Evaluation of Major Strategic Decisions in BSG Stimulation

This report evaluates the major strategic decisions made by Reebok during the BSG stimulation game, including operations, production, worker compensation, inventory management, and corporate social responsibility.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
1.Evaluation of the major strategic decisions made during BSG stimulation.............................3
2.Evaluation of six supporting strategic model that has under pin foot ware company approach
......................................................................................................................................................5
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy can be defined as the set of competitive moves and actions that an
organization or business can used to attract consumers, gain competitive advantage, increase
their profitability, strengthening performance and achieving organizational goals and objectives.
It defines how business needs to move so that they can achieve and reach out desired ends and
outcomes. Reflective Report is a piece of writing that summarizes a student's
critical reflection on a subject. While traditional academic writing discourages first-person
accounts, Reflective Reports rely on them. Reflective Reports are frequently used as part of the
assessment of practical projects. Report will lay focus on foot ware company. Organization that
has been taken in report is Reebok. Present report will lay emphasis on analyzing the outcomes
and decisions made in each round of game. It will also reflect on results of decision. Report will
RE-FORMULATE strategies for organization based on the REFLECTION, for the duration of
the simulation.
TASK
1.Evaluation of the major strategic decisions made during BSG stimulation
It has been analysed by me that there is various strategic decision which was made during
BSG stimulation game by Reebok. In this company was engaged in determining conditions of
market and was also involved in analysing that what strategy they can lay down so that foot ware
company can gain competitive advantage. Reebok in BSG stimulation game was also involved in
laying emphasis on long term goals of firm and planning about how sales of company can be
increased so that ultimately firms profit increases. I have realised that these strategic game can
assist firm in increasing their profitability by enhancing their sale outcome. Major decision in
this BSG stimulation games was taken by Reebok and this was related to operations of
productions. I realised in this 10 decisions were being taken for each plant with maximum of 4
plants. This has supported Foot ware company in enhancing their production capacity. Other
major strategic decision was taken on upgrading plants and reducing capacity related to plants. In
this 6 decisions were taken related to each plant. Also, major decision was taken related to
worker compensation and training. In this 3 decision was taken related to each plant. Inventory
management is also one of the most important aspect for foot ware organization, so strategic
decision related to it was also taken. I have analysed that 8 decisions up to each plant was taken.
I have also analysed that decision related to corporate social responsibility and citizenship was

also being made during BSG stimulation game. The decision combination which been taken by
manager of Reebok was really effective as it has supported company in increasing their
performance and gaining competitive advantage with more attractive pricing strategies. I have
analysed that these strategies have supported Reebok in growing and establishing their market
share (Yuliansyah, Rammal and Rose, 2016). Company has also implemented various new
strategies in which they provide consumers with more attractive style footwear, high quality
shoes, promoting products with better advertising methods. Also, contracts has been made by
celebrities to endorse their products. This I have realised that promoting through celebrity
endorsement has supported Reebok in increasing their sales and enhancing their profitability. It
has also helped them in attracting new consumers towards them and retaining older ones.
Implementing better strategies has supported firm in achieving their ultimate goals and
objectives. It has supported organization related to Foot ware in growing. More merchandise
support is also being given to retailers and suppliers so that they firm can increase their
relationship bond with them and company can survive in uncertain and changing situation
(Johnson, 2016). I have also analysed that during implementing major decisions foot ware
company has also made use of aggressive online promotion methods. They are engaged in
promoting their products via their website and even on social media channels. This has supported
them in increasing the interest of potential consumers. By this Reebok has also been able to gain
competitive advantage.
I have also analysed that company can also gain edge over competitors by involving in
aggressive promotional methods. Foot ware organization has also emphasised that they will be
involved in laying focus on only one or two geographic location. So that quality of goods and
services which is being promoted by them increases their sales ultimately. BSG is a
“competition-based” strategy simulation exercise where the outcomes are always unique to the
competitive interplay among the specific decisions and strategies of each group of competing
companies (Olson and et.al., 2018). In this strategy game the best plan will be selected by foot
ware organization so that they can grow and also achieve their goals and objectives. It will also
help them in establishing their market share and reaching out large range of consumers. I have
also analysed that in order to gain competitive advantage Reebok also needs to increase quality
of their products and services.

