Business Simulation and Professional Development

This report explores the concept of business simulation and professional development through the scenario of a simulated business, I-Tech. It covers the vision, strategy, HR, values, and progress of I-Tech. It also discusses the concept of reflection and its application in professional development.

Business Simulation
and Professional
Development

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A- STRATEGY PAPER.......................................................................................................1
Vision and Strategy of I- Tech...............................................................................................1
Review of Each Year’s Progress............................................................................................3
Future plans and recommendations......................................................................................10
PART B - Professional Development Reflection Report..............................................................12
Executive summary..............................................................................................................12
Introduction..........................................................................................................................12
Identified events...................................................................................................................12
Review of relevant concepts or theories...............................................................................13
Review of industrial practices..............................................................................................13
Application of theory as well as practice.............................................................................14
Discussion.............................................................................................................................14
Recommendations for practice and research........................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business simulation is defined as the course of action adopted by an individual or group
for the establishment of their own business as per the situations prevailing within the market
scenario. The most important part linked to this process is undertaking certain crucial decisions
which provide assistance in inflating the growth and development prospects of the corporation
(Buil, Catalán and Martínez, 2019). In addition to this, it is determined that simulation tends to
offer personnel with a platform whereby they can apply their skill set, knowledge base and
competencies for the timely setup of venture. Such entity is able to create direct competition for
the market players functioning within the confines of same sector. The process of simulation is
usually carried out for the purpose of education, learning, training and development of
personalities of individuals. Thus, it enables them to carry out professional development so that
they can effectively function within the corporate context and achieve desired outcomes. The
below mentioned report seeks to gain knowledge of the concept of business simulation along
with professional development through taking into account the scenario of a simulated business,
I- Tech. This is a smartphone manufacturer which is acknowledged to be operating in several
nations. I- Tech produce and distribute products to customers in many parts of the world so as to
inflate its reach and growth prospects.
The project is categorised mainly into 2 sections. The first section talks about the concept
of simulation as taking place within the company. This section includes discussion over several
domains or functions linked to the entity like mission, vision, HR, values, strategic, 5 year
progress explained via the application of Porter Five Force Analysis and financial performance
analysis. Besides this, this section also takes into account future organisation plans together with
suggestions for the enterprise in context of next 5 years. Additionally, the second section of the
project throws light on reflection done by an individual over their journey in being a part of the
team of simulated business. This section consists of events identified, review of concept or
theory and industry practice, implementation of practice along with theory and discussion done
over the company.
PART A- STRATEGY PAPER
Vision and Strategy of I- Tech
Vision and Mission:
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The vision of I- Tech is “to gain popularity across the globe as being the leading
smartphone manufacturer worldwide”.
The mission statement for this entity goes like,“to be at the heart of the needs and
demands of customers to duly fulfil them with the organisational offerings.”
Values:
There are a number of values that guide the working and function of I- Tech in market place. The
most dominant values out of these are acknowledged to be fairness, transparency and honesty.
Other values that are given importance and value within the confines of this entity are
ascertained to be equality and integrity. These values lay down the foundation to ensuring that
the corporation works in a sustainable manner as per the requirement of the market (Bitrián, Buil
and Catalán, 2020).
HR:
Human Resources is acknowledged to be a crucial aspect for every entity functioning or intend
to come up in the market place. Human capital is required by an enterprise in order to deal with
the competitive rivalry prevailing within the concerned industry (Alstete and Beutell, 2019).
These are the individuals who work together in a collaborative manner in order to derive positive
outcomes. In this relation, I- Tech seeks to ensure the development of a positive atmosphere
whereby the employees get encouraged and motivated to operate in an effective manner. Also,
the entity conducts training and development sessions at regular intervals of time so as to provide
employees with an opportunity to get empowered in the organisational premises. With this, the
personnel are able to enrich their personalities with required skill set and knowledge base. As a
result of this, their productivity levels tend to get enhanced and their overall performance also
gets improved.
