Evaluating Strategic Decisions in BSG Simulation

Report

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
1. Evaluating major type of strategic decisions that are been made during a BSG simulation . 1
2. Evaluating 6 major strategic model, ideas and the concept that underpins the strategic
approach .....................................................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

TASK
1. Evaluating major type of strategic decisions that are been made during a BSG simulation
Over the years the earning per share of the company is increasing which in I believed that
it was a positive and good sign for C company. Earning per share reflects profits of the company
that is been generated from its common stock. It shows the amount of money that the company
has made for every share of their stock (Torres and Augusto, 2017). Higher the value of EPS
means more value as investors will be paying more for the an organization along with higher
profits. This shows that C company is seeking for earning recognition strategy in order to
increase its profits on its shareholders equity in relation to the value of each share.
The return on equity of the company is showing a increasing trend which means that the
group of C company had opted for using more and more financial leverage by the financing its
business projects through equity and the debt capital. Company had taken various measures for
increasing the profit margins so that its return on equity also get an increased return. It has opted
for improving the asset turnover which is been counted as the big measure in improving an
efficiency of the company and return on the equity (Turner and et.al., 2018). The resulted ROE is
increasing as per the performance highlights evaluated from BSG simulation equated to 20% to
34.8% during the 7 years begin from year 10 to year 16. I observed that stock price of the
company is also increasing that is in year 10 it resulted as 30 and in the year 16, it had attained
as 258.69. These results shows that simulation helps in creating an environment for the group or
the teams for immersing themselves within a collaborative measure in getting the business done
strategically.
For becoming successful at simulation, first order of the business is integrating along
with the team members for in determining different ways which the member complements with
each other. Team decisions become better that leads to create synergy in the BSG simulation as it
provides for developing effective and competitive strategies. Teams become a better assets as
compared to the individuals at the time when the members are been able to fit in the grooves
among each other such as gears on the well-oiled machine (Kaliappen, 2019). The game needs
precisions level that could be achieved in case the team pushes for the same strategy, so it is
essential to choose the strategy which is compatible with several points of members view.
Diverse opinions are been encouraged in the game as a strategic perspectives that results in
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generating accurate results and improving the performance of the company. For example- one of
the team member offered an opinion that increasing the wages of the employees would leads to
lowering total cost of the compensation and total production cost. This notion was been met with
the resistance after toggling percentage increase back and in becoming apparent that the team
members are well informed.
The simulation also involves CSR as the strategic option as license of company provides
for its operation comes up with obligation for acting as the sustainable and the responsible
citizen and does its fair share fro promoting general well-being of the society and contains
burden in operating honourably (Buil, Catalán and Martínez, 2018). Balance need to be stuck
between the extent to which a company could afford for spending on the CSR before it became
burden on business in respect of the point that it affects the future growth and in preventing an
entity from being as equally committed towards the CSR practices in future.
The best cost strategy is been applied by the firm that offers a high quality products to the
customers containing high attributes of the style and the quality at low price and thus allowing it
in gaining best of the value for money. This strategy benefited an image of the company as
increasing S/Q rating at the time of having the lower price directly relates in achieving high
image rating (Goralski and Luoma, 2016). If there present 5 groups that are competing within the
market aims for minimum 20% of the market share in every sector because being as evenly
represented around geographical regions stated as well for an image of the company.
Substantial growth or increase in the revenues and amount of net profits of C company
results to the growth in the stock price and the EPS. Repurchasing of the stock is also counted as
an instant way in increasing EPS and the stock price, given that the company continues in seeing
reasonable growth. Remarkable growth minimizes requirement paying out dividend but in case if
the growth started in taper off the constant dividend payments and steadily increased dividends
by the value of $ 0.05 over the years helps in stabilizing stock price of an enterprise (Tao and
Wu, 2017). However, rise in the stock price allows an entity for financing expansion at cheaper
cost rather than taking loan but it dilutes an EPS of C company.
An organization has Toggle an advertising spending for seeing lowest cost towards which
company could achieve desired market share. Marginally reducing the spending on the retail
support every year as it had benign an effect on the sales. Toggling between every set of the
options on branded production for seeing which type of the combination of the materials, TQM
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