University Business Simulation: MikeBikes Multiplay Reflection Report

This report is a reflection on a student's experience with the MikeBikes multiplay business simulation. It details the strategies employed, including advertising allocation, pricing, and product development, to maximize shareholder value. The report outlines the decision-making process across multiple years, analyzing market research, competitor analysis, and financial performance. The student reflects on the impact of decisions on key metrics such as shareholder value, profit, and market share. Key learnings include the importance of branding, distribution, and adapting to market changes. The report also includes benchmark reports and figures illustrating the outcomes of different strategies. The report covers the student's strategic approach to managing various aspects of the business simulation including advertising, pricing, product development, debt, equity, and capacity. It also includes a summary of the game play and important points learned during the simulation. The student highlights the challenges faced and the strategies implemented to overcome them, providing a comprehensive overview of the simulation experience and the insights gained.

Running head: MULTI PLAY REFLECTION REPORTS
Multi play reflection Reports
Name of Student
Name of University
Author Note

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MULTI PLAY REFLECTION REPORTS
Executive Summary
In the strong business world, it is necessary to
understand business in a proper manner. The sensitive
issues that arise in business can be understood by
business simulation. This is considered as an effective
issue to understand business. In order to understand
business in the real world, MikeBikes business
simulation programme can be used effectively. It helps
to understand a product, pricing and marketing in the
industry. It also helps to compare by benchmarking,
analyse a market situation, management accounting, and financial accounting among other
things.

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MULTI PLAY REFLECTION REPORTS
Table of contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Strategy......................................................................................................................................3
Multi-player experience.............................................................................................................5
Summary of the game play......................................................................................................12
Important points from the game play.......................................................................................13
Conclusion................................................................................................................................14

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MULTI PLAY REFLECTION REPORTS
Introduction
In order to understand the real business world, the role of a business stimulator is
important. This can be done by studying the theories and accounting calculations. In the real
world, it provides us with an opportunity to apply different strategy and make decisions.
Mikebikes is one of the virtual worlds of business. This simulation is made up of segments
such as advertising allocation, capacity, and distribution debt equity control and so on.
Mikebikes simulation consists of two versions: 1. Single play and 2. Multiplay. The
intro used by Mikebikes using Smartsims is useful for business simulation in order to be
accustomed to real world business. One advantage of the Multi play is the fact that it provides
the similar environment as the real world. This helps to understand business in a simple
manner.
Strategy
The Intro of Mikebikes Multi play consists of three segments. These include price,
development, and production. Apart from this advertising, PR, capacity, debt and equity also
form the intro. In order to manage these components, one has to be wise while playing and
taking decisions. The game targets to raise the Shareholder Value (SHV). At the early stage,
eligibility remains by playing with advertising. Other areas can be controlled one at a time.
We analysed the market research report and found the strategies required for advertising and
setting the price of the products. In the first year, based on the strategy we undertook pocket
friendly price and advertising campaign. This was applied in the magazine and in PR. In
order to get rid of the loss of sales, we produced mountain bikes. During the second year, we
added the payment of least distribution margin along with the previous strategy. We also
developed our branding to add more awareness. All the debts were cleared during the third

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year in order to reduce the expense of interest. This was done as it provided to be a drawback
of profit and decreased the SHV. It also controlled capacity. We managed to increase our
efficiency and reduced wastage. Along with it, we managed to improve quality up to 90%.
However, the fourth year was challenging due to the improvement in mountain bike that cost
$2million. We managed to look through the reports and discovered that youth bike was fit to
be launched during that particular year. This cost us $1 million. We even spent some amount
on television as it was appealing for youth bikes. Likewise, we increased our capacity and
spent a lot trying to increase the efficiency, quality and brand of our products in order to
create awareness. In order to increase shareholder value, we started to buy back the equity.
We even paid a dividend of 50 cents. The fifth-year proved to be the second biggest
challenge for us. Apart from improving the mountain and youth bikes, we developed road
bikes that cost almost $4 million. Hence, we also increased the price of the product in order
to improve it. The road bike is considered as an expensive product. However, based from
evidences from the reports, it was found that the quality was considered as a king. A certain
amount was also spent in the magazines for PR. Control was gained in the sixth year when
we got an opportunity to launch another product. However, we rejected the offer as we had
launched all our products. We managed to increase the capacity, efficiency and quality due to
the increase in sales and increased the product price. We managed to buy all equity and
increased the dividends. In the seventh year, we followed the strategy we had in the previous
year. However, we stopped improving the product to lower the price of the product in order
to maintain stability in sales. We managed to increase shareholder value by paying more
dividends. A similar strategy was also followed in the last year.

