Business Simulation: Smart Tech's Vision, Strategy, and Performance

Business simulation
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Table of Contents
ABSTRACT....................................................................................................................................4
INTRODUCTION...........................................................................................................................4
PART A...........................................................................................................................................4
Vision and strategy over 9 years..................................................................................................4
Company performance.................................................................................................................4
Market share................................................................................................................................6
Internal capability........................................................................................................................6
Industry trends.............................................................................................................................6
Simulation performance results...................................................................................................7
Analyse performance...................................................................................................................8
Future plan and recommendations...............................................................................................9
REFERENCES..............................................................................................................................12
Appendix........................................................................................................................................13
PART B PERSONAL AND PROFESSIONAL DEVELOPMENT.............................................14
ABSTRACT..................................................................................................................................14
INTRODUCTION AND IDENTIFIED EVENTS........................................................................14
Application of theory related to leadership, group dynamics and culture.................................15
DISCUSSION................................................................................................................................19
Recommendations..........................................................................................................................19
REFERENCES..............................................................................................................................21
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ABSTRACT
In this report it has been described about entire business plan of Smart Tech, its vision,
culture, values, etc. besides that, it has been discussed about company performance with help of
porter five force model. In addition, market share, internal capability, industry trends, etc. is been
explained as well. Moreover, simulation results of game are discussed in it. At last it has been
discussed about future plans and recommendations that can be followed by Smart Tech.
INTRODUCTION
Business simulation is a real time business game that is played by students. It allows them to
analyse market situation and on basis of that developing strategies and taking decisions. Along
with it, overall environment is evaluated as well in it. With that it becomes easy to compete with
other business in the market. Similarly, Smart Tech is a smart phone company producing various
mobiles. They want to provide affordable mobile phone to all people.
PART A
Vision and strategy over 9 years
The company vision is to end up serious player of respectable size. There are 3 core
values of company that are connecting the world, 7 billion smart phones for 7 billion people and
affordable smart phone for everyone.
The culture of company is good and positive where all employee believes to work in
team and attain goals. Besides that, no discrimination policy is followed and diversified
employees are working. The HR of Smart Tech recruit and hire qualified and talented staff that
are capable to sell smart phones in market. HR provide regular training to them and motivate to
achieve goals. They closely work with management to create a strong network and making more
managers to be available. So, over 9 years 7 managers are developed within firm. An innovative
culture is applied and staff performance has enhanced (Andre, 2016).
Company performance
In order to evaluate company performance simulation game was played. This enabled in
analyzing its market share, competitive advantage, trends, etc. With that effective decisions were
taken and strategy was developed. It is analyzed as below
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Porter five force - The porter 5 force is a framework that is used to analyses competitive
environment. It considers 5 factors that derive business economies and attractiveness within
industry in terms of profitability. So, for Smart Tech its analysis is as below
Threat of substitutes- it refers to power in which it shows threat of substitutes available of
particular product in market. So, if there are a greater number of substitute available then power
of switching to other products is high and vice versa. Here, in smart phones there are no
substitute available. Hence, its power is very low.
Bargaining power of supplier- In this it refers to power of supplier for changing price of
products. It means if there are a greater number of suppliers then less power they possess as
company can easily switch from one supplier to another. But if supplier is less then they possess
more power to influence price. Smart Tech directly sell smart phones in market via its stores.
There are no suppliers involved in it. so, bargaining power is low (Cosenz, and Noto, , 2018)
Bargaining power of buyer- In this it refers to power of buyer for changing price of products. It
means if there are a greater number of buyer then less power they possess as they can easily
switch from one company to another. But if buyer is less then they possess more power to
influence price. In Smart Tech there are lot of buyer so they can easily influence price of
products. The bargaining power of buyer is high.
Threat of new entrant –it means entry of new businesses in this industry. If entry and exit barriers
are strong then it becomes difficult for them to enter but if there are no barriers then new entrants
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can easily enter in it. In smart phone market threat of new entrant is moderate. New companies
can enter but it require long time to gain market share
Competitive rivalry – this means the level of competition which exists within industry. There is
stiff competition in industry. Hence, rivalry power is high.
Market share
It is found that Smart Tech is able to gain high market share since they entered in
industry. This can be evaluated that company has adopted cost leadership strategy in which they
are providing smart phones at lowest prices. This is done to focus on value of providing
affordable smart phone for everyone. Thus, it is stated that company net profit is 3 million and its
solvency rate is 88%. Along with that, in market it is ranked at 2nd position in terms of lowest
price. Moreover, Smart Tech is at 2nd place in market leader in price segment. Besides that,
average age of inventory is 20 days. Apart from it, there are several competitors as well of Smart
Tech such as Samsung, Oppo, Xiaomi etc. So, these are giving stiff competition to them in
affordable market segment (Gosenpud, 2018).
Internal capability
Smart Tech is having several internal capabilities by which they can gain market share
and competitive advantage. This means that they are having enough resources that can be
utilized in effective way. The organization is having diversified and qualified sales force that can
enable in attaining goals in effective way. Other than this, staff can also be useful in doing
personal selling to attract more customers. The HR of Smart Tech is qualified and experienced
that can results in motivating and training employees. In this way sales can be increased. The
company is having a lot of cash in bank thus it can be invested and utilized in many ways. The
cash be optimized in effective way by management of Smart Tech.
Industry trends
It has been analysed that there may occur certain industry trends I it that can affect on
overall growth and expansion of company. These trends may be related to market or change in
needs. Thus, various trends which has occurred are defined as
Rise in product value- this trend occurred in industry as people started focusing on product value
rather than it price. It is found that people stopped buying product whose rating was 1 and it does
not included value from it. hence, there was decline in buying of low price smart phones in that.
It lead to affect on overall industry trends in it (Lacruz, 2017).
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