Business Simulation and Global Challenges

The report concludes that business simulation is essential for preparing strategies for further operations and enhancing strength regarding marketability and competitiveness. The actual market position and profit earning capacity of orange and blue groups, belonging to the telecommunication sector, are introduced and analyzed. This assignment highlights the significance and different aspects of business simulation, which affects productivity and profitability of the group.

BUSINESS SIMULATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
A) INDIVIDUAL REFLECTION ON MARKET POSITION OF ORANGE AND BLUE
FIRMS..............................................................................................................................................3
B) REFLECTION OF SIMULATION STRUCTURE AND RULES..........................................13
C) IMPORTANCE OF GLOBAL CHALLENGE SIMULATION AND CONCEPTS OF
BUSINESS STRATEGY AD BUSINESS ...................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCE.................................................................................................................................15

INTRODUCTION
Cesim global challenges are as international business game for increasing knowledge of
students towards business drives. However, it increases an individual's learning with team work,
decision making and problem solving skills. Including this, simulation games are used in
advanced graduate and undergraduate program to enhancing skills through corporate training
programs. In this assignment, we are able to understand business simulation for mobile handsets
and game of different coloured groups as orange, blue and green.
A) INDIVIDUAL REFLECTION ON MARKET POSITION OF ORANGE
AND BLUE FIRMS
Internal and external environmental factors analysis: Orange group is the highest profit
making and leader in telecommunication services for providing mobile phones of specific
features (Abdullah, Hanafiah and Hashim, 2013). However, it aims to improve its services and
increasing demand for goods at higher level. For this purpose; its environmental factors can be
analysed as below:
Internal environmental factor's analysis: It includes management and performance analysis of
the firm. Therefore, on performing simulation of the group, result obtained regarding its
excellency, creditability are as follows:
Number of round Particular Orange Blue
3rd Market capitalisation 9297005 8513872
7th Market capitalisation 21946209 5028042
3rd Share price 315.2 277.3
7th Share price at the end
of round (USD)
580.6 125.7
3rd Sales revenue 184245 1872731
6th Sales revenue 3916563 2172657
6th R&D 220000 62778

6th Profit for the round 1002977 7202
3rd Profit at the end of the
year
561860 196898
Interpretation: It is interpreted that market capitalisation of Orange groupin 3rd round is
9297005 and in 7th round, it is 21946209 which is good and effective for sustainability for longer
time period. On the other side, for blue firm, market capitalisation in 3rd round is 8513872 and in
7th round, it is 5028042 which is not effective for marketability and competitiveness. For
analysing sales revenue of both firms, it is observed that orange group's sales revenue in 6th
round is greater than that of Blue which impacts on profit earning capacity of the group.
Similarly, expenses on research and development of orange is 220000 and of Blue is 62778. It
can be forecasted that orange group can sustain its good position in competitive market that is
able to maintain customers' interest towards featured mobile phone services on large scale
effectively.
Market outlooks: In UK, market outlooks in telecommunication sector including
demand, costs, social responsibilities are determined as below:

External environmental factors' analysis: These external environmental factors are
uncontrollable (Cannon and Smith, 2014). However, PESTEL analysis consists of factors as
political, economic, social, technological, environmental and legal of orange and blue companies
belonging to telecommunication sector can be presented as follows: Political: These factors as changes in government policies like; income tax rate, foreign
trade, export-import policies etc. However, by analysing these environmental factors, it is
evaluated that this time political environment of UK is moderate (Hall, 2014).
 Economic: It is analysed as monetary position of group and its operations with other
countries. However, gained revenue with business operations of other nations as USA,
Asia and Europe can be identified as below:
Interpretation: It is interpreted that in different rounds, orange and blue companies'
position varies from each other. As per comparative analysis, it is evaluated that orange group
operated business with other countries as USA, Asia and Europe at higher level than blue team in
telecommunication sector of UK.

 Social: This environmental factor demonstrates social and cultural factor of any country.
It is considered that different countries' people have various choices, interest towards
services of telecommunication (Holst, Musshoff and Doerschner, 2014).
 Technological: It is recognised from time to time, that technologies keep on changing
that affects business operations and environment of group. Thus, analysing these changes
and getting adjusted according to them, impacts on telecommunication sector of the
country.

 Environmental: It is external environmental factor which remains beyond control
therefore, changes in this environmental factor impact on business operations and its
effectiveness (Tao and Wu, 2017).
 Legal: There are some rules and regulations present in every country which are required
to be followed by the firm. Hence, legal environmental factor affects business group and
its activities.
Demand: Forecasting on demand for featured mobile phone services impact on its
production and profitability (Thavikulwat, 2014). For this purpose, demand from other countries
for mobile phones of blue group is to be identified as below:

Interpretation: It is analysed that demand for mobile phone is highest from USA which
influences its productivity and profitability at most. Thus, by creating innovations in mobile
phone handsets and improving features, marketability can be enhanced efficiently.
Production: In different rounds, production of mobile handsets of groups are different.
However, production planning for orange colour groupis 6.77k, 1.6k, 1.65k and 1.84k for
technologies 1 to 4 respectively. While, on the other hand, these data for blue team is lower than
orange in all technologies and contexts.

