Business Simulation and Professional Development Report for I-Tech

This report provides a comprehensive analysis of I-Tech, a simulated company in the smartphone manufacturing and distribution industry. The report is divided into two parts: a strategy paper and a professional development reflection report. The strategy paper outlines I-Tech's vision, mission, values, and culture, along with a review of its progress through Porter's Five Forces analysis, market share, and product/price analysis. It examines the company's performance in the Netherlands market and assesses its competitors. The professional development reflection report explores identified events, relevant theories, industry practices, and the application of theory and practice. The report also includes recommendations for future practice and research, offering insights into the company's performance and strategic direction.

BUSINESS
SIMULATION AND
PROFESSIONAL
DEVELOPMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A- STRATEGY PAPER.......................................................................................................1
Vision and Strategy of I-Tech................................................................................................1
Review of Each Year’s Progress............................................................................................2
Future plans and recommendations........................................................................................9
PART B - Professional Development Reflection Report................................................................9
Executive summary................................................................................................................9
Introduction..........................................................................................................................10
Identified events...................................................................................................................10
Review of relevant concepts or theories...............................................................................11
Review of industrial practices..............................................................................................12
Application of theory as well as practice.............................................................................12
Discussion.............................................................................................................................13
Recommendations for practice and research........................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Business Simulation is an activity which requires individuals to set up their own
businesses as per the real time market conditions and take relevant decisions towards enhancing
their business towards profitability and growth. In addition to this, simulation provides people
with a platform that is related to establish them their business and get a close to real experience
of how market changes would be affecting their business and its future growth and prosperity.
On the other hand Professional Development is an area of study and practice, which is associated
with enhancement of skills, as well as capabilities of an individual through gaining experience
form a range of different activities and tasks (Simpson and et. al., 2014).
Hence, in regards to this, the report below is based on business simulation and
professional development and is divided into two parts. The first part of the report covers a
simulated company known as I-Tech that deals in manufacturing and distributing Smartphones in
a range of different countries. It undertakes insight into the vision and strategy of the company,
along with review of each year’s progress through various analysis, such as competitor analysis,
Porter’s Give Forces, analysis of market share, product/price, as well as performance results.
Moreover, this part is also inclusive of future plans and recommendation of the organisation for
the next 5 years. In relation to the second part of the project, it includes a detailed professional
development reflection report, which is subjected towards identified events, review as well as
application of relevant theories and concepts, as well as review of industry practices as well.
PART A- STRATEGY PAPER
Vision and Strategy of I-Tech
Vision and Mission:
As for the vision of the organisation, it aims at shaping up the future of technology
through providing affordable smartphones to individuals within the marketplace. Moreover, the
mission of the company to develop affordable smartphones with advanced technology and high
quality to fill the existing needs of the marketplace.
Values:
As per the simulation, it could be stated that the organisation values loyalty within its
organisation a lot, seeing such a loyal employee base. Moreover, the firm also facilitates
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creativity within their company and ensures that an innovative capacity is appropriately and
effectively built by individuals of the firm.
HR:
Human Resources are an integral part of the organisation, which are inclusive of a range
of individuals handling different departments within the company. The firm focuses on providing
them with effective training, as well as motivation to build on their loyalty within the enterprise.
Furthermore, the organisation also ensures that the staff is educated about new methods and
technologies in a prominent manner, which leads them to develop a positive mindset and better
performance throughout the years (Ceschi, Dorofeeva and Sartori, 2014).
Culture:
The culture of I-Tech promotes equality, creativity, as well as a motivated working
environment. Moreover, the environment within the organisation also focuses on inclusion of
customers by formulating every strategy which satisfies its stakeholders appropriately.
Moreover, the culture of this organisation is also very effective when it comes to diversity. This
is because the company works on effective adaptability towards adopting a range of strategies,
such as a combination of cost and product leadership, along with being customer focused. Such a
flexible and innovative culture allows the company to function appropriately in the marketplace.
