The Business Strategy Game

This article discusses the importance of business strategy and its role in achieving specific goals. It covers topics such as vision and mission statements, situational analysis, industry analysis, and internal analysis. The Business Strategy Game is a popular simulation used in academic institutions worldwide. Get expert guidance and study material on Desklib.

The Business Strategy
Game

Table of Contents
Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Vision and Mission Statements plus corporate objectives:..............................................................3
Mission Statement:.................................................................................................................4
Vision Statement:...................................................................................................................4
Situational Analysis:........................................................................................................................4
Macroeconomic Analysis:...............................................................................................................4
PESTLE Model:.....................................................................................................................5
Industry and Sector Analysis...........................................................................................................6
Porter's Five Forces Model:....................................................................................................6
Porters Generic Strategies Model:..........................................................................................7
Internal Analysis..............................................................................................................................8
McKinsey 7S Framework Model:..........................................................................................8
Telescopic Observation model:..............................................................................................9
Performance analysis: financing of company operations:.............................................................10
Corporate Social Responsibility and Citizenship..........................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy involves gathering roles or a structured set of management decisions
that enable businessmen and manage workers to achieve specific business goals and targets.
Business strategy offers an integrated structure for upper management to discover, evaluate and
exploit beneficial opportunities, resolve possible threats, make best use of funds and resources,
and counter balance weaknesses (Bharadwaj and et. al., 2013). It's like a plan used by corporate
managers to protect the sector's competitiveness. Often included is a lengthy-range illustration of
the planned image, business strategies and goals of the company. The London-based company
called "A Moonwalk" needs to recognize the theoretical underpinnings of the many institutional
structures needed to support corporate strategy. The report includes the detailed business data /
information needed during process of strategic management. The research outlines and discusses
important BSG simulation strategic decisions. The research also involves the implementation and
evaluation of various tactical and administrative aid systems, various principles and innovations
which are directly related to strategic strategies. Business strategy game is commonly used
automated simulator associated with strategic planning field and implemented to various
academic entities around the world. Here students build companies and operate themselves
through different phases through BSG, which also involves business numerical computations and
business improvement strategies.
TASK
Vision and Mission Statements plus corporate objectives:
A Moonwalk company deals in footware market. Business is ranked 2nd in the 2016
industry scoreboard on business simulation industry 36 scoreboard. Business is committed to
delivering creative and high premium products. Company is well developed with a decent value
for the brand (Johnson, 2016). Company has a broader variety of systematic priced footwear and
sales to various retailers and exclusive outlets. A Moonwalk's objective and also mission
statements have changed with the ever-evolving sporting and casual shoes, wearing clothing and
accessories or other accessories over the years, which has been influential in protecting the
company's leadership position in existing marketsIn reality, the management strategies of
Moonwalk are highly valued for their ability to maintain the business at its best at all times
irrespective of market / industry factors, something Moonwalk attributes with their specific

purpose and vision statements. Ideally, the stated mission of a company is a summary of the
primary objectives of the organization to be enforced to promote its development. The business's
vision and mission statements are as follows in this context:
Mission Statement:
Moonwalk's stated mission is "The Faction is striving to be the worldwide leader in goods
from the sport shoe sector with a brand made up of an enthusiastic mindset for sports activities
and lifestyle athletics. They are committed to improving the exclusive brands and sports goods of
the business in order to improve the overall competitive position. "This assertion highlights the
boundless potential of the company to give athletes and competitors the latest and affordable
goods with the goal of maximizeng their operational efficiency.
Vision Statement:
Moonwalk's mission concept is "To become pioneers with a focus on building great out
of performers and athletes with assured value products at international level in the sports
industry." Mission statement can be drawn from ongoing operations and corporate goals at all
times. It focuses mainly on creativity featuring Moonwalk and the development of edge-quality
and company sales among various greatest-players.
Situational Analysis:
Situation analysis relates set of different methods which are generally utilized by
managing personnel to evaluate corporation's internal as well as external business environment
with aim to understand corporation's key capabilities, types of customers and entire business
environment (Bentley, Omer and Sharp, 2013). This mainly includes macroeconomic analysis
and industry or sector analysis, as describes below:
Macroeconomic Analysis:
It also recognized as environmental scanning which mainly covers macro or external
factors that affects corporation's performance (Pagani, 2013). Macroeconomic analysis involves
methods which help to analyze economic trends, macroeconomics long-run projections,
evaluation of alternative different trends, possible impacts of financial measures etc. This models
act as basic element of analysis of macro variables. It also helps to take strategic decisions and
formulation of business strategies. In this context for conducting macroeconomic analysis of
Moonwalk, PESTLE model is applied:

