Competitive Advantage & Strategic Management

This assignment delves into the crucial topic of competitive advantage within the context of strategic management. It examines various theoretical perspectives and practical applications related to achieving and maintaining a sustainable competitive edge in the marketplace. The provided resources encompass scholarly articles, textbooks, and online materials that offer insights into dynamic capabilities, industrial policy, knowledge management, corporate social responsibility, and the role of information systems in building a digital strategy.

Strategic Management for
Competitive Advantage

Executive Summary
The strategic management is an important aspect in the organisation as competitive
advantage may be gained with the help of strategic management. The functional areas such as
marketing, HR, finance and operations management plays essential role for better and effective
decision making for the betterment of the firm. Moreover, leadership intends to have effective
performance of team by motivating them to accomplish goals effectually. This gives organisation
better results within stipulated time.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Company Performance...........................................................................................................1
Critical reflection..................................................................................................................10
Critical evaluation of team performance and personal reflection........................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
The organisation should have effective strategic management so that it may earn more
profits by beating competitors'. This report deals with business game in the European car
industry. The company which had played in the game is Excel Auto in the business simulation
exercise (Peteraf, Gamble and Thompson, 2014). For effective achievement of goals, strategic
management is required to be achieved beforehand. Moreover, four functional areas such as
marketing, HR, finance and operations management are important for the company so that better
and effective decisions may be taken in the best possible manner. Moreover, these functional
areas should be performed carefully so that effective outcome may be accomplished by the
organisation with much ease. Leader also plays vital role in motivating and inspiring employees
so that they may perform well for the successful attainment of organisational goals.
Company Performance
It is essential to analyze the results of simulation clearly using various key performance
indicators including both the financial and non-financial measures.
Round 1 results
KPIs: Key performance indicators are the best tool that are used for the purpose of
examining financial results of the organization. Simulation outcome for the round 1 present
following financial results as follows:
KPIs R1 R2 R3 R4
Return on assets -6.93% 31.76% 25.23% 5.74%
Gross margin 38.65% 32.69% 29.15% 16.74%
Net margin -6.58% 11.45% 9.19% 1.75%
Current ratio 2.94:1 2.01:1 1.50:1 1.56:1
Liquidity ratio 1.85:1 1.09:1 0.62 0.65:1
Return on shareholder
capital
-14.90% 47.06 35.20% 6.96%
1

Figure 1 P&L breakdown for Round 1
The findings of the round 1 results presented that Excel auto suffered loss on their total
assets as ROA is found to 6.93%. It shows poor performance due to loss-driven. Gross margin
which shows excess of total revenues over cost incurred. It is found that overall gross margin
shows impressive results for the company for the 1st round to 38.65%. Model wise, gross margin
percentage on Kaurum is 35.70% whilst on Luxxis, Excel Auto get a greater margin of 49.48%.
However, excessive overhead incurred by the firm leads to operating loss worth £31.05m at a
post-tax loss of £64.85m. As a result, profitability ratio shows 6.58% loss on total sales revenues
indicates poor performance of Excel Auto because the operations were not gained any return to
the entity (Madsen and Walker, 2015). Due to loss, Return on shareholders’ fund is negative to
14.90%, as a result, shareholders may be dissatisfy and would not be interested to put their
money.
2

Figure 2 P&L breakdown for Round 2
In R2, ROA and ROE shown favourable results as they both rose to 31.76% and 47.06%
is a sign of excellent performance because this year, P&L statement present post-tax profitability
of £386.80 due to controlled overheads (Wheelen and Hunger, 2017). However, due to overall
increase in cost of sale, gross margin shows slightly decline to 32.69%, still, net margin present
improvements to 11.45%. Thus, it can be interpreted that the decisions made this year drive
favourable improvements.
3

Figure 3 P&L breakdown for Round 3
In R3, profitability ratio indicate decline as ROA and ROE fallen to 25.23% & 35.20%.