Review of Each Year’s Progress
It is crucial that each year’s progress of the organisation is reviewed which would allow
in determining a clear and concise insight within the growth and effectiveness of the firm and its
performance within the market. Therefore, below is a detailed review of the performance of I-
tech, by using a range of tools and analysis (Summers, 2014):
Porter’s Five Forces Analysis:
This model is related to determining the industrial attractiveness of an organisation within
its respective sector. Hence, with respect to I-Tech, its performance would be reviewed on the
basis of several forces that prevail within the marketplace. These forces are explored below:
 Customer’s Bargaining Power:
These are the individuals who buy the offerings of the company and are reason for its
existence. Within the company’s initial years of operations, the bargaining power of the
individuals was relatively low with respect to the organisation as there were few quality players
within the market which provided differentiated products at lower rates. However, with new
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players in the sector and lower switching cost, this threat has become higher for the organisation.
However, the firm’s performance has been very consistent towards maintaining its sales level
throughout the years, which could be stated as an effective approach of following a mixed and
combined approach towards their offerings (Perotti, 2014).
 Supplier’s Bargaining Power:
These refer to the organisations which supply the company with raw materials for
manufacturing its offerings. Earlier, when the firm began operating, there were limited suppliers
which could have the perceived quality raw materials for companies. However, with
enhancement in technologies and access to better alternatives of working, this power has
supposedly increased with respect to the company. However, the company has been performing
well in terms of creating a strong brand image, along with a wide supplier network which lowers
down this power for the firm.
 Threat of Substitutes:
Substitutes are the products that could be used in place of the company’s existing offerings.
Through the years there are various substitutes of mobile phones, such as video calling portals,
other smart devices and so forth, which makes this threat high with respect to the company.
However, its low cost strategy and high quality performance within the market has been quite
contributing to the organisation to deal with these substitutes in a better way. However, what
makes this threat high, is that there is less differentiation in the company’s offerings, which has
been a disadvantage for the company to lower down this threat.
 Threat of New Entrants:
Through the years there are various new organisations that have been a constant threat to the
company as they come up with new innovations and highly differentiated products within the
marketplace. However, as for the company, while it focuses on better up gradation and better
user interface, it lacks in differentiation, which lags its performance against this threat.
 Competitive Rivalry:
There are various existing organisations that are in direct competition with I-tech within the
marketplace. There are mainly 6 companies that are direct competitors to the organisation, who
develop new strategies and works on innovation to stay ahead in the market. However, the
current performance of I-Tech through the years has allowed the organisation to build up its
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quality of offerings despite a lower price and therefore, this reduces this threat (Cotter and
Fritzsche, 2014).
Market share: In order to execute all the operational activities in systematic manner it is
very important for all the businesses to capture large market share (Aithal, 2017). I- Tech is a
new smart phone distributor which is supplying mobiles in different countries such as China,
Japan, India, United Kingdom etc. Netherlands is the home country of the entity therefore it has
captured a larger area of market in the nation. Total segment demand for year 2020 in this
country for the company was 384000 and the sales for the same period was around 332126. It
shows that the organisation is not able to meet the demand therefore it should increase its
production. In 2021 the demand was 276480 and the sales was 227056, for 2022 demand was
276480 and sales for the same period was 150881. In 2023 demand was very high but the sale of
the company was very low. Demand for the year was 304128 and sales during the year was
83976, for 2024 demand was 304128 and sales was 52688, in 2025 the demand was same but the
sales was 0. During 2026 and 2027 the demand was also same but the entity has not sold any
smart phone. In 2028 Demand was 319334 and sales was around 45130 which was very low as
compared to the requirement of the products in the market. In 2029 demand for the smart phones
in markets of Netherlands was the same as 2028 but the sales were decreased up to 35054. The
higher demand and expansion of business in different countries shows that a large market area is
being covered by I- Tech but the organisation is not able to manage it properly that’s why it is
not meeting the market demand.
