Reflection Report on the Operation in Single Player Simulation Mikes Bikes Intro

This report assesses the understanding of simulation programme operation in Single Player simulation Mike’s Bikes Intro as provided by Smart Sims. It discusses and analyzes the Single Player Simulation process undertaken by the author during the simulation project.

Reflection Report on the Operation in Single Player Simulation Mikes Bikes Intro As Provided By
Smartsims

Contents
1. Introduction..............................................................................................................................3
2. First Year Decision (2018).......................................................................................................3
3. Second Year Decision (2019)...................................................................................................5
4. Third Year Decision (2020).....................................................................................................7
5. Fourth Year Decision (2021)..................................................................................................13
6. Conclusion and Future Work.................................................................................................19
References......................................................................................................................................20
2

1. Introduction
This reflection report aims to assess the understanding of simulation programme
operation in Single Player simulation Mike’s Bikes Intro as provided by Smart Sims. Here I am
going to discuss and analyze the Single Player Simulation process undertaken by me during the
simulation project. Throughout the completion of simulation project, the performance is
analyzed.
2. First Year Decision (2018)
Key Financial Results
Parta Bikes MountainTop Cycles
Shareholder Value (SHV) $13.42 $13.96
Retail Sales $12,810,000 $13,279,100
Profit After Tax $1,538,110 $1,639,155
3

The challenge for me in this year is to create a firm-level branding and distribution plan
for my current bike.
Market Research Report
In 2019, actual demand for Mountain segment is 37,073 units. But for other segments
such as Road and Youth segments no demands available in market place of 2019. The sensitivity
of the segments to the various product dimensions were analyzed. The low number of advertising
is expected for "Road segments". As the quality of the road segment is high it does not need to
advertise more rather than other two segments.
Branding both Mountain and Youth segments is necessary to achieve the challenge in
2019. So I have chosen branding option for my product. I thought it will boost the effectiveness
of the direct product marketing so I took the Branding as $2,000,000. When I chose branding i
realized that i could brand my product through different media channels.
Segment TV Internet Magazines
Road 10% 40% 60%
Mountain 40% 30% 50%
Youth 70% 20% 20%
Max Advertising $3,000,000
$3,000,00
0 $3,000,000
Max PR $3,000,000
$3,000,00
0 $3,000,000
The above table shows that the usage of different advertisement by medias for my
product to reach audiences.
4

In Video 2, I learned that how to make the first year decision. It is much better to choose
one of either TV or Internet when on a small budget. My budget is $10, 00,000 for Advertising
for Mountain Bike. So I chose, $3, 00,000 for TV and $7, 00, 000 for Magazines. I could not
chose internet for mall budget.
3. Second Year Decision (2019)
Parta
Bikes MountainTop Cycles
Financial Results
Shareholder Value (SHV) $13.42 $13.96
Cumulative Change in SHV 18% 23%
Internal Results
Capacity (SCU) 20,000 20,000
Wastage 15% 15%
Idle Time 40% 39%
5

Efficiency Index 0.75 0.75
Quality Index 0.75 0.75
No. of Products 1 1
Innovation and Learning
Process (Quality / Efficiency) $275,000 $275,000
No. of Product Devpts (2019) 0 0
No. of Product Devpts (Total) 0 0
Demand Forecast Accuracy 96% 91%
6

The above screenshot shows that my forecast net income is $45,956 higher than the
actual result of year 2019.
4. Third Year Decision (2020)
Key Financial Results
Parta Bikes MountainTop Cycles
Shareholder Value (SHV) $14.90 $15.09
Retail Sales $13,447,800 $13,715,100
Profit After Tax $1,585,944 $1,490,151
Advertising
Buying orders, limit, preparing, compensation, staff numbers, plant improvement and
administration. These Ire regions that the Operational Manager must have the capacity to
comprehend and convey unmistakably going to push for financing where it was required as
capital was a constrained asset, the more one area would need, the more avocation that
supervisor needed to present or they would be denied by alternate individuals in any event that is
the means by which our gathering worked. It was essential for every division make a beeline for
exhibit their case to the gathering and after that a gathering accord came to about the levels of
7

subsidizing that would be appropriate on the grounds that everybody was influenced by
everybody else choices so I felt this would be reasonable.
Capacity Management Strategy
8

In this phase, I had to check whether i have enough capacity, too little capacity or too
much capacity. By using the Production Planner Screen, I analyzed the capacity. As the idle
capacity is between the 0% and 10% of SCU. So, I have enough capacity.
Parta Bikes MountainTop Cycles
Financial Results
Shareholder Value (SHV) $14.90 $15.09
Cumulative Change in
SHV 32% 33%
9

