Strategic Marketing in the Digital Era The Business Simulation

The report is based on simulation output and experience where a car manufacturing company that is, LEUV Motors which is going to enter European car industry. Therefore, with the help of business simulation games various decisions will be made along with presenting its outcome for the four rounds equivalent to the four years period of time. Critical evaluation of team working, decision-making, and performance of the company are discussed in detail.

STRATEGIC MARKETING
IN THE DIGITAL ERA THE
BUSINESS SIMULATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Critical evaluation of team working in the business simulation.................................................7
Critical evaluation of and reflection on decision-making...........................................................8
Critically evaluating the performance of the company......................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The report is based on simulation output and experience where a car manufacturing
company that is, LEUV Motors which is going to enter European car industry. Therefore, with
the help of business simulation games various decisions will be made along with presenting its
outcome for the four rounds equivalent to the four years period of time.
Mission: To become a leading company across UK by satisfying customers through our durable
and comfortable cars at the most competitive prices along with providing ever desired comfort to
the customers (Panigrahi and Gijare, 2018).
Vision: To become the most preferred auto-mobile brand of the UK.
Strategic objectives are:
 To enable green driving by year 3 for all the target audience.
 No stock should be remaining at the end of decision period.
 Achieving 8% market share by the end of the fourth year.
The competitive advantage would be providing the highest quality and comfortable car to a
broad audience in the range between medium to premium pricing acting as a differentiator in the
market. The emphasis would be on becoming a leading by providing innovative vehicles (Abbott
and Chan, 2020).
MAIN BODY
Round 1 – Year 1: Key Performance Measures
Particulars Magnum Speed Up Of the whole
company
Production units 52972 7047 60019
Sales units 52972 7047 60019
Unsold stock in units 0 0 0
Sales revenue for the
company = Model
price * Units sold
£36000 * 52972
= £1906992000
£78000 * 7047 =
£549666000
£2456.66
Profit after tax 199.85

Bank balance 251.65
Outstanding loan 360
Shareholder funds 655.89
Round 2 – Year 2: Key Performance Measures
Particulars Magnum Speed Up LEUV 3 Of the whole
company
Production units 52972 7047 36740
Sales units 52927 7047 36740
Unsold stock in
units
0 0 0
Sales revenue for
the company
£36000 * 52972
= £1906992000
£78000 * 7047 =
£549666000
£34000 * 36740 =
£1249160000
£3705.82
Profit after tax 427.76
Bank balance 482.44
Outstanding loan 334.17
Shareholder funds 989.54
Round 3: Key Performance measure of the LEUV Motors. over the third year
Particulars Magnum Speed Up LEUV 3 Kargo Of the whole
Company
Production
(units)
52972 7047 36740 4228
Sales (units) 52972 7047 36740 4228
Unsold Stock
(units)
0 0 0 0

Sales Revenue
(Units sold *
Model Price)
€1906992000
(52972 ×
36000)
€549666000
(7047 ×
78000)
€1249160000
(36740 ×
34000)
€325556000
(4228 ×
77000)
4031.37
Profit after tax 503.63
Bank Balance 849.02
Outstanding
Loan
92.95
Shareholders
Fund
1493.17
Round 4: Key Performance of the LEUV Motors. over the fourth year
Particulars Magnum Speed Up LEUV 3 Kargo Of the whole
Company
Production
(units)
60639 7360 42804 6264
Sales (units) 60639 7360 42804 6264
Unsold Stock
(units)
0 0 0 0
Sales Revenue
(Units sold *
Model price)
€2122365000
(60639 ×
35000)
€574080000
(7360 ×
78000)
€1455336000
(42804 ×
34000)
€482328000
(6264 ×
77000)
4634.11
Profit after tax 495.97
Bank Balance 736.58
Outstanding
Loan
0
Shareholders
Fund
1989.13