Product / price analysis: These are the two major elements that are required to be taken
in to consideration by all the entities which are planning to meet demand of customers (Aithal,
2016). From the records of I- Tech it has been determined that according to its quality of
products demand of it in the market of Netherlands for 2020 was around 240000 and sales for the
same period was around 118464. On the other hand, according to price its demand was 1800000
but sales for the same period was 0. In 2021 according to quality demand was 172800 and sale
was 117506, on the basis of price the demand was 1377000 but the sales was 0. During the
period of 2020 to 2029 the demand on the basis of quality and price was very high but the entity
was not able to meet it. In 2023 and 2024 sales was 0 on the basis of product quality and price
but the demand in Netherlands was very high. In 2025, 2026 and 20247 no sale was made on the
basis of quality but the sale on the basis of price was 46268, 64451 and 58616 respectively. It
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shows that the entity had started to meet the demand of a small portion of its market on the basis
of price of the smart phones. In 2028 no sales were made by the company on the basis of price
and quality of products. According to results of 2029 sales on the basis of products were nil but
the sales according to price was 5791 which is very low as compared to actual demand in the
market.
Competitors: For all the business organisations it is essential to make sure that the key
competitors in the market where business is operated are analysed (Albort-Morant and Ribeiro-
Soriano, 2016). By getting detailed information of all of them an entity can survive in the market
appropriately. There are various competitors of I Tech in the industry of smart phone distribution
and manufacturing. These are DHgate, Banggood etc. In order to sustain in the industry, it is
very important for the organisation to make sure that it formulates effective strategies for future.
It will help to find best suitable strategies to sustain in the market and meet the business goals.
Competencies and capabilities: While carrying out operations it is very important for all
the organisations to make sure that they have acquired appropriate competencies and capabilities
(Aoyama, 2016). With the help of them, all the difficulties which may take place in future could
be dealt properly. From the details of I- Tech it has been determined that the company is having
various competencies and capabilities. All of them are facilitating it to carry out operational
activities in systematic manner. All of them are as follows:
 Large market share: I- Tech is operating business in different countries which is one of
the key competencies of it. With the help of it, it is offering its products to customers
from different localities. Most of the entities are not able to deliver their products in
international markets therefore this quality of the organisation is facilitating it to attain
competitive advantage. As large area is served by the enterprise therefore it is a key
competency for it that helps it to generate higher revenues as compared to the
competitors.
 Higher demand of products: From the data of market it has been analysed that in all the
countries where I- Tech is operating business demand of its products is very high. It is the
key capability of it which is helping it to carry out all the operations properly. The
organisation is having vary high demand in all the countries but it is not able to meet it
and it may leave negative impact upon its market share in future (Burger and Luke,
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2017). In order to take long term advantage of this capability it is essential for the top
management of the company to make sure that they formulate effective strategy for it.
Analysis of financial data: There are three ain types of financial statements which are
income statement, balance sheet and cash flow statement. While analysing finance related
information all of them are assessed in detail. In order to analyse the financial data of I- Tech all
of them will be analysed. Description of analysis of all of them is as follows:
 Income statement: In this statement information regarding profits, losses, incomes,
expenses is recorded. For year 2020 the gross profit for the entity was 104537 million and
the net profit for the same was around 73408 million. For 2021 GP was decreased up to
79511 million and net profits was declined up to 48375. In 2022 the Gross and net profits
were increased up to 210474 and 91794 respectively. In 2023, 2024, 2025 and 2026 the
profits were declined up to 77991, 54360, 38134 and 36383 and the net loss for the years
were around 91928, 133648 146262 and 154196 respectively. In year 2027 the gross
profit was increased up to 64414 and the loss for the same year was increased as
compared to last year which is 157701. For 2028 gross profits were around 13724 pounds
and net loss for the year was more than 234519 million euros. For 2029 the gross profit
was around 23469 and the loss for the year was 433466. From the income statement it
has been determined that the company is not able to meet its targets as its losses are
continuously increasing since year 2023. The loss for 2029 s very high it is very
important for the entity to make sure that it finds ways to reduce losses and increase
profits (Grant, 2016).