Likewise, P&L statement present decline in the gross margin and net margin to 29.15% and
9.19%. In this year, gross profit and net profit of Excel Auto were found to $1416.70m and
$446.44m shows that profitability of the entity came down (Schilke, 2014). The result represents
that in this year, although total grown up from $3377.77m to $4859.96m and net profit grown to
$446.44m however, its percentage on sales dropped indicate declined performance.
4

Figure 4 P&L breakdown for Round 4
In final round, ROA, ROE, gross margin and net margin shows huge decline to 5.74%,
6.96%, 16.74% and 1.75% exhibit that firm performed poor this period due to ineffective
business decisions (Sakas, Vlachos and Nasiopoulos, 2014). The period reported higher turnover
to $5,436.45m at a profit after tax of $94.95m. It shows that entity did not perform well during
the period.
Profit per employee
Profit /employee
R1 -73,107.35
R2 134,536.42
R3 114,586.83
R4 19,210.44
In 1st round, above table indicates loss each worker by $73,107.35 which in next round,
improved to $134,536.42 due to greater return where total workforce employed by Excel Auto
were 3550. Excessive return availability made it possible for the company to raise its return each
employee. In R3 and R4, it had been fallen to $114.586.83 and $19,210.44 shows less profit
available on each worker.
Liquidity performance
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Liquidity results showcases Excel Auto’s capability of paying suppliers with credit
amount owing on time. In round 1, current ratio is 2.94:1 which is above the benchmark ratio of
2:1 exhibit that firm has enough resources available to pay their creditors with deferral amount
whenever they fall due (Rothaermel, 2015). Liquidity ratio, on the other side, is measured to
1.85:1>1:1 is a sign of strong liquidity performance of the business unit. In R2, CR and liquidity
ratio came down to 2.01:1 and 1.09:1 more closer to the industry benchmark. It is good because,
higher the ratio exceeding the benchmark is a sign of unproductive use of cash and other assets.
However, ideal ratio shows perfect cash or working capital management practices of Excel Auto.
In next round, both ratio fallen to 1.50:1 and 0.62:1 below the industry benchmark which does
not seems good as it showcase liquidity crunch which may tends to bring financial trouble.
However, in final round, liquidity position of the firm gone improved at ratio 1.56:1 and 0.65:1,
still, Excel Auto need to focus on strengthening its cash management and credit decisions to
reach the ideal position by maximizing working capital balance, so that, it will be able to pay
their suppliers with correct time.
Sales, Production cost and gross margin each unit in simulation game
Model Selling
price
Materials
cost
Design
and
option
Labour
cost
Total
costs
Gross
profit
Gross profit
percentage
Round 1 Kaurum 31,000 13,640 5,743.07 549 19,932.07 11,067.93 35.70%
Luxxis 84,500 27,693.33 12,502.08 2,493.00 42,688.41 41,811.59 49.48%
Round 2 Kaurum 32000 13768.04 5986.3 583.82 20,338.16 11,661.84 36.44%
Luxxis 84500 27953.3 13040.64 2652.39 43,646.33 40,853.67 48.35%
Mixxus 20500 9490.61 4465.27 577.3 14,533.18 5,966.82 29.11%
Round 3 Kaurum 32640 14187.57 6459.52 553.7 21200.79 11439.21 35.05%
Luxxis 84500 28805.07 14094.1 2591.14 45490.31 39009.69 46.17%
Mixxus 20700 9780.83 4746.94 570.13 15097.9 5602.1 27.06%
Tixxus 25000 14187.57 4691.32 583.68 19462.57 5537.43 22.15%
Round 4 Kaurum 31050 14796.38 7009.88 582.69 22388.95 8661.05 27.89%
Luxxis 78000 30041.13 15329.14 2723.32 48093.59 29906.41 38.34%
Mixxus 19500 10200.53 5096.37 599.89 15896.79 3603.21 18.48%
Tixxus 22000 14796.38 5074.75 614.14 20485.27 1514.73 6.89%
