Business Simulation with Professional Development

Business Simulation
with Professional
Development

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
PART A- Strategy............................................................................................................................1
1. Vision and Strategy..................................................................................................................1
2. Review each year’s progress...................................................................................................2
3. Future plan and recommendations...........................................................................................7
PART B: PROFESSIONAL DEVELOPMENT REFLECTION REPORT....................................8
Executive Summary.....................................................................................................................8
Introduction..................................................................................................................................9
Identified Events........................................................................................................................10
Review of Relevant Theories and Concepts..............................................................................11
Review of Industry Practices.....................................................................................................14
Application of Theories and Practices.......................................................................................15
Discussion..................................................................................................................................16
Recommendations......................................................................................................................16
REFERENCES..............................................................................................................................18

INTRODUCTION
Business simulation is a useful weapon for dynamic learning organisation. It allows the
people to match their employees with policy, develop their business strategies and expertise in
the management, and eventually increase the performance (Aithal, 2017). Company games are a
hands-on, immersive learning environment allowing audiences to better participate with the
content. Rather than focusing on abstract knowledge in a traditional classroom, learners are
learning from experts, developing practical understanding and at once getting a broad
understanding of the project. The use of business simulations within their company has many
advantages. Such as imitates reality, risk free environment, stimulates co-operations, learning by
doing practice, engage with learners etc.
This assessment based on Lexo which is Smartphone manufacturing company and distribute
around Asian market which is based on quality demanded and they develop features which
identified by the research and development department. This report based on two separate
sections where part A is about strategy which covers the vision, mission, competitive and
performance analysis. On the other side, part B covers the reflection report which includes the
topics such as some events which identified theories and concepts, and applications of such
theories in context of organization.
MAIN BODY
PART A- Strategy
1. Vision and Strategy
Vision: It is powerful statements which help the people to understand the future of
company which develop by the organization to achieve in long term (Ceschi, Dorofeeva and
Sartori, 2014). Vision of Lexo Company is to shape the future with use of technology, offering
premium class Smartphone and majorly focus on innovation.
Value: A Core value of the company is to serve the quality products to their customers
along with effective customer services after sales. It helps the Lexo Company to convert their
existing customers into loyal customers for organization which further maximise the overall
production as well as profitability.
Mission: This statement attracts the more people and mission statement of Lexo brand is to
become leading manufacturing company of Smartphone in the world.
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HR: In context of Lexo Company, managers should concentrate on its human resources as
they are crucial for them. Human capital needed to meet the company priorities & objectives by
delivering appropriate training to enhance their productivity (Grant, 2016). Lexo
Company provides their workers with the necessary professional preparation to ensure that
employees are prepared to carry out their mission. Furthermore, encourage their team to produce
something creative or innovative which will improve their efficiency. Ensure that they develop
and optimize their operations by delivering effective training sessions or practical sessions to
inspire them to maximize the performance and productivity of existing staff.
Culture: Working culture in an organization is very essential to improve because it helps
the employees to motivate and perform their task effectively. A culture of Lexo organization
should be very optimistic, welcoming or relaxed, which motivates people to come regularly to
the office and decreases the absenteeism. The Lexo business takes some assumptions that
inspiration is the key to achieving effective and efficient workplace. Furthermore, the
organizational culture of this Smartphone Company needs to continue to trying to fix the job
satisfaction so that it can operate equally and impartially. It facilitates the notion of justice and
diversity in the company's premise throughout all the occasions. The institution has developed a
culture that seeks to promote strategic development to meet international market specifications
and consumers' desires.
2. Review each year’s progress
Competitive Analysis:
Porter’s five force model: It is the framework which are used by the organization to
evaluate competitive performance of the company and how strong their competitors in terms
performance (Han, Hao and Huang, 2018). In context of Lexo Company, management of the