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Multi-player experience
Initially, the change was required in naming the company. I had given the name Bikes
for single player simulation. In order to understand the condition that affects the market I read
through the reports and analysed the steps required for making decisions in business.
At the beginning, we operated the company with a mountain bike. We tried to enter
the amount that was higher than the marked price at $700. We provided minor changes in the
PR and advertising budget. The results saw a drop in SHV from $11 to $9. This indicated the
ineffective result after the first roll was over. The focus on advertisement occurred to me after
consulting with other students during my first year. I made decisions that I used to make
previously only to find that the SHV increased by a considerable amount. However, the
following year was vital for the game as it focused on branding and distribution. In this
regard, I decided to decrease the price from $710 to $705, so that the sales can be increased.
Figure 1: Benchmark report 2017
(Source: Mikesbikes.com 2017)

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During the second gaming week, I had started out with the idea of understanding the
basic necessities of simulation. My decisions during the initial years were better than the
decisions I took last week. Some of the recordings that were made during the game play have
been provided.
In the early years, the generic price of the mountain bikes was set at $700. The
forecast was made that 18000 units of the product can be sold with 16500 units of product
available for sales. I made a decision that increased the price keeping in mind the required
increase for the advertisement and PR. I even managed to increase the capacity of production
before I rolled over. The results of these decisions are provided below:
After completing the study on marketing research, I identified that due to less
production and an increased awareness I had an amount of the sales. Hence, I made a
decision to raise production and forecast the sales. I even raised the budget for brand
awareness from 250000 to 700000. I even provided support for the launch of mountain bikes
in three television channels. My focus was more on sports stores and I managed to provide
the products in 60 stores and provide them with a margin over sales up to 25%. The results of
the roll over are provided below:

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Figure 2: Benchmark report 2018
(Source: Mikesbikes.com 2017)
The results displayed showed promising progress after the analysis of my experience
in this simulation. The rise in PR and advertisement paid off well. The company did not
suffer any loss in sales and the right decision was made regarding the increase in share
market. In order to achieve these results, it was imperative to spend the amount on branding.
The drawback of my abilities was the fact that I did not have any distributors for my product.
However, due to less closing stock, the capacity level was under control. This reduced the
cost incurred for storing the bikes in the warehouse.

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In order to ensure proper decision planning for 2020, I followed the instruction given
in the year ahead report. I ensured that I stuck to the principles that were underlined in the
report. I even managed to raise the retail price with more on spending for advisement and PR.
The budget for the project proved to be adequate and as a result, I did not make any
altercation in the budget. However, I did change the budget after the drop in quality. The
following year, I kept the same figures by improving the quality. In this regard, I raised the
budget for maintaining quality up to 80%. In order to maintain the sales, I even increased the
production. As shown in the previous reports, I increased the production to raise the level of
market share. The sports stores were provided support along with a discount. However, the
main focus was on the sports stores because of the category of the bikes that were produced.
The commission was also increased as it helped to increase the sales of the stores. The results
of this roll over are recorded below:
Figure 3: Benchmark report 2019

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(Source: Mikesbikes.com 2017)
During the fourth year, a new player was introduced in the market. Cautious instructions
were provided in the year-ahead report. This was a significant information and provided aids
to make effective strategies and decisions. Some of the decisions include:
 The launch of the product will cost $1 million
 Improving the specifications will cost $1 million
 Reduction of cost of current product will cost $1 million
 $2 million will be required to improve the specifications as well as reduce cost
After analysing the income level, I made a decision regarding the launch of a youth
bike. In this regard, I decided to increase the support to the discount shops regarding the
distribution channels. Based on the research report, I even managed to set the advertisement
and PR level. The buyers could be reached by television; hence, I made the decision to spend
equally on PR and advertisement.

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Figure 4: Benchmark report 2020
(Source: Mikesbikes.com 2017)
The increase in SHV in a year provided encouraging results in 2021. The success was
possible due to proper decision-making strategy. However, the drawback was the loss of
youth bike due to low production. Hence, the focus for next year is to maintain a balance in
the production level and maintain customers.
In order to improve the conditions next year, I decided to buy back the shares and
distribute dividends. I even managed to launch road bikes with a view to increasing
production capacity of 50000 at a price of $21000. Other production capacity included 25000
units of youth bikes and mountain bikes. The price of these products was also increased. The
decisions regarding making $0 dividends were aligned with the $200,000 shares of buy back
equity. These were made after comparing with competitors.

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Figure 5: Benchmark report 2021
(Source: Mikesbikes.com 2017)
After comparing 6 years with the machine, I found that I had performed well in the
first 4 years. However, in the last 2 years, I realised that I had crucial insight into the financial
factor. However, as shown above, the results improved with the increase in SHV. Despite
this, I could not meet the target set by the competitors. Thus, I was lacking in value
shareholders even though I was a leading provider of 3 categories of a bike.