The Business Strategy Game

This document discusses the major strategic decisions made during the Business Strategy Game simulation, including the vision and mission statements, corporate social responsibility, and industry analysis. It also evaluates the supporting strategic and management models, ideas, and concepts used in the strategic approach.

The Business Strategy
Game

Table of Contents
,.INTRODUCTION.........................................................................................................................3
TASK 1............................................................................................................................................3
OUTLINE AND EVALUATE THE MAJOR STRATEGIC DECISIONS MADE DURING THE
BSG
SIMULATION.................................................................................................................................3
Vision and Mission Statements plus corporate objectives:....................................................3
Mission Statement:.................................................................................................................4
Vision Statement: ..................................................................................................................4
Corporate Social Responsibility and Citizenship:...........................................................................5
TASK 2............................................................................................................................................6
EVALUATION OF SUPPORTING STRATEGIC AND MANAGEMENT
MODELS, IDEAS AND CONCEPTS THAT UNDERPIN YOUR STRATEGIC APPROACH6
Situational Analysis:........................................................................................................................6
Macroeconomic Analysis:...............................................................................................................6
PESTLE Model:.....................................................................................................................6
Industry and Sector Analysis...........................................................................................................8
Porter's Five Forces Model: ...................................................................................................8
Porters Generic Strategies Model:..........................................................................................9
Internal Analysis............................................................................................................................10
McKinsey 7S Framework Model:........................................................................................10
Telescopic Observation model:............................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy relates to collection of functions or systematic set of business decisions
that aid entrepreneurs and managing personnel in attaining particular business goals and
objectives. It's like a master plan which is used by managers within corporation to safeguard the
competitive position in industry. In is also a long-range portrait of organization's expected image,
business directions and targets. Business strategy provides an interconnected framework for
upper management to explore, analyze and utilize advantageous possibilities, to certainty and
address possible threats, to render optimal use of funds and capabilities, to counterbalance
weaknesses (Brynjolfsson and Mcafee, 2017). The London-based company named “A
Moonwalk” wants to understand the universal applicability of the numerous organizational
frameworks required to support business strategy. The report contains the requisite detailed
business data/information during corporate strategic planning phase. The study explains and
evaluates key strategic decisions made under BSG simulation. Study also contains application
and analysis of various supportive strategic and managerial models, different concerned concepts
and ideas that are directly linked with strategic approaches.
Business-Strategy Game is widely used computerized simulation associated with both
strategical management area and applied across the globe in different educational organizations.
Here students create corporations and run them by BSG through different stages which also
includes analysis of business performance and developing strategies to improve performance of
business.
TASK 1
OUTLINE AND EVALUATE THE MAJOR STRATEGIC DECISIONS
MADE DURING THE BSG
SIMULATION
Vision and Mission Statements plus corporate objectives:
A Moonwalk is a company which is operating in Footwear Industry. Company has 2nd
rank in industry scoreboard of year 2016. Company is well established and has a good brand
value. Company has wider range of footwear and selling at wholesale price to different retailers
and exclusive outlets. Company empathizes on providing premium quality and innovative

products. With ever-evolving sports and casual footwear, wearing apparels and other accessories
over the decades, A Moonwalk's mission as well as vision statements have progressively
changed, which has been extremely influential in safeguarding the corporation's leadership role
in current markets. In fact, Moonwalk's managerial approaches are highly valued for their ability
to keep company on its best at all times irrespective of the nature of market/industry forces,
something which Moonwalk credits its unique mission and vision statements for. Ideally, a
corporation's mission statement is a description of business's primary goals to be implemented to
stimulate its growth. In this context following are the vision and mission statements of company,
as follows:
Mission Statement:
Moonwalk's mission-statement is “The Group endeavor to be world-wide leader in sports
footwear sector products with brand name made-up on passionate attitude for sporting activities
and sports life-style. We are dedicated to strengthening company's unique quality brands and
sports products to improvise overall competitive position.” This statement emphasizes on
unbounded capability of corporation to offer best and premium products for sportsmen and
athletes with aim to strengthen their operating performance.
Vision Statement:
Moonwalk's vision statement is “To become designing leaders with concentration on
getting super out of athletes and sportsmen with guaranteed performance quality products in
sporting industry at international level.” Vision statement may be drawn through current
operations and corporation all time priorities. It primarily focuses on creativeness which features
Moonwalk and devising it top-quality and selling brand among different best-players.
The simulation develops effective environment for groups or teams to penetrate
themselves in cooperative nature of in business. In order to become efficient at BCG simulation
initial step of business is integration with team members to understand of various manner by
which members complements each-other. Following is an evaluation of key strategic decision
made during BSG Simulation:
EPS Growth: As per analysis of Moonwalk's performance in terms of EPS growth through BSG
online portal it has been analyzed that Company's EPS in year 2011 was 2.10 which was further
increased to 4.61 in year 2012, 6.98 in year 2013, 6.77 in year 2014, 7.51 in year 2015 and 12.72
in year 2016, which shows that company's capabilities to generate earnings on each share has

