Business Strategy and Simulation Analysis

This assignment delves into the strategic planning of a bicycle firm over a five-year period. It encompasses a SWOT analysis, evaluation of marketing strategies, detailed decision-making regarding debt and equity financing, and utilizes MultiPlayer Simulation to assess stakeholder value improvements. The document provides weekly meeting minutes for each year, SHV (Stakeholder Harmony Value) results, and simulated screenshots to illustrate the outcomes.

Project Simulation Report

Executive Summary
The Project Simulation Report for a bicycle firm named Abacus Ltd is evaluated and presented.
The management of meeting are estimated based on the MultiPlayer Simulation. The objective of
this report is to provide a Project Simulation Report, where the SWOT analysis of the firm is
evaluated. Marketing strategy is analyzed for Abacus ltd. The implementation and simulation for
improving the stakeholder’s value is determined. The SHV results is obtained. The simulated
screenshots is provided for a clear picture.

Table of Contents
Executive Summary...................................................................................................................................1
1. Introduction.......................................................................................................................................1
1.1. Company overview........................................................................................................................1
1.2. Strategic Planning..........................................................................................................................1
2. SWOT Analysis..................................................................................................................................1
3. Market Analysis.................................................................................................................................2
4. Implementation..................................................................................................................................2
5. Evaluation........................................................................................................................................11
5.1 The Year Ahead Report..............................................................................................................11
5.2 The Market Research Report.....................................................................................................12
6. Meeting Minutes..............................................................................................................................16
7. Conclusion........................................................................................................................................29
References................................................................................................................................................29

1. Introduction
Business simulation is a kind of simulation which is mainly used for the Business
education, business training and analysis. The simulation could be scenario-based or numeric-
based simulation. Most often, the business related simulations are mainly used for the business
education training and business development.
The objective of this report is to provide a Project Simulation Report, where the SWOT
analysis of the firm will be evaluated. The implementation and simulation for improving the
stakeholder’s value will be determined. The SHV results will be obtained. The simulated
screenshots will be provided for a clear picture (Barnet, 2017).
1.1 Company Overview
Abacus Ltd is a bicycle manufactures, bikes have unique style and ethos that are created
with passion. The aim of the company is to produce a quality base bikes for an enthusiastic ride.
Apart from this, its goal is to attain the position of a finest bike manufacturers, in the market.
1.2 Strategic Planning of the Firm
Mission
Abacus Ltd confers to produce products that solely are devised for the requirement of the
customers. Lot of choices are to be done for the customer requirement, it can be irresistible to
conclude the desire fixtures that prevails the best.
Vision
Our vision is to produce quality service to the customers to attain the customer satisfaction. It
also has the vison for stimulating the cycling culture and life style.
Company Structure
Abacus Ltd bike are marketed in almost all countries.
General Director: Luca
Manager: Joao
Secretary: Melissa
2. SWOT Analysis
Strengths
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1. The bicycles are developed or designed by athletic coach and by specialized
bicyclists. Thus, the bicycles are much efficient and follows the kinesiology.
2. They use more effective technological tools for testing the products.
3. It offers high quality bicycles.
4. It maintains the public relations.
5. It has good advertising strategy.
Weakness
1. New entrants in the market, can increase difficulties for the firm.
2. In the initial two years, only limited bicycles are available.
3. The products are highly professional, for normal people.
Opportunity
1. It has a chance to be a leading producer of Bicycle and takeover the market.
2. Use of innovative technology, to improve the production of bicycles.
Threat
1. Direct movements of opponents are a threat for the company.
2. The product’s price is costly, for the firm to produce (Bakouros and
Kelessidis, 2000).
3. Market Analysis
Abacus Ltd represents the bicycle industry in the capitalist economy. Consumers in this
market are able to buy the bicycles as per their need. Abacus Ltd include three types of section in
this market they are Low cost Youth bikes (YY), mid-ranged mountain bikes (Adv5) and the
high cos road bikes (RR). Owing to the competitive nature of the market economy, the local
manufactures are able to produce only one segment that is mountain bike section.
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4. Implementation
Implementation includes the Industry benchmark report, market summary of the products
and minutes for the company Abacus Ltd from the year 2016 to 2021. The following screen
shots gives the implementation process (Kwak and Ingall, 2017).
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5. Evaluation
The management process consists of formulating the implementation plan, strategic plan
and evaluating the performance. Evaluation is nothing but to measure how long the process have
progressed, to meet the objectives of the company. Evaluating our current position is essential
and evaluation is a cyclic process (Verbeke, 2013).