organization adopt this competitive analysis strategy to evaluate its actual performance and
power in the market. All are discussed below:
Bargaining power of buyers: They are the customers who purchase the product or
service of the respected organization such as Lexo and they are responsible for company's
success. In the initial periods when company establish, buyers has huge power for bargaining
because it has several other options and Lexo was new firm that time or people have other
options as well. It becomes threat for the organization because competitors follow low cost
strategy. The success of the company has been very good in sustaining its level of revenue
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across the years, which could be characterized as a successful commitment to pursuing a mixed
and blended commitment to their services (Marr, 2016). After evaluating their competitor’s
performance, Lexo Company follows the customer focused strategy to improve overall product
demand.
Bargaining power of suppliers: Initially suppliers have low bargaining power which
was positive aspect for the company, but now there are huge competitions in the Smartphone
market. Bargaining power of suppliers increases because they have multiple options to sell raw
material. So, Lexo Company needs to build good relation with them and also find the alternate
option for their business to minimise negotiation power of suppliers.
Threats of substitutes: Substitute products are the goods which can be used in
replacement of current client offers. From the pas years numerous cell phone replacements are
done, such as video messaging sites, other smart apps, and so on, keeping this risk high with
relation to the client. By focusing of customer’s needs and offer the low cost and high quality
products which played significant role in helping company and do their best with such
alternatives. Also identify that what keeps this threat strong, company should maintain little
variety, which is beneficial for the firm to reduce its danger.
Threats of new entrant: Every organization faces the threats from large or existing
businesses in the respected market. Innovative or differentiated products capture the market very
fast or attract the audience as well. In order to minimise the threats of new entrant, Lexo
Company should introduce their products & services as per the requirement of customers along
with some innovative features.
Competitive rivalry: There are different existing organizations in the global market
which are competing directly with Lexo. There have been mainly 2 companies that are the direct
competitor such as i-tune or Limitless Company, who develop new goals and tactics on
advancement to stay relevant in the competitive (Zheng, Bender and Nadershahi, 2017).
However, Lexo Company performance from many years and enabled to build up its position in
the market through offering quality products at lower price.
From the above discussion it has been observed that with the help of porter’s five force
model, organizations able to evaluate their competitive performance and what is the actual
position in the market in relation to buyers, suppliers, their competitors etc. It is one of the
important tool which helps in formulating strategies. This is helpful, as it will be able to change
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the approach accordingly when busienss consider the factors that can influence their
productivity. Manager of Lexo Company could take fair decision for strong position, for
example improve weak points, and avoid picking the wrong actions in long term.
Market share: It is the business's input from a particular organization where promoters
might be able to change demand forecasts by the appraisal of the company's stock, as this would
show how goals would be met by rivalry or the acquisition of rival stock. In order to carry out all
operations in a systematic manner, acquiring a large market share is very essential for
enterprises. Lexo Company is a modern Smartphone production or distribution firm that markets
sold mobile phones in many countries while Japan, UK and China etc. This is the best element
to compare company’s efficiency as well as effectiveness. In context of Lexo Company, market
share in relation to customer focus is discussed throughout the years. Total segment demand for
the year 2020 was 384000, in 2021 it was 276380, and in 2022 it was 276480 and 304128 total
demand in 2023 till 2027. In addition, in the year of 2028 the total market demand of customers
was 319334.4 which are similar in the 2029 period. It is observed that, demand of customers for
the product is fluctuated which further affect the overall profitability and market share of Lexo
Company.
Product and price analysis: With the help of this analysis, organization able to evaluate
the demand of their products and in what price customers is ready to buy Lexo’s Mobile Phone
(Perotti, 2014). Product will be evaluated on the basis of its quality and how company able to
satisfy their clients through offering at what level of product quality. Total segment demand of
Lexo products according to price was 1800000 and according to product quality was 240000 in
2020. In 2021, demand of price was 1377000 and as per the quality it was 172800 which were
similar with year 2022. In the year of 2023, market share according to price was 1514700 and on
the basis of mobile phone quality it was 190080 and the total segment demand was same till
2027. In 2028, total segment demand on the basis of price was 1590435 and as per the quality it
was 199584 and these values were repeated in the 2029 duration. It is also observed that price of
products increases throughout the period but the demand of quality also increases which means
Lexo company increase their product price but reduces its quality which negatively impact the
Competitors: While making business strategy in context of the organization, competitors
are the crucial aspect which required evaluating in order to identify the threats in the global
market. In relation to Smartphone industry, Lexo Company also has some major competitors
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