PESTLE Model:
Situation analysis refers to a set of different methods that are generally used by managing
staff to evaluate the internally and externally environment of the company with the aim of
understanding the key capabilities, user types and the entire business climate of the company.
This includes mainly macroeconomic analysis and analysis of industry or sector, as described
below:
Political Factors: Moonwalk is producing, selling and distributing its products worldwide. It
enables them to broaden global supply chains and also to follow strategic processes when selling
things online (Webster, 2014). The entity also uses political movements as a stretch of the
imagination of interfering with counterfeit products. Each country will have its own tax system.
Moonwalk is required to follow with any of these rules for each production and sale of each
brand overseas. The company tends to prefer to subcontract its research and development to poor
countries. Moonwalk must also adhere laws as labour act, product and safety legislations,
international trade agreement and consumer safety product legislations.
Economical Factor: The 50 largest companies contribute about 70 five per cent of both the
sales of the sector. One such company is Moonwalk. Moonwalk goods belong to "leisure
products or objects," which means they are not necessary items or goods of need. Revenue is
small in the Asia-Pacific market segment as opposed to other regional segments, mainly due to
the significant impact of the global financial crisis on Asia. Price is driven by consumers '
patterns and aspirations (Acquaah, 2013). The fluctuation of the currency rate may also affect the
market share of the business when selling goods worldwide.
Social Factor: Moonwalk changes the layouts of its brands for footwear. Designs that suit
various consumers' needs. Objects are often available for any age group, gender or lifestyle.
Their key focus group, however, is consumers who are willing to pay for products. Company that
also offers mandatory systems to businesses (Köseoglu and et. al., 2013.). Organization
dedicated to helping various groups and societies. Moonwalk also promotes football and
menswear events, enabling them to leverage opportunities and cover special sections of clients.
Technological Factors: these are the factors organization seeks to improve the structure and
quality of products and services. In the above structure it is observed that Moonwalk is assessing
the quality analysis and seeking towards adhering advanced technologies to design the premium
range of products with proper action plan considering the customer feedbacks. The upgradation

required further investment that will impact the return on equity of organization (Eaton and
Kilby, 2015).
Legal Factors: The factor mainly assists in organizing the policies and legislations with in
organization to maintain and ethical environment at workplace. There are type of legal
formalities and requirements remain essential in term of managing the operations of business.
Moonwalk need to incorporate a compliance structure to manage the operations with legal point
of view. With the effective implementation of legal structure in business it is important to
understand the business complexities. It also helps in avoiding the unconditional legal challenges
(Schaltegger, Hansen and Lüdeke-Freund, 2016).
Industry and Sector Analysis
The sector analysis reflects an essential aspect in order to determine the business
environment and the economic challenges occurs in potential market. In sector analysis various
factors required to considered as current trend, industry growth and development and interest of
investors subject to lead the business growth at next level. The industry also helps in assessing
the state of competitive business strategy. Porter’s five forces and generic strategy provides a
clear vision and subject to analysis of competitive rivalry.
Porter's Five Forces Model:
It is a corporate management framework that assists in evaluating the industry's dynamic
corporate environment. Such telekinetic abilities / forces ' characteristics differ between industry
to sector, ensuring that each industry is impressive in terms of competition and procedures
(Bentley, Omer and Twedt, 2014). Each of the five forces described in this tactical system
together with strengths help tactical schedulers to identify potential possibilities:
Threats from New Entrants:
This is one the prominent factor to analyses the scale to attain the desirable advantages in
Moonwalk industry. The perfect use of this analysis helps in ascertain the amount of new
entrants in sector and helps in formulating the strategies with new advancements and
developments (Bansal and DesJardine, 2014). In the context of Moonwalk business, the potential
strength of analyzing the special facts of new entrants are evaluated perfectly. As the evaluation
brings heavy cost of investing in market research and capital requirements for more effective and