5.1 Year Ahead Report
First year decision
In the first year decision, the market share and the estimated controlling for the next year
is decided. The market share is estimated as 18.3%.
Shareholders value (SHV)
The SHV for the year 2016 is $11.26 with 0% in cumulative change.
Second year decision
During the second year, the decision are on the product information and review is
conducted. For the year 2017’s profit after tax is calculated as $953,771, market share is
analyzed as 18.3%, awareness is .35% and the PR is 0.09%. The product information is also
given as the planned units is 22,000 and the forecasted units is 23,000. The retail price is decided
to set as $720.
Shareholders value (SHV)
The shareholder’s value is the highest among all of its competitors that is, $13.9
Third year Decision
The third year decision holds review and the product inventory. It covers the new
decision and manufacturing the control factor capacity. Here, the long term debt is controlled. It
holds the market share of 19.6% (highest share) with the retail price $720.The awareness
percentage is 0.47%, the PR is 0.10%. Gross Margin is $8,755,392 and the profit after tax is
$1,868,007.
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Shareholders value (SHV)
Abacus Ltd holds the highest shareholders value of $16.94 with the cumulative change of
50%.
Fourth year Decision
The third year decision holds the review, efficiency, quality and the product inventory. It
covers the new decision and manufacturing the control factor capacity. Here, the long term debt
is controlled. It holds the market share of 18.9% (highest share) with the retail price $720.The
awareness percentage is 0.48%, the PR is 0.11%. Gross Margin is $8,786,266 and the profit after
tax is $1,885,846
Shareholders value (SHV)
Shareholders value is $19.20 with the cumulative change in 71%.
Fifth year Decision
This year includes the review, improvement and the new ideas to be implemented, this
makes to improve the performance. Product contribution is derived from the gross margin.
Ide4as are developed to create new products. Gross Margin is $26,454,816 and the profit after
tax is $9,888,055.
Shareholders value (SHV)
Shareholders value is $53.46 with the cumulative change SHV as 375%.
5.2 Market Research Report
The research information include the price, quality, quantity distribution channels and
advertising. From the market summary for the period 2016 it is analyzed that the 18,000 units of
mountain segment are sold in the previous year with no lost in sales with the retail price $700,
market share is 14.3%. At this summary it shows that there is no sale in the road segment and the
youth segment. For the next year it is shown that the Abacus Ltd has increased its units of sales
to 24,350 units with 497 lost in sales its market share raises to 18.35 than its customers. The
retail price is set as $720. For the year of 2018 it is noted that the Abacus Ltd further increased
its sales to 28566 units with the highest market share of 19.6% with $750 as its retail price, the
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lost sales is zero. For the year 2019 bit has the same market shares with increase in sales in units.
In the year 2020 it has sales in road and the youth segment. For road segment 11,000 unit of
sales with 496 lost sales, mountain segments 39,392 units and youth segment holds 37,764 units
of sales. In the year 2021 it has its mountain segment sales for 39,292 units, road segment 11,000
units are sold with lost sales of 4026 and youth segment holds 37,764 units.
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6. Meeting Minutes
The minutes of meeting is as follows (13+ Meeting Minutes Template - Free Samples,
2017) (minutes, 2017):
Meeting Title: Year 1- 2017 Marketing and development decisions
Meeting Date: 29/08/17 Meeting Time: 11am Meeting location: At KOI
Meeting called by Luca
Type of meeting Annual
Facilitator/ Chairperson Joao Jornada
Note taker/ secretary Melissa Beck
Attendees Luca, Joao and Melissa
Agenda Items
Agenda Topic: to develop a best Performance
Discussion For higher product development product segmentation strategy
planning must be focus should be made to increase the profit for
Abacus ltd, actions to remove or pay for the elements in favor for
customers.
Conclusions In the first year of manufacturing of product Adv5 the retail price is
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being set as $750, cost for advertising is concluded for
$3,500,000.The retail margin for distribution
Action Items Person
Responsible
Deadline
Product price
setting
XYZ 30/08/17
Meeting Title: Year 1- 2017 Marketing and development decisions
Meeting Date: 05/09/17 Meeting Time: 11am Meeting location: At KOI
Agenda Topic: Strategy
Discussion A key element of marketing effort is awareness in branding for
attracting the customers attention. The branding strategy can be
promoted by advertising. Advertising can make impression towards
the brand. The brand advertising cost is being set as $250,000.
Discussion is made to make advertising over media such as
 TV
 Internet
 Magazines
Conclusions The decision making capacity by the customer is affected by the
brand awareness from this we can attain customer loyalty. The
decision is made as to set the first phase of advertising in media for
$1,166,700.