Culture:
The corporate culture of an entity circumscribes the working environment, rules and regulations,
policies, beliefs and behaviours of employees as well as managers, etc. In this relation, it has
been acknowledged that the corporate culture keeps the human resource within and outside the
company at its heart (Bocciarelli and et. al., 2019). This means all the customers and employees
of the company are effectively taken care of in order to ensure its sustainability in the market
place for a longer period of time. With this, I- Tech aims to instil loyalty, trust and belief within
the employees and customer base and thereby inflate its financial performance.
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Review of Each Year’s Progress
Organisational performance keeps modifying with the passage of every it lead entity towards
reviewing each and every year performance in order to identify future course of actions in order
to stimulate its growth and development towards betterment (Zekić-Sušac, Has and Knežević,
2020). Present scenario includes formative evaluation of I- Tech which is defined below with
assistance of Porter five force analysis:
Porter’s Five Forces Analysis
It is a strategic tool that allow business organisation to evaluate intensity of factors that are
prevailing environment and the extent of their impact upon respective industry and
organisational functions (Thoumrungroje, Racela and Chintakananda, 2019). In terms with I-
Tech mentioned below review of entity performance over a period of time is defined:-
Customer’s Bargaining Power: Due to presence of high competition and wide range of
substitute the power of consumer bargaining is significantly high. This stimulates entity to
undertake use of innovation and uniqueness in their product and services in order to differentiate
them from rivals (Ramakrishnan and Kaur, 2020). In context with the present scenario it has
been identified that with passage of period of time respective organisation successfully overcome
this force with the assistance of differentiation strategy, through which made district image in
marketplace by providing Hi-Tech featured smart phones. This further allows entity to satisfy
their customers with best and ensure their loyalty towards organisation for long period of time.
Supplier’s Bargaining Power: In context with present scenario this is being evaluated that
bargaining power of suppliers is relative low as suppliers wants to conduct their operations with
leading entities in order to sustain for long period of time and ensure continuous growth. Along
with thus due to presence of low number of suppliers in smart phone industry bargaining power
of suppliers is relatively low (Yoo, 2020). By taking advantage of this factor I- Tech ensure
positive and healthy relationship with number of suppliers in order to negotiate price of raw
materials as to conduct their operations in cost effective manner with great profitability.
Threat of Substitutes: Due to high competition there are number of substitute product and
services available in smart phone industry. It has been identified that organisations offer same or
similar kind of product and services to customers in relatively low cost (Zieliński, 2019). In
order to overcome this force I- Tech continuously engage in the process of innovation as to
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satisfy customers with unique product and services in affordable price range as to retain
customers for long period of time and further restrict them to change their purchasing intent. This
allow organisation to effectively maintain their high sales performance and overcome negative
impact of high substitution.
Threat of New Entrants: It has been identified that smart phone industry require high investment
by new entrants in order to establish their business. Along with this new entry are also required
to keep on investing funds to ensure their growth. Thus, it signifies threat of new entrant low in
respective industry (Zulfiqar and et. al., 2019). However it has been identified that with the
passage of time leading organisations with the help of technologies and knowledge influence
purchasing behaviour of consumers that create threat upon I- Tech profitability and overall
revenue generation capability of entity.
Competitive Rivalry: Competitive rivalry is high in smart phone industrial segment. It has been
identified that I- Tech is competing with 6 leading organisation those who attract consumer
intensions with effective services and products. But due to high performance of I- Tech from past
many years allows company to ensure their competitive edge in intensive rivalry environment
which is prevailing in smart phone industry (Morin, Tamberelli and Buhagiar, 2020). In addition
to this with the assistance of innovation, creativity and uniqueness I- Tech satisfy customers with
best that further allow organisation to gain moiré competitive advantage with significant
futuristic growth.
