Business Strategy BSG Game 21 - Strategic Decisions, Theoretical Framework, and Emerging Technology

This report discusses the strategic decisions made during the six rounds of BSG simulation, the theoretical framework used to understand the internal, external, and competitive environment of business, and the impact of emerging technology on the future of business. It also includes a summary, subject, course code, and college/university.

: BUSINESS STRATEGY
BSG GAME 21

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Strategic decision made during the six rounds of BSG simulation, one round stood out and key
lesson learnt.................................................................................................................................3
Theoretical framework to understand internal, external and competitive environment of
business and the way they helped in decision making in BSG....................................................5
Emerging technology Information- connected smart footwear ..................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy refers to set of action that are undertaken by business in order to grow
and expand its business operation in external environment. In short, it is competitive move or
action that has been taken by the company to attract customers, enhance its sales volume and
performance to maximum extend. This report is related to GO- fast is company that is offer
qualitative, more comfortable footwear to its customers in order to earn high profit margin. It has
highlighted crucial point related to major strategic decision made during the six rounds of BSG
simulation and the one round that stood out. Application of theoretical framework to understand
internal, external and competitive environment of business and the way it helped in decision
making. At last, it has evaluated the impact of one emerging technology on future of business
and recommendation related to the way technology can be used by future manager.
MAIN BODY
Mission
To be one of the most customer centric company where customers can find high quality
desirable footwear as per their choice at lowest possible price.
Vision
To be recognized as one of the best footwear companies in this industry that operate
globally.
Our company tend to become top leading suppliers of shoe wear and become one of the
most trusted and preferred brand of shoe wear.
Values
Values that are being valued by this company are: Work, respect for people, integrity, high
quality product availability, high quality service, business longevity.
On the basis of these values, value statement of the organization will be “Work, respect for
people, integrity, high quality product availability, high quality service, business longevity”
Corporate Objectives
 To increase corporate social responsibility contribution by 10 percent by the end of Year 13.
 To increase by Year 13 internet market of products by 10 percent
 To increase production by Year 13 by 10 percent
 To Increase overall revenue of organization by the end of Year 13 by 15 percent

Strategic decision made during the six rounds of BSG simulation, one round stood out and key
lesson learnt
Reflect and report on the general activities and decisions of the 6- year strategic business
decision making
1. First decision has been taken related to workforce compensation and training such as in the
North America facility there is average to pay total compensation of around 48704, while the
company make payment of around 54,678 to its employees. While in Asia pacific area the
industry average for total compensation is 18,142 and the company pay off 23,552.
Furthermore, employees are also provided with additional benefits such as base wage,
incentive pay and fridge benefits (Turner and et.al., 2018). Likewise, in North American for
best practice training employees are paid extra 800 while in Asia pacific only 600.
This decision was taken by the organization for achievement of 4th corporate objective that was
to increase overall revenue. The main reason because of which this decision was taken was to
make good payment to its employees for their hard work and dedication that has helped it in
earning more revenue and profitability.
2. The second decision has been taken related to branded footwear production
This decision was taken for achievement of one of the main corporate objective that was to
increase production. Reason because of which this decision was taken was to reduce its branded
production cost in North American also to earn more revenue by delivering similar quality
product at lower price.

3. Thirdly decision was taken related to equipment required for footwear production, by
purchasing specific equipment in North American facility etc.
This decision making dire was directly related to one of the main corporate objective that
was to increase production. The main reason because of which this decision was taken was to
increase production of GoFast by installing new equipment so that demand of product can be
meet.
4. Decision was also taken related to cost of distribution and warehouse such as in North
America the cost of storing per pair is around 7.41, in Europe Africa warehouse it is 13.30, in
Asia – pacific is 8.77 and in Latin America is it is 20.68. so, the maximum cost of
distribution and warehouse is in Latin America while lowest in Asia pacific (Kim and
Watson, 2018).
This decision making was taken for achievement of achievement of one of the main
corporate objective that was to increase revenue of organization. The main reason because of
which this decision was taken was to enhance overall sales and profitability of organization
in Latin America