Share Price $14.90 $15.09
Dividend Per Share $0.00 $0.00
Number of Shares 1,000,000 1,000,000
Market Capitalization $14,903,158 $15,086,979
Total Shareholder Value $14,903,158 $15,086,979
Retail Sales $13,447,800 $13,715,100
Wholesale Sales $8,741,070 $8,732,443
Gross Margin $3,965,682 $4,501,849
Profit After Tax $1,585,944 $1,490,151
We have the shareholder value $14.90 and it is little bit lower than the Mountain Top
Cycles. We have Retails sales of Parta Bikes over $13,447,800, wholesale sales as $8,741,070,
Gross margin value is over $3,965,682 and the Profit gained after paying tax is $1,585,944. So
we have gained more profit when comparing to the Mountain Top, Cycles. Profit is the major
factor that drives shareholder value. Based on this, we are in the right path.
Market Summary Current/2020
In this report, various information about all products of the market were provided. In
Road Segment period, there were no sales done. Our product name is RC_RockHopper and the
total number of sales is 21,690, it is higher than Mountain Top Cycles. In previous delivery it
was 0.94 and now the current delivery status is 1.00.
Product Summary
Total sales units are 21,690. But the Actual Production units are more than this such as
22,124. As a factory, we can vary the actual production by up to 10%. Due to this, we are able to
do clear all the demands in the last year. It is shown in the result as Lost Sales = 0.
Based on the decision we have taken in this last year, the retail sales was changed. Now
again I need to make the second year decisions to improve my challenge. I have made the last
10

period. In Retail; price, it was set to 620. SO the price impact gives effective result. So I have not
changed the Retail Price for second year.
Pricing Second Year
Rather than cutting down the price, i have focused on improving the marketing decision
in this year. So that the Forecast sales units is set based on the previous sales figures, demand
and expected changes in upcoming year. So i changed the Forecast Sales unit as 22,124.
Production Planner
In Forecast Sales, we have to sell 22,124 units. But awe have already 434 units in stocks.
11

Mountain Segment
Product
Name
Firm Sales Lost
Sales*
Market
Share*
Retail
Price
Awaren
ess
PR
RC_RockH
opper
Parta Bikes 21,69
0
0 53.8% $620 0.19 0.0
4
_MT_Rock
Hopper
MountainTo
p Cycles
18,66
0
0 46.2% $735 0.18 0.0
7
12

The above table shows that the market summary. When comparing to Mountain Top
Cycles, our firm needs to advertise little bit high. Ie, 1% more than another company.
In last, period, we did not allocate any amount for internet advertisement. So now, i put
$250,00 for Internet.
5. Fourth Year Decision (2021)
Key Financial Results
Parta Bikes MountainTop Cycles
Shareholder Value (SHV) $14.90 $15.09
Retail Sales $13,447,800 $13,715,100
Profit After Tax $1,585,944 $1,490,151
In this year, we have to make decisions regarding branding strategy and financial
management strategy.
13

Period Quality Rating
RC_RockHopper 2018 0.750
RC_RockHopper 2019 0.750
RC_RockHopper 2020 0.750
_MT_RockHoppe
r 2018 0.750
_MT_RockHoppe
r 2019 0.750
_MT_RockHoppe
r 2020 0.750
14

Finance Strategy
15

The following key results have been forecasted for 2021:
Pro Forma 2021
CLOSING CASH BALANCE FROM
PREVIOUS PERIOD (2020) $5,965,540
FINANCIAL DECISIONS ($500,000)
CASH AVAILABLE AFTER FINANCIAL DECISIONS $5,465,540
OPERATIONAL DECISIONS ($2,163,000)
CASH AVAILABLE AFTER OPERATIONAL DECISIONS $3,302,540
AVAILABLE OVERDRAFT $3,725,790
FUNDS REMAINING $7,028,330
Single Player Rollover
Parta Bikes MountainTop Cycles
Shareholder Value (SHV) $15.87 $15.17
Retail Sales $13,573,040 $14,832,000
Profit After Tax $1,448,521 $1,274,557
16

In third year, the shareholder value is increased rather than Mountain Top Cycles. The
profit is the main factor for running business. Here, we have gained profit than Mountain Top
Cycles (Kashi and Franek 2014).
Market Summary
Total number of bikes sold by Partas Bikes is 21,892 and it is higher than the sales of
Mountain Top Cycles. There are no lost sales. The retail price is $620 and it is $100 lesser than
the retail price. The current delivery rating is same as the previous period delivery rate i.e., 1.00.
Chart Data Table for Perceptual Map of All Products - Period 2021 - Durga Jayanth
SEETHAMSETTY
Market Segment Radius of Influence Style Tech Specs
17