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Action Items Person
Responsible
Deadline
Product development decision XYZ 06/09/2017
Meeting Minutes
Meeting Title: Year 2- 2018 Brand Development and Distribution channels
Meeting Date: 17/08/18 Meeting Time: 11am Meeting location: At KOI
Meeting called by Luca
Type of meeting Annual
Facilitator/ Chairperson Joao Jornada
Note taker/ secretary Melissa Beck
Attendees Luca, Joao and Melissa
Agenda Item
Agenda Topic: Distribution strategies, volume and pricing of products
Discussion The product distribution channels can be attained by implementing
“4 Ps”
 Product
 Promotion
 Place
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 Price
A right product must be promoted correctly at in proper place in
right price. Revenue can be increased with the help of this strategy.
Our distributing channels are the sports shop, bike shops and
discount stores. The needs of the stores must be analyzed and
strong marketing is recommended.
Conclusions The decision for the channel marketing is made as
FIRM MARKETING - DISTRIBUTION DECISIONS
Bike Shops Sports Stores Discount Stores
Extra Support $0 $300,000 $0
Retail Margin 35% 25% 35%
Action Items Person
Responsible
Deadline
Product distribution channels XYZ 24/08/18
Meeting Title: Year 2- 2018 Brand Development and distribution channels
Meeting Date: 19/09/18 Meeting Time: 11am Meeting location: At KOI
Agenda Topic: Product Planning Decision
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Discussion Discussion is made for the development of product and further
decisions are made for the improvement is brand advertising.
Planning is also made to increase the sales of “Adv5”from 22,000
units to 28,000. Cost of brand advertising is also planned to
increase.
Conclusions The cost of brand advertising is increase to $500,000. Plans made
to increase the sales of units.
Product Adv5
Design Project Name Adv5Proj
Forecast Sales (Units) 28,000
Planned Production (Units) 28,000
Action Items Person
Responsible
Deadline
Sales of units XYZ 20/10/18
Meeting Minutes
Meeting Title: Year 3- 2019 Strategic Planning and Product development
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Meeting Date: 29/08/19 Meeting Time: 11am Meeting location: At KOI
Meeting called by Luca
Type of meeting Annual
Facilitator/ Chairperson Joao Jornada
Note taker/ secretary Melissa Beck
Attendees Luca, Joao and Melissa
Agenda Items
Agenda Topic: Capacity planning decisions
Discussion This year discussion are made for the setting the capacity planner
decision.
Conclusions Capacity planning decision is made as
Capacity Increase 2000 SCU
Capacity Decrease 0 SCU
Efficiency Improvement $205,850
Quality Improvement $969,000
Action Items Person
Responsible
Deadline
Budget is prepared for making capacity
plans.
XYZ 3/09/19
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Meeting Title: Year 3- 2019 Strategic Planning and Product development
Meeting Date: 12/09/19 Meeting Time: 11am Meeting location: At KOI
Agenda Topic: Product Marketing Decisions
Discussion Plans are made to increase the sales of “Adv5”with the same cost of
advertising of 2018. Expenditure for brand advertising is decided to
increase. Since loss in sales occurs for 497 units.
Conclusions Product Adv5
State Normal
Design Project Name Adv5Proj
Retail Price $720
Advertising Expenditure $4,000,000
PR Expenditure $750,000
Forecast Sales (Units) 30,700
Planned Production (Units) 30,000
The cost for brand advertising is increased to $600,000.
Action Items Person
Responsible
Deadline
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Increasing the sales XYZ 17/09/19
Meeting Title: Year 3- 2019 Strategic Planning and Product development
Meeting Date: 19/09/19 Meeting Time: 11am Meeting location: At KOI
Agenda Topic: Decision for distribution
Discussion Resources program was devoted last time, decision taken for
building the alternative method for distribution. This help us to
grow aggressively.
Conclusions Bike Shops Sports Stores Discount Stores
Extra Support $0 $300,000 $0
Retail Margin 25% 25% 25%
Action Items Person
Responsible
Deadline
Distributors support allocation XYZ 25/09/19
Meeting Minutes
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Meeting Title: Year 4 – 2020 Decreasing Debt Raised
Meeting Date: 01/01/2020 Meeting Time: 10am Meeting location: At KOI
Meeting called by Luca
Type of meeting Annual Meet
Facilitator/ Chairperson Joao Jornada
Note taker/ secretary Melissa Beck
Attendees Luca, Joao and Melissa
Agenda Items
Agenda Topic: To decrease the debt raised
Discussion Any company cannot survive with the existing and outdated
product. Thus, it requires advanced and improved product and this
is the reason to launch a new product, which requires extra capital.