5. The company have taken limited initiative toward corporate social responsibility such as it
has only contributed 9% of its total profit as charitable and $50 in energy efficiency
initiative. Likewise, in year 10, there has been no charitable contribution while in year 11,
company have contributed around 1647 as charity (Capelo-Badillo, Hernández-Lara and
Serradell-López, 2021).
This decision was Taken for achievement of one of the corporate objective that was to
increase corporate social responsibility. The main reason because of which this decision was
taken was to attract more and more customers and build strong brand image in mind and
hearts of the people.
6. Last but not the least, decision has been taken related to internet marketing likewise in North
America in year 11 the search engine advertisement costing is 5750 but it has increased to

6250. The market has also rise from 506 to 639. Afterwards the maximum growth was in
Europe- Africa market from internet marketing as it raise from 436 to 603.
This decision was Taken for achievement of one of the corporate objective that was to
enhance internet marketing of organization. The main reason because of which this decision
was taken was to make the best use of internet marketing in order to attract and retained
customers.
Reflect on one year(round)that stood out
From the above analysis it can be stated that the round of 12 year was much useful as it
in all necessary information related to equipment required, production cost, wages to labour and
benefits of internet marketing are identified. At the same time, it has helped in learning lot many
things related to the way why cost is more in one country as compared to other. The manner in
which it can be reduced, employees can be motivated to produce more products, the impact of
internet market on growth and expansion of business and many more things has been learned.

Theoretical framework to understand internal, external and competitive environment of business
and the way they helped in decision making in BSG
There are numerous changes in external and internal environment of business that direct
impact on the way company operate its business or perform an specific task. External factors are
government policies, customers taste and preference, economic condition, technology
development and many more that impact on business and its decision making. Porter five force is
model that is used to take decision in first year i.,e 11 year, while Ansoff matrix is used in second
year i.,e 12 year and for 3 year Boston model has been used which can be explained in detailed
as follows:
2.1. Macro-environment (External Environment)
Ansoff matrix
Ansoff matrix is product/ market expansion grid or tools that is used by the firm in order
to analysis as well as plan key growth strategies that could be used by organisation. Likewise,
there are mainly four growth strategies such as market penetration, product development, market
development and diversification that can be used by company. Such as:
1. Market penetration: This is less risky strategy that could be adapt by the firm as in it
the company focuses on increasing its existing products and services sales in existing
market only. In initial years, the Go fast has made use of market penetration strategy as it
has make use of similar quality of footwear products to delivered in similar market
(Aggarwal and Wu, 2019). This has helped company in earning sufficient profit margin
and expanding its market share.
2. Product development: The second strategy that could be used by firm is product
development in which it lay emphasis on introducing new products or services in existing
market to attract large number of customers. Go fast through conducting market research
has try to gain information related to market condition or key preferences, taste of
customers in order to decided specific products need to be introduce to meet customers
expectancy. So, it has helped company in taking decision related to development of new
products as well as services for existing customers bases to retained market share.

3. Market development: This is third strategy that involves some amount of risk such as in
it the company decided to enter into new market but with use of existing products and
services only. Likewise, North America, Europe- Africa, Asia pacific and Latin
American are four different market in which company have opportunity to expand its
business to earn high profit margin and sales volume through adding new customers in
the firm (Karriker, Madden and Katell, 2017).
4. Diversification: The riskiest strategy is diversification as in it the market is also new and
products and services that company is planning to offer to customers are also. Go- fast
through effectively understanding the market situation in which it is planning to enter can
easily diversify its business and gain competitive advantages.
This model has its own limitations such as: this matrix do not capture lot of details of
selected market because of which selection of appropriate growth matrix becomes difficult.
Other than this, in this matrix competitors are completely ignored which is one of the main
limitation of this matrix because of selection of appropriate strategy for growth becomes difficult
and it is an important factor to be considered because it can affect sustainability of organization
in selected or chosen market.
2.2. Meso-environment (Competitive Environment)
Porter five force: It is model that identify, analysis five competitive forces that shape a
particular industry and helps in identifying the strength as well as weakness of the industry. It is

