Analysis and Reflection: Bravo Shoes Business Simulation Game Report

This report provides a comprehensive analysis of the Bravo Shoes business simulation game, focusing on strategic decision-making within a competitive market environment. The report begins with an introduction to business simulation games and their relevance in understanding economic processes and global market dynamics. It then delves into Porter's generic strategies, specifically differentiation, as applied by Bravo Shoes. The report includes an industry overview using PEST and Porter's Five Forces analyses, identifying opportunities and threats within the footwear sector. A detailed company overview of Bravo Shoes is presented, including its mission, vision, strengths, and weaknesses. The decisions made by the company's management, such as pricing, advertising, and market focus, are evaluated, along with their impact on the final results, including market share and brand image. The reflective section highlights key learnings about strategic principles and decision-making. The report concludes with a summary of findings and recommendations, supported by references and an appendix.

Reflective report: Business
Simulation game
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TABLE OF CONTENTS
INTRODUCTION.....................................................................................................................................3
COMPETITIVE STRATEGY ..................................................................................................................3
INDUSTRY OVERVIEW.........................................................................................................................3
COMPANY OVERVIEW..........................................................................................................................5
DECISIONS MADE..................................................................................................................................5
FINAL RESULTS......................................................................................................................................7
REFLECTIVE...........................................................................................................................................7
STRATEGIC PRINCIPLES......................................................................................................................8
KEY LEARNINGS POINTS....................................................................................................................8
CONCLUSION.........................................................................................................................................9
REFERENCES........................................................................................................................................10
APPENDIX.............................................................................................................................................12
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INTRODUCTION
Business simulation game can be referred as the economic simulation game which provides
better understanding regarding diverse economic processes which are mostly followed by diverse
business organizations. It is also known as business strategy simulation which provides better
understanding to management regarding diverse economical factors while operating in the international
market (Whiteley, 2014). Moreover, students can also attain better learning about global market which
can facilitate in effective business forecast. In the present report, learning will also focus on diverse
factors which can facilitate in taking effective decisions with respect to business firms such as generic
competitive strategy, industry overview and key principles of strategic applications.
COMPETITIVE STRATEGY
Porter’s generic strategy is one of the techniques which company mostly uses to gain
competitive advantage in the market. In this respect, the management of Bravo Shoes Company is also
considering the key aspects of generic strategy. Business organization changes its preferences as per
the market situations. It has been spotted that porter’s generic strategy is classified in three sections
which are named as differentiation, overall cost leadership and focus (Cronan, 2011). Currently, Bravo
Shoes Company is focusing on differentiation generic strategy in order to gain competitive advantages.
In this, business firm differentiates its products and services to some extent so that they can provide
high competition in the market. It is considered as the most suitable strategy in market conditions
where customers are not emotionally attached with the pricing of product but they are more attracted
towards uniqueness of the product (Faria, 2014).
It facilitates Bravo Shoe Company to build better brand image which is beneficial for the
advanced opportunities in competitive market scenario. With an assistance of differentiation strategy,
business firm is providing uniqueness in the shoe market. It also boosts the organization's market share
and improved customer loyalty (Whiteley, 2014). These kinds of factors are also advantageous for the
advancement in sales ratio of organization. Moreover, in this respect, company is presenting
themselves as a brand which creates the best combination of Asian resources and western creativity in
the shoe market.
INDUSTRY OVERVIEW
Pest Analysis
Political: Number of business organizations in footwear sector is having strategic mergers
which impact the business of footwear firms (Merkuryev, 2012). Government policies regarding retail
market also influences the operations of sector in a negative as well as positive manner.
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Economic: Industry is expecting high growth as retail sector is also boosting in the recent past
years. Economic factors like GDP and CAGR also influences the operations of footwear industry.
Social: Lifestyle trends are changing rapidly with the modification in social needs. It forces
industry to bring some modifications as per the changes in social perception (Cronan, 2012). Fashion
and celebrities also influences the social perception. So, industry is also concerning these factors as
critical aspects.