It will be highly expensive, if a completely new product is
developed from the scratch. Thus, an existing product is advanced
and the capital is increased by taking debt.
Conclusions In 2020, a huge amount of debt i.e., $10,000,000 was raised to
support the redevelopment of Adv5, which was launched as a new
product named “RR”. The launch of the new product was possible
by the redevelopment of the already existing product “Adv5”,
which led to the development of RR.
Product Adv5 RR
State Redeveloped New
Design Project Name Adv5Proj_Spec_Cost_2020 Swift_2020
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Retail Price $735 $2,350
Advertising Expenditure $2,500,000 400,000
PR Expenditure $600,000 $3,545,455
Forecast Sales (Units) 30,000 16,000
Planned Production (Units) 30,000 16,500
Action Items Person
Responsible
Deadline
Long-term debt XYZ 10/01/2020
Meeting Title: Year 4 – 2020 Production and marketing
Meeting Date: 11/01/17 Meeting Time: 10am Meeting location: At KOI
Agenda Topic: Production and Marketing
Discussion The marketing and production of a new product requires capital, which cannot
be compensated with the generated revenue of the firm. The product’s
production and marketing must be effective to gather more sales. This is the
main reason for opting for external debt.
Conclusion
s
The production is RR is accomplished with Magazines, Internet and TV, which
costed $400,000 for magazine and $0 for both TV and internet. The promotion
of the new product is accomplished with $1,418,183 and $2,127,272, where the
medium is internet and magazine.
Marketing
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Product Adv5 Adv5 Adv5 RR RR RR
Media TV Internet Magazines TV Internet Magazines
Product Advertising $833,333 $625,000 $1,041,667 $0 $0 $400,000
Product PR $0 $0 $600,000 $0 $1,418,183 $2,127,272
The production requires to meet the technical specification and necessary
expenses, where the variable production cost is set as $133.73 and $600.00.
Production
Project Name Style Technical Specifications Variable Production Cost Expenditure
Adv5Proj_Spec_Cost_2020 46.25 50.00 $133.73 $2,000,000
Swift_2020 24.67 67.25 $600.00 $1,000,000
Action Items Person
Responsible
Deadline
Production and marketing of the product XYZ 14/01/20
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Meeting Minutes
Meeting Title: Year 5- 2021 Strategic Planning and Product development
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Meeting Date: 29/08/21 Meeting Time: 11am Meeting location: At KOI
Meeting called by Luca
Type of meeting Annual
Facilitator/ Chairperson Joao Jornada
Note taker/ secretary Melissa Beck
Attendees Luca, Joao and Melissa
Agenda Items
Agenda Topic: Introduction of new product
Discussion The demand for the product RR is lost for 4026. Following this
product introduction of new product is done for the product named
“YY” with the design product name “Tiny_2021_C”
Conclusions Product Adv5 RR YY
State Redeveloped Redeveloped New
Design Adv5Proj_Spec Swift_Spec Tiny_2021_C
_Cost_2021 _Cost_2021
Retail Price $739 $2,200 $345
Advertising $4,500,000 $0 $2,400,000
Expenditure
PR
Expenditure $800,000 $4,000,000 $0
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Forecast Sales 38,000 10,000 40,000
Planned Production 38,500 10,000 39,000
Action Items Person
Responsible
Deadline
Product planning XYZ 05/09/2021
Meeting Title: Year 5- 2021 Strategic Planning and Product development
Meeting Date: 05/09/21 Meeting Time: 11am Meeting location: At KOI
Agenda Topic: Debt and equity decisions
Discussion Debt and equity decisions are framed in this year. Plans are made to
repay the long term debts and decision on the equity shares.
Conclusions DEBT DECISIONS
Debt
Long Term Debt Raised $0
Long Term Debt Repaid $9,000,000
EQUITY DECISIONS
Equity
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Equity Raised $0
Equity Repurchased $5,350,000
Dividend Per Share $0.50
Action Items Person
Responsible
Deadline
Debt repaying and equity XYZ 12/09/21
7. Conclusion
The Project Simulation Report for a bicycle firm is completed successfully. The meeting
minutes are provided on a weekly basis, for all the five years. MultiPlayer Simulation is utilized
for simulation. The SWOT analysis of the firm is determined. The implementation and
simulation for improving the stakeholder’s value is determined. Marketing strategy is analyzed
for Abacus ltd. The SHV results are analyzed and obtained, where the simulated screenshots are
provided.
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