applied to any segment of the economy in order to understand the level of competition in specific
industry and the manner in which it can be cope up such as:
1. Competition in the industry: Currently, the competition in footwear industry is high as
there are numerous companies operating in footwear industry to delivered qualitative
products to customers of different varieties. Therefore, company in order to grow and
sustain its business operation in highly competitive environment has focused on
improving its quality of footwear, improving its design and comfortness so that
customers are motivated to select it rather than other (Shukla, 2021).
2. Potential of new entrance: The potential of new entrance is also high as any of the
company can easily enter into the footwear industry to earn profit margin. Due to
minimum restriction and globalisation, more and more new competitors are arriving in
the industry that results threat for existing firm. So, company in order to cope up with
threat of new entrances has planned to create strong brand image in mind and hearts of
customers.
3. Power of consumers: The power of consumer is also high as they are number of
customers that are willing to have more stylish, comfortable footwear in order to walk.
They have more power to bargain from company related to the price of products and
services (Mulholland and Turner, 2018). So, Go- fast in order to reduce the power of
customers has take decision to bring economic of scale in the company, differentiate its
products in terms of design, quality and packaging for charging high price from
customers.
4. Power of suppliers: The power of suppliers is low as there are number of people or
suppliers that are ready to offer products and services to the company. So, go fast through
maintaining strong relationship with number of suppliers is able to timely get raw
material in order to offer finished products to customers.
5. Threat of substitute products: The threat of substitute products is medium as there are
small and medium scale company that in order to earn profit manufacture low quality
substitute products. Go fast through its own brand, comfort of its shoes is able to reduce
the threat of substitute products and enhance its market share.

This model has its own limitations such as: This model so not consider different segment
buyers and consider all the buyers as a single segment because of which actual power of buyers
upon the organization cannot be calculated. Other than this, this framework do not focus upon
differentiating between middleman and different channel because of which its effectiveness get
reduced. Due to these limitations decision making of organization can get impacted and
sustainability of organization within the market in which they operate get reduced.
2.3. Micro-environment (Internal Environment)
Boston Matrix
This is model used in third year to take right decision that helps business in analysing its
portfolio of business and brands. So, Boston Matrix is tools that is majorly used by the business
to plan marketing and business strategy to stay ahead in competitive environment for longer time
frame. Such as:
1. Question marks: There are some products and services that have high growth but low
market share so company is not sure about its growth in future scenario. Growth rate is
high so right strategies and investment is needed for fruitful outcome. On the contrary
note, they have low market share so wrong investment will result in trouble for the
organisation (Lofgren, Leigh and Ramirez, 2019).
2. Stars: This are products and services of company that are having high growth or more
demand by customers in external environment. So, Go fast needs to make heavy
investment in its star product to enjoy more profit margin by delivering products as per
expectancy of customers.

3. Dogs: Products that have lower market share and growth rate are categorised as dog so
making investment in the same is not useful for the company. Manager of Go fast need to
analysis that product that does not have demand and growth in future must be stop
manufacturing to avoid wastage of money.
4. Cash cow: It includes those products and services that have low growth but high market
share so company can enhance the demand of products through making small amount of
investment. Therefore, firm needs to make necessary improve in cash cow products as
they help it in earning good profit or continue cash (Capelo-Badillo, Hernández-Lara and
Serradell-López, 2020).
This model has its own limitations such as: it classified business in only two segments that
are low and high but in most of the cases business is of medium segment as well due to which
true nature of the business is not reflected and as a result decision making of organization is
affected. Another limitation of this model is that in this model market is not clearly defined in
this model this is majorly because high market share do not always lead business towards high
profit as a result correct analysis of business becomes extremely difficult and further as a result
decision making of organization is impacted.