Ratios Year 1 Year 2 Year 3 Year 4
Return on
stakeholders fund
% = Net Income
or post tax profit /
Total
shareholder's fund
* 100
23.76% 33.71% 33.73% 24.93%
Liquidity ratio =
Current assets /
current liabilities
1.55 1.57 1.85 1.6
Net profit margin
%
= Net income or
post tax profit /
Sales revenue *
100
6.35% 9.00% 12.49% 10.70%
Interpretation-
The return on shareholder percentages are calculated for four years in which the growth
of the company is increasing at the increasing rate but when the organisation introduced new
product at that the sales were increases by 7% (Otwoko and Maina, 2021). It has impacted bad
on the reputation of the firm because they are expecting to increases the sales and that is why
they will not going to achieve the target which has established. Also, evaluating the liquidity
ratio which are help for identifying the ratio on the basis of current liabilities and current assets.
The liquidity ratio is increases from the three years but at the time of fourth year it goes down
and it has affected the performance of the organisation. In order to improve the performance
organisation will arrange more funds for this so that it can be improved in next year. Further, the

net profit margin of the organisation are increases from the first year but at given period it goes
down that has affected in the fourth year. The profit were less in the fourth year because it has
changed the policy and launching of new product were not help in increasing the sales.
Business function of the firm is very crucial in order to accomplish the goals of the
company. The mission of LEUV motors is to satisfy their customer by providing
them with the great quality of services. For fulfilling this goal the organization has
launched various innovative products in order to attract more and more customer. The new
product marketing strategy has helped the firm in increasing the overall growth of the
firm in the competitive market (Abdel-Basset and et.al., 2019). Moreover, this strategy has
allowed the organization in increasing the profit of the company as well as sales.
Along with this, the vision of the organization is to become the famous brand
in the market of UK for that company has developed the strategy such as digital
marketing. That has allowed the organization in covering the large are of market
globally and locally. This marketing strategy will allow the firm in attracting large
customer by providing the m with the various offer and knowledge of the firm. In
addition to this, the strategical objective of the firm is to increase green driving by
the 3 years for that organization has adopted the strategy such as alternative of fuel.
That has allowed the firm in maintain the position in the micro environment.
Furthermore, the organization wanted to increase the market share for that it has
adopted the marketing strategy such as selling its products at the average prices that has
allowed the form in attracting the customer in the competitive market. As well as
for achieving this goals it has also implemented the plan of differentiation products.
Moreover, LEUV motors has also made used of the framework such as people, plant
and profit. It is also knowns as 3 P’s of performance and evaluation and
sustainability. For increasing the profit the organization has made use of the potter generic
approach in order to target the large audience as well as medium pricing strategy ( dos Santos,
Godoy and Campos, 2019). On the other hand for planet the firm has invested in the
research and development programmes in order to make sustain in the market. In
addition to this, for people the company invest more in the training and developing
programmes so that it provide quality services to customer.

Critical evaluation of team working in the business simulation
With the help of Gibbs reflective model, a critical evaluation will be done of working in a team
during business simulation, which is as follows:
Description: Working in a team allows for individual commitment towards a group effort is what
the meaning of team work which allows for greater success (Gibbs and Wong, 2019). A LEUV
is a team formed during the strategic marketing class. At first hand, it was not clear among team
members that what is being expected from them. Also, there was no integrity among team
members in terms of being in the meeting and delivering work on time. All team members has
just set their goals on individual basis without considering the whole team.
Feelings: Due to lack of integrity and as individual are working in isolation, I have developed a
negative perception regarding a team also there are also wrong perception has developed which
is not good for the team. It can also affect the efficiency of meeting in order to meet the
objective. The feeling towards the project should be positive in order to get proper idea about it
and also has the perfect considering of achieve the goal (Arickal and Jain, 2020).
Evaluation: It has been evaluated that there are very less people who were waiting for the
meeting but I was appreciate there presence and all were ready to listening me carefully there are
only one member who has very doubt about the growth of the organisation.
Analysis: This is analysed that team is very active on the whatsapp as well as meeting
there are all the people who are going to actively participate their role and hence the task were
completed accordingly.
Conclusion: At the initial stage there are very less collaboration were seen in the team but
later it will be changed because at the beginning people are hesitate to share views as well as
they are able to communicate properly.
Action plan: For the next time, I will more focus on the exaggerated because it helps the
team to share views in order to increases the participation (Gidaszewski and Chua, 2019).
Critical evaluation of and reflection on decision-making.
The main purpose of the LEUV Motors. is to become one of the leading automotive brand of UK
by selling durable and comfortable electric cars at the high and competitive price. In order to
provide the best and unique electric car to the broad target audience of the company such as
every age group, the company has invested huge fund in the research and development (R&D).

