Business Strategy Copy Assignment

Business Strategy
Game: FINAL

Table of Contents
TASK 1............................................................................................................................................1
Identification and critical evaluation of major strategic management decisions made during the
BSG simulation............................................................................................................................1
TASK 2............................................................................................................................................6
Application and evaluation of key supporting strategic and management models, concepts and
ideas that underpin strategic approach.........................................................................................6
REFERENCES..............................................................................................................................10

APPRECIATION NOTE
Firstly, I would like to express my sincere appreciation for giving opportunity to have full
fledged experience and motivates me to take part in online business strategy simulation game.
During the work, I was struggled with the technical problem and faced all of them with use of
the sincere efforts along with gaining many overwhelming articulate game. This game was plays
to run CSR business. During this project, I was very much able to give my best and built long
time principle to demonstrate and true results for this simulation game. Lastly, I would like to
thanks again everyone in full support and performance of the simulation project or work. I really
all efforts put down in completion of the simulation project.
VISION & MISSION STATEMENT
The vision of this firm is to build CSR platform for effective advertising and policies for
marketing along with marketing development for corporate world. The mission of the CSR Blaze
group is to manufactures effective 7 standard footwear and sells to its stakeholder such as long
term customer.
INTRODUCTION
BSG stands for business strategy game was started to develop strategies and perform live
game with aim to build business operation. The purpose of the BSG is to build raw strategy, test
it and apply it to the real scenario. This BSG will be cover on the company blaze manufactures 7
star sports footwear at the trust worthy cost. The benefits of the BSG to identify market for Blaze
to sell global athletics footwear shoes and being proven beneficial for the market.
TASK 1
Identification and critical evaluation of major strategic management decisions made during the
BSG simulation
Reflective year 11:
While playing the BSG simulation game various critical decisions were made by me in
order to complete it on time. According to the results of year 11 the income statement data shows
that different decisions regarding various activities such as marketing are taken which has
resulted in different expenses and costs. These are cost of pairs sold, warehouse and marketing
expenses, interest and income taxes. Profit for the years is calculated by deducting all these
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expenditures from revenues. According to the balance sheet data all the decisions which were
taken in year 11 have resulted in average cash of 40601, other current assets of 150982 and fixed
assets of 266819. Total liabilities at the end of year 11 were 175010 and ending equities were
242792.
Reflective year 12:
In year 12 decision regarding celebrity endorsement and industry trends was made by me
in which different offers were made to them. The contract holders who were signed by Blaze are
Judy Judgc, Samuelle Jackson, Steff Caraway, Nunchuck Norris, Roger Federation, Mic
Jagermeister and LaBron Game. The highest offer which was made to them could be analysed
with the help of following table:
Celebrities Highest offer
Judy Judgc 800
Samuelle Jackson 1052
Steff Caraway 1000
Nunchuck Norris 1050
Roger Federation 1500
Mic Jagermeister 800
LaBron Game 1200
According to the above table I have offered highest amount to LaBron Game which is
1200. 2nd and 3rd highest amounts which are offered to him are 1135 and 1000 respectively. The
charts in the simulation games reflect that in North America internet price is higher than
wholesale price and S/Q ratings as compare to other regions such as Europe Africa, Asia Pacific
and Latin America. In the same year some strategic decisions regarding Workforce and
production are also taken by me. In 12th year the number of produced models for different
regions are as follows:
North America Europe Africa Asia Pacific Latin America
Branded P-Label Branded P-Label Branded P-Label Branded P-Label
200 100 0 0 250 100 0 0
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In year 12 total net footwear production was around 8415 branded and 563 P-Label. As
there is no production activity is conducted in Europe Africa and Latin America so no
compensation will be provided to workforce in these regions. The decision regarding payment of
total wages of employees in North America and Asia Pacific are 46485 and 16837 which are
going to be paid annually to each worker. While playing the simulation game strategic decision
regarding facilities and equipment is also taken by me. As there is no production in Europe
Africa and Latin America so no facilities will be provided in these areas. The net investment in
facility space in North America is 79462 and in Asia Pacific it is 104162. The simulation report
reflects that in year 12 total production of footwear will be around 9000 pairs. In Year 11
workforce productivity, number of workers and supervisors employed in North America was
5000, 800 and 20 respectively which has been increased in year 12 up to 5241, 859 and 29. For
Asia Pacific in Y11 these were 3500, 1143 and 29 which were increased in Y12 up to 3760, 1197
and 40 respectively.
