Business Strategy INTRODUCTION

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1 Outline and evaluate the major strategic decisions made during the BSG simulation.............1
2 Apply and evaluate at least six supporting strategic and management models, concepts and
ideas.............................................................................................................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business strategy refers to a proper plan or blueprint which enables in achieving mission
and vision. It allows companies to develop short and long term goals through which they are able
to compete in the market. A business simulation game is a management game that focuses on
economic process of a business (Raghunath and Rose, 2016). They are real world games which
analyses business strategies on basis of certain criteria. This enables in calculating overall
business rating by comparing with other companies. However, it helps in analysing strategic
decisions taken by business. This report will describe about how different organisations were
evaluated and what strategic decision was made during BSG simulation. Moreover, different
strategic and management models and concepts will be discussed.
TASK 1
1. Outline and evaluate the major strategic decisions made during the BSG simulation
In BSG game there were many companies that were taken. Then, each one was evaluated
on basis of certain strategies and criteria. This was done to evaluate what strategic decisions were
taken by them in simulation. The simulation was done by taking five major tactics that are
branded production, production facilities, distribution and warehouse, internet marketing and
wholesale marketing. Also, it the simulation was done twice and then results were obtained.
Here, a simulation game has been played in which different companies were taken and then
analysed. The criteria taken were on basis of investor expectation score and best in industry
score. Both the score were given equal weight of 50-50%. Thus, by analysing results of all
companies it is evaluated that B company shows highest improvement from all others. There is
improvement in many measures of company such as EPS, ROE, etc. Moreover, there has been
different strategic decision that has been taken (Meckling, 2015). Due to this B company
obtained such greater ratings.
From results it was identified that investor expectations score for B company was highest
among all. This can be stated that earning per share of company was raised up to $6.26 in 2013.
Here, investor was expecting EPS at $3.50. From this it can be analysed that rise in EPS is due to
internet marketing and branded production. In this company has focused on digital marketing to
gain competitive advantage in terms of return on equity. Besides this, it can be evaluated that by
doing branded production product quality have improved. This would have benefited in rise in
sales and profits. Thus, increase in share price led to rise in market value.
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