Specs
Road 15.00 30.00 70.00
Mountain 15.00 50.00 50.00
Youth 15.00 60.00 15.00
Firm / Product Style Specs Tech Specs
Parta Bikes : RC_RockHopper 44.00 50.00
MountainTop Cycles : _MT_RockHopper 44.00 50.00
The technique began somewhat quite unbalanced as it regularly does. In any case, I
gained everything under command and had several rollovers to examine where I were at with
respect to the opposition (Tsalikis and Peralta 2018). In the end, I have confirmed that renewing
an organization is surprisingly troublesome and it would have had some more help from Mike's
Bike and more opportunity to make sense of how to keep on keeping the methodology going
(Nadarajah and Syed A. Kadir 2016). I confirmed that excessively numerous progressions was
not the approach. It was best to keep the progressions to a base and when I rolled out
improvements I made them incrementally and gradually. I found that I had a considerable
amount of money that I expected to utilize thus I utilized this money to make another bicycle line
which helped kick off our organization.
6. Product Development History - RC_RockHopper
2018 T2 - BUS303 Business Project - Durga Jayanth SEETHAMSETTY - Parta Bikes - 2021
Period 2021 2020 2019 2018
State Normal Normal Normal Normal
Product Devpt Project
RCRockHopp
er
RCRockHopp
er
RCRockHopp
er
RCRockHopp
er
Unit Cost (Prime
Cost) $185.00 $185.00 $185.00 $185.00
18

Unit Manufacturing
Cost $221.74 $220.17 $229.35 $231.01
Product Specs
Style/Design 44.00 44.00 44.00 44.00
Technical Specs 50.00 50.00 50.00 50.00
Avg Spec Rating 0.60 0.60 0.60 0.60
In this year I have not found any financial decisions to be made. The repurchasing is not
required because, there was no issues found in among shares as it is the start up Production
Company.
Making the operational decisions is essential to make confirm that the production
procedures are efficiently applicable and the demands in the market absolutely met with my
production strategy (Ježovita 2015). As the production efficiency is increased, the capacity and
profits also increased. And also, my strategy plan, result was adequate to the production of
optimum number of bikes sold when I have avoided the cost effective inventory storage on idle
time (Khurram and Pestre 2017).
6. Conclusion and Future Work
A lesson to take from this simulation process is that it is very essential to become into
new market places initially and take advantage of on the absence of competitors because it is too
hard to increase a share of an already recognized marketplace (Brown 2018).
By understanding the operation, I can maximize the progress throughout the subject and
simulation process. It helps me to take ownership of my decisions and to manage the impact of
those decisions. Actually I was not good performer in skill sets of marketing and product
development field. After involving in this project, I have gained some more confident on these
areas. So I could able to reach the original skills. In the manufacturing process, to obtain the
optimum levels of quality production, I was just needed to adjust huge variables in this
simulation process. The size of my plant was very tiny for many rollovers. Because, I have sold
all the bikes that I had made. After that I have realized that, if the number of workers increased
and the capacity is increased, then I can sell more products and I can gain more profits.
19

As the production efficiency is enhanced, the idle time is increased and the
manufacturing cost will also be increased. Throughout this simulation project, I have learnt that
the huge variance among plan settings and carry them out. As I have done my simulation work
with better strategy of operating in high quality at high marketplace, I ought to be adjust with the
competitors.
My main weakness is managing the financial procedures. So it is very important to
understand the basic financial statement in future. So that I can understand the cash flow, profit
and loss in the business simulation process. I understood that the importance of the selling shares
of someone's company at early rollovers. So I could increase the company's share.
References
Brown, Brookes. 2018. "Beyond Profit And Politics: Reciprocity And The Role Of For-Profit
Business". Journal Of Business Ethics. doi:10.1007/s10551-018-3777-6.
Ježovita, Ana. 2015. "Accounting Information In A Business Decision-Making Process –
Evidence From Croatia". Zagreb International Review Of Economics And Business 18 (1):
61-79. doi:10.1515/zireb-2015-0004.
Kashi, Kateřina, and Jiří Franek. 2014. "Applying Group Decision Making And Multiple
Attribute Decision Making Methods In Business Processes". Applied Mechanics And
Materials 693: 237-242. doi:10.4028/www.scientific.net/amm.693.237.
Khurram, Shahzad, and Florent Pestre. 2017. "Rethinking The Salience Of Not-For-Profit And
For-Profit Stakeholders Of A Firm". Society And Business Review 12 (2): 136-151.
doi:10.1108/sbr-09-2016-0051.
Nadarajah, Devika, and Sharifah Latifah Syed A. Kadir. 2016. "Measuring Business Process
Management Using Business Process Orientation And Process Improvement
Initiatives". Business Process Management Journal 22 (6): 1069-1078. doi:10.1108/bpmj-
01-2014-0001.
Tsalikis, John, and Ana Peralta. 2018. "Priming Effects On Business Ethical Decision
Making". Priming Effects On Business Ethical Decision Making 01 (01).
doi:10.15556/ijsim.01.01.001.
20

21