efficient manner. The use of participants in the dynamic environment also evaluated in various
forms.
Bargaining Powers of different Suppliers
This analysis assists in ascertaining the available suppliers in the business industry and
helps in conducting the effective control and feasibility upon suppliers. If the suppliers of raw
material as sole, lases and foot pads in limited size than the negotiating power of suppliers
remains high. The swapping cost remain in controlled if the power of suppliers remains in
controlled. As the organizations is required to opt the suppliers have low bargaining power and
control on sales (Kane and et. al., 2015).
Bargaining Power of different Buyers
The negotiating power is the key factor that affects the profitability and future sales
margin of organization. In this economy, product distinction is higher, which implies which
consumers are unable to recognize any particular item being produced by alternative
corporations. Value shoe items are important to consumers, and frequent transactions are also
made by buyers here. It implies consumers are less empathetic to price points in such sector. So
this force does not significantly affect the company's profits.
Threat from Substitute Products or Services:
In addition to high quality, the company uses all forms of shoe goods. There are few
replacements accessible in sector, but substitute goods do not affect the product company's value
as the company has a loyal fan group that prefers to buy good goods and is less price conscious.
Rivalry Among Current/Existing business players:
As a well-known company in the premium quality and durable footwear goods market,
this category has very few rivals. Local brands also don't affect the company. Even though
competitors such as SMOOTH STEPS and Prime Walk compete hard in the industry. As the
smooth steps attained a first rank in the year 2016 in terms of delivering the emphasized products
consistently. Moonwalk can be a market leader by understating the current business scenarios
and the actions of competitors for wide range of products and services.
Porters Generic Strategies Model:
This is one of the effective strategy for Moonwalk in order to focus current as well as
future growth and development opportunities. The strategies also assist in generating the
effective structure of producing the new business plans and strategies so that the company

become more flexible to adhere the challenges in more strategic manner (Trigeorgis and Reuer,
2017).
Cost Leadership Strategy
The strategy majorly talks about the cost and productive procedures and assist in
determining the beneficial product scale and prices to compare with competitive brands (Ramírez
and Selsky, 2016). In the case of Moonwalk, it is recognized that the price for premium products
should be changed with effective cost strategy.
Differentiation strategy:
This approach is also suitable for Moonwalk to enhance its share of the market as the
company's technological progress has a number of benefits. As Moonwalk already sells its goods
via the e-commerce section, and clients can design their own items / goods on online platforms,
project managers can readily perform a great deal of research to new designs and market them.
Focus Strategy:
Moonwalk should concentrate on cost-sensitive consumers under this approach by
offering lower prices for a wide variety of items. Through introducing this action company will
increase their industry market penetration (Joyce and Paquin, 2016). There are also adverse
effects on such a strategy, as price-sensitive consumer community companies may lose their
existing customers who are willing to pay the corporate logo and unique value.
Internal Analysis
The evaluation and control of internal aspects and corporation assist in managing the
capabilities by recognizing the strength and the weakness of business.
McKinsey 7S Framework Model:
This is one of the model of assessing the strategical requirement of business and
implementing a suitable stable strategy to incorporate the business strategy in more significant
and effective manner. The model mainly used in various aspects as strategic, shared and skilled
manner. The framework of Moonwalk also incorporated with the operational leads.
Strategy This is one of the basic strategic approach helps in aligning best quality products
with more competitive approach. The classification of price must be categorised
on the basis of premium (Petrucelli, 2017).
Structure The structural changes remain essential part of an organisation subject to lead

the production line in effective manner. Supply chain management and
inventory management are the key focused areas that allows to function more
efficiently and controlled way. the Moonwalk corporation would have to
prevent to store excess requirement of raw material and in inventories.
System The value creation mainly depends upon the effective communication system. A
well organised and secure communication network must be established by
Moonwalk that will assist to deliver the key information to mangers or
subordinates.
Shared Values The shared value reflects the formation of executing the values of organisation
to employees and managers. In the give company the mission and vision
statement of organisation must be properly communicated so that desired aims
become attainable.
Skills Lean production approach must be implemented in business in order to improve
the productivity and emphasise the productivity of business.
Style The scale of various variations must be considered while creating the new
framework of footwear designs. by implementing new changes in manufacturing
process and evaluation process Moonwalk must innovate new designs and try to
be trend creator (Michael-Tsabari and Weiss, 2015).
Staff It is one of the major work portion of entity to maintain an ethical order for
better functioning and administrative policies. As the designers and engineers
and analysts keep try to innovate new designs.
Telescopic Observation model:
Techno
logical
Advanc
ements
Econo
mical
Factors
legal
and
Regulat
ory
Requir
competi
tion
Organi
sational
Culture
Staff Manag
ement
Brand
Image
Cost
Structu
re