been increased. Overall growth in EPS from 2011 to 2016 is 505.71%, however company has not
reported highest EPS score in any year yet. Although company's EPS is second highest in
industry.
Return on Equity: This measure reflects company's efficiency to provide returns on equity
employed. In year 2016, company's ROE was 34.5% which was 18.2% in year 2011. Also
company has reported ROE of 30.9% in year 2012, 34.1% in year 2013, 25.5% in year 2014 and
23.7% in year 2015. Overall figures of ROE on Moonwalk shows that after year 2013 company's
ROE has been declined in year 2014 and 2015 continuously which was further improved in year
2016 (2nd Highest in Industry). Such scenario shows that company has improved their efficiency
to generate returns on employed equity.
Credit Rating: Company's credit rating in year 2011 was “ B + ” which further changed to “ B ”
in year 2012, “ A ” in year 2013, “ A +” in year 2014, “ A ” in year 2015 and “ A + ” in year
2016. Which indicates that company's rating has been declines in year 2012, 2013 and 2015 but
company has achieved again A + credit rating in year 2016. It points out that company has good
liquidity position and image in financial market. Due to this credit rating company can easily get
loans from banking and financial institutions.
Image Rating: Company Moonwalk has scored image rating of 100 in year 2016 and year 2015
which is also highest in industry. Also in year 2014 company has archived this benchmark with
99 image rating. Company's image rating in year 2011 was 74, in year 2012 was 89 and in year
2013 it was reached to 98. Which indicates that brand image of company is continuously
increasing and expected to remain growth in coming years.
Stock Price: Company's stock price is second highest in relevant industry. Company
Moonwalk's stock price was just $ 20.03 per share in year 2011 which was reached to $ 326.43
per share year 2016. Company's stock price was 99.80, 184.16, 149.19 and 158.00 in year 2012,
2013, 2014 and 2015 respectively. Overall growth percentage of stock price form 2012 to 2016
is 1529.70 % which indicates company's wealth generation capacities are increasing
continuously and as per past trends it is expected to remain continue in coming periods.
Corporate Social Responsibility and Citizenship:
Company Moonwalk is continuously contributing funds towards CSR and Citizenship
areas. Company has won 1st and 2nd rank corporate responsibility award during year 2014 and
2015 respectively which shows that company is also ware about social and environmental

responsibilities. In year 2016 company has made $21,696,000 of CRS and citizenship
expenditure which is significant part in overall industry. Company's this attitude towards this
areas is also main reason of increasing brand value in industry (Zhao and et. al., 2016).
TASK 2
EVALUATION OF SUPPORTING STRATEGIC AND MANAGEMENT
MODELS, IDEAS AND CONCEPTS THAT UNDERPIN YOUR
STRATEGIC APPROACH
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 (Bücker and Korzilius, 2015). 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. Macroeconomic analysis involves methods which
help to analyze economical 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 help to take strategic decisions and formulation of
business strategies (Geissdoerfer, Bocken and Hultink, 2016). In this context for conducting
macroeconomic analysis of Moonwalk, PESTLE model is applied:
PESTLE Model:
A PESTEL analysis (formerly recognized as PEST analysis) is indeed a mechanism or
method used to analyze and track macro-environmental factors and variables that can have a
profound impacts on organizational performance (Hamada, Kaneko and Hiji, 2017). PESTEL is
stand for: Political Factors, Economical Factors, Social Factors, Technological Factors,
Environmental Factors and Legal Variables. In this regard following is PESTLE Analysis of
respective company, as follows:

Political Factors: Moonwalk manufactures, operates, and distributes its goods throughout the
globe. It allows them to expand global supply chains while selling products online and to follow
diplomatic procedures. Politic forces are also used by the organization as a means of counterfeit
goods interference. Every nation abides by its own tax structure. For each selling and distribution
of each brand overseas, Moonwalk is needed to comply with these regulations. The business
prefers to delegate their product development to nations in third world. Further, Moonwalk must
follow below listed laws:
 Labor laws
 Product-safety laws
 International-trade agreements
 Consumer safety-product regulations
Economical Factor: The 50 biggest firms contribute approximately 70 percent of industry's
sales. Moonwalk is one such organization. Products of Moonwalk are belongs to “leisure
products or items” which means that these are not essential or necessity products. Prices are
driven by the trends and desires of customers (Johnson, 2016). In Asia-Pacific market segment
company's revenue is minimum as compere to other geographical segments which is mainly due
to considerable impact of impact of global crisis on Asia. Also exchange rate fluctuation can
impact company's profit margins while selling products globally.
Social Factor: Moonwalk modifies designs of its footwear products. Designs which match with
interests of different consumers. For any group of age, sex or lifestyle, items are frequently
accessible. Nevertheless, their main focus group is consumers who are ready to pay for premium
products. Company also offering corporations voluntary programs. Company dedicated to
support different communities and groups. Moonwalk also supports sports and fashion events,
that allow them to leveraging merchandising opportunities and cover new customer segments.
Technological Factors: Moonwalk testing their footwear products under numerous possible
conditions in order to provide quality and durable footwear products. Also using technologies
which help them to design products while considering different issues of customers. As
ignorance of technological up-gradation in business can lead to decline in sales graph and even
can put question on survival of company in industry.
Legal Factors: Moonwalk has possession of different intellectual properties and rights.
Company also registered various design patents which help it to defend their rights against

infringement/copiers and duplication of products. Patents also offers legal protection against
counterfeit businesses. Company is conscious about different legal complexities in business at
international level. Also company has made adequate arrangements to void any legal factor's
complexities in business (Lu, 2018).
Industry and Sector Analysis
Sector analysis is systematic evaluation of economical and fiscal status and potentials of
specific sector in an economy. It serves to support an investor in taking decision about how
effectively corporations are expected to perform in sector. This analysis includes some models
and methods which determine company's status in relevant industry like Porter’s Five Forces &
Generic Strategy. Following is industry analysis of respective company, as follows
Porter's Five Forces Model:
It is a strategical managerial model that aid in determining competitive landscape of
corporation in industry. Each mentioned five forces in this strategic model along with strengths
assist strategical planners to recognize possible opportunities in industry. The characteristics of
these powers/forces vary from sector to sector, meaning that in terms of competitiveness and
operations, each industry is unique (Meyer and Peng, 2016). These are crucial Porter’s five
forces, as follows:
Threats from New Entrants:
Performance scale is reasonably hard to accomplish in industry in which Moonwalk is
operating. It make simpler for those corporations who trading at large capacities to attain cost
advantages which also makes costlier to operate business for fresh entrants. Capital requirements
in the sector are higher, making it hard for new companies to established companies as it is
important to pay high expenses. Due to increased research costs, capital spending are also huge.
all of such things make this sector's risk to new participants a poorer force.
Bargaining Powers of different Suppliers:
No. of different suppliers in this industry are much more as compared to buyers. It means
that provides/suppliers have lower controlling over product's prices and it makes negotiation
powers of suppliers a weak-force. The product provided by these provider/suppliers is relatively
standardized, less distinguished and has low swapping costs (Michael-Tsabari and Weiss, 2015).