 Balance sheet: It is a statement that covers detailed information of all the assets,
liabilities and that are used for carrying out operational activities. From the balance sheet
of 2019 it has been determined that cash for the year was 519487 and liabilities for the
same year were around 521187 fixed assets for the year were 17. Cash for 2020 was
increased up to 579920 and the total liabilities and equities for the year were 603588. It
shows that the performance of the company is increased during this year. The records of
2021 are also showing that in this year performance of the entity was also improved
because the cash for the company during this year was very high. The total value of it
was around 627522. The balance sheet of 2022 is showing that cash for the company for
the year was 681790 which is increased as compare to previous year. The total liabilities
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and equities for this year were around 762941. It is showing that company’s performance
is increasing since 2020. The figures of 2023 are demonstrating that performance of the
organisation is decreased as compared to previous year as the value of assets is declined
for this year (Han, Hao and Huang, 2018). From the balance sheet of 2024 it has been
determined that the company was not able to arrange funding to carry out all the
operations properly and it has resulted in weak performance for the year. As the income
statement has showed that company was not able to generate appropriate profits for
various years. These are 2023 to 2029 and during these years performance of the entity
was decreased and the organisation have faced huge losses for these years.
 Cash flow statement: It is mainly used by companies to record information of cash
inflows and outflows so that actual information of cash at the end of year. From the cash
flow statement of 2020 and 2021 it has been analysed that total income for the years were
195642 and 198607. Expenses for both the years were around 135209 and 151005. For
year 2022 the income was around 504217 and expenses for the same were 449948.
During the years 2023 to 2029 the cash inflows of the entity were decreased because of
continuous increment in losses. Since 2023 the expenses are increasing continuously and
the incomes are decreasing which is resulting in cash outflow for the entity.
From the above performance review, it has been analysed that performance of the I- Tech
is decreasing continuously because of decrement in net profits since year 2023. It is showing that
the organisation is not able to meet its targets (Iyamu, Nehemia-Maletzky and Shaanika, 2016).
It also shows that the decisions that were made by the management have resulted negatively as
the performance of the company is decreasing continuously. All the financial statements such as
income statement, balance sheet and cash flow are demonstrating that the organisation was not
able to generate appropriate profits. The main reason of it is determined from the market analysis
which is showing that the demand of smart phones which are sold by the entity is very high and
it is not able to sale the items according to it.
Performance analysis: While planning to analyse performance of a company it is very
important to analyse performance by checking detailed information of each and every element of
business. It covers different elements such as evaluation of strategy and decisions (Jang and Lee,
2016). The key decisions include marketing, human resource, logistics, accounting, product
development etc.
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From the market information of I- Tech it has been determined that the market demand of
the smart phones that are sold by it is very high and the organisation is not able to meet it
because of ineffective strategies of it. It is showing that the company is not able to achieve the
business plan and with the passage of time its performance is getting worst as the profits are
decreasing and losses for years are increasing (Marr, 2016).
There are various competitors of I- Tech in the market and there are various strategies
that are different from them. For example, the quality of all the smart phones that are sold by I-
Tech is very high and the price is affordable but the competitors are not able to compete with it
due to this. All these competencies of it helped the entity to generate good profits till 2022 but
from 2023 the organisation is not able to generate good profits which has affected its competitive
advantage.
From the reports of I- Tech it has been analysed that there are various changes made by
the company during the years 2019 to 2029. Due to this the organisation have faced various
challenges. These are reducing production, not meeting demands etc. All of them have left
negative impact upon the business because the profits and revenues of the company were
decreased due to all of them.