Technological: Industry is also looking forward to upgrade the manufacturing equipments.
Number of laser and sensor based technological tools are now in use for cutting and shaping of leather.
Opportunities
 Business firms can focus on the technological tools to amend operations.
 Number of acquisitions can be taken into account for better competitive advantages. More investment in R&D to bring innovative products in the sector (Berman, 2009).
Threats
 High level of competition due to local and international organizations.
 Limitation of products. Changes in economic aspects.
Porter’s Five Force Analysis
Threat of new entrants: Footwear industry is consisting of high threat due to new entrants
because industry demands less investment. This sector has fewer barriers which also facilitates new
business firms to enter in the market.
Buyer power: It has been spotted that the customer negotiation power is medium in the
footwear industry (Fernando, 2011). It is because; number of choices is available to the customers thus,
they can switch to any product in the market. Business firms also provide low price products which
boosts the buyer power.
Supplier power: It is also considered as a medium because number of suppliers are present in
the market which provides easy accessibility to raw material at high prices. Companies can switch to
number of suppliers as per organizational needs. It provides low cost operations to the footwear
manufacturing firms.
Threat of substitute products: Threat of substitute products is low because there is no substitute
product present in the market with respect to footwear (Paul, 2006). This means business firms can
have better advantages in the market due to absence of substitute products.
Rivalry: In support of this, it can be stated that there are number of competitors that are present
in market at local as well as international level. It influences the business operations of business firms
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and motivates to bring some changes within strategic applications.
COMPANY OVERVIEW
Bravo Shoe Company is currently operating its business in US market and provides number of
shoe products. Company mainly focuses on the leather shoe market in order to attain better competitive
position in the market.
Mission: Company’s mission is to provide premium quality of products to the market in order to
meet the needs and expectations of customers.
Vision: Organization’s vision is bringing innovative and dynamic shoe products in the market.
It has been spotted that Bravo Shoe Company has a dynamic brand image in the US market
scenario which boosts its competitive advantages (Nimwegen and et al., 2008). In support of this, it has
been identified that lack of leather shoe manufacturing firms in US market has a great impact on the
organizational success. It provides number of advantages to the business and facilitates in meeting
customers’ needs effectively (Ward, 2008). Moreover, it has also been spotted that company provides a
wide range of shoe products which are useful in office and parties.
Strengths:
 Company is having strong financial conditions which boost the business opportunities in the
current market scenario.
 Increased level of brand image in the US market.
 Outlets are situated in middle of the market.
 Serve wide range of formal shoe (Hoecklin, 2000). Company exists in online market through various strategic alliances with online shopping
portals such as Amazon, etc.
Weaknesses:
 Company’s one of the key weaknesses is lack of varieties in casual wear.
 Absence in sports footwear segment.
 Company is also having weak advertisement presentation.
DECISIONS MADE
In order to have better opportunities and advancement in competitive advantage the
management of Bravo Shoe has made number of decisions. It has been spotted that the company is
offering its products at high price as compared to industrial average. In year 2013 the retail price per
pair is $90 but the industrial average is 74.41. It impacts the business in negative manner while it is
concerned to the internet sales. In year 2013, company has also taken account regarding wholesale
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price, S/Q rating, advertisement budget, retail outlets, retailer support, delivery time, celebrity appeal.
It has also been spotted that in North America the industrial average regarding wholesale price
is 48.86 but company is selling its products at the price of $50. Company is also investing less on the
advertisement activities as compared to industrial average. It will also influence the business
opportunities in negative manner (Keegan, 2008). When it is concerned to the Latin America business
firm is selling its products at massive high pricing as compared to the industrial average. Company is
offering same number of models at all market this indicates that the product line of firm is same. It can
also influence operations of business firm in diverse manner and it is necessary for business firm to
focus on innovation in its product line to maintain differentiation aspect within market. Company is
having improved level of brand image because management is more focused towards high ratio of
celebrity appeal (Palmer and Hartley, 2006). As compared to industrial average in all markets company
is investing more on celebrity appeal. In order to have effective development it is necessary for
business firm to reduce investment from celebrity appeal and invest more on advertisement budget.