Market share
The share of the market is the share of the company of a specific individual. "Markers must be
able to transform financial objectives into profit margins, as this will show as to if forecasts can
be made through availability or via the acquisition of competing shares (Oliveira and Gomes,
2020). In required to bring out all transactions in a systematic manner, it is very important for all
firms to obtain an enormous market share, i.e. I-Tech is a new phone allocation company that
provides mobile phones to separate companies. In other words, the market share of a company
represents the percentage of all goods sold by the company in a segment. It measures the market
share by splitting the profits of a product into the overall sales of one segment. If the customer
buys all of the goods on a market, it has a 100 % stake, and it has a monopoly. Market shares are
typically calculated as once a half or once a year at predefined times. In that nation the usage of
energy for the 2020 segment was 384,000 and for the same duration revenues amounted to about
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332,126. It shows that the organization’s production cannot broaden and that its manufacturing
should grow. In 2021 the market was 276,480 and 227,056, for 2022, and for that time 276,480
and 150881. There was a very tough demand in 2023, but the profit of the organization was very
low. There are 304128 per year in 2010 and 83976 sales for the year, whereas 304128 per
annually were made in 2024 and 52688 were created. Around 2026 and 2027 the demand was
equivalent as well, but the business produced no Smartphone. Output in 2028 amounted to
319334, and the profit was about 45130, quite low in terms of market demand. Phone usage was
diminished in 2028 in 2029, although sales in the Netherlands declined by 35054. Greater
business supply and expansion in various nations demonstrate that I-Tech covers an immense
shopping center, but the institution cannot manage it properly, and therefore it does not
encounter the market demands.
Product / price analysis
In marketing, price assessment includes the study of consumer responses in the public policy of
perceptual prices. The price evaluation is, in specific, the development and review process of the
good or service proposed without evaluating its distinct estimated cost and the benefits
demanded (Orozco-Leyva, Paredes and Estrada, 2020). These are the two key components that
must be taken into consideration by all business owners that try to meet economic growth. As per
I-Tech’s projections, the market demand for the Netherlands was approximately 240 000 in 2020
on the basis of its cost of production, and the profits were roughly 118464 for that time. On the
other hand, its prerequisite was 180,000 per price, but its income amounted to 0 for the same
period. In 2021, the market for price was 17, 2800 and 11, 7506, with a volume of 1377000, but
sales were 0. Revenue relied on the market for service. The competition for quality and cost
between 2020 and 2029 was very high, but the company did not fulfill the criteria. The
Netherlands generated 0 revenue during 2023-2024 based on the quality and the price of
products. In 2025, 2026 and 20247 no product was offered, but 46268, 64451 and 58616 were
decided to offer on demand respectively. This shows that the company began to meet a small
portion of the industry's market on the basis of cell phone prices. Depending on the quality and
product stability the company did not offer in 2028. Stock income from 2029 was negative, but
price income was 5791, which is very low in relation to actual market demand.
Competitors
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This has been evaluated that smart phone industry is having high competition as in this
large number of entities offer same or similar services and product to customers in affordable
price range as to influence their purchasing decisions with an aim to generate maximum
profitability (Fraccascia and et. al., 2020). In order to overcome this extensive competition,
respective organisation requires undertaking use of efficient strategies. According to the
evaluation it has been determined that I- Tech is facing intense rivalry in smart phone industry
from mainly 6 organisation those who are posing threat on company sustainability for a long
period of time along with profitability. Entities like, DHgate, Banggood etc is having high
competitive power that poses number of challenges in front of I- Tech profit generation
capability. In order to overcome this management of respective organisation will require
developing competitive strategies as ensure more competitive edge in marketplace and win
consumer loyalty and satisfaction for long period of time. It further allows entity to build their
remarkable brand image among customers and turned out to be a business organisation as a
successful company in smart phone industry.
Competencies and capabilities
In order to conduct operations in a market segment it is essential for an organisation to
evaluate competencies and capabilities in which respective industrial sector in order to forecast
futuristic growth and development of entity (Bocciarelli and et. al., 2019). With the help of this
evaluation organisation can overcome number of complexities by devising efficient strategies is
an effective manner and can further conform their successful brand image in marketplace. In
accordance with the present scenario it has been identified that respective organisation I- Tech is
having significant capability and competencies through which they can effectively execute their
operations to fulfil organisational goals and consumer satisfaction:
High share of market: This has been evaluated that I- Tech presently is operating their
business operations in different nation, it is the most crucial aspect that aid entity to serve
maximum number of customers in different geographical regions (Camargo, Dumas and
González-Rojas, 2020). With the help of their large reach organisation effectively offer smart
phones to larger number of individuals across the world. It significantly enhances company
overall market share holding that maximise revenue and profit generation capability of entity for
long period of time in order to ensure maximum competitive growth.