At the time of game, various strategic decisions regarding marketing expenses were also
taken by in year 12. For all the regions all of them could be analysed separately for internet and
whole sale segments with the help of following table:
North America Europe Africa Asia Pacific Latin America
Total
marketing
expenses
Expenses Expenses
per pair
Expenses Expenses
per pair
Expenses Expenses
per pair
Expenses Expenses
per pair
Internet
segment
6800 23.21 6286 24.55 5895 25.19 5834 24.72
Whole
sale
segment
13749 7 12754 7.27 8169 5.81 8926 6.15
In Year 12 I have also made decision regarding administrative expenses in which I have
analysed that total expenses for North America are 5689, for Europe Africa they are 5071, for
Asia Pacific these are 4138 and for Latin America these are 4253. All the decisions during Year
12 have resulted in total operating profit of 66318. The income statement also shows net profits
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of 40327. All the decisions which were taken in year 12 have resulted in return on average
shareholder equity 17.5%.
Reflective year 13:
Various decisions were taken in year 13 regarding revenue enhancement which resulted
in total average revenues of 606469. It is generated from different sources such as internet,
whole sale and P-Label. The amounts for all of them are 145841, 433653 and 23882
respectively. I have taken decision regarding warehouse, marketing, administration, interest
expenses and income tax. Average figures for them are 53643, 105397, 19619, 8243, 32754,
76426 respectively. The decisions which were made during year 13 have resulted total cash of
73207 and assets of 546563. Total liabilities for this period were around 175402 and equities
were 371161. I have made decision regarding keeping the GP margin ration around 49% so that
higher profits could be generated in the year. To minimise the risk I took decision to keep the
interest cover 14.38 which has resulted in lower risk for the company. All the decisions which
were taken by me during 13th year has reduced the risk of losses and interest of shareholders in
the company.
Reflective year 14:
The financial statistics of year 14 are demonstrating that the decisions which were made
by me during the year have resulted in operating profits of 156139 and net profits of 101748. The
simulation report states that profits are increased in this year which means the critical decisions
which were taken in previous year are beneficial for the company. In 14th year total costs were
around 358108 and total revenues were 714461. Total expenses for marketing, warehouse,
interest, income tax and administration were 117062, 60588, 10081, 43605 and 22554
respectively. A decision regarding enhancing equities by purchasing more shares. Total average
shares which were purchased during the year were around 11896. Main reason behind taking this
decision is to enhance capital for the business so that higher growth could be acquired. In order
to promote all the products of Blaze I have made decision for celebrity endorsement. I have tries
to offer them highest amount so that I can sign them for betterment of ,y company. Offer which
is made to them could be monitored with the help of following table:
Celebrities Highest offer
Kimmie Jimmie 1510
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Bud Birkenstock 500
Jose Montana 500
Samuelle Jackson 1052
Bronoko Mars 1013
Steff Caraway 2000
Nunchuck Norris 1000
Roger Federation 1500
Nick Shavan 500
Mic Jagermeister 1001
LaBron Game 2500
The table shows that most of the celebrities which were approached in prior year are also
signed in current year so that customers can connect with the products of Blaze and revenues of
organisation could be enhanced.
Reflective year 15:
The statistics for year 15 are showing that revenues of the year have been increased up to
803971 as compare to previous year due to highly effective decisions. It is total of three different
sources which are internet, wholesale and P-Label. Contributions of three of them are 209770,
540760 and 38398. Due to enhancement in the revenues net profit for the year is also increased
up to 125684. Total equities of the year are being increased due to decision of mine which is
enhancing retained earnings. In order to acquire funding shares of 8614 were sold during the
year. At the end of the year Blaze was having cash of around 47985, current assets of 293156,
fixed assets of 422716. The closing average total liabilities were 191129 and ending equities
were around 524743. My decisions for the year have resulted in net profit margin of 15.6% and
interest cover is 29.01. The statistics are also reflecting that risk for the organisation is very low
which is because of managed ratios. During the year I have also taken a decision regarding
celebrity endorsement so that all my products get promoted and revenues could be increased.
The highest offer which is made to them by me could be analysed with the help of following
table:
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Celebrities Highest offer
Judy Judge 600
Kinnie Jimmie 2500
Bud Birkenstock 600
Jose Montana 700
Samuelle Jackson 1054
Bronko Mars 1013
Steff Caraway 2000
Jay XYZ 2000
Nunchuck Norris 1000
Roger Federation 600
Nick Shavan 500
Mic Jagermeister 1001
LaBron Game 2500
The above table states that in year 15 highest number of celebrities were hired for the
purpose of promotions. Main purpose behind taking this decision was to increase the sales and
profits of Blaze with a huge percentage.
