BSG Simulation: Strategic Decisions, Environment & Tech Impact

This report analyzes the strategic decisions made during a six-round BSG simulation for a footwear company (Company H) from 2011 to 2016. It examines decisions related to worker compensation, brand value, branded distribution, funding sources, and internet marketing, justifying each with key lessons learned. The report further demonstrates the external macro environment (political, economic, social, and technological factors) and internal competitive environment using Porter's Five Forces (rivalry, new entry, supplier power, customer power, and threat of substitutes) and SWOT analysis. Finally, it critically evaluates the impact of emerging technology on the future of the business, recommending advancements for sustained success. The document is available on Desklib, a platform offering AI-powered study tools and solved assignments for students.

BUSINESS STRATEGY

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1 Analysing the major strategic decision that has been made during six-round BSG simulation
along with the justification..........................................................................................................3
2. Demonstrating external, internal and competitive environment:............................................5
3. Critical evaluation over the impact of emerging technology on the future of business..........8
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Business strategy refers to all the planning and strategies that has been taken by the businesses in
order to improve the performance of the business. The BSG simulation refers to that business
strategy game that involves gathering of different information in relation of the different aspects
of the business (Ali and Anwar, 2021). The BSG enables in knowing the main lessons of the
prior courses that is related to the business. This report will illustrate the performance of the
company H that is a footwear company. The BSG simulation has been performed for the
company from Year 2011 to year 2016. The major strategic decision that has been made during
six round BSG simulation will be described in this report. Along with this, the report will show
the internal and external factors of the company that helped in shaping the decision in the BSG.
Apart from this, the report will recommend the emerging technology that will leads to the
success of the business.
MAIN BODY
1 Analysing the major strategic decision that has been made during six-round BSG simulation
along with the justification
The major strategic decision that has been made by the company H in the BSG simulation are:
Decision related to the compensation- The company has taken the major decision in relation of
the compensation payment to the workers. The company initially increases the wages of the
workers. Afterwards the wages has not been increased. It clearly shows, the organization
believes in the policy increasing the morals of employees by using non-monetary values as well.
The employees are not just motivated by increasing their wages. The company puts a keen focus
over the complete development of the employees. The first round has showed that, the company
has invested over providing the best practices to the workers. Key lesson that has been learnt
from here is that, the motivation and development also plays the major role in increasing the
morale of the employees in the organization (Moktadir and et.al., 2020). As a result, the
productivity of the employees has been increased.
Brand value- The footwear production of the company has showed the increment in terms of
quality. The BSG six round simulation clearly states the value of the amount that has been spent
over the branded pairs has been increased in each year. It shows, that the company has made a

decision in relation of adding quality in their product and ensuring the brand value to their
customers. The company has consistently increased their cost over arranging the branded
material. Here, the company has adopted the strategy of adding effective quality to their brand.
This strategy states that, the company is highly concerned about the quality approach. And along
with this, the organization is providing the effective quality products to their customer as well.
Increasing the brand value ensures the effective outcome as the goodwill of the company
increases in the market (Limba and et.al., 2018).
Branded distribution- The fifth round has showed that the company has taken the major decision
in relation of increasing the branded distribution. As the company has increased the ratio of
branded raw materials. As a result, the outcomes becomes more branded. This states that, the
company managed the effective image in the market by increasing their brand values. This
decision of the company is inter-linked with the previous decision of the company. The previous
decision was to use the quality raw materials in order to increase the productivity of the output.
The major lesson that has been learnt from this decision is that. Increasing the brand plays the
major role in attracting the large number of the customers (Bai, Cordeiro and Sarkis, 2020).
Therefore, the company has focused on increasing the quality of raw material. As a result, the
branded sales has been increased.
Source of funding- The firm has approached the different source of funding and this was one of
the strategic decision taken in the year 2011 and 2015. This states that the company has the
effective financial stability and the company was on a high growth rate. This decision was taken
by the firm in order to increase the capital base of the company. As an effective capital base
results in the smooth flow of performing the operations in the company (Shaltoni, 2017). This
decision of the company has shown the effective growth in the performance of the company. In
the year 2016 the organization has made the large number of sales it was due the major decision
of funding has been taken in just previous year.
Internet marketing- The company has taken the decision in relation of increasing the online
sales. The BSG simulation fourth round has shown that this decision of the company has
increased the sales of the company at the online platform as well. The major reason behind this
decision was to increase the market share of the firm. As the company runs its operations in the
different countries. Therefore, it is important to put focus on increasing the market share in all
the countries. Currently, the consumers are highly active over the internet (Flikkema and et.al.,