LEUV Motors Holding basically uses the Digital and Social media Marketing Strategy in
order to enhance the brand value and its performance (Saura, 2021). The five forces of the brand
sphere are basically used to analyse and evaluate the effectiveness and impact of marketing
decision of the LEUV Motors over its various stakeholders:
 Corporation: The vision, mission and strategic objectives of the company are easily get
achieved if the company implement the digital and social media marketing within the
business. With the help of this decision, the company able to start marketing campaign
which further result into achievement of the green driving objective. LEUV Motors also
able to achieve 8% market share at the end of the 4th year. The impact of this over the
company is that they able to attract loyal customer towards the car product and will able
to strengthen its differentiation strategy.
 Distributors: The closing stock of the LEUV Motors different model car is nil which
state that they do not hold stock within the business. It also means that the company able
to decrease its stock holding cost which further reduces the cost of production of different
models of electric car (Dachyar and Banjarnahor, 2017). This marketing decision of the
company will put negative impact on the distributors image if they fail to provide the car
products to the ultimate customers within delivery time frame.
 Consumer: The electric car is a product of LEUV Motors which have a characteristic of
modern exterior, the newest technology and its production are done by using the high-
quality raw materials. Thus, the overall impact of this decision over the consumer is that
it provides them comfort and convenience. Not only that, the company has also made the
decision to involve green concept which helps them to attract the customer more.
 Competitors: The LEUV car company has targeted the market by using the strategy
of different product strategy that has helped the firm in being unique in the
market. As well as will allowed the organization in increasing the sales and total
revenue of the company (Rouyre and Fernandez, 2019). Along with this, LEUV
company has set the average price of their products that has contributed in increasing
the large customer and resulted in higher demand in the competitive market.
 Macro-environment: The impact on the macro environment is that the LEUV
has decided to make use of alternative of fuel. such as firm has decided to make
use of the electric car that will result in protecting the environment from

hazardous substance (da Silva and Castañeda-Ayarza, 2021). Thus it will contributes in
attracting large customer as well as results in increasing the brand loyalty of the
firm in the external market.
Critically evaluating the performance of the company
Business function of the firm is very crucial in order to accomplish the goals of the
company. The mission of LEUV is to satisfy their customer by providing them with
the great quality of services. For fulfilling this goal the organization has launched
various innovative products in order to attract more and more customer. The new product
marketing strategy has helped the firm in increasing the overall growth of the firm in
the competitive market (Abdel-Basset and et.al., 2019). Moreover, this strategy has allowed
the organization in increasing the profit of the company as well as sales.
Along with this, the vision of the organization is to become the famous brand
in the market of UK for that company has developed the strategy such as digital
marketing. That has allowed the organization in covering the large are of market
globally and locally. This marketing strategy will allow the firm in attracting large
customer by providing the m with the various offer and knowledge of the firm. In
addition to this, the strategical objective of the firm is to increase green driving by
the 3 years for that organization has adopted the strategy such as alternative of fuel.
That has allowed the firm in maintain the position in the micro environment.
Furthermore, the organization wanted to increase the market share for that it has
adopted the marketing strategy such as selling its products at the average prices that has
allowed the form in attracting the customer in the competitive market. As well as
for achieving this goals it has also implemented the plan of differentiation products.
Moreover, LEUV has also made used of the framework such as people, plant and
profit. It is also knowns as 3 P’s of performance and evaluation and sustainability. For
increasing the profit the organization has made use of the potter generic approach in order
to target the large audience as well as medium pricing strategy (dos Santos, Godoy and
Campos, 2019). On the other hand for planet the firm has invested in the research and
development programmes in order to make sustain in the market. In addition to this,
for people the company invest more in the training and developing programmes so that
it provide quality services to customer.

CONCLUSION
It has been concluded that there are successfully achieve the target for long-term
objectives during the period of four years. Also, there are identified the target group that can be
helped for maintaining the stock of the company. The report explained Gibbs reflection model in
order to critically evaluated the business simulation. Moreover, evaluated the ratio analysis in
order to find the growth and liquidity of the organisation. The financial position of the company
is influenced by its labour condition.

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