There are various factors which were focused by the management of the organisation to
formulate effective decisions. These are marketing, human resource, logistics, accounting and
product development (Rosca, Arnold and Bendul, 2017). There is no specific information is
provided in the records of I- tech regarding marketing which shows that the company may not
have formulated effective marketing strategies. From the staff inventory results of the enterprise
it has been determined that the human resource decisions of the entity were effective as all the
employees were managed properly by the top-level executives (Marciniak and Jarzębowicz,
2017). As the organisation is supplying its products in different countries therefore it is very
important for it to make sure that it formulates effective decisions for logistics. As it was not able
to meet the demand in its home country as well as other nations therefore it has been estimated
that its decisions related to this element were not effective. The results of the company are
showing detailed final accounts that demonstrates that all the mangers within the company have
supported the formulation of appropriate statements. No decision regarding product development
was taken by the company because it has not made any changes in its smart phones during the 10
year’s period.
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Future plans and recommendations
From the analysis of performance of I- Tech it has been determined that the company’s
performances very weak and it is very important for it to formulate effective strategies for the
same. The key strategies that could be focused for upcoming five years are as follows:
 The organisation should conduct market research and identify the key areas that should
be focused to attract large number of customers could be identified.
 Recommendation: In order to conduct the market research, the management of the
company can hire skilled staff members and analyse online sources. It will help to
identify the key trends that are taking place within the industry (Winston, 2016).
 The management of I- Tech should try to increase the production in upcoming five years
as it can help to meet the demand of the smart phones in its home country and other
nations.
 Recommendation: In order to increase the production, the company is recommended to
select the product develop strategy as it will help to make appropriate changes in its smart
phones according to the market. It will help to increase revenues and improve
performance.
PART B - Professional Development Reflection Report
Executive summary
The reflection report is based on working of an individual in team in simulated business
that is I-Tech Company. The organisation manufactures and distributes wide variants of
Smartphones. The main locations of the company are situated in Netherland and also have
offices in United Kingdom, China, Japan, India and many other nations. The vision statement of
the business is to shape future technology via offering Smartphones at affordable prices in
different marketplace. The reflection report includes introduction of professional development
and the way learning are different in MBA courses to that of working in teams. The main
identified events are communication workshops along with leadership conferences. The theories
relevant in the business field are Theory of reasoned actions and Situational leadership theory. At
last, the entity is recommended to improve its entire processes of production system, to adopt
suitable marketing strategy and manage relations with multiple distributors.
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Introduction
Professional development is described as learning for generating money and maintaining
professional credentials including academic degrees, informal learning opportunities along with
attending conferences (Farrell, 2015). This is intensive together with collaborative stage in which
an individual makes various attempts to develop the career. There are various things which I
learnt while working in team as compared to my learning in previous management courses. In
my MBA courses, I only learnt about the concept. However team working helped me in gaining
experience that the course material and real implementation are totally different. While working
in team of one of simulated company that is I-Tech, I learned about wide topics that are business
simulation, ways in which companies perform in the industry and many more. The company
majorly deals in manufacturing addition to distributing Smartphones in various nations. The
reflection report covers about identified events, review of theory and concepts, review of
practices in the industry, application of theory along with practices and recommendations related
to practice and research.
Identified events
Events are the occasion in which wide people gathers at particular location at specific
duration for some special happening. There are various number of events that happen in
completing works with other people (Bell and Mladenovic, 2015). In my case, when I was
working with team in I-Tech Company, I identified that various events were organised by the
leaders and managers to show us the path towards achieving success and growth. Some of the
identified events are as follows:
Leadership conferences: Another identified event is leadership conference in which
leaders of different companies meet and share interest or ideas related to topics. In this event, I
discussed matters related to concerns of simulation and various aspects. Leaders from stimulated
firms took part in the event and shared their experiences in managing teams for the concern.
Moreover, attending leadership conferences build my confidence and abilities to work. Addition
to this, I and my team follows organisational leaders towards meeting deadlines. In the event, I
gained knowledge in better as well as more interactive setting.
Communication workshop: It is the event in which information was communicated and
ideas were shared for various topics. This event is considered as one of powerful tool for the
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