Strategic Analysis of Back Bay Battery Simulation and Performance

This report provides an executive summary and analysis of the Back Bay Battery online simulation, focusing on the role of a business unit manager. The simulation involves managing R&D investments in both existing Nickel Metal Hydride (NIMH) and emerging Ultra capacitor batteries, understanding market opportunities, and addressing challenges related to growth and financing. The report reviews the simulation process, including the use of various tabs, dashboards, and news reports to make strategic decisions regarding pricing, R&D investments, and market focus across different segments like power tools, two-way radios, and power packs. The analysis covers the performance of the company from 2012 to 2016, detailing decisions made and their impact on revenue and profit, while also highlighting the complexities of balancing new technology investments with the core business and the need for strategic adaptation based on market news and competitor actions. The report concludes by acknowledging the challenges in assessing market opportunities and managing investments, while also pointing out the need to conclude the simulation for a more comprehensive understanding.

BUSINESS POLICY AND STRATEGY

EXECUTIVE SUMMARY
In business policy and strategy process of Back Bay battery, online simulation permits to portray
the business unit manager’s role. In the process of R&D investment process, players have to
manage the process of the existing battery business, to the new investing business. The battery
technology process must be understood, to know the market opportunities and to know their
necessary improvements. The role played has challenging process for both new and mature
business. This case requires managing the investment simulation for eight years. The overall
simulation process can be played in 1.5 seat hours. The simulation process of the teaching note
contains teaching note. It includes the overview of simulation screens or elements. The learning
objectives of Back Bay battery online simulation contains steps like timing and level of R&D
investment, best opportunities of new products, using standard approaches for assessing the
emerging market opportunities, organization impatience for growth and the financing criteria,
and lastly the investing process of core business and innovation. These processes are challenging
for balancing the new requirements.

Table of Contents
EXECUTIVE SUMMARY.......................................................................................................................1
1. INTRODUCTION.............................................................................................................................3
2. BACK BAY BATTERY PERFORMANCE....................................................................................3
3. BACK BAY BATTERY SIMULATION.........................................................................................3
4. ONLINE SIMULATION..................................................................................................................5
5. CONCLUSION..................................................................................................................................5
REFERENCES..........................................................................................................................................6

1. INTRODUCTION
In Back Bay Battery Company the online simulation can be mainly used for getting a
right balance between the present NIMH market and the new method of the ultra-capacitor
market. Various types of strategies can be used for to make a business successful. Each strategy
has different concepts and analysis. Over the years, the rechargeable battery can be used for
many purposes. But today, the lead acid battery can be commonly used for power supplies
vehicles for indoor operation and the applications of boats and submarines, in forklift trucks and
also it can be used in golf carts. Nowadays, the demand of many portable electronic devices like
laptops, computers, mobile phones and music players are fulfilled by the makers. Also it
satisfies the customer needs, with new sizes.
The objective of this report is to manage and check the standard approaches, to assess the
emerging market opportunities and its growth. Further, the financing criteria for a new business
and innovation will be found out.
2. BACK BAY BATTERY PERFORMANCE
The performance of Back Bay battery delivers a couple of batteries. One is Nickel Metal
Hydride (NIMH), then the other one is an Ultra capacitor batteries (UC). Here, the ultra-
capacitor battery is a newer battery technology. NIMH batteries and ultra-capacitor battery’s cost
varies depending on the project. These two batteries are used for R&D projects. The NIMH
batteries can be mainly used for focusing on the R&D projects. Because NIMH technology is
based on saturation. Thus, in the market it was very difficult to gain profit (Wheelen and Hunger,
2004). For investing in the process of improvement, NIMH technology could be explored and
then the NIMH technology could be exploited.
3. BACK BAY BATTERY SIMULATION
In the process of strategic planning of Back Bay Battery simulation, the first step is to
review the “Prepared tab”. Where the “Foreground Reading” is also used for preparing this tab.
Before playing the game, the reports will be analyzed for further processing. The feature
performance will be based on information about the current and historical sale, and the customer
discussion is about the product features (Wheelen, n.d.). In the analysis process, the dashboard
will provide the visual summary of the current status of simulation. In the visual summary sales
by the market, the previous year's R&D spending chart, sales by product graph, previous year's

