We are the top Management of the Pillsens Company.
1 Round = 1 Finanical Year in stimulation
Company has 2 Products:
1.Painkillers
2. AntiOxidant
1. Painkillers Growth in US and France are good. As long as the price rate is
moderate.
2. Finland not much Growth but with little growth
196K units = 196*1000*1000 tablets of Production
Capacity of the Plant = Min(Buildings, Machinery)
Finland Cost of the Buildings and Machinery = 134(EUR/unit) and 148(EUR/unit)
US Cost of the Buildings and Machinery = 109 (EUR/unit) and 148 (EUR/unit)
Market Growth Potential USA > France > Finland
Price Sensitivity USA > France = Finland
Promotion Sensitivity USA > France > Finland
Customer Care USA = France > Finland
Quality Control Finland > France > USA
1984, He develop market Theory of strategy
Stage 1. Market Evalution. ---> Profitability of a certain Market.
5 main Porters Forces
1.Client, Supplier, Competitor, Substitute, New Entrant, 6. Environment -->
Physical, Social, Political
Stage 2: Market Positioning or Value proposition
Quality: Apple, Mercedes
Cost Effectiveness: Maruti Suzuki, Indigo Airlines
Stage 3: Value Chain:
Ensure Internal Predictions are in line to deliver value Proposition.
Annual Budget created based on Strategic Plan.
Budget reflect the output of the Strategic plan.
Taks in the Stimulation : Prepare Annual projections.
Step 1: Analyze the Market Environment
Step 2: Create a Strategy
Step 3: Translate Strategy to budget.
Budget Framework
Functional Areas: Sales, marketing, production, Administration, Inventory, Capital
Investment, Manufacturing
Participants:
Mobilize resources ----> achieve ---> Strategic Objectives ---> Forecast ---->
Company Budget
Best Approch is Revenue Budget
The Typical Strategic results indicators rely directly or indirectly on the revenue
as a Primary Variable.
0. Analyze results from the previous round.
1. market Conditions.
2. Demand
3. Production
4. Investments
HR (Optional)
5. R&D
6. Marketing
7. Logistics
8. Tax Planning
9. Finance & Budgets
After Login
1. Reading Section to understand the Problem Statement.
2. Results section to know the past performance of the our team and rest of the
teams (Competitors)
3. Decision Section has different sections after that Decision Checklist.
Analyzing the Market Conditions
Analyzing the Market Conditions consist of 4 steps :
1. Analyse your own Company's position
2. Analyse your Competitors
3. Analyse the overall economic environment (macroenvironment)
4. Analyse the overall Industry environment (microenvironment)
First We need to know the budget , For that we Results section
under Balance Sheet under Liabilities and Shareholder's Equilty
Shareholder's equity Total
Then we need to look into the Market outlook to understand the Macro economics and
Micro economics
Based on the unsastised demand, We can make the decision which Market is treated
first.
What outlook to maintain for market demand?
Optimistic
Pessimistic
How to estimate the product units?
Previous year demand
Market size
Competition
Company objective
How to decide priority?
Volume of market
Margin per product per unit
Competition in market
In the production section, the decisions mainly revolve around :
Investment into Buildings & Machinery
Planned Production between two products
Cost efficiency improvements and optimizing shifts, worker wages
Inventory & Logistics management
Quality control of products to increase demand.
First look at the Demand Field from the sales tab and then in the Production tab,
we need to use Projections in such
as a way to minimize the production cost.
What factors will you consider deciding production area?
Investment Cost
Plant Capacity
Logistic Cost
Exchange rates
What factors to consider before going for a production?
Learning Curve
Economy of Scale
Fluctuation of production unit cost.
How does cost-efficiency affect my company?
Increases efficiency multiplier
Lower production unit cost in long-term
Note:
Inventory is carried forward from one round to another in case the product is not
sold, it incurs inventory management costs.
If the sum of planned production is greater than production capacity game will
itself scale it down to production capacity.
Who win the Bid in the result section.
What to consider before making a marketing decision?
Target market and consumer
Objectives of being a product differentiator or cost leader
The competitive scenario of the previous round
Market size and market share from the previous round
Gross margin on a particular product
Demand factors
What does the demand factor indicate?
Importance of each factor compared to customer care in a particular market for a
particular product
Comparison of company performance on the parameters of price, advertising, quality
control and customer care vis a vis competitors
If we are sastified with the Revenue and the profit, go the decision Checklist and
save the Decision
Once After the Deadline is completed, the Results section updated.