Cirrux 10100 7454.24 4112.36 566.22 12132.82 -2032.82 -20.13%
6

Figure 5 Selling price of various models in different rounds
In Round 1, on comparison of the cost results of both the models, in every case, its luxury
product, Luxxis car model incurred higher cost on material, designing and labor as well to
£27,693.33, £12,502.00 and £2,493.00. There are 277 workers employed in the Luxxis
production activities, however, 610 labour are engaged in manufacturing Kaurum model as there
production quantity is large to 25,000 (Barney, 2012). Excel Auto charged high price for Luxxis
to £84,500 at good gross margin of £41,811.59 each unit. In the next round, a new model has
been launched by Excel Auto named Mixxus at selling price of £20,500. In this round, Luxxis
price remain constant to £84,500 whilst Kaurum model price shows bit increase to £32,000. In
this year, firm incurred higher expenditures on production cost for both the Kaurum and Luxxis
model to £20,338.16 and £43,646.33. However, Mixxus total production cost reported to
£14,533.18. Higher increase in selling price compare to cost delivered increased gross margin of
£11,661.84 on Kaurum whereas, Luxxis and Mixxus model get a GP of £40,853.67 and
£5,966.82 respectively at a margin of 36.44%, 48.35% and 29.11%.
In next round, again a new model, “Tixxus” made at selling price of £25,000 each unit at
a gross margin of 22.15%. In that period, Kaurum and Mixxus prices gone up to £32,640 and
£20,700 with no change in Luxxis. However, high cost increase delivered decline margin
percentage of 35.05%, 46.17% and 27.06% shows downward performance. Similar result were
found in next round with declined GP percentage to 27.89%, 38.34%, 18.48%, 6.89%. Tixxus
profit shows a sudden decline because of decline in its selling price from £25,000 to £22,000
whereas cost gone up from £19,642.57 to £20,485.27 at same production volume to that of
earlier year (Swayne, Duncan and Ginter, 2012). In this round, one more model launched named
Cirrux which were offered at prices of £10,100, however, it driven loss because its production
costs of £12,132.82 exceeded the selling prices by £2,032.82 at loss of 20.13% each unit. This
year, all the model’s profitability came down which is a sign of poor business decisions that
declined Excel Auto’s performance.
Model
Production Sales Stock Model price
(GBP)
Market
share
Round 1
Kaurum 25000 25000 Nil 31,000 0.90%
Luxxis 2500 2500 Nil 84,500 0.35%
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Round 2
Kaurum 29,285 29,285 Nil 32,000 1.05%
Luxxis 3,223 3,223 Nil 84,500 0.45%
Mixxus 105,771 105,771 Nil 57,730 1.82%
Round 3
Kaurum 35728 35728 Nil 32640 1.35%
Luxxis 3651 3651 Nil 84500 0.57%
Mixxus 113799 113799 Nil 20700 2.04%
Tixxus 43700 41186 2514 25000 1.56%
Round 4
Kaurum 39,658 39,658 Nil 31050 1.60%
Luxxis 4053 4053 Nil 78000 0.73%
Mixxus 126,317 126,317 Nil 19500 2.43%
Tixxus 43,700 46214 Nil 22000 1.87%
Cirrux 40,500 40,500 Nil 10100 0.91%
Figure 6 Market share of Excel Auto during different rounds
In Round 1, Excel Auto had two models, Kaurum and Luxxis which totl production
quantity is reported to 25,000 and 2,500 equal to the target production set earlier. Company had
sold all of its items in this round at nil unsold stock availability. Luxxis model is luxurious model
which is too expensive at its price is £84,500 whereas Kaurum’s model price is just £31,000 only
hence, it has greater market demand compared to Luxxis. Due to these, market share of Kaurum
is comparatively higher to 0.90%, the reason behind this is lower charges enable Excel Auto to
generate larger market demand and serve maximum audience base (McWilliams and Siegel,
2011).
