Bsg Report

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Introduction to the Report
Our team Group E of Industry 1 was consisted of following three members: 1. Nirius Irani
2. Masoud Alawi
3. Claudio Ramirez
I would not say we fared well in our BSG game and there were multiple reasons that contributed to our final rank. To be honest we could not understand the game at all and when we started to understand it, the game had been over for us. We analysed our performance and below are some of our reflections and lessons learnt. Our strategy was to keep the cost low but we did not plan properly to meet the increased forecasted demands that made us to stand at the last position in the competition.

Our Strategy (Year 11 – Year 16)
During the initial 6 years we were still trying to get the feel of things. One could say we were wasting our time whilst other teams were developing a market for themselves Our Strategy (Year 11 – Year 16)

During the initial 6 years we were still trying to get the feel of things. One could say we were wasting our time whilst other teams were developing a market for themselves Wholesale Market
During the initial 6 years of we were more focussed on bringing the cost of the product low. We did this by sacrificing our miscellaneous expenses. We maintained the quality of materials at 50% but cut down on investment on TQM and styling/features. This indeed did impact our product image but yet we were able to get around 15% market share in the wholesale market.

Private Label Market
In the first 6 years of trading, we did not put all our attention in the private label. We did get occasional wins in different geographic markets, but kept our stock primarily for the wholesale market.

Internet Sales Market
As far as the internet market is concerned, we realized its a trust-based market. We observed that over the last few years not many fluctuations were there in product price and quality; we used this to our advantage and reasoned a fair price and settled down. In the internet sales market we got an average share in all geographic locations. Our Strategy (Year 11 – Year 16)

We were on a cost saving mode, trying not to take any dramatic risks. We understood the value of money in the bank. Took loans to support construction and paid no dividends. Little did we realize that it were the risk-takers who were the market leaders. Our Strategy (Year 11 – Year 16)

We were on a cost saving mode, trying not to take any dramatic risks. We understood the value of money in the bank. Took loans to support construction and paid no dividends. Little did we realize that it were the risk-takers who were the market leaders. Plant Capacity and Construction

During this period we understood that we would be needing a fair amount of capacity increase to meet the rising market demands. We conducted most of our construction during this period. One thing we made sure to do was authorize construction when the currency is low as compared to the North American market. This is because the NA office was financing all construction and a stronger USD would have a greater bang for the buck.

Marketing Strategy
In the initial years we were on cost saving mode so we tried cutting down on excessive spending, this was why we axed celebrity sponsorships and only spent nominal amounts on it. Furthermore since our market image had been impact because of lower S/Q ratings, we tried winning in back by being among the top companies in corporate citizenship. In the process we receive the “Gold Star Award” 3 years in a row for our contributions.

Finance and Cash Flows
To support plant construction we took short term loans so we could pay them off within 5 years. We did not rely much of bank financing and tried to use atleast 50% of our own finances to support the construction.

Our Strategy (Year 17 – Year 20)
In year 17 we revamped our strategy, this time targeting an entirely different market. In this phase we became more selective to the market we were targeting....
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