sales variance graph, historical feature of each battery type and timeline progress for each
simulation will be analyzed (C. Shih and Christensen, 2008). In the process of analysis, next is
unit sales. Unit sales of each battery type will be analyzed for further processing of simulation.
By clicking on “View data”, the data presented in the tables will be analyzed. In the next process
of clicking on the desired features, the five technologies can be used for the performance of two
battery types. The five technologies are energy density, recharge cycles, self-discharge to 50%
and recharge time, and price. From these battery types, the performance can be monitored for the
customer desired feature performance. The different market segments can be viewed by the
customers. The R&D investment and feature performance can be monitored by the each five
types of technology. If anyone wants to get a substantial performance improvements, they must
invest in R&D. The next step of analysis process of online simulation, is potential customers
(Managementstudyguide.com, 2017). The portion of potential users and installed base vary from
market to market, and each year. The potential customers of power tools, two-way radios and
power packs of all the above three markets is very large. After the analysis of project report,
finally the decisions, sales and estimation will be added for the next year. Finally, eight
simulation years will be done for continuing the process. In the process of Back Bay battery
analysis, next process includes income statement. The income statement provides the historical
data details of two years with the summary of yearly net income. In the course of simulation,
cumulative profit is the net income of each year. In the analysis process, next is the dashboard
review (HOW TO PLAY MORE DETAILS, n.d.) (C. Shih and Christensen, 2008). The sales
variance can be analyzed for both NIMH technology and ultra-capacitor technology. In the
process of sales variance, there are three ways to get fired. One is getting a large negative
variance for several years in a row. The Second one has very large negative sale variance in one
year. Finally, third one is losing money for several years in a row. The next step of analysis is
news. Here, the market news can be updated based on the previous year’s performance. By
clicking on “View All News” in the news bar, it is possible to get market news and news stories
of all market easily on the screen. In these type of market news, the stories are denoted by a
number and it can be displayed in the navigation bar at the beginning of each round of simulation
performance. The above number launches the year's news to analyze the market performance.
After that, the decisions will be submitted for explaining the strategy (C. Shih and Christensen,
2008).

4. ONLINE SIMULATION
In the process of online simulation, from the year 2012’s news reports, it was noticed that
there was 37% increase in sales of, power tools. As a manager, it was decided to keep the unit
price of NIMH batteries as $10.00 and the price of Ultra capacitor was decreased from $20.00 to
$18.00. This would help to increase the revenues from NIMH, which is still used heavily in all
the fields. Besides, investment of $1 million in energy density of NIMH batteries along with $4
million in Ultra capacitor was made. The price for NiMH batteries was kept same, for another
two years i.e. from 2013 to 2014. Despite the news reports that, the overall sales of Two Way
Radios and Power Packs have been declined. Further, in the news reports of 2015 it was found
that the competitors are requesting price reduction because of mature competition. Thus, I
decided to reduce the price of NiMH batteries to $9. However, to be competitive in the market
10 per unit is required. But, still I found that the revenues of the company dropped heavily and
the profit was slowing down. Later, I found the reason for the decrease in the sales of this year. I
analyzed that, next year the competitors will need more price reduction. So, I reduced the price
rate to increase the sales. The simulation ended there and did not allow to proceed further.
5. CONCLUSION
The role as a business unit manager, in a battery company is analyzed. The analysis is
continued from 2012 and continues for next eight simulation years. The provided dash board is
analyzed for analyzing the process. The process of managing the strategic planning of Back Bay
Battery simulation is carried out successfully till 2016. The ultra-capacitor batteries is the new
battery technology that is used. The simulation depends on the prices, and the conclusion of this
process cannot be achieved still, as it has 2 more years to conclude. There are challenges related
to time, level of investment and new business. The financial objective will be the required
decision that has to be taken. Therefore, this decision will be taken based on the completion of
the process.
The performance of Back Bay battery is analyzed, so far. It is determined that assessing the
standard approaches for the emerging market opportunities is complicated to understand.
Further, investment in the new business and innovation is challenging to balance out the newly
formed requirements. The online simulation, from the year 2012’s news reports is completed and
analyzed.

REFERENCES
C. Shih, W. and Christensen, C. (2008). Strategic Innovation Simulation: Back Bay
Battery. Harvard Business School.
HOW TO PLAY MORE DETAILS. (n.d.). Strategic Innovation Simulation: BACK BAY
BATTERY. [online] Available at:
http://harvardbp.vo.llnwd.net/o36/hep/sim/backbay_v2/hbp_bbbv2_howtoplay.pdf.
Managementstudyguide.com. (2017). Business Policy - Definition and Features; Difference
between Policy and Strategy. [online] Available at:
http://www.managementstudyguide.com/business-policy.htm [Accessed 21 Aug. 2017].
Wheelen, T. and Hunger, J. (2004). Cases in strategic management and business policy. Upper
Saddle River, N.J.: Pearson Prentice Hall.
Wheelen, T. (n.d.). Strategic management and business policy.