Major Strategic Decisions and Supporting Models in Business Strategy - Desklib

BUSINESS STRATEGY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Evaluate major strategic decisions made during BSG simulation..............................................1
Evaluation and application of six supporting strategic and management models, concepts and
ideas that underpin strategic approach........................................................................................4
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business strategy is the combination of different actions that business take in order to
reach their business goals and to bring competitive advantage to the business for long
period(Akter and et.al., 2016). Report will include strategic decision that were made by the team
during the BSG simulation. Report will also include Six supporting strategic management
models that can underpin strategic approach of the business.
Evaluate major strategic decisions made during BSG simulation
YEAR 10
During the BSG simulation there were different strategic decisions that were taken by my
team in order to run the team in an effective manner and also to have huge business profitability.
During the year 10, we launched our three products that were NA, EA, AP and LA. It is very
important for the business to figure out the right products and we applied the same strategies in
order to find out the products with the help of which C Company can generate huge profits. We
decided to work on two products that were NA and AP. And the labor cost for NA. Was $8.98
per pair of the products. For the brand AP, the associated cost of labour was about $4.89.
Another business strategy that me and my team implemented was to purchase the products EA
and LA from different market and produce the same in our brand name as it will help in reducing
our labour cost. For both the brands EA and LA, the there was no production cost in the year 10.
However, production cost for NA was high as compared with that of EA due to high labour and
material cost in it. Before launching the four brands, our team worked effectively in analysing
the whole market and with the help of which different assumptions were made. \
After this we prepared our plans and decided to launch our products. We analysed and
targeted the audience with an effective launch strategy where we defined the audience to be
targeted and accordingly point out their pain in order to make them care about our given
services. In order to make the brands recognisable in market, our team decided to sale these
products with the help of internet and also with the help of wholesalers. It was observed in the
year 10 that the pair sold with the help of wholesalers were more than compared with that of
internet as our marketing strategies were some how lacking behind due to tough competition on
websites. However, the operating profits were more with the help of internet than compared with
wholesalers. In this year all the brands were having same S/Q rating. However, the brand NA
was having the maximum operating profit than compared with other brand as the productivity
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and labour cost also high for NA only. Finally, we acquired a market share of about 8.3% for all
our production.
YEAR 11
During the year 11, with the help of different strategies me and my team worked
effectively and increased our productivity with the increase in labor cost and production cost for
the brand NA and AP. However, the products EA and LA was again purchased from different
market in order to sale them in our brad name. This helped us in having zero labour and
production cost. We updated our business processes and maximized capacity of out existing
equipments so that the can work effectively to their full potential. We also acquired new
equipments and encouraged the team to work overtime. This resulted in increase in labour cost
but worked effectively for increasing the business productivity. In this year the pairs sold with
the help of internet raised as compared with that of year 10 for all the three products as we
invested for having an effective web design in order to make the customers attracted towards our
offerings. We also initiated email marketing and started building an effective relationship with
all our potential customers. We promoted with the help of online platforms and took help of
social media marketing so that our products can become recognisable in market. With the help of
these business strategies, C company was able to increase its market share for our different
products that were 11.5% for NA, 11.8% for EA, 11.8% for AP and 11.1% for LA. It was be
analysed that the market share was grabbed by our NA and EA brand more effectively that
compared with that of NA although the labour and production cost for NA was more that
compared with that of EA. Another strategy implemented was to produce the products with the
help of internet only for the product LA. That resulted in less productivity of the brand LA.
YEAR 12
The business again increased the labour cost and also its production cost for both its
products NA and AP. Now me and my team decided to produce the product EA and LA with our
own manufacturing process. This raised the labour cost and production cost of the business in
order to produce EA and LA with own business practices. Here, the labours were given an
excellent training so that it can help the business to increase their productivity and also to help
out to reduce rework of our labour force. Overtime of the labours were reduced in this year and
in order to make the workers satisfied, C company started enhancing safety of the employees and
provided them right resources and equipments so that they can work effectively. However, it was
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