In R2, considering the increasing market demand, firm decided to produce more quantity
of Kaurum and Luxxis as target production goes up to 29,285 and 3,223 with additional model of
Mixxus at production volume of 105,771. Due to larger production volume, both the products
market share grown up from 0.90% to 1.05% and 0.35% to 0.45%. However, as out of total
production, Mixxus contain maximum contribution with having strong market share of 1.82%.
In R3, again, in order to meet rising consumer demand, firm had made several changes in
their production decisions by enhancing production quantity to 35,728, 3,651 and 113,799 for
Kaurum, Luxxis and Mixxus at selling price of £32,640, £84,500 and £20,700. All the
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manufactured models were sold rose market share to 1.35% 0.57% and 2.04% respectively. In
this period, Tixxus product had been produced at a total quantity of 43,700 however, actual
demand were slightly lower to 41,186 as a result, 2,514 units remain in unsold inventory with
market share of 1.56%.
In last round, through market research, Excel Auto determined one more product in good
demand named Cirrux (Sirmon and et.al, 2011). Hence, in order to grab the benefit of market
opportunities, it expanded its product portfolio by introducing Cirrux with totl production
volume of 40,500 at a selling price of £10,100 with market share of 0.91% only. Including the
item to develop new revenue stream were not discovered as good because it incurred loss.
However, other items like Kaurum, Luxxis and Mixxus demand rose to 39,658, 4,053 and
126,317 at higher share in market to 1.60%, 0.73% and 2.43%. Tixxus production did not
changed, still, its market share increased because due to lower selling prices, actual sales has
been increased from 41,186 to 46,214 with total market share of 1.87% which was earlier 1.56%.
Cash position
Although, under the operational activities, Excel Auto had spent excessive overhead, still
as it had borrowed loan of £500m resultant favourable bank balance of £208.02m. In R2,, net
bank balance increased to $489.27m due to larger sales at controlled spending. In this period, no
debt had been borrowed by the company (Leonard, 2011). It shows good cash management as a
result, liquidity position had strengthened. Thereafter, R3 present slight decline in the closing
cash position to $423.51m. Although, revenue has been increased still, rising production cost,
launch of new model, repayment of loan and factory overheads tend to decline bank before loan
to $73.51m. However, this period, loan worth $350m had been taken by the Excel Auto. In final
round, again cash balance gone up to $476.84m as a step to strengthen its liquidity position.
Capital structure
Round 1
(£m)
Round 2 (£m) Round 3(£m) Round 4 (£m)
Debt 500 395.99 1268.39 1363.35
Equity 435.15 821.95 501.36 289.6
Debt/Equity ratio 1.15 0.48 2.53 4.71
Figure 7 Capital structure of Excel Auto in different round
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In 1st round, Excel Auto is excessively financed through shareholders capital and took
long-term debt borrowing worth only £500m at debt to equity ratio of 1.15:1 shows high
leverage in the business. In R2, it declined to 0.48:1 because of repayment to some debt and
more issue of equity share capital. It shows lower burden due to declined interest obligation.
However, in R3, it gone up to 2.53 because of borrowing of $350m and declined equity capital
which presented that Excel Auto faced excessive financial burden due to very high proportion of
debt. Again, in R4, the ratio increased to 4.71 due to more debt composition and declined equity.
It indicates that capital structure is not designed well and it is highly leveraged due to which,
company is facing financial trouble (Campbell, Coff and Kryscynski, 2012).
Critical reflection
European car industry is an effective industry as it garners lot of profit from it. Business
simulation exercise is based on this industry. The four functional areas such as marketing, HR,
finance and operations management. These four areas are important as it decides strength of the
company in the market for competing for its share. These areas directly affects internal as well as
external stakeholders' of the company. The same is reflected by the business game which was
held in four rounds and company had competed for gaining market share.