Emerging technology Information- connected smart footwear
The connected smart footwear are the emerging technology in which the shies can
measure the running fundamentals such as distance, pace and splits involving advanced data such
as cadence, gaith analysis and stride length. The technology is a blessing for the company which
can measure the athletic performance of people from tracking the fitness to evaluating the health
metrics all just by wearing the shoes (Shyam and Singh, 2021). Fast-Go can introduce this
technology in its footwear and introduce further modifications in it. The technology can provide
the users feedback through connecting to the smart devices such as mobile phones and tablets. It
can introduce this technology in its engineer traditional shoes modified with the integrated
technology in order to boost the convenience and comfort with the good health. The technology
can also act as an blue tooth connected activity which will enable the user to track the data on
their mobile phones. The shoes will look like regular shoes but will contain technology that will
be implemented in the shoes in micro size. It can function like a high tech brain.
As many companies such as Nike, UnderArmor and Xiaomi have launched the smart
shoes which integrate a number of features, this technology is still under process. In the
technology various smart sensors will be used to acquire data such as inetrtail-magnetic
measurement units and satellite navigation systems and the pressure sensor systems etc. the
connected smart footwear are the future for footwear (Beschorner and et.al., 2021).
Impact on business
The emerging technology of connecting smart shoes will provide various benefits and
limitations to Fast-Go. It will provide the following benefits:
1. Customer satisfactions: The shoes will allow the users to record their data through
sensors without doing anything manually. It will automatically detect the data and record
it. The biggest merit of the technology is its data acquisition system. It will allow the
users to have various benefits which will attract them towards the company. It will allow
the company to provide higher customer satisfaction.
2. Opportunity to grow business: The new technology will be an evolution for the health
conscious people as its will provide various benefits such as Cloud based transmission
abilities, personalized feedback and various other health applications. Theses benefits
will attract the health consumers segment of the customers as well as the people who are

always looking for trying new technologies. This allow the company to expand its market
share which will generate new revenue streams for the company.
3. Enhanced goodwill: The technology can be leveraged as an innovation for noble cause
through introducing the product for construction workers and disabled persons. The
company can modify the product which will provide instructions and warning regarding
hurdles to the construction workers as well as physically disabled persons (Dziuban and
et.al., 2018). As a result it will enhance the image of the company in the industry.
Limitations
The technology will have limitations for the implementation of emerging technology of
connecting smart shoes which are explained as follows:
1. Extensive investment: As the new technology will involve micro chips and technology in
the shoes which does not affect the comfort of the users, it will need huge resources huge
investment for the research and developmental as well as for the designing of footwear.
Fast-Go has to invest huge finance to make the idea turn into reality.
2. Extensive technical knowledge: The company has to hire the employees with extensive
technical knowledge. As the technology has to be implemented without affecting the shoe
design and the comfort the company has to hire new employee which are technical
expertise. It will need further investment as the company has to pay huge amounts of
salaries to the technical experts.
3. Less common features: The technology will have other restrictions such as hurdles to
jump. These can impact the attractiveness of the technology resulting the less sales of the
product. If the product will not be able to attract the athletes who want to use the product
as a regular product with advanced features.
4. Extensive resources: The company will need extensive resources for the investment in its
research and development and designing of the technology. It will have to find new
streams of finance to fund the research and designing (Kumar, Cowley and Davis, 2019).
Recommendations for the future managers
1. As the emerging technology will need the extensive research the following
recommendations can be provided to future managers of Fast Go:

2. It is recommend to the future managers of Fast Go to hire the employees who have
extensive technical knowledge instead of finding them for the project at that time. It will
allow them to negotiate their salary demands for new technology implementation.
3. It is also recommended to the company that it should document the process of research
and development so that it can stop the imitation of the technology and own the copy
rights and competitive distinction in its technology.
4. It is further recommended to the Fast Go that it should collaborate with its competitors to
gain a better access to resources and distribution channels. It will allow the company to
have access to the market shares and new customer segments of the competitors too.
CONCLUSION
The business strategies are the actions which are undertaken by companies to grow and
develop their business and attain their organizational objectives. The strategic directions can
provide the companies direction where it can direct its strategies for the fulfilment of a specific
objectives. In the BSG play various decisions were taken such as Cloud based transmission
abilities, personalized feedback and various other health applications. Various analytical tools
were implemented for decisions making in BSG such as Porters five forces and Ansoff matrix
which helped the company to understand the attractiveness and competitive environment of its
business. It was also analysed that the company can introduce the technology of connecting
shoes which can leverage it various benefits such as Huge profits and enhanced market share.
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