Business Strategy Game: Major Decisions and Models

This article discusses the major strategic decisions made during the BSG simulation, including financial decisions, branded production and operations. It also evaluates six supporting strategic and management models, such as PESTEL analysis, Porter's 5 Forces, McKinsey 7's, and SWOT analysis.

BUSINESS STRATEGY
GAME
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INTRODUCTION
The business strategy games are also known as business simulation games. In this the
business runs according to the market changes and business economies. The business simulation
is dependent is on the numbers and not on the production, sales, imports and exports of the goods
and services. This game is also known as management simulation game and they are based on
the biddings and the investments. In this the employee have to investment their capital in the
market according to the position of shares of their organization in the market in respect to
changing market situations.
The C & J Clark is shoe manu7facturing and retailing company which was established in
the year 1825 in the street, England. The organization was founded by Cyrus Clark and James
Clark. The organization has around 1000 branded shoes and the franchises of the other brands
which is sold in different parts of the world.
MAIN BODY
1. Outline and evaluate the major strategic decisions made during the BSG simulation.
Ans. - The major strategic decisions taken by the organization during the BSG simulation were
as follows:
Financial
I think that the organization was having a goof financial structure. According to the data
given, the organization was making progress in the earning the profit and maintaining the market
stability. As the report shows the earning per share of the organization was increased from $2 to
$8.12 from the year 2010 to 2015. In these 5 years the organization had an increase of $6.12 in
the earning per share of the organization. This has caused the increase in the return on
investment by $19.6 and the stock prices of the stocks of the organization increased by $156.94.
All of these increases were made during the time period of year 2010 to 2015. In these 5 years
the organization has earned the net value of $987664 million in the market. This has been made
because of the best quality products and the expansion of the business in the form of retailing
stores across the world(Ansoff, and et.al).
Branded Production
In this the relation between the productivity and the labor cost which has effected the
production cost of the products produced in the market. The organization was having the
productivity of 5000 units with the labor cost of $8.98 per pair of shoes produced. By this the
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production cost bared by the organization was $23.98 in the year 2010. The organization has
increased its production to 5257 units in the year 2015 with the increase of $0.52 in the labor
cost. By doing this their cost of production increased by $9.51 which has caused a positive
impact on the organization. As the cost of production increased the demand for the products of
the organization also increased(Oriesek, and et.al., 2016). The reason behind this was that the
customers known it very well that the organization is using high quality raw material in the
production of the shoes and the technologies used by them were latest and effective in making
the shoes more comfortable in wear and durable for long time. So the customers easily got
agreed on the prices fixed by the organization for their shoes. The production cost was
fluctuating in the N.A., E-A, A-P, and the L.A. The lowest cost of production was in the L.A.
which was 25.64. The reason was that the organization started their operation in the year 2012
and by 2015 the cost of production decreased by 11.35 because of change in taste and
preferences of the customers.
Branded Operations
The branded operations of the organization were managed more by the selling the
products and services online by the help of internet. According to the report given, I founded that
the organization was earning more profit by the online sales of the products and services of the
organization. The sales done through the online purchase of the products and services was
earning 20.51% more profit as compared with the sales done in the retailing stores of the
organization. There was a difference in the market shares earned by both online selling and sales
done within the retailing stores. The market share in the year 2010 was same in both the
platforms, but from year 2011 to 2015, the market shares of the online marketing has started
increasing and at the end of year 2015, the shares reached to an increase of 6.9%. This made an
increase in the investments done by the employees of the organization and other institutes which
made an increase in production and marketing activities(Satimanon, T. and Weatherspoon, D.,
2019).
2. . Apply and evaluate at least six supporting strategic and/or management models, concepts and
ideas that underpin your strategic approach.
Ans. - The six supporting strategic and management models are as follows:
PESTEL ANALYSIS OF THE C&J CLARK
 Political
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The political factors effecting the organization were the size of the budget given by the
government of the UK. The government was running into the deficient budget which was
causing the profit in the short term but the chances of getting the increase in the inflation was
there in the future of the organization. The organization was having good trading relation with
the international countries. This made a profit in their business because there was an consistency
in both rule and regulations of the laws and policies imposed by the government. There was an
consistency in policies and laws made by the government of the UK which were strictly followed
by the C&J Clark(Zhiying, and et.al., 2018).
 Economic
The economic factors which were effecting the organization was that the employment rate in the
country was high at the time when the business of organization was at its peak. The made an
increase in the customers of the organization by providing high quality products and it became
very expensive for the organization to hire the highly skilled employees with the low salaries
offered by the organization(Aleem, and et.al., 2016). The incomes of the consumers also got
disposed which impact the increase in the household incomes of the country. The organization
expanded their business by making strong base of the traditional employees and by employing
differentiated market campaign.
 Social
The social factors which effected the business of the organization were the analysis of the
attitude of the authorities in the market. The organization should analysis the attitude of the
authority and the target market because the attitude and perception of customers of each country
is different. To meet the expectation of the customer it is necessary to do the market analysis.