Reflective year 16:
Final performance summary of year 16 is showing that in this year revenues were
increased up to 878731 as compare to previous year. The share of internet sale in it is 232492,
share of wholesale is 566698 and contribution of P-Label is 47595. In order to increase the
revenues I took decision to increase the units which were sold during year 16. Due to this cost of
total pairs sold was enhanced up to 442912 which has helped the organisation to generate profits
of 123724. Due to weak estimating skills I made mistake and forecasted expenses less than
actual. It has resulted in decreased net profits as compare to previous year. In order to cover all
losses I took decision to sale some of the shares of the organisation and enhance retained
earnings so that monetary resources could be used in difficult situations. Total average shares
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which were sold during the year were costing 22736. Liabilities for the year were around 185111
that are very low as compare to current assets. It means the company is having sufficient funds to
pay all its debts within one year. In order to promote the products of the company different
celebrities were approached. All of them with the highest offer which is made to them are as
follows:
Celebrities Highest offer
Judy Judge 600
Kimmie Jimmel 2500
Bud Birkenstock 600
Jose Montana 700
Samuelle Jackson 1054
Bronko Mars 1013
Steff Caraway 2000
Jay XYZ 2000
Roger Federation 600
Nick Shavan 500
The decision which is taken to approach all the celebrities have resulted in enhanced
revenues of the organisation.
TASK 2
Application and evaluation of key supporting strategic and management models, concepts and
ideas that underpin strategic approach
While playing the simulation game it is very important for the group members to select a
leader who can help to execute the plan which is being formulated for the successful execution of
all the strategies. For this purpose various milestones are required by them so that all the other
members can work effectively under their supervision. These are focused with other's benefit,
leading from a posture of courage and define values to members of team. With the help of all
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these milestones the leaders on Blaze will be able to reach the long term goals of business and
execute all the plans (Leadership Milestones, 2019).
There are various strategic and management models, concepts and ideas that underpin the
strategic approach of Blaze. Description of all of them is as follows:
Lewin's Model of Strategic Direction, Alignment and Developments: This model was
introduced by Kurt Lewins in year 1940 in order to describe different stages of changes. With the
help of it companies such as Blaze can make the change in appropriate manner by implementing
it effectively (Lewin's model of change, 2019). There are three different stages in this model
which are described below in context of Blaze:
 Unfreeze: At this stage companies should get prepared for change as all the employees
and managers are required to understand that it is crucial for betterment of organisation.
Changes in the business strategies of Blaze are required so first of all all the individuals
who are working for the enterprise have to accept the fact that it is important for the
business. Most of the people are resistant to change as they think that it can increase their
responsibilities at work place (Cummings, Bridgman and Brown, 2016). In order to lead
the company towards success it is essential to break the status quo. For this purpose, top
level executives of Blaze can explain staff members that changes can help to achieve
organisational as well as personal objectives.
 Change: This phase is related to implementation of the change which is required to be
made within the organisation. It is a time taking process because staff members spend
their time to grasp new developments, happenings and modifications which are made.
One thing which is mainly needed at this stage to make changes in business strategy of
Blaze is good leadership as it can help to execute all the plans appropriately. Other
aspects which are also required to be focused by management at Blaze are
communication and time as with the help of both of them change could be made
successfully for betterment of business (Endrejat, Baumgarten and Kauffeld, 2017).
 Refreeze: This stage take placer after acceptance of change in which all the individuals
have embraced and implemented the strategies which are made for the same purpose. At
this phase all the things may get to normal at Blaze after the implementation of change.
Major things which are required to be focused at this last stage is to make sure that new
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strategies which are imposed at workplace are used by staff members (Kempster, Higgs
and Wuerz, 2014).
In order to make changes in the business strategy of Blaze it is very important for the top
level executives to follow all the three steps. With the help of it objectives which are related to it
could be achieved successfully.
Organisational culture can be defined as the beliefs and values which are followed by
individuals within an organisations for successful execution of business operations. There are
various types of cultures which could be adopted by the top level managers of Blaze in order to
change its culture. In order to analyse different types of them Handy's cultural model could be
implemented (Handy's cultural model, 2019). All the elements of it are described below:
 Role culture: In this type of culture the leaders in Blaze can provide separate role to all
the staff members and then inspire them to reach long term business goals. It helps to
enhance motivation level of all the employees as all of them have specific responsibilities
which reduces discrimination at workplace (Harding, 2017).
 Person culture: If this culture is adopted by Blaze then all the individuals who are
working within the organisation may consider themselves superior to the company. In
this type of culture employees give preference to their personal goal rather than
organisation objectives.