ements
Strengh
ts X X X X X
Weakne
sses
Opporti
nites X X X
Threats X
Performance analysis: financing of company operations:
Credit Rating: Its ranking of the firm in 2011 was "B+," which in 2012 altered to "B," "A"
in 2013, "A+" in 2014, "A" in 2015 and "A+" in 2016. That shows that the rating of the business
decreased in 2012, 2013 and 2015, however in 2016 the business again received A+ credit score.
This turns out that in financial sector, the company has a strong equity place and image. Because
of this credit score agency, banks will easily obtain mortgages.
EPS Growth: Analyzing the quality of Moonwalk in term of EPS development through
BSG's online app, it was evaluated that the firm's EPS in 2011 was 2.10, that grew further to 4.61
in 2012, 6.98 in 2013, 6.77 in 2014, 7.51 in 2015 than 12.72 in 2016, showing that the business's
capacity to produce earnings for each share improved. Growth rate in EPS is 505.71 percent
since 2011 to 2016, but the business has not yet posted the highest EPS rating in any year. Even
though the business's EPS is industry's second lowest.
Image Rating: In 2016 and 2015, the business Moonwalk received an image ranking of
100, that is also the best in the sector. The business also preserved this metric with a photo score
of 99 in 2014. The rating of the corporate image in 2011 was 74, 89 in 2012 and 98 in 2013. That
means that the company's product reputation continues to increase but is projected to continue to
rise in the years to come.
Return on Equity: This metric reflects the efficiency of the firm to generate returns on
hired equity. In 2016, the ROE of the corporation was 34.5%, that was 18.2% in 2011. The
business also recorded 30.9 per cent ROE in 2012, 34.1 per cent in 2013, 25.5 per cent in 2014
and 23.7 per cent in 2015. Overall ROE statistics on Moonwalk reveal that perhaps the ROE of

the corporation after 2013 decreased continually in 2014 as well as 2015, that also enhanced
more in 2016 (2nd Second lowest in Sector). Such a situation demonstrates that just to produce
yields on salaried equity, the business has changed its efficiency.
Stock Price: The share price of the business is the third highest in the business concerned.
The stock value of Company Moonwalk in 2011 was only $20.03 per percentage, reaching
$326.43 per exchange year 2016. In 2012, 2013, 2014 and 2015, overall, the company's stock
price was 99.80, 184.16, 149.19 but 158.00. Positive growth number of price of the stock from
2012 to 2016 is 1529.70 percent, indicating that the wealth generation abilities of the business
are steadily increasing and that it is expected to stay ongoing in the come periods according to
trends.
Corporate Social Responsibility and Citizenship
Corporation Moonwalk continually contributes resources to places of CSR and Nationality.
In 2014 and 2015, however, the business received 1st and 2nd level social responsibility awards
demonstrating that the organization is also ware addressing social and environmental obligations.
Throughout 2016, the company has made $21,696,000 of spending on CRS and nationality, that
is an important part of the business as a whole.
CONCLUSION
It was expressed in the above research that the determination of business strategy is essential
to achieving lengthy-term goals, task and vision of the firm. Analysis of both quantitative-
environmental and micro variables is critical in this phase to determine the real and overall
quality of the company within a specific industry. Executives and observers apply different
frameworks for all of this, each of which covers various aspects of performance of the company.

REFERENCES
Books and Journals:
Bharadwaj, A. and et. al., 2013. Digital business strategy: toward a next generation of
insights. MIS quarterly. pp.471-482.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
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Pagani, M., 2013. Digital business strategy and value creation: framing the dynamic cycle of
control points. Mis Quarterly. pp.617-632.
Webster, T. J., 2014. Managerial Economics: Tools for Analyzing Business Strategy. Lexington
Books.
Acquaah, M., 2013. Management control systems, business strategy and performance: A
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Köseoglu, M. A. and et. al., 2013. Linkages among business strategy, uncertainty and
performance in the hospitality industry: Evidence from an emerging
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Eaton, D. and Kilby, G., 2015. Does Your Organizational Culture Support Your Business
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Schaltegger, S., Hansen, E. G. and Lüdeke-Freund, F., 2016. Business models for sustainability:
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Bentley, K. A., Omer, T. C. and Twedt, B. J., 2014. Does business strategy impact a firm’s
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Kane, G. C. and et. al., 2015. Strategy, not technology, drives digital transformation. MIT Sloan
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Joyce, A. and Paquin, R. L., 2016. The triple layered business model canvas: A tool to design
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Michael-Tsabari, N. and Weiss, D., 2015. Communication traps: Applying game theory to
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Petrucelli, T., 2017. Winning the “cat-and-mouse game” of retaining millennial talent. Strategic
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Ramírez, R. and Selsky, J. W., 2016. Strategic planning in turbulent environments: A social
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Trigeorgis, L. and Reuer, J. J., 2017. Real options theory in strategic management. Strategic
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