The organization should focus on maintaining the equality among the genders of the employees
working in their organization. The female employees should also provided with the equal rights
and opportunities in the organization so that they also gets a chance to explore their talents and
skills in the organization. The organization should maintain the level of social concerns and
awareness in the society so that they do not face the pressure from the non governing bodies in
the market(Brynjolfsson, and et.al., 2017).
 Technological
The technological factors which were effecting the business o0f the organization were use of
digital drives in the manufacturing of the shoes and maintaining the transparency in the business
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activities of the organization. The technologies used by the organization were authorized by the
government and were licensed by the government of the UK. This made an patent on the
technologies so that any other shoes retailing store cannot copy them. The technologies used in
the organization were empowering the supply chain management in which the employees were
getting empowered, and they were maintaining the transparency in the business activities of the
supply chain management(Geckil, and et.al., 2016). The organization was having the E-
Commerce infrastructure and the business model which was used in the developing the business
strategies of the organization. All technologies used in the organization was helping in
maintaining the business activities running in the market.
 Environmental
The environmental factors which were effecting the organization was the influence of the climate
change which effected in the business model and supply chain of the organization. The
organization was managing the waste made during the production of the shoes ion their factories.
The waste produced was not causing any kind of harm in the environment. The organization was
also making their customers aware about the environmental factors and the need to save the
environment. This was done by producing the Eco friendly products and services.
 Legal
The legal factors which were effecting the organization were the employment laws made by the
organization for their employees. In this the employees working in the organization have to
follow all the policies and procedures made by the organization. The employees have to work
according to the government laws and duties in which they cannot harm or commit any crime
which is injustice in the eyes of the laws. The organization was following all the business laws
and policies made by the government of UK. These rules and regulation were formed common
for every retailing industry of the country which has to be followed(Zieliński, T.W., 2019.).
PORTER'S 5 FORCE MODEL IN C&J CLARK
Threat of Rivalry
The organization was more emphasized on the non price competition. For ruling the
market, the organization tried to make more and more product differentiation in the market. The
organization had very strong brand image in the market and their customers were very loyal to
the products and services offered by the organization. This has made the brand competing in the
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advertising. There were many companies like Adidas, Reebok and Nike which were acquiring
the market at a large scale.
Power of Supplier
The power of the suppliers was very low in the organization because the organization can
quickly shift to other suppliers if the existing supplier is producing low quality products. The
threat of the forward integration was low due to high entry of the barriers. The suppliers
concentration was fragmented and the suppliers who were meeting the quality standards of the
organization were able to supply the quality products and services.
Power of Buyer
There was an brand identity which made the high end brand has set the price points for
their products. The were many substitute of the footwear available to their customers which has
made the power of the buyers more strong but in the particular shoes segment they were not
having this opportunities. There was very low product differentiation in the products of C&J
Clark. The buyers were getting the incentives by the seasonal sales offered by the reputed brands
and stores.
Barriers to New Entry
There were many barriers to entry such as the assess of input were easy in the
organization. The assess on the distribution of the opportunity of the top brands were very
limited because the products of those brands were already having the high demand in the market.
The switching cost were very low ans the government policies have permitted the license that
were not strict(Goralski, and et.al., 2016).
Threat of Substitute
The switching cost were very low and the organization was having moderate position in
the market. The substitute of the sports shoes and the athletic shoes were very low in the market.
The products other than the shoes were having many competition and those competition firm's
products were high in demand.
MCKINSEY 7’S IN C&K CLARK
Strategies
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The strategies used by the C&J Clark were the producing the best quality products at
premium p[rices. They want their product to maintain the class and royalty in the market so that
the target and loyal customers will get the special feel by using the products of the organization.
Structure
The structure of the organization was managed and all the employees of the organization
were following all the policies and rules of the organization. There was a proper performance
appraisal made among the employees twice a year in which the employees were provided with
all the benefits and rewards according to their performances.
System
The organization was focusing on more on their business expert system by which they
were maintaining their reputation and royal brand image in the market by selling the high end
products with the premium prices.
Style
The organization used many approaches ad methods to make their employees work in an
organized way. These approaches and styles were designed by the management team of the
organization and they turned out to be very helpful in checking the performance of each and
every individual.
Staff
The staff of the C&J Clark was well organized and the employees working in the
organization were fully satisfied from the work and the job task they have received from the
organization.
Skills
The organization was hiring only highly skilled and motivated employees for the jobs.
This was because of the different production styles and methods of the organization. The
organization wanted only those employees who were having the potential to learn new things and
to adopt the changes quickly in the organization.
Shared Values
The shared values of the organization was well organized because all the employees of
organization were working ethically and they were having a positive attitude in the organization
towards their work and the other employees.
SWOT ANALYSIS OF THE C&J CLARK
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Strength
The organization was producing the best quality shoes with affordable prices. The
distribution system of the organization was well managed because of the new openings of their
outlets in the different countries of the world. The world was aware about the brand the their
products very well.
Weakness
The organization was having the competitive pricing of as compared with other brands
shoes which made an decrease in the profit margin of the organization. The organization was
forced to compete with the those organizations who were producing the similar products in the
market. The organization had very narrow range of products and services offered by them. The
organization also faced problems in forecasting the fashion trends in the market. The desert boots
invented by them have still not found niche market in many countries.