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High product demand: According to evaluation is has been identified that smart phone
that is being offered by I- Tech is highly demanding in most of the countries where they operate
their business functioning. This has proved to be most important competency for entity. Apart
from this it has been identified that respective organisation not able to accomplish individual
needs and demands in marketplace that negatively impact upon their business operations for
long-term and can further decrease overall loyalty of its customers (Draijer, 2020). In order to
overcome this entity is required to undertake advantage of efficient corporate strategies in order
to facilitate their production process at high level in order to fulfil consumer needs and demands
in marketplace. Strategies not only aid organisation to achieve loyalty from their customers but
also allows them to grab more number of market share.
Analysis of financial data
There are three ways of financial reporting, including income, balance sheet and cash flow. They
are all thoroughly considered when the specific accounts are reviewed. All I-Tech monetary data
must be processed in order to be analyzed. The description of the evaluation is as follows:-
Income statement: Each statement of the business is a profit and loss account that shows the
company's income and expenses for a certain time. It demonstrates how purchases are
transformed into overall revenue or net earnings. The revenue report is one of three main
financial statements on which the owners of investment rely heavily (the balance sheet synopsis
and the cash flow are two others). Knowing the statement of profits is essential for shareholders
who need to assess the efficiency and possibilities development of the company (Fekula and
Rodriguez, 2020). Information on benefits, losses, revenues and expense shall be submitted in
this statement. The business produced gross profit of 104,537 million and net sales of some
73,408 million for 2020. 79511 millions of GP was decreased, and in 2021, net profit fell to
48375 million. The operating profit and net profits rose to 210474 and 91794 in 2022. The net
profits were reduction in total to roughly 91928, 133648, 146262 and 154196 by 2023, 2024,
2025 and 2026. The revenue was decreased to 77991, 54360, 38134 and 36383. In 2027,
company income decreased to 64 414, and then the same year's shortfall decreased to 157 701. In
2028 there were roughly 13724 pounds of gross revenue, with a significant deficit in the year of
EUR 234519 million. For the year 2029, net profit was almost 23469, with a loss of 433466. The
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income report shows that its earnings have slowly risen after 2023 and that the company cannot
meet its targets. The company has to insure that revenues are and rewards improve for 2029.
Balance sheet: Balance Sheet is a financial report of an company comprising the assets ,
liabilities, stock, total debt, etc. at all times. The balance sheet contains both the assets and the
debts on the one side. Both sides (e.g. assets = liabilities + equity) must count to ensure that the
balance sheet represents the true picture (Bocciarelli and et. al., 2019). The balance sheet is much
better an overview of a company's financial situation at the stated period, usually for a half, six
months, or one year. Balance Sheet includes 2 key heads: liabilities and assets. This is a
document providing information on all assets, liabilities and operations. From the 2019 balance
sheet it determined that the total sum was 519487, and the debt for last year was roughly 521187
net assets of 17. Cash in 2020 grew to 579,920 and the annuity with total debt and interest was
603,588. It shows that the corporation's efficiency is increased over the year. The estimates for
2021 show that the company's productivity has been improved this year since this year the cash
for the commodity was very strong. It totals approximately 627522. The balance sheet 2022
demonstrates that the yearly cash for the corporation for the year was 681790. This year, there
were roughly 762941 combined assets and liabilities. This indicates that market performance has
improved after 2020. The estimates of 2023 indicate a reduction in corporate performance as the
share price for the year dropped. The plan for 2024 indicates that the organization was not able to
arrange funds to execute all operating operations adequately, resulting in low yearly results. As
the financial statement shows, for several years the business could not produce enough profits. It
ranges from 2023 to 2029, and over the years the output of the business has declined and
sustained major losses.