2019). This has been one of the best opportunity that has been grab by the firm. As a result, the
firm has shown the effective growth in term of attracting the consumers. The profit of the firm
increased due to this.
2. Demonstrating external, internal and competitive environment:
2.1 Macro environment:
Political factor: political factor means government and its policy, every government have their
own rule and regulation which impact the smooth flow of the business process. Political factor
include tax policy, environmental regulation and trade restriction, these factor impact business
externally and drive company to change certain things (Perera, 2017). H company have been
facing the impact from external environment, policy of various government influencing the
business. Government have introduced new tax reform for retail and clothing sector which
impact the revenue generation system of the company. H company have faced tax barrier in
some of the countries where retail sector was still growing.
Economical factor: economic factors means economy and its stability, every country have
economy which is still growing or completely developed. Economic stability is very important
for every business, without the economic stability a company might face serious issue in
surviving the market. Economic factors may include inflation rate, foreign exchange rate,
stability, cost of living and employment and unemployment rate (Boda and Sunitha, 2018). H
company have been facing issue from stability of the economy of various countries, this
company is currently dealing in those country where the economic stability is not favourable.
Every day change is been occurring in the economy of the country.
Social factor: social factor means customer and their lifestyle, social factor are connected with
consumer, and they play vital role in business because business is been formed for the customer.
Social factor may include, lifestyle of people, level of spending, culture, income level, taste and
preference and employment and unemployment level (Deller, Conroy and Markeson, 2018).
Every factor have great impact on the company and its performance, business need to understand
these factors to survive in the market. H company have being getting affected by these social
factor, this company mainly deal in footwear which means social factor such as lifestyle of
people will going to impact the business.
Technological factor: technological factor means level of advance in technological of the
industry, every industry need latest and fastest technology to win the market and get ahead from

its competitors. Technological factor may include, innovation, advancement, IT, AI and
automation. Technology change at every moment which means business need to be prepared to
meet the advancement level of the industry. H company have been using advance technology in
their business process, operation and production of the company have very advance automation.
There are many areas where H company have being lacking behind in technology which need to
be developed.
2.2 Porter five force:
Rivalry: rivalry levels the level of competition in the market, every business organization face
huge competition from in the industry which they tend to deal in. business always need to be
dynamic to survive the strategies of the competitor and always need to keep eye on every
moment of the competitors (Almeida and Santos, 2018). H company have being facing huge
competition in the target market, they deal in footwear which fall under retail and retail industry
have huge competition. H company need to face various market giant who tend to lead the
market. Although H company is being developing very fast which allow them to survive in
competitive market. Competition tend to increase day by day in retail industry that means H
company have to be prepared to face huge competition in the target market.
New entry: new entry means new competition, these new entry not only create huge
competition, but they try to steal the concept of the company. New entry bring huge capital
investment and innovative idea which allow them to become successful in less time. They spend
huge investment to beat other business organization, and sometimes their strategy impact the
market as well (Knight, 2017). H company have being facing potential threat from new entry,
they are performing well in the market. This company have unique concept of footwear which
can be stolen by these new entry. H company need to develop strategies which can beat these
new competition. Some of the new entry are performing well then H company in footwear
because they tend to use innovation with stealing the concept.
Power of supplier: every business need supplier who can provide raw material to the business
and maintain the business operation, they play vital role in market where they have power to
drive the market and these power can heavily impact the business process (Jin and Smith, 2020).
H company have their own method of arranging raw material they do not mainly depend on
suppliers but still this company have various suppliers who have powers. H company sometimes
get affected with the activities of suppliers in the market, they sometimes demand high rate on

those raw material which is very necessary for the company in their production process in the
business organization.
Power of customer: customer are unlimited goal of the business and are the main purpose why
business is been formed. Customer more likely to rule in the market and their demand impact the
business and its process. H company understand that every customer carry huge powers with
them, they can become the reason of overall failure of the company. The main power of the
customer is they can shift their preference to other company who can provide same product in
low price. Although H company have great reputation in the eye of customer in the target
market.
Threat of substitute: every large scale successful business organization have faced threat of
substitution, threat of substitution means competitor or new entry try to steal the concept of
product of the company. Some of the competitor direct copy the product and sell them in low
price. H company have being facing this threat from its competitor and mainly from these new
entry to try to copy the product. H company have unique footwear designed which easily can be
stolen by the competitors, the sales of this company greatly dropped because of substitution
activities of the competitor in the market.
2.3 SWOT analysis:
SWOT analysis used to analyse the internal factor of the organisation, it describes the
internal functionality about the business. This internal analysis model involves the factors which
are as follows-
Strength: Strength refers as the strong areas of the businesses, in which it covers the factors
which are more productive for the company. For the Company H they are good in making their
business decision, due to their effective strategy which was taken in the year 2011 and 2015,
which implies that the company has acquired the strong financial position (Singh, Gaur and
Agarwal, 2017). Their employees are skilled and knowledgeable which helps them to carry out
their organisational operation effectively.
Weakness: It involves the negative internal aspects which the organisation need to improve. It is
stated that in the 6th round company H’s decision related to the production were not good, as it
did not give the much profit as compare to other round. Therefore company’s work place
environment is not that knowledgeable in order to make decisions.