The organisation which had taken participation in the business simulation exercise is
Excel Auto which aids to supply quality cars to European car industry. The aim of the company
is to maintain competitive advantage so that it may earn healthy profits and may expand in the
market in the most proficient way. This is necessary so that it may be able to perform better in
the market and may go ahead and beat competitors' at large basis. The four functional areas are
vital for the company so that market share may be achieved by it in the effectual manner.
The marketing function is an important element of organisation so that products may be
marketed and promoted to customers' in effective way (Chiou and et.al, 2011). As Excel Auto
has aimed to provide quality products to customers, marketing is essential tool for it. The
company is required to constantly innovate goods so that it may provide better quality of goods
to the customers' effectively in the best possible way. The marketing mix function is to be made
effectively so that products are purchased by companies with much ease. The 7 P's of marketing
such as product, physical evidence, price, place, people, promotion which are the main pillars of
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the marketing mix function. Product states that should fulfil the customers needs and satisfy
them thoroughly. It should complete the expectation of the customer by providing more benefit.
If products are not made according to the needs of customers', then it will not gain any profit and
resources will be wasted. Physical evidence states that the products should be in support of
tangible assets because to reserve more customers a company need to fulfil all its promises with
their physically presented assets (West, Ford and Ibrahim, 2015).
The price states that quality products should be made available to customers' at low prices
else they will drive away to rivals. Place means that channels of distribution are required so that
company may be able to deliver goods with ease of transportation facilities at nearby locations.
People are the main user of goods and it should satisfy with their requirements and as a result,
expectations of them must be fulfilled. Promotion is another aspect of marketing mix as goods
need to be recognised by the customers else, products will be wasted. Promotion is important as
it decides the future of the product because only through people can recognise and have
knowledge about the product. Goods should be promoted to customers so that they may be able
to have knowledge of the innovative goods of the company.
The marketing is essential as company has launched two products such as KAURAM and
LUXXIS which are segmented in the market so that elders as well as younger ones may be
provided luxury rides. KAURAM is large and luxury model whereas other model is basically
provided to age group people which are retired.
The stakeholders such as external and internal are impacted by marketing. When
marketing activities are achieved successfully, company earns profit and as a result, shareholders
are provided more dividends and which in turn increases value of company. On the other hand,
employees which are regarded as internal stakeholder are also benefited by the increased profits
of the company as their pays increases gradually (Saeidi and et.al , 2015). It can be analysed that
through effective marketing function, Excel Auto has scored well in the business simulation
exercise.
The HR functional area is also important as when company hires efficient employees, it
directly affects profitability in effective way. Overall productivity of company gradually
increases leading to more profits from the market. It also satisfies customers' by providing
quality goods and increases market share. The organisation is required to select those employees
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which is capable of performing required job by having skills, abilities and experience so that
assigned jobs may be accomplished with much ease. Excel Auto is required to hire employees
which posses the required skills needed to perform jobs in the most proficient and productive
way.
The responsibility and duty lies with the HR (Human Resource) team which should select
capable candidates so that organisation may be able to perform well and consecutively market
share is increased by effective sales in the market (Jayawardhana and Weerawardena, 2014). The
European car industry market is highly essential for the company as it helps to gain and to
compete for the market share so that it may lead ahead of the rivals. The HR team has hired
efficient and productive employees which results in high scoring in the business game. The
business is much affected in positive manner as employees hired are efficient, then goals may be
achieved by the company in effectual way with much ease. The HR function states that
employees may be selected on the basis of skills, capabilities and talent which is required by
company. The employees need to be efficient so that company may earn with much ease. It
automatically helps organisation to achieve growth rate and as a result, market share is
maximised by it effectually (Sakas, Vlachos and Nasiopoulos, 2014). The employees also helps
organisation to achieve maximum productivity so that customers may be provided with quality
products easily. Moreover, company should hire efficient employees so that resources of the
organisation does not lead to wastage. As such, HR is accompanied with much important
function to hire productive employees so that maximum efficiency may be gained by garnering
profits from the market. It is essential functional area of the company.