Cash flow statement: The financial statement displaying cash flow, also known as the cash flow
document, is a financial statement that shows how revenue and income changes affect cash and
accounts receivable, and how the cost of operation, expenditures and financing is overviewed
(EDUCATION, 2019). It is mainly used among companies to track cash inflows and cash
outflows to get actual money by the end of the year. Gross sales from the years 195642 and
198607 were analyzed in the Cash Flow report for the years 2020 and 2021. The expenditure for
both years was around 135209 as well as around 151005. In 2022, around 504217 incomes and
449948 expenditure were produced. Around 2023 and 2029, the firm's cash flows declined as
profits began to grow. Investment steadily grows after 2023 and the volatility in the capital
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outflow of the business decreases. The I-Tech output was assessed as a continuous decline since
2023 due to a fall in net profit from the above measuring results. It indicates that the manager is
incapable of meeting its goals and shows the detrimental impact on organizational performance
on management decisions. The business does not make an adequate profit, every financial
statements like income statement, balance sheet and cash flow. The main reason for this is
industry analyzes that show that smart phones marketed by the company have a high competition
and cannot offer goods appropriately.
Performance analysis
Performance evaluation is a crucial aspect that is required to be undertaken by the
organisation irrespective of their size scope and industrial segment. It significantly allow
organisation to identify negative aspects and issues that company is facing in different level and
further allowed them to overcome them with effective strategies in order to ensure more
competitive growth (Hernández-Lara, Perera-Lluna. and Serradell-López, 2019). In order to
conduct performance analysis it is essential for prospective organisation to evaluate each and
every aspect of organisation and further device efficient corporate strategies to stimulate
performance of human resource, product development, marketing, logistics, accounting and
more.
According to the evaluation of market information it has been identified that smart
phones of I- Tech demand is relatively high in marketplace. However this has been identified
that company is not fulfilling needs and demand of customers in timely manner due to the
presence of ineffective strategies in business organisation that further negatively impact upon
organisation profitability. Inefficiency of company to fulfil consumer demand signifies that
entity is taking use of ineffective business plan. In order to overcome this organisation is
required to evaluate the performance introspective industrial sector in order to implement
significant modifications according to recent trend and preferences prevailing in marketplace as
to maximize their profitability (Gatti, Ulrich and Seele, 2019).
According it has been identified that there are number of competitors of are offering
direct competition to I- Tech in Smartphone market. According to the evaluation it has been
identified that rivals are taking use of different form of strategic course of action. However smart
phone quality of I- Tech is unmatchable in respective industrial sector (Hashim, Razali and Taib,
2019). With the help of these competencies organisation significantly allow them to have
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maximum level of profitability till 2022. However this has been identified that since the
beginning of the year 2023 I- Tech may get affected by number of difficulties to attain maximum
profitability that will significantly impact upon competitive advantage of company.
In order to overcome this I- Tech introduced many changes during the period of 2019-
2029, this somehow lead organisation to face different form of challenges like non fulfilment of
needs and demand of customers, reduction in production unit and more, that can significantly
impact on performance of this company for long period of time (Matute-Vallejo and Melero-
Polo, 2019).
In this I- Tech management is emphasized upon undertaking key decision related to
different unit of entities like finance, marketing, logistic, accounting, human resource and more.
According to the evaluation this has been identified the human resource strategy of company
proves to be effective for I- Tech due to proper and efficient management of employees.
However in terms of logistic organisation is required to undertake efficient strategy to operate
their functions effectively in different countries (Lohmann and et. al., 2019). This has been
identified that company is not fulfilling demand and needs of customers in efficient manner this
signifies that decision is related to logistic undertaken by company is not much effective.
According to domain of accounting it has been identified that organisation issued final account
that states efficient support shown by employees those who are operating their functions in
organisation accounts department in order to develop their financial position of entity in
respective industrial sector. Apart from this it has been identified that organisation not undertake
any strategies related to product development, this can be seen by no change made by company
in its model over the course of 10 year time period.