Opportunity: As rising of the globalisation it is developing many opportunities in the market,
therefore for the company H they have also chance to expand their business, or to invest in other
project for good revenues. They can also proceed to implement the technologies in their products
and services which will be good for their business.
Threat: Rise of competition in the market can be the big threat for the company, what if other
company also come in the market with same strategy but in economical price (Bentley-Goode,
Omer and Twedt, 2019). In such it will be loss for the company, therefore organisation required
to not only focuses on product oriented strategy but also should focus on service oriented
process.
3. Critical evaluation over the impact of emerging technology on the future of business
Globalisation is the main reason for emergence of the technologies, as businesses are following
the current technological trend which help them to improve their customer relationship. New
technologies are able to make the task easier, or capable to solve any critical problem. Some
major advantages of the technologies are that they can provide the ease to business in order to
access the relevant information, it makes the task easier, increases the efficiency in the
operations also offers the timely advantage to the businesses (Sarjana and Khayati, 2019).
Artificial intelligence is the emerging technology which enables the machine to self learn
from the experience or from past data, it is efficient in order to give real time solution for the
problem. AI technology allows the organisation to make effective decision as it provides the real
factual data. Some advantages of the AI technology for the company H-
 It will allow the company H to save the time in carrying out their operational work, as it
will enables the company to save their assets by automating the daily processes.
 Gives rapid information in order to make the faster decision, by using this Company H
will be able to make decision on the basis of better result from the cognitive technology.
 As there are many chances that human can make mistake it is not possible to possess all
knowledge, but AI is able to reduce the human errors and provide the reliable approach
for completing the task.
 With this company will be benefited to increase their productivity, or they can able to
enhance their customer engagement. As it helps to solve the queries of the customer at a
time which is good for retaining the customer to the company.

 Company H will be able to predict the future result with this, and proceed to develop
their strong marketing position.
 Artificial intelligence is able to develop the powerful path of the organisation, as it will
grow company’s expertise by providing intelligent advice and cooperation.
This technology is also potential in order to identify the market trend, or analyse the sales
opportunities for the business. Therefore for the Company H it will be great opportunity for them
to maximise their product sales in the market, it is good for their organisational productivity
(Chen and Keung, 2019).
It is also required that company need a potential staff who have enough knowledge in order to
maintain the AI devices. Usually such type of technology consists of the complex structure
which is found as difficult for the normal person to operate the devices. Therefore Company H
should need to hire the employee who can easily handle the machine. As for the senior manager
it is advised to them, while using this technology they must need to ensure that company has the
enough resources to operate the AI devices. Manager need to track regular basis performance of
the AI devices as they are well maintained or to make sure to organise the program for the
employees in regards to provide the knowledge about the AI technology so that staff can easily
manage the technological devices. AI will provide the company to grow their revenues or to
deliver their product in a specific time (Quenum, Thorisson and Lambert, 2021). For the
company H it will make their employees to give the high rated result, as through which they will
be able to prepare the effectual strategy for their business, in such AI will allow them to use the
relevant information, on the basis of this they can proceed to design their product accordingly. If
company still begin with using the traditional tools and machines, it will restricts them to grow in
the market, as well as company will not be able to compete in the market. Therefore these are
some aspects of the emerging technology which the company H will proceed to use in order to
grow in the market, or to give the potential competition to their rivalry business.
CONCLUSION
The report has concluded that, the business strategy plays the vital role in terms of making the
business more effective. The business strategy involves the strategic decision that has been taken
in the company. It also involves the analysation of the competitive environment in order to

implement the effective strategy. The report also describes the BSG simulation of the company
H in order to explain the different strategy that has been taken by the company. The company has
made the effective decision that resulted in the growth of the company. Apart from this, the
report has shown the competitive environment analysation of the company. That shows, the
organization is effective enough in studying the internal and external environment. Lastly, the
report has highlighted the importance of artificial intelligence technology that leads to the
growth and development of the company.

REFERENCES
Books and journals
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environment, and sustainability. Bus. Strategy Environ. 29(1). pp.321-322.
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business strategy and the environment. Business strategy and the environment. 29(8).
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Perera, R., 2017. The PESTLE analysis. Nerdynaut.
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