Research and development: For analysing research and development factor of blue
group in telecommunication services, total cost incurred is as 33 for market research and product
promotion (Wellington and Faria, 2014).

Marketing: It is an activity of launching, promoting and sustaining product and services
in market. However, for promotion of featured mobile phone, team has incurred approx. 5907.
Therefore, group has good marketability and competitiveness that can be maintained and
sustained for longer time period.
Legislatics: From different countries as USA, Asia and Europe, Logistics are various
from each other that impacts on production system of product services. However, it is interpreted
that logistics from USA is the greatest in comparison to Asia and Europe.
Finance: It is analysis of flow of funds and earning capacity of group by which decisions
are made regarding investment and income (Business Simulation, 2017). Therefore, earning and
business operations with other countries are analysed for improving monetary position of the
firm.

As per analysing business game, it is evaluated that in comparison to other coloured
groups, oranges is at the highest level in terms of profit level. However, in relation to research
and development as well for finance, performance of mobile phone companies can be identified
as:
Research and development  In 3rd round, performance of orange coloured group is
the highest.
 Business operations are created with USA at most for
exchanging goods and services.
 Production of mobile phone is done through Orange
group at most which influences its increasing
productivity and profitability.

Finance It is analysed that Orange group has the strongest potential for
further investment in comparison to other coloured firms.
Its financial management is also effective which can be
maintained and increased on larger scale in the future time.
However, it is recognised that the main aim of all coloured teams is to maximize financial
performance as well stakeholders' shares. Along with this, they targeted to creating balance of
production and distribution system in terms of selling mobile phone as well increasing number of
customers on larger scale for their products and services. As all entities targeted the same but as
per analysis, it is determined that Orange is the only group who got succeed in this achieving
effectiveness at the highest level in comparison to other coloured groups.
B) REFLECTION OF SIMULATION STRUCTURE AND RULES
As per the above analysis of blue and orange group of mobile handset provider
companies, it is recognised that marketability and competitive strength of orange is greater than
of blue. Therefore, simulation structure regarding further operations and improving services is
created including strategies and implementations (Abdullah, Hanafiah and Hashim, 2013).
However, business strategies, for creating innovations and improving qualities, are formulated to
be followed.
Result analysis: As per interpretations, it is identified that orange group has more
effective marketability and productivity of featured mobile phone handsets in comparison to blue
team in telecommunication sector. It influences further business operations and innovations in
product services for production and distribution of goods (Hall, 2014).
C) IMPORTANCE OF GLOBAL CHALLENGE SIMULATION AND
CONCEPTS OF BUSINESS STRATEGY AD BUSINESS
Global challenge simulation is essential for preparing framework and implementing
action plans regarding business operations. However, effective planning scheduling for business

operations are prepared to followed on in the future. These challenges and analysis of actual
market position leads to decision making process and effective competitiveness. It also presents
market position and sustainability of orange and blue groups belonging to telecommunication
sector by which business strategies are prepared. Therefore, quality of goods and services
provided by group can be improved efficiently (Tao and Wu, 2017). In this regard, global
challenges as business operations within countries of the world are identified to be faced. It
influences productivity and profitability of the team as well competitiveness in the future time
period.
CONCLUSION
This report is concluded that business simulation plays is essential for preparing
strategies for further operations and enhancing strength regarding marketability and
competitiveness. However, actual market position and profit earning capacity of orange and blue
groups are introduced belonged to telecommunication sector of UK. Thus, significance and
different aspects of business simulation are understood that affects productivity and profitability
of the group through this report effectively.

REFERENCE
Books and Journal
Abdullah, N.L., Hanafiah, M.H. and Hashim, N.A., 2013. Developing Creative Teaching
Module: Business Simulation in Teaching Strategic Management. International Education
Studies. 6(6). pp.95-107.
Cannon, H.M. and Smith, J.A., 2014. Strategies for Promoting Knowledge Formation and
Dissemination in Business Simulation and Experiential Learning. Developments in
Business Simulation and Experiential Learning. 64(4). pp.45-67.
Hall, J.J., 2014. Computer business simulation design: Novelty & complexity issues.
Developments in Business Simulation and Experiential Learning. 5(4). pp.45-67.
Holst, G.S., Musshoff, O. and Doerschner, T., 2014. Policy impact analysis of penalty and
reward scenarios to promote flowering cover crops using a business simulation game.
Biomass and Bioenergy. 78(67). pp.196-206.
Tao, Y.H. and Wu, W.N., 2017. Supplementing the Review of Business Simulation Games via
Bibliometrics Analysis. In Proceedings of the 4th Multidisciplinary International Social
Networks Conference on ZZZ. 9(7). pp.90-99.
Thavikulwat, P., 2014. Demonstration of a computer-assisted global business simulation.
Developments in Business Simulation and Experiential Learning. 56(4). pp.67-69.
Wellington, W.J. and Faria, A.J., 2014. An investigation of the environmental awareness attained
in a simple business simulation game. Developments in Business Simulation and
Experiential Learning. 67(5). pp.78-89.
Online
Business Simulation. 2017. [online]. Available through:
<http://nationalhrd.org/sites/default/files/NHRDBusinessSimulation.pdf>. [Accessed on
16th August 2017].