Future plans and recommendations
After evaluating I- Tech business performance this has been evaluated that due to its weak
performance and in efficiency of fulfilling customers needs in time effective manner lead
organisation towards inefficient performance (Lazarova-Molnar and Li, 2019). In order to
overcome this organisation is significantly required to undertake use of efficient strategies in
order to ensure success in marketplace. In relation with this future plan and recommendation for
I- Tech for next 5 year is being defined:
 I- Tech is required to undertake market research on continuous manner as to get
opportunities in a significant and time effective manner and further ensure attraction of
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maximum number of consumers to accomplish their laid down objectives with maximum
profitable advantages.
Recommendation: For effectively carrying out the market research, it is recommended that I-
Tech should hire competent and skilled employees having sound researching skills so that they
can identify growth prospects for the company. These individuals would be able to equip the
company with knowledge regarding the key trends taking place within the domain of smartphone
sector.
 Also, it is proposed that I- Tech in the next 5 years should take initiatives to enhance its
production capacity so that it can produce more number of units and meet the demand
emerging in home and host market place
Recommendation:
In order to make significant increase in its production capacity is suggested to I- Tech to
undertake significance use of sound knowledge areas as well as product development strategy in
order to maximize their production generation capability. With the help of this organisation can
effectively fulfil consumer demands marketplace and can further ensure the long-term
sustainability with maximum revenue generation capacity.
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PART B - Professional Development Reflection Report
Executive summary
Business simulation is considered as simulation which is used by a company in order to
conduct business training, analysis or education. This aspect is generally based on the scenario or
numerical basis. Generally business simulation is adopted by a company for business acumen
training as well as development activities. The meaning of simulation is considered too
mechanistic in order to conduct education. Respective section of report is reflective account of a
person who is working within a group in the simulated business named I – Tech. This firm
manufacture, design as well as sell smart phones in the different location around the world such
as United Kingdom, Netherland, Japan, China, India and many other nation. The reflection is
based on discussion over professional development as well as it include learning within MBA
(Master in business administration) course is different from the other collaborative working. For
this a person adopt different theories and model as that will help as it provide proper guideline
according to which training as well as development activities can be done.
Introduction
Professional development can be referred to as the purpose of carrying out continuous learning
as well as training for the purpose of career progression (Draijer, 2020). In this relation, there are
multiple things that I acknowledged and learnt during group work. This learning had an edge
over the learning carried out by me during the tenure of my MBA degree coursework. While the
tenure of MBA made me gain knowledge of several concepts, the group project made me
actually apply those concepts for the achievement of favourable results. Being exposed to
simulated working environment equipped me with knowledge of a wide variety of concepts
linked to the notion of business simulation.
Identified events
Exposing myself to team working in simulated business environment assisted me in
identifying several events which were organised by the leader for enrichment of professional
personality of individuals. Such events can be comprehensibly explained as follows:-
Leadership conferences:
Herein, multiple leaders having professional background come together to exhibit their
ideologies and opinions related to a subject (Camargo, Dumas and González-Rojas, 2020). In
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this relation, several leaders from simulated business context participated and provided
assistance to other individuals in learning various aspects from them. Participation within such
conference allowed me to boost my knowledge and motivation level so that I can operate more
effectively and efficiently in context of simulated business atmosphere.
Communication workshops:
In this type of setting or arrangement, multiple of experts from simulated environment gather and
exchange their views. This provided assistance to me along with the group to set interaction with
such experts, thereby gaining knowledge from them about a number of subjects. This gave me a
closer perspective of the concept of business simulation in practical sense.
Review of relevant concepts or theories
Some of the theories that me and the group learnt about, during team working are explained as
follows:-
Theory of reasoned action: This is a theory which established a link between individual’s
behaviour and the chain of intention, belief and attitude. This theory seeks to emphasize over A-
B relationship (Costin, O’Brien and Hynes, 2019). Hereby, A – Attitude and B – Behaviour are
linked to each other.
Situational leadership theory: This is a leadership theory which is based on the premise that
there is no best style of leadership that can be applied in all kinds of situations. A leader needs to
select the leadership style as per the situation prevailing within business environment (Bitrián,
Buil and Catalán, 2020). This provides assistance to the business leader in effectively dealing
with the situation and ensuring that there are no repercussions for the company.