 Task culture: This type of culture states that if it is adopted by top level management for
the organisations such as Blaze then specific tasks are allocated to all the employees. All
of them work for a common goal which is required to be achieved in a specific time
period. Main purpose of using this culture is to find different solutions for the issues
which are faced by company (Szende, 2014).
 Power culture: In this culture power of decision making is kept by top authority and the
form strategies which are required to be followed by all the lower level employees. If it is
adopted by managers in Blaze then all the staff members will be responsible to follow the
command of them.
In order to change the culture of the organisation Blaze can replace it with task culture in
which all the staff members will try to find appropriate solutions for the problems which are
affecting functionality of the company (Wiepking and Handy, 2016). It is best suitable option for
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the organisation because with the help of it long term goals could be achieved successfully by
increased employee engagement.
For all the business entities it is very important to adopt such type of leadership and
management style which can help to reach long term business goals. Some of them are described
below which could be adopted by Blaze:
 Democratic: This style of leadership is also known as participative leadership because
managers allow staff members to take part in decision making process. As all the
employees are having practical knowledge of interacting with customers so they can help
to form effective strategy for the business. It could be adopted by Blaze in order to
enhance motivation level of workforce by considering their opinion in decision making
process (Anderson and Sun, 2017).
 Autocratic: In this style of management and leadership the power of decision making is
kept by top level of executives. They do not ask for suggestions from subordinates as
they want to take quick decisions. In order to save the time which could be invested in
decision making process leaders in Blaze can adopt this style of leadership (Özer and
Tınaztepe, 2014).
 Laissez faire: In this leadership style the leaders try to give all the power of decision
making to the staff members so that they can form all the strategies by themselves and try
to reach the organisation goals. In order to enhance the motivational level of employees
leaders in Blaze can adopt it (Baesu and Bejinaru, 2014).
From the above described styles of leadership and management the best suitable style for
Blaze is democratic. With the help of it managers can formulate strategic decision and ask the
staff members to provide their views on them so that required changes could be made.
RECOMMENDATION
This is the recommendation for company Blaze to put down emphasis on leadership style
such as democratic leadership style to takes out idea and opinion of the team with purpose to
build strategy that would led to accomplishment of sales goals or objectives. So, this leadership
is one major recommendation and another one is assessment of strategies on the periodic basis.
Lastly, it is also recommended that, assessment of the strategy taken is the prominent step.
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CONCLUSION
From the above report, it is concluded that business strategy game is the platform which
is required to develop and also test the strategy to gain business proceedings. Moreover, purpose
of the BSG is to the test the subsequent market and understand capabilities to operates at the
greater segment. Lastly, during BSG game, time to time evaluation will be put down to actions
taken.
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REFERENCES
Books and Journals:
Anderson, M. H. and Sun, P. Y., 2017. Reviewing leadership styles: Overlaps and the need for a
new ‘full‐range’theory. International Journal of Management Reviews. 19(1). pp.76-96.
Baesu, C. and Bejinaru, R., 2014. Leadership approaches regarding the organizational
change. The USV annals of economics and public administration. 13(2 (18)). pp.146-
152.
Özer, F. and Tınaztepe, C., 2014. Effect of strategic leadership styles on firm performance: A
study in a Turkish SME. Procedia-Social and Behavioral Sciences. 150. pp.778-784.
Cummings, S., Bridgman, T. and Brown, K. G., 2016. Unfreezing change as three steps:
Rethinking Kurt Lewin’s legacy for change management. Human relations. 69(1).
pp.33-60.
Endrejat, P. C., Baumgarten, F. and Kauffeld, S., 2017. When theory meets practice: Combining
Lewin’s ideas about change with motivational interviewing to increase energy-saving
behaviours within organizations. Journal of Change Management. 17(2). pp.101-120.
Kempster, S., Higgs, M. and Wuerz, T., 2014. Pilots for change: exploring organisational change
through distributed leadership. Leadership & Organization Development Journal. 35(2).
pp.152-167.
Szende, T., 2014. Second Culture Teaching and Learning.
Harding, S., 2017. MBA management models. Routledge.
Wiepking, P. and Handy, F. eds., 2016. The Palgrave handbook of global philanthropy.
Springer.
Online
Lewin's model of change. 2019. [Online]. Available through:
<https://www.cleverism.com/major-approaches-models-of-change-management/>
Leadership Milestones. 2019. [Online]. Available through:
<https://www.crosswalk.com/11745471/>
Handy's cultural model. 2019. [Online]. Available through:
<https://www.businessballs.com/organisational-culture/charles-handy-model/>
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