Business Strategy Game

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Individual Report of the Business Strategy Game

Table of Contents

Title Page 1

Table of Contents 2

The abstract 3

Introduction 4

Performance Analysis and Evaluation 5-9

Conclusion and Recommendations10

Appendices
Appendix 1– Vision, Mission, Objectives and 3-year Strategic Plan11 Appendix 2– Organization Chart in Board of Directors and Responsibilities12 Appendix 3– Strategic Position Posted in Strategy Clock12 Appendix 4– Performance Review in Year 11 to Year 17 13-16 Appendix 5– Interest Rates 17 Appendix 6– Financial Performance18

Appendix 7– Performance Review 19-20
Appendix 8– Final Scoreboard 7 21 Appendix 9– The Detailed Decision Makings in Year 11 to Year 16 22-26

Reference 27

The abstract
The aim of this report is to learn how to apply managing strategies through the simulation game. Before start the game, a group of four members are formed to agree to use Porter’s Five Forces to analysis and to build up strategic position to win the game. During the playing of the game, the win and the lost can be stimulated our team members to apply the right strategic theories to our Company B.

By the use of Porter’s Five Forces – bargaining power of buyers Our strategy is to cut the price of footwear, increasing the advertising budget and bid the celebrity appeal to occupy more market segment.

By the use of Porter’s Five Forces – threats of entry
Our strategy is to increase the percentage of the superior materials usage and to increase the number of models in branded production.

By the use of Porter’s Five Forces – intensity of rivalry among existing competitors After earning of profit in Year 11 and 12, our strategy is to invest plant capacity at the end of year 13 in Asia-Pacific because the production cost is lower than in North America. The reject rate of production is also lower than other region. This strategy may result in the low cost with sufficient quantity of footwear to meet the demanding market in order to win competitors.

Result of our Company B
In Year 12, our Overall Score of 109.5 tied for the 3rd best Overall Score performance of the year, worldwide. The return on Average Equity - our ROE of 34.2% tied for the 41st best ROE performance of the year.

Our company achieved a Global Top 50 rank no. 1 performance on Overall Game-To-Date Score in Year 13. Our Overall Score of 109.5 tied for the best Overall Score performance of the year.

In Year 14, our company achieved a Global Top 100 performance on Overall Game-To-Date Score. Our Overall Score of 105.5 tied for the 86th best Overall Score performance of the year.

In Year 16, our company returned back to Global Top 50 performance on Overall Game-To-Date Score. Our Overall Score of 107.5 tied for the 30th best Overall Score performance of the year, worldwide. Our Earnings Per Share of $12.17 is the 24th best EPS performance of the year, worldwide. The end of this report is to evaluate our strategies and to make recommendations. Introduction

Team members of four forms a Company B to play this stimulated game from year 11 to year17. This Company B is a list company to manufacture and sell different brands of athletic footwear around the world.

Our vision, mission, objectives, accounting data and income statement are shown in Appendix 1. The role and responsibilities of our Board of Directors are in the form of organization chart in Appendix 2.

Before start the game, our members agree to use Porter’s Five Forces to analysis and build up the right strategic position to win the game.

Our strategy is to start with low price with increasing the advertising budget and bid the celebrity appeal to occupy...
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