and six, which faced competition from group C. Still, the ways to stay as strategic leaders have been deduced.
References
Gonzalez-Fuentes, M., Robertson, K. R., & Davis, J. C. (2021). Creativity as a Reflective Learning Exercise: Informing Strategic Marketing Decisions Through Digital Storytelling. Marketing Education Review, 1-9.