Impact of Artificial Intelligence on Company E's Future and Strategic Decisions

Business Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Evaluating the major strategic decision made during the six round BSG simulation and
reflecting on one round that was good........................................................................................3
Reflecting on relevant theoretical framework for understanding of internal, external and
competitive environment.............................................................................................................7
Critically evaluating the impact of one specific technology on future of the business and
recommendation for future managers.........................................................................................9
Recommendations.....................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy is being defined as the different steps and decision being taken by the
company in order to become successful. This is necessary for the reason that when the strategies
selected for the business will not be good then the operational efficiency and profitability will
reduce. The present study is based on Company E which deals in footwear industry. The current
report will outline the major strategic decision made during the six round of simulation games.
Along with this the discussion relating to internal and external environment within which
company operated. In the end the impact of one technology over the working of the company
will be analysed.
Mission
Being the leader in the industry by building good brand image in market by offering
quality based products to get the sustainability.
Vision
The vision of the company is to deign leaders with a focus on getting the best products
for the targeted audience by guaranteeing the higher effective performance with providing
comfort.
Values
The values of Company E involve the fact that they must focus on passion and integrity
along with diversity and improving the performance.
Corporate objectives
 To increase the profits by 15 % in the year 2017.
 To increase the number of employees by 22 % till end of next year.
 To increase investment in technology by 16 % by end of 2017.
MAIN BODY
Evaluating the major strategic decision made during the six round BSG simulation and reflecting
on one round that was good
The strategic decision is very important for the company to take because in case the
decisions are not correct then this will be negatively affecting the performance of company.
Hence, for this the simulation is being undertaken wherein the same situation are created and
then the results are being used in order to take the decision. Similarly, simulation was applied for

Company E as well and the financial data was generated for improving the performance of the
business (Corbo, Pirolo and Rodrigues, 2018). In the present case of Company E, the strategic
decision taken was to increase the marketing expenses as good marketing initiative will result in
increasing sales of the company. Hence, for this reason the company increased its marketing
expense as in 2015 it was $51800 for internet segment and in 2016 it was increased to $74312.
Hence, as a result of this sales and profit of the company increased to a great extent in the year
2016. In addition to this another strategic decision taken was to close the private label sales after
the year 2011.
In the first round that is year 11 the net cash balance of the company was $42122 and the
return on average shareholder equity is 19.4 %. Also in comparison of the different areas where
company operate that is North America, Europe- Africa, Asia- Pacific and Latin America is was
analysed that total number of people employed were 1856 and the supervisor employed was 46.
Also, the total production cost incurred by company in all these four region was $171426 and
$22.64 per pair.
For the year 2012 the total workforce employed in all four regions was 1853 and
supervisor were 41. Moreover, the total production cost was $197479 and $22.48 per pair of
shoe. Also, the net cash balance of the company was $36681 and the return on shareholder equity
was 22.8%. On the other hand, in case of year 2013 the performance of company was good as
the return on shareholder equity increased to 25.6 % but the case balance reduced to $17596.
Also, in case of total number of employees for all the four segment was 1702 and supervisor
employed were 34. This implies that the number of employees and supervisor has been reduced.
Further in the year 2014, the net cash balance of company was $33664 and the return on
shareholder equity was 29.8 %. Moreover, the total of marketing expense for all the four segment
was 32531 in case of internet segment and for wholesale segment is was 59020. In case of
administrative expenses, the total for all the segment is $17628 and $2.03 per pair. Also, the
ending year inventory was 808 combined of all the four segment (Silva and et.al., 2021). In
comparison to this in year 2015 the performance was not good as the return in shareholder equity
was negative that is -1.5% and the net cash balance was also $0. Also the number of employees
in all the four segment were 1047 and supervisor were 21 and the total production cost was
$184561. The total administrative cost was $47912 and marketing cost for internet segment was
$51800 and for wholesale segment was $46490.