Review of industrial practices
The smartphone industry is acknowledged to be highly competitive in nature. Although the entity
holds extensive market share, it has been unable to satisfy the customers owing to its
ineffectiveness in producing at a capacity which can meet the demands of customers. The rivals
of I – Tech are DHgate, Banggood etc. The major reason behind the success of these companies
is the rigorous marketing activity that the entities engage in. Further, these corporations are keen
to apply the latest technologies within the premises to derive positive outcomes.
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Application of theory as well as practice
The theories as well as concepts that were applied in the simulated business environment
of I – Tech are explained as follows:-
Theory of reasoned action:
This theory when applied in the simulated business environment provided assistance in making
analysis of the relation existing between behaviour of individuals working collaboratively and
their attitudes (Buil, Catalán and Martínez, 2019). I applied this theory in the premise of I – Tech
for the purpose of gaining knowledge of the ideologies held by my teammates. There is diversity
within then attitudes of team members and this gives rise to the differences that exist amidst their
behaviours.
Situational leadership theory:
It is important for a leader to select a style which is congruent to the requirements of company as
well as business environment in which the company operates (Fekula and Rodriguez, 2020).
Situational leadership allows the leader to analyse the situation in a detailed manner, thereby
selecting the style of leadership accordingly. Thus, being a leader for the simulated business
working, this leadership theory when applied within the context of simulated business
environment provided assistance to me in selecting the leadership style as per the situation. It
rendered aid to me in enhancing and developing my leadership skills. Further, the simulated
business environment exposed me to situations wherein I had to facilitate shifts in the leadership
style as per the situation.
Discussion
I- Tech is newly established business that manufactures and distributed Smartphone in
international market. Overall demand for its offerings in 2020 was about 384000 and 332126
was its sale in same year. In 2021, it is analysed that demand of its product would be around
276480, but company only achieved sales of 227056. The sales of company were continuously
decreasing and this was hampering its profit margins and brand image. In context to product
price, the company sets prices as per the quality of material and resources used in manufacturing
and delivering products. As per product price, demand of its Smartphone in the year 2020 was
240000 and 118464 was sales. It experienced downfall in sales because of ineffective pricing
strategy and various other factors.
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Recommendations for practice and research
In accordance with the discussion presented above, some suggestions can be given to I –
Tech. Such recommendations are enlisted beneath:-
 It is recommended that the simulated business should create and implement an effective
marketing strategy that can provide assistance to the company in inflating its overall
reach along with boosting the financial performance. Thus, I – Tech is suggested to adopt
digital marketing, especially social media marketing via multiple platforms to create a
word about the organisation and its offerings.
 Low production capacity has been one of the biggest issues for the respective simulated
business. Looking upon the issue, it is suggested that the management of I – Tech should
adopt sound technologies and innovation which can provide assistance in inflating the
volume of production taking place within the company. As a result of this, the business
would be able to address the needs and demands of public in a timely manner.
 Lastly, it is suggested that the entity should constantly carry out research upon latest and
emerging market trends. These trends can be exploited by I – Tech assisting it in attaining
an edge over the rivals operating in the same industry.
CONCLUSION
In accordance with the discussion done in the two sections above, it has been analysed
that business simulation is a learning activity through which individuals are able to set up a new
business within the dynamic and competitive corporate scenario. Business simulation requires
the personnel to take into account the changes that occur within the domains of its market in
order to take key decisions as per such alterations. Further, the environment in which a company
operates need to be screened on a regular basis so as to identify any opportunity or threat that can
significantly affect the functioning as well as operations of the firm. As a result of this, the
management of the company can alter the mission and vision statement and work accordingly to
achieve the corporate goals. It has further been identified that there are a number of aspects like
marketing, logistic, finance, operations and others which tend to lay down the foundation to
decision making done by the company. Also, it is on the basis of such factors only that an entity
develops and implements a strategy to be followed by all the representatives of the corporation.
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REFERENCES
Books and Journals
Alstete, J.W. and Beutell, N.J., 2019. Business simulation and assurance of learning. Quality
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