2.Evaluation of six supporting strategic model that has under pin foot ware company approach
PESTLE analysis: This analysis is being done by foot ware company like Reebok so that they
are able to know about various external factors that can affect and impact company’s
performance. These factors can have both positive and negative impact. It includes the
following:
Political factor-
There are various political factors like tax rate, laws and regulations implanted by
government that can affect Reebok performance. It has been analysed that Reebok is always
subjected to tax for manufacturing and building up their products. If political conflict arises in
any place than it will make difficult for company to engage in import and export.
Economical factor-
In this there are various factors like fiscal policy, labour rate that can affect working of
footwear company. Like for example if labour rate in any country increases then it can lower
down profit of Reebok. If any market collapses, then consumer can engage in selecting
competitive brand over Foot ware company so this can appear as a loss to them. This can affect
their growth aspects (Hart, Sharmaand and Halme, 2016).
Social factor-
In this company must be engaged in producing those products that do not hurt the
beliefs, value and attitude of consumer. Reebok must be engaged in producing those goods and
services which are safer and they must be involve in using marketing campaigns to highlight
safety of shoes and also highlight the material used in manufacturing shoes.
Technological factor-
It has been analysed that company must be involved in making use of advancing
technology so that they are able to attract large range of consumers towards them. Increasing
investment in research and development by their competitors can act as threat to Reebok as these
companies are more involved in bringing out new and innovative techniques to attract consumers
and this can hamper performance level of Reebok (Akter and et.al., 2016).
Legal factor-
It has been analysed that improvement in employment law which has been implemented
by various countries can act as a threat to Reebok as this will increase cost of labour in places
where the plants of Reebok has been placed up.

Environmental factor-
In this Reebok must be engaged in performing corporate social responsibility, they must
make sure that company is involved in effective utilization of resources so that future generation
do not suffer. They must be involved in doing charitable activities too so that their goodwill
increases.
Porter Five forces
This tool can be used by foot ware company in analysing competition which they are
facing in recent times. It includes the following:
Bargaining power of supplier-
It has been analysed that bargaining power of supplier is low. It has been also identified
that its products are being produced in 620 factories and globally they have a market share over
30 countries, while individual suppliers are small so there bargaining power is low. So company
also have an option of switching to another supplier which can appear as huge threat to Reebok.
Bargaining power of buyers-
Bargaining power of buyers is moderate. This is because there are moderate number of
competitors like Nike and Puma and few others are also there, so consumer has low choice to
switch to another market (Buckley, Burton and Mirza, 2016).
Threat of substitute-
This threat can be considered as low to moderate. As there are few competitors which can
take place of Reebok, also it has been analysed that these few brands charge prices which are
lower than Reebok so consumer can also switch on to substitute products. It can affect their
growth aspects.
Threat of new entrants-
It can also be considered as low to moderate, as investment for a starting a new foot ware
company can be moderate to high, and also there are other needs which is to be fulfilled. Also,
investment is being required in distribution channel and supply chain management.
Level of competitive rivalry-
There is high competition which can be faced by Reebok. Company’s major competitors
are Nike, Adidas and Puma who are involved in bringing out high quality of products. So
Reebok needs to make keen strategy so that they can gain edge over their competitors.

SWOT Analysis-
SWOT Analysis is strategic planning which can be used by the company for analysing
strength, weaknesses, opportunities and threats to the company's business operations and project
planning. That is described below-
Strength-
Company is top largest seller for the athletic footwear and apparels globally. Reebok is
consistently working on rendering their customers with combination of fitness along with the
technology every year which is helpful for company in gaining the huge consumer attraction
towards company's products (Baraibar and et.al., 2017). They can move forward by developing
better shoes with the help of new technologies and inventions. Company conducts the research
and development program so that they can know the preference of the consumers which is
helpful for them in developing their product according to preference and needs of consumers in
the market.
Weaknesses-
Company faces the major problem that is similar duplicate products are variable in
market. Reebok is targeting many segments at one time which is risky for them, further company
can suffer from loss due to that. They don't have much emphasis on the promotional activities
which push back company to compete with their rivals easily in marketplace.
Opportunities-
Reebok can also focus on lifestyles section along with the athletics and sports so that they
can attract wide range of consumer to their products. Further, for promoting their products they
can tie-up with the schools and sport academics so that there product can become popular among
the sports related individual (Linder and Williander, 2017). If company is entering into the wide
market area then their product demand will be raised. They can also focus on developing new
technologies for their footwear production so that they can render high quality shoes to their
customer. Hence, it will be helpful for company in retaining the customers and gaining high
revenues.
Threats-
Reebok is facing major competition with the other competitor who are producing the
other shoe variety also that are fashionable, modern and trendy. The preference of consumer can

