Business Strategy: BIOMAS 5 Performance and Strategic Decisions

BUSINESS STRATEGY

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
Projected Y16 performance of BIOMAS 5............................................................................2
Key strategic decisions made during the BSG simulations....................................................3
TASK 2............................................................................................................................................7
Imply and assessment of six supporting strategic concepts models and ideas subject to
strategic approach...................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Long term business decision-making is a terminology involving determinations on the long-
term as well as short-term strategy of the firm (Johnson, 2016). This is a course by which the
business is planning its plans for the future and taking efficient choices in the particular time to
reach that goal. Those decisions are consistent with the firm's long-term goals and purpose,
which demonstrate the corporation's overall picture. When taking these decisions, companies are
taking short-term goals along with the long-term goals into the vision and mission statement of
both the picture business. To recognize the essentialness of different strategic structures needed
to assist the strategy of the business, the London-based BIOMAS 5 business. This report includes
the comprehensive business data needed during the strategic planning process. The report also
describes the collective decisions that businesses require when practicing Business Strategy
Simulation Game. It also describes the different strategy and leadership frameworks used only to
help the flexible approach of the organization.
The Business Strategy Game is by far the most commonly utilized computer simulation on
both the strategic management industry and is used throughout the globe in universities. Each
business in the sector is run by either a squad of undergraduates / teams who have to fit their
tactical wits against other teams in the firm and the contest is face-to-head. The item of the sector
is athletic shoes, and the market's geographical complexity is local. The business that players run
has factories to operate, a staff to pay, spending on supply and inventory inventories, decisions to
make capital spending, advertising and wage promotion strategies. A platform to run, to find
demand estimates and to take into account ups and downs in currency fluctuations, inflation and
the share market.
1

Insight BSG
Branded Markets: Industries in North America, Asia, Europe, and Latin America can
produce and sell the shoes in marketed countries, and they can bid to supply Canadian network
distributors with private label shoes. Branded revenues can be sought via one or all of three sales
channels (1) autonomous shoe companies, (2) corporate and operated retail outlets, and (3)
specific sales on the website (Brynjolfsson and Mcafee, A.N.D.R.E.W., 2017).
Extensive Strategy Options: Companies can place their goods on the low end of the
market, on the top end, and on cost, performance, and service close to the middle; they could
have a wide or tight product line, small or large dealer networks, extensive or limited advertising.
Demand situations, customs duties or wage rates vary from area to area. Business market shares
are based on how the brand characteristics of each business are balanced against rivals ' efforts
and truly competitive time and effort (Ramírez and Selsky, 2016). In a worldwide commodity
market, raw materials used in footwear manufacturing are purchased at rates that rise or fall as a
result of current supply-demand environmental conditions.
TASK 1
Projected Y16 performance of BIOMAS 5
At present the BIOMAS 5 retaining 4th position at industry 40 scoreboard in UG BSG
game. The earning per share for the year 16 counted as $7.98 which is higher than the investor’s
expectations which is $5.25. return on equity is calculated as 25.3% against the investors’
expectations as 26%. Credit rating is A- and the measurers are quite similar to the investor’s
expectations (Whitaker, 2017). Image rating projected as 96 against the stakeholder’s
expectations as 77. Further financial measures state the following figures as net revenues of
$1274172 that increased by 6.4% form Y15, net profit counted as $233389 which was recorded
higher by 18.4% from the Y15. Closing cash balance recorded as $414855. Company’s financial
rating also shows favourable results in order to get short term and long term loans. Credit rating
of company is A- that refers that if organisation take a 1-year loan than the rate of interest will be
6.8% same as rate of interest for 5 years’ loan is 7.3%, for 10 year’s loan is 7.8% and the rate of
interest on overdraft will be 8.8%.
2