It has also been spotted that in year 2013 the rejected rate of shoe pair in Asia- pacific market is
very high which influences business opportunities in Asia- pacific market. It means it is essential for
management of Bravo Shoe Company to improve its monitoring system and production process in
order to reduce the ratio of rejected rate (Worthington, 2006). Production cost of company is constant
in year 2013 and 2014. Company brand image is also having few negative impacts due to delivery time
of products. As per the industrial standards in North America the standard time of delivery is 2.6 week
but company is consuming 3 weeks. It means the supply chain and logistic department also needs some
improvement in order to amend the organization effectiveness (Stengel, 2011).
Other than this, it has also been spotted that the management of Bravo Shoe Company is also
identifying its key issues in order to have impressive level of success. It is the one of reason that in
year 2014 the business firm has improved its investment ratio on advertisement. It has boosted the
market share and provided a better competitive advantage as compared to its competitors. Delivery
time of product has also improved which is beneficial for better brand image among suppliers
(Hamilton, 2012). Moreover, in order to have easy accessibility to the customers the company also
holds 3390 retail outlets in the North America market. It has also been spotted that the business
organization is having great support of retailers in the market as per consideration of industrial average.
But one of key issue is high ratio of investment on the celebrity appeal which influences its operational
cost and marketing activities cost in negative manner (Cheverton, 2005). In this aspect, it is necessary
for business firm to cut down investment on celebrity appeal in order to overcome issues.
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FINAL RESULTS
As per the above discussion, it has been spotted that the business firm is having number of
opportunities in diverse markets. Company is holding better position in competitive market which is
beneficial for business development. Bravo Shoe Company is having high ratio of brand image in the
market due to high investment on celebrity appeal. In the support of this, it has also been identified that
current market share of company in North America is 20.4 % which can be classified in wholesale as
well as internet segment. Moreover, in Europe -Africa market the company holds 5 % in internet
segment and 11.7 % in wholesale segment. Concerning to the Asia – Pacific market, it can be said that
the company holds 5.8 % of market share and 8.9% in wholesale segment. Furthermore, in order to
have easy accessibility to the customers the company also holds 3390 retail outlets in the North
America market. Business firm is also looking forward to improve its investment ratio on
advertisement so that business firm can have impressive level of success.
REFLECTIVE
With an improved focus on business simulation game I have acquired information about diverse
strategies which can boost overall performance of business firm. It has provided me information about
macro environmental conditions and micro environmental conditions of footwear industry. It has
provided me information that business simulation game is refereed as economic simulation game
which provides better understanding regarding diverse economic processes which are mostly followed
by diverse business organization. It has also provided me better learning about global market which
can facilitate in effective business forecast. Learning has also acknowledged me about porter's generic
strategy. I came to know that porter generic strategy is one of technique which mostly company uses to
gain better competitive advantage in the market. It has also been noticed by me that the porter generic
strategy is classified in three sections which are named as differentiation, overall cost leadership and
focus.
I have also acquired the information about diverse factors which can boost the operational
activities of business firm. It has provided me information that in current market conditions the Bravo
Shoes Company is focusing on differentiation generic strategy in order to gain better competitive
advantages. In this, business firm differentiate its products and services in some way so that they can
provide better competition in the market. It has also witnessed by me that Bravo Shoe Company have
dynamic brand image in the US market scenario which boosts its competitive advantages. In the
support of this, it has been identified that the lack of leather shoe manufacturing firms in US market
have great impact on the organizational success.