change time to time if they are not updated with that than they could have risk as their customer
will switch to other brand which will directly impact the sales and profit of the company.
Total Quality Management-
It is wide approach which can be used by organization for continuous improvement in the
quality of all services, process and products. This all are interrelated with the customer
satisfaction, quality & profitability of product and service for the company. Reebok should focus
on what business they are doing rather than what business they are in. Company is gathering
feedbacks from customers which is helpful for them in knowing where they are lacking further
so that they can develop that weaker section in them (Evans and et.al., 2017). They mainly have
their shoe production with the expert's guidance so that they could provide the perfect fitting,
style and quality to the consumers. So that by this customer of the company will be satisfied and
thus they could gain huge profit margin and hike in their sales. This strategy can be used by
Reebok for gaining huge consumer's attraction to their product and thus further the can develop
and modify their product according to that. Company had gain huge profit and revenue. They
also customize their product according to the needs and demand of the consumer which can be
athletes so this directly implements hike in the sales.
Marketing Mix 7Ps-
Marketing mix is business foundation model. It is the major model which can be used by
every business for implementing the business activities. It is centred among the product, place,
price, people, promotion, physical and process (Spil, Kijl and Salmela, 2016). It is marketing tool
which is used by organization for gaining their objectives and targets for marketing.
Product-
Company provides wide range of products to customers which are for men, women and
children. Reebok is the popular sport brand. They mainly focus on the sports shoe, apparel and
sports equipments. Company can render customized products to their customer so that they can
attract wide range of consumer to the company's product. And further the sale of company can be
raised.
Place-
Company has their own exclusive stores, factory outlets and distributors. Reebok hires
the professional for searching the outlets and place for company so that they can select
appropriate place which is the best suitable for attracting the consumers. The sales notion has

been changes due to the online purchase system as the number of visitors have been declined due
to the online purchasing they used to purchase it at their home.
Pricing-
Reebok uses the standard pricing policy for their consumer in target marketplace. When
any new product is being introduced by company they keep the pricing of product low as the
more and more consumer the will prefer to buy it and further when it becomes popular and
demand of tat product increase in the market among consumer the pricing of such product will be
raised directly (Trevisan, 2016).
People-
For maintaining Rebook brand and its diversity there are dynamic peoples behind that.
These diversified consumers of the company are the yoga student, sports person, fitness and
wellness etc., so that company can attract wide range of consumer to the product.
Promotion-
Reebok had launched the Fidelity promotional campaigns. Under these campaigns the
sports persons from motosports, cricket, football and NBA etc., are act as the brand ambassador
for company's product. Company also sponsored many sports events which are IPL, Davis Cup,
Spartan race etc., The new product of company is being launched by them I unique way so that
they can attract wide range of consumer to the company's product.
Physical-
The company has the sports as their physical appearance. They mainly deal in sports
apparel where they aim for gaining wide rage of consumer attraction towards the company.
Reebok has also maintained the brand loyalty among the consumer globally and working further
as the huge brand across the world.
Process-
Reebok now uses the online service for selling their products where company deals with
the consumer with the things which are in trend and thus they can attract wide range of consumer
to company product (Anwar, 2019). The 35% of the sell of company is being done on the online
platform which can be future grow with the trend.
Value Chain Model-
It is the set of activities in which organization operates in particular industry that perform
the business activities in order to provide valuable product in marketplace for consumers.

Primary activities-
Reebok's infrastructure includes high liquidity, talented top management and cost
advantages. Company's human resource management includes performance culture and training
framework (Lehmann, 2016). They had also developed the technology which is helpful for them
in raising their sales through e-commerce and maintaining the ongoing development in their
products. Company's procurement is flexible safety stock and make-to-stock which is in hand.
Inbound logistics-
Under the Inbound logistics non core activities are outsourced by company which is
sustainable and recyclable material for developing these shoes so that it doesn't harm the
environment. After the adoption of sustainable practices company can attract wide range of
consumer to their product.
Operations-
The automate is used by the Reebok in their production process so with that they can
complete their production very quickly and thus along with that they maintain the quality of that
product as well. Quality control is also used by the company for maintaining product's quality
which is helpful for them in satisfying the needs and demands of consumers
Outbound logistics-
Good supplier's relationship is being maintained by the company with the help of tat they
can get best costing for their product which is produced by Reebok. Fast and timely logistic
system is used by company so that there is no delay in transportation of the products and can
easily access to the consumers at anytime.
Marketing and sales-
Rebook mainly emphasis on sports events as company's major product is the athlete and
sport foot wear. The company renders the unique products to their consumers. They also have
huge consumer base (Chang, 2016). The quality of the product is best and high which attracted
wide range of consumer to company. Company uses the sports events and campaigns for
marketing their products. They had also tie-ups with the sports club, schools so that the sale of
their shoes can be raised.
CONCLUSION
From the above study it is concluded that the company should adopt strategic approach
for gaining the huge customer attraction towards the company's product major strategic decision

is taken by company which is further helpful for company in gaining huge consumer attraction
towards the company and thus sale of the company can also be raised. For applying this the
company can use various models and approaches which is helpful for company in gaining the
growth in the preceding year. Company can also expand their business to the emerging global
countries and can also gain huge brand loyalty among the customers.

REFERENCES
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