GLO-BUS - Online Business Simulation Analysis
I. The Firm's Objectives
A clear strategic plan was set out in the beginning, and adhered to throughout the course of the simulation. Our overall objective was to determine the correct mix and balance of camera components, which enabled the most favorable outcome in the competitive arena. In order to offset the cost structure of the multi-feature camera, a low cost structure for the entry-level camera was implemented. This was achieved by offering a differentiated, high end multi-feature camera, offset by a low cost leader entry-level camera.
Entry-level strategy
o Low cost strategy
o Minimal features
o Low cost per unit on core components
o Market leader
o High sales volume
o Low P/Q rating
o High Image rating
Multi-Feature strategy
o High End
o Target P/Q rating of 5 star
o High per unit spending on core components
o Higher profit margins
o High image rating
Increase market share in AP and LA where sales are weaker
Remain market leader in every country for Entry-level camera, while growing market share in Multi-feature cameras
Maintain a higher Image Rating than competitors
Maximize retail representation in all three avenues
Decision Making Strategy
To remain stable and consistent through out the simulation
Be consistent with decision making, never increasing or decreasing decisions one way or the other
Do an external analysis of competitors moves, before determining ours
Keep the same position, in relations to competitors moves, adjusting prices and P/Q ratings accordingly
Keep and A+ credit rating
Grow Revenues, EPS, ROE, Image rating, Stock Price and Credit Rating enough to withstand a competitive market. (see associated financial graphs in Appendix A)
Buy back stock in order to elevate EPS
Maximize production for both cameras, by 10%, in order to assure no shortage of cameras in retail inventory
Maximize labor cost to ensure higher than industry salaries, incentives and training
To outsource all extra camera productions, yielding
A clear strategic plan was set out in the beginning, and adhered to throughout the course of the simulation. Our overall objective was to determine the correct mix and balance of camera components, which enabled the most favorable outcome in the competitive arena. In order to offset the cost structure of the multi-feature camera, a low cost structure for the entry-level camera was implemented. This was achieved by offering a differentiated, high end multi-feature camera, offset by a low cost leader entry-level camera.
Entry-level strategy
o Low cost strategy
o Minimal features
o Low cost per unit on core components
o Market leader
o High sales volume
o Low P/Q rating
o High Image rating
Multi-Feature strategy
o High End
o Target P/Q rating of 5 star
o High per unit spending on core components
o Higher profit margins
o High image rating
Increase market share in AP and LA where sales are weaker
Remain market leader in every country for Entry-level camera, while growing market share in Multi-feature cameras
Maintain a higher Image Rating than competitors
Maximize retail representation in all three avenues
Decision Making Strategy
To remain stable and consistent through out the simulation
Be consistent with decision making, never increasing or decreasing decisions one way or the other
Do an external analysis of competitors moves, before determining ours
Keep the same position, in relations to competitors moves, adjusting prices and P/Q ratings accordingly
Keep and A+ credit rating
Grow Revenues, EPS, ROE, Image rating, Stock Price and Credit Rating enough to withstand a competitive market. (see associated financial graphs in Appendix A)
Buy back stock in order to elevate EPS
Maximize production for both cameras, by 10%, in order to assure no shortage of cameras in retail inventory
Maximize labor cost to ensure higher than industry salaries, incentives and training
To outsource all extra camera productions, yielding
Cited: GLO-BUS, an Online Business Strategy Simulation. http://www.glo-bus.com/ Marcus, Alfred A. (2005). Management Strategy: Achieving Sustained Competitive Advantage. McGraw-Hill-Irwin. New York, NY. Walker, Orville C., Harper W. Boyd, Jr., John Mullins, Jean-Claude Larreche. (2003). Marketing Strategy - A Decision-Focused Approach. 4th Edition. McGraw-Hill. New York, NY.