Moreover, current learning has also provided me better understanding about analytical skills
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which is beneficial for my advanced career opportunities. In the support of this, I can say that
assessment of business simulation game has acknowledged me about evolution skills. I also came to
know that the business organizations must focus on effective allocation of all resources in order to have
better competitive advantage at low cost. But management of Bravo Shoe Company is investing more
on celebrity appeal which also influences the overall cost of marketing operations. It has also provided
me information that with an improved level of information regarding diverse factors the management
of Bravo Shoe Company can design strategies in effective manner. I can also use these strategies in my
future to boost my career opportunities. It has also provided me ability to work in team by assisting in
business simulation game.
STRATEGIC PRINCIPLES
As per the above discussion and learning, it has been identified that every business organization
needs effective focus on market needs identification and environmental aspects consideration. In this
respect, business firm can focus on market audit and organizational audit tools. It will provide better
understanding regarding factors which can influence the organizational process. With an improved
level of information regarding diverse factors, management of Bravo Shoe Company can design
strategies in an effective manner (Fuchs, 2010). It will provide better opportunities in operational
activities.
Moreover, it is also essential for the management of Bravo Shoe Company to ensure that vision
and mission of company is well designed as per the organizational needs and market conditions. It will
also amend the effectiveness of business firm in the competitive market. Management also need to
consider diverse management rules and strategies in order to meet the strategic standards and lead
business to impressive success.
KEY LEARNINGS POINTS
In the support of this, it can be stated that by focusing on diverse strategies the business firm
can operate its operational activities in effective manner in order to meet objectives. With an assistance
of Pest analysis the management of Bravo Shoe Company can easily access the information regarding
diverse macro environmental factors which can influence the business firm operations (Walsh, 2005).
It provides better information about political, social, economical and technological aspects which
relates with the operations. Moreover, Swot analysis also provides better understanding regarding key
points that are present within organization. It helps in effective determination of organizational
strength, weakness, opportunities and threats (Retseptor, 2005). It also beneficial for effective
identification of risk which can influence the business firm in diverse manner.
With an assistance of above strategies the management of Bravo Shoe Company can use its
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strength in order to overcome its weakness and opportunities to defeat threats. Moreover, the
competitors analysis provides detailed assessment of diverse business firms who are operating in the
same market and providing same range of products at low cost (Walsh, 2005). It facilitates in effective
designing of competitive strategies so that business firm can attain better competitive advantages.
Work culture of industry can also be analysed in appropriate manner so that differentiation strategies
effectiveness can be boosted as per consideration of work culture aspects. In order to gain better
competitive position in the market the management of Bravo Shoe Company can focus on strategic
analysis and stake holders needs (Fuchs, 2010). It will also boost the organizational strength which will
have direct positive impact on the sales as well as market share. Improved level of information
regarding these strategies and factors is also beneficial for better resolution of issues in order to meet
organizational goals.
CONCLUSION
As per the above study, it can be concluded that the business strategy simulation game is
essential for effective understanding for diverse strategies. It has been identified that with an assistance
of diverse strategies the business firms can easily overcome number of issues. In the support of this, it
has also been noticed that the management of Bravo Shoe Company can attain better competitive
advantage by focusing diverse strategic principles. Moreover, the business strategy simulation game is
also beneficial for improvement in skills of individual. It also provides better understanding regarding
team work and its factors roles in organizational development.
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REFERENCES
Books and Journals
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business simulation and experiential learning. pp. 27.
Fernando, A.C., 2011. Business Environment. Pearson Education India.
Fuchs, C., 2010. Evaluating the effectiveness of brand-positioning strategies from a consumer
perspective. European Journal of Marketing. 44(11/12) pp.1763 – 1786.
Hamilton, L., 2012. The International Business Environment. Oxford University Press.
Hoecklin, L. A., 2000. Managing cultural difference for competitive advantage. India:University Press
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Paul, J., 2006. Business Environment. Tata McGraw-Hill Education.
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Whiteley, T.R., 2014. A study of the relationship between student final exam performance and
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Online
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<http://www.marketingdonut.co.uk/marketing/marketing-strategy>. [Accessed on 16th December,
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APPENDIX
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