The employees are important part of the organisation and such as it impacts HR team as
well. The HR should provide rewards to the employees who perform well and which help it to
motivate them in effective way (Ahmad, Bosua and Scheepers, 2014). The employees should be
treated well as it directly impacts organisation. Moreover, external stakeholder like shareholders'
are also impacted on organisation. It may be analysed by the business game that organisation has
performed well and this has given shareholders' maximum value to them in the form of
dividends. The organisation is affected by external as well as internal stakeholders' and this also
impacts HR practices as well.
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The finance functional area is also important for the organisation. It may be found that
Excel Auto has performed well in different rounds of the business game which is due to effective
finance function adopted by it (Albrecht and et.al, 2015). The finance function is used by the
company to effectively channelise funds to departments so that they may be able to function well
and organisation may achieve objectives with much ease. It is the responsibility of finance
department to supply funds by assessing needs and requirements of different departments. It then
makes available required funds so that organisational departments may function properly. The
finance function comprises profit maximisation and wealth maximisation objectives. Profit
maximisation implies that maximising income of the organisation. It also says that actions should
be taken which maximises profits and those should be avoided which reduces profits.
The fact may be reflected by seeking at the game result of the rounds. The gross profit
margin is increased and this is achieved by having effective finance function. This is possible
because of adopting finance function which led to more profits at its disposal. The other
objective related to finance function is wealth maximisation. This objective implies that
organisation should compute the value of project before investment is made by it. This will be
provide net present value of the investment and if value is more than it is selected by the
organisation. Else it is rejected by the organisation. This objective is reliable as it considers time
value of money. It clarifies what benefits will be given by the project if investment is made in the
same. These two objectives are fulfilled by the organisation which are the essence of finance
functional area. Moreover, if finance is not provided to departments, then may not function
effectively. As such resources, should be fully utilised by the organisation.
The finance function also impacts internal as well as external stakeholders'. The business
is largely affected by it. The shareholder impacts firm as they provide funds to organisation to
function effectively in the market (Hill, Jones and Schilling, 2014). If the funds are effectively
utilised by the organisation, then shareholders' tries to subscribe more shares of the company and
as a result, finance is generated by the firm which helps it to function effectively. As a result,
shareholders' are impacted by the finance function. Apart from this, employees are also impacted
by finance function. Firm tries to achieve wealth maximisation and profit maximisation
objectives by providing strict strategies regarding achievement of goals and as a result,
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organisation is benefited as overall productivity is maximised and it impacts employees as they
have to perform assigned duties effectively.
Another important functional area in the organisation is operation management. The
organisation has effectively used it by having integration through controlling and organising the
work. Operation management is concerned with managing and designing business operations in
a way so that auto parts may be effectively produced by Excel Auto with much ease (Lazzarini,
2015). Operation management is basically administration of business practices to create full
efficiency in the organisation with much ease. Operational management is concerned with
utilising resources from staff and technology in effective way. The organisation is able to
perform better and this is possible because of the well utilisation of resources which has provided
full efficiency to it effectually. It is able to channelise funds in the most productive way.
The organisation is able to function effectively with integration of all the resources by
fully optimising it. Moreover, operational management involves managing inventory in the most
productive way so that stocks may not be wasted and production may be made of KAURAM and
LUXXIS car models in effective manner. Production is achieved in desired manner without
leading to spoilage of any resources. It makes effective cars so that it may be able to satisfy
customers' and eventually led to more profits effectively with much ease. It is also important
functional areas as without this organisation may not perform in the most proficient and
productive way. The organisation has performed well because of effective operational
management made by it. Moreover, other models such as Tixxus and Mixxus are also made by it
effectively and had performed well in the business simulation exercise. The organisation is able
to achieve goals in effective manner.