This renders switching suppliers simpler for buyers such as Moonwalk. Suppliers don't offer a
credible threat for further forward integrating into industry where Moonwalk is operating.
Bargaining Power of different Buyers:
Product differentiation in this industry is higher, that implies that buyers aren't able to
recognize alternative corporation manufacturing any particular item. The quality footwear
products is crucial aspect for buyers, and also buyers here makes regular purchases. It means that
buyers in such industry are less-price sensitive. So this force is not much affecting business of
company.
Threat from Substitute Products or Services:
Company is providing all types of footwear products along with premium quality. There
are few substitutes are available in industry but company's brand value is unaffected by substitute
products as company has loyal customer group which prefer to buy quality products and are less-
price sensitive (Petrucelli, 2017).
Rivalry Among Current/Existing business players:
As company famous in segment of premium quality and durable footwear products so
there are very few competitors in this segment. Also company is not affected by local brands.
Although to competitor like SMOOTH STEPS Ltd and Prime Walk are giving tough competition
in industry. Smooth Steps Ltd has 1st rank in year 2016's scoreboard while Prime Walk is also
trying top beet company. Moonwalk now required to emphases on differentiation of company's
products in order to minimize the impacts of its competitor's actions on customers who are
seeking for unique range of products.
Porters Generic Strategies Model:
Moonwalk's strategies generally follows this model which preliminary focuses on cost of
products and differentiating products and items in different manners. Under this model in
respective company's context following strategies are proposed by porter, as described below:
Cost Leadership Strategy: Moonwalk can apply this strategy as it is beneficial for corporation
as the products price are bit-higher as compere to other brands. So in case price of Moonwalk's
products are decreased, then there may be an opportunity for corporation to attract more
consumers (Ramírez and Selsky, 2016).
Differentiation strategy:

This strategy also fit for Moonwalk to improve its market share as company has lot of
benefits due to technological development. As Moonwalk is already selling its products through
e-commerce segment and customers here can design own items/products over internet platforms,
product managers can easily conduct lot of researches with new-designs and launch them into
market.
Focus Strategy:
Under this strategy, Moonwalk should also focus towards price sensitive customers by
providing a different range items with lower prices. By implementing this action company can
enhance their market share in industry. Also, there are several adverse effects for such strategy as
due to coverage of price sensitive customer group company may loss its existing customers who
are ready to pay company's logo and unique quality (Velu, 2016).
Internal Analysis
This analysis mainly covers corporation's internal aspects like capabilities, internal
strengths, disabilities and weaknesses. It provides true picture about company's efficiency to
survive in industry. This analysis also includes different models which help management to
assess and identify the impacts of internal factors on organization. In this context following is
internal analysis of Moonwalk through different models, as follows:
McKinsey 7S Framework Model:
It is a model which aid in analyzing strategical alignment of corporation. Here in this
model different seven aspects are systems, strategy, shared values, structure, style, skills, and
staff (Whitaker, 2017). Use of this framework to Moonwalk's operations uncovers following
things about different operations of corporation, as follows:
Strategy Moonwalk's fundamental strategy or approach is marketing itself as best
producer all range of footwear along with premium quality. It help company to
gain competitive advantages and enhance brand value.
Structure The corporation operates though centralized mechanism. Which allow
company to effectively track and monitor entire supply chain. Also its world-
wide outlets are controlled though this structure which aid in establishing
proper control over sells, supply and demand of products in specific location.
System Moonwalk has a well-developed business and trade system which contributes

in value creation.
Shared Values Values adopted by Moonwalk involve a commitment towards product quality,
and emphasises on client's needs. Moonwalk understands its all types of
customers and wish to develop them centralised part of overall operations
(Trigeorgis and Reuer, 2017).
Skills Moonwalk has large no. of skilled and professional personnel at different
ranks, which is a significant strength of company.
Style Company's style itself as an premium footwear corporation. Company is
famous for unique and stylish footwear range for all age group.
Staff Company’s staff includes workers, designers, engineers and other
administration and finance division employees who are working at different
geographical location for company.
Telescopic Observation model:
Techno
logical
Advanc
ements
Econo
mical
Factors
legal
and
Regulat
ory
Requir
ements
competi
tion
Organi
sational
Culture Staff
Manag
ement
Brand
Image
Cost
Structu
re
Strengh
ts X X X X X
Weakne
sses
Opporti
nites X X X
Threats X

CONCLUSION
From above study it has been articulated that determining business strategy is crucial for
attaining long term goals, mission and company's vision. In this process analysis of macro-
environmental as well as micro variables is significant to assess organization's actual and overall
performance within specific industry. For this different models are applied by managers and
analysts, each such model covers different aspects of company's performance.

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