Opportunities
The opportunities of the organization were that the shoes are the most demanded product
and the demand for the shoes is never ending so the chances of shut down of the business is very
low. The lifestyle trends are in the upwards shift in the market by which the customer are having
more capacities to buy the high end products of the organization. The women shoes sector is
growing very fast and steady in the market which m,made a huge profit for the
organization(Johnson, G., 2016).
Threats
The threats of the organization are that there are many substitute of the products produced
by the organization. The competition was dependent on the potential brand image. The retailing
stores were having the high price competitiveness which caused the confusion among the
customers to choose the products which where having the similar prices in the market.
7 P'S OF MARKETING MIX OF THE C&J CLARK
Product
The products of the C&J Clark were having a large competition in the market. The
products sold by the organization were sandals, boots, sneakers, loafers, slippers, shoes, canvas
and other accessories of the women and men. The organization had very differentiated products
which having very less difference in their prices.
Place
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The organization was doing their business world wide but the targeted areas where the
products of the organization were making high sale were the market of UK and US. The retailing
stores of the organization were earning a huge amount of profit across many countries but in the
northern America the retailing stores of the organization were not earning good business.
Price
The prices of the products of the organization were set according to the customers who
believes more in quality of the products. These customers are not price conscious and that was
the reason why the products of the C&J Clark were having premium prices.
Promotion
The promotional strategies followed by the organization were the only opening of the
retailing stores of the organization in the different countries. The organization has spent around
$100 million on the digital marketing and the printing on the promotions of the products of the
organization. The organization is doing the promotional strategies by the media properties and
multiple media formats.
People
The targeted people of the organization were the customers who can afford the premium
price products and those who believe more in royalty and in purchase of branded products.
Process
The process of packaging of the products are done by the manufacturer by using all Eco
friendly raw materials. The wastage made during the production of the products were not
disposed in the rivers or the lands by which the environment gets harms. The packaging of the
products were different from the other organization's products packaging(Enos,and et.al., 2019).
Physical Evidence
The physical evidence of the organization were their after sales services and the offers
and discounts received to the customers on the purchase of the product from C&J Clark.
HANDY'S ORGANISATION CULTURE IN C&J CLARK
Power Culture
In this the employees of the organization were having the power to get involve in all the
decisions made within the organization. The opinion of each and every employee working in the
organization matters a lot because the organization feels that the employees who are doing the
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daily activities of the business have more idea about the problems and issue faced by the
organization in the market.
Role Culture
In this the employees of the organization were provided by different role and duties
which they have to play in the organization. The role were given according to the skills and
knowledge of the employees(Alvarez, and et.al., 2019).
Task Culture
In this the employees were working in a team to achieve a specific target of the
organization.
Person Culture
In this the employees believes in themselves and gives their 100% contribution in the
organization.
CONCLUSION
The report can be concluded by mentioning all the business games and strategies used by
the C&J Clark in the shoes retailing market. The organization had faced many changes in the
finance, branded production and branded operations departments. These changes were related to
change in cost of labour, production, market shares and the operating profits of the organization.
These games are played to increase the productions and the profit in the market. The
organization always wanted top make the strong customer base and this strong customer base
was made by providing the best quality products to their customers. These products were sold at
the premium prices and many models such as porter 5 force model, Handy Organizational
culture model, 7p's of marketing, SWOT and PESTEL analysis was done to explain the business
strategies of the C&J Clark.
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REFERENCES
Books and Journals
Alvarez, and et.al., 2019. Business Strategy Game (BSG).
Enos,and et.al., 2019. Business Strategy Game (BSG).
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Goralski, and et.al., 2016. Competitiveness and Sustainability in a Changing Global Landscape:
The Business Strategy Game Simulation. In Competition Forum (Vol. 14, No. 1, p. 89).
American Society for Competitiveness.
Zieliński, T.W., 2019. Modular business simulation game development environment (Doctoral
dissertation, Instytut Automatyki i Informatyki Stosowanej).
Geckil, and et.al., 2016. Applied game theory and strategic behavior. Chapman and Hall/CRC.
Brynjolfsson, and et.al., 2017. The business of artificial intelligence. Harvard Business Review.
Aleem, and et.al., 2016. Empirical investigation of key business factors for digital game
performance. Entertainment computing, 13, pp.25-36.
Zhiying, and et.al., 2018. Business Model Innovation or Imitation? Strategy Study Based on
Real Option Game Theory. Foreign Economics & Management, 40(03), pp.79-91.
Satimanon, T. and Weatherspoon, D., 2019. Food Manufacturers’ Sustainable Product Launch
Strategy: Game Theory Approach. Journal of International Food & Agribusiness
Marketing, 31(3), pp.213-236.
Oriesek, and et.al., 2016. Business wargaming: securing corporate value. Routledge.
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Ansoff, and et.al., 2019. Societal strategy for the business firm. In Implanting Strategic
Management (pp. 285-310). Palgrave Macmillan, Cham.
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