The impact is also seen on external as well as internal stakeholders'. The employees are
affected by operational management as they have to perform in accordance to the stated
objectives which are provided by the organisation (Leonidou and et.al, 2013). Effective
communication is made by the operational management which is communicated to the
employees and this provides clarity to them to perform assigned jobs with much ease. Moreover,
disputes and disagreements are also resolved by the operation manager and thus, overall
productivity is accomplished in the most proficient way. The planning and forecasting of sales is
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also made by operational management and thus market share is estimated which is to be
achieved within stipulated time effectually.
Shareholders' are also affected by the operational management. They are the real owners
of the organisation. They provide funds to business which is then used by organisation for
successful operations (Li and Liu, 2014). Shareholders' are affected as if operations are perfectly
channelised then, organisation generates more revenue which in turn more dividends are
provided to them. As a result, organisation is affected by functional areas and effective decisions
are made by better contribution and integration of these areas for accomplishment of
organisational goals.
Critical evaluation of team performance and personal reflection
The team performance of Excel company was much effective to great extent and has
performed well in the game (6 BASIC LEADERSHIP QUALITIES). The team members were
much committed to accomplish goals and thus, fruitful results were achieved by it in the most
proficient way. It also helped Excel Auto to be efficient in the game and this has resulted into
achievement of objectives. This had been successful only because perfect coordination between
the team members and this has resulted in fruitful results. Team work ensures that goals are
collectively achieved by the members. Effective communication also plays an important role in
the organisation. Through this, employees may come to know about the work they have to
accomplish for the betterment of the company. Moreover, effective leadership also plays an
important role in the organisation. Leaders provide way to accomplish the work so that
organisation may be able to achieve goals in the best possible way. When employees are not
committed to work, it is the leaders who motivates employees to achieve work and as a result,
individuals are motivated in a manner which automatically leads to fulfilment of goals of
organisation with much ease (Meihami and Meihami, 2014).
The organisation is able to perform well in the game as employees were guided by the
leader in effective way. Without the presence of leader, success of organisation was not possible.
Furthermore, leader brought positive energy in the employees which led to achievement of
objectives and results of the game was successfully accomplished in the best possible way.
Leader guides employees to do the work in that way which may lead to accomplishment of goals
effectively with much ease.
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Leadership quality is also important for the organisation as through this employees are
motivated in positive manner. The leader had motivated in a manner which led to performance
accomplishment in the most productive way. Moreover, the decisions made in the four functional
areas and which resulted in effective performance of Excel Auto in the best possible way. The
cash position was increased in the game and car models also were successful. This resulted into
positive performance of the company through effective leadership and team work (Molina-
Azorín and et.al, 2015).
The personal contribution of mine in the game was also adequate. I had performed well
and was a leader. The employees performed well in the game and this had resulted in better
performance with much ease. My contribution in the team was helpful for the employees and
they had performed good as expected from it (Peppard and Ward, 2016). The organisation's
performance was up to the mark and had consecutively performed well in the game. If any
similar opportunity arises in the future, then I will be able to make more effective contribution to
the performance of the team so that they may also perform better. Moreover, communication
may be made effective so that organisation may have better results. This may be achieved by
having better communication between me and my team so that they may perform according to
the standards. This will give better results if similar activity happen in the future. I need to
inspire employees so that they may perform better and effective results may be achieved (Saeidi
and et.al, 2015). The leadership quality should be of confidence in the team that they can
perform well and this is essential as if no confidence is there on the team, then members will not
be motivated. I will also make effective and better decisions so that organisation may be
benefited by it. Channelising positive energy in the team members is also vital. These all may be
used in positive manner if similar event happens in the future as well.
CONCLUSION
Hereby it can be concluded that strategic management is an important task which needs
to be manage by the organisation so that it may have competitive advantage and can be effective
in accomplishing better performance with much ease. Moreover, Excel Auto had performed
better in the simulation exercise and which has given positive results to it. The performance is
enhanced as employees had fulfilled their responsibilities and duties in the most proficient way
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which was possible because of the effective guidance of the leader. This has helped it to achieve
goals effectually in the best possible manner.
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