Business Simulation Report: Phone Venture Strategy and Analysis

This report analyzes a business simulation centered on Phone Venture, a smartphone company aiming to lead the industry. Part A covers Phone Venture's vision, strategy, values, and human resources, along with an assessment of its performance, market share, product and price analysis, and competitive landscape using Porter’s five forces. It also includes recommendations for future development. Part B focuses on personal and professional development, discussing identified events and leadership theories. The report evaluates Phone Venture's market demand, internal capabilities, and industry trends such as 5G technology, to provide a comprehensive overview of its business operations and strategic positioning.

Business simulation

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Vision and strategy over 9 years..................................................................................................1
Review on the performance of company.....................................................................................2
Development of future plans and recommendations...................................................................7
PART B...........................................................................................................................................8
Abstract........................................................................................................................................8
Introduction and identified events...............................................................................................8
Application of theory and practices.............................................................................................8
Discussion..................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business simulation could be defined as the technique which is used to provide training
to the students regarding running a business in future. With the help of it, individual can get
knowledge of the way in which they should run their business in future. If a person who is
studying in university have a vision of establishing own business in future, then it will be very
important for that person to make sure that business simulation is studied in university in
systematic manner. It will be beneficial to improve skills and capabilities to run own business in
upcoming years. On the other hand, professional development could be defined as the process
which is required to be focused by all the individuals for the purpose of improving their skills
and capabilities. With the help of it, the students will be able to make sure that they are reach
their long as well as short term career goals and objectives (Arnold, 2020).
Present report is based upon Phone Venture which is a smart phone company and having
a mission of taking over the industry. This assignment covers various topics such as analysis of
vision and strategy of the organisation, along with values, culture and human resource,
assessment of simulation results, performance and position of the business. Along with this,
recommendations for future developments are also discussed in this assignment. On the other
hand, the second part is focused with personal and professional development in which different
events along with leadership theories are discussed.
PART A
Vision and strategy over 9 years
Vision: It could be defined as long term objective of the enterprises which is required to
be accomplished to sustain in market. In other words, it could be described as long-term view
where the entity wants to establish itself in upcoming years. Vision of Phone Ventures is to attain
competitive advantage within the industry and try to become the market leader in the industry.
Values: It is very important for all the entities to make sure that they are focused with
different types of values because it can help to reach all the business objectives. In Phone
Ventures the management is focused with supporting all the staff members to perform their work
properly. Apart from this, this business also follows values such as meeting expectations of
customers and offering them good quality products (Beroz, 2017).
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Mission: It could be defined as the core purpose of business for which the business is
executed. It is essential for all the entities to make sure that they are formulating appropriate
mission for future as it will be beneficial for carrying out operational activities in systematic
manner. The mission of Phone Ventures is to generate more and more profits so that profitability
of business could be improved and all the operations could be carried out properly.
HR: Human resource is the number of employees who are working in an organisation for
the purpose of meeting all the business objectives. In Phone Ventures the managers are paying
attention towards meeting expectations of all the staff members as it can help to accomplish all
the goals and objectives. All the employees who are hired by the entity trained under training and
development programs of it.
Culture: For all the businesses it is very important to make sure that they are able to
follow a specific culture because it will be beneficial for meeting expectations of staff as well as
other stakeholders. In Phone Venture role culture is followed by the managers which helps them
to assign specific roles to all the staff members that facilitate them to meet all the desired goals
(Cindrich, 2017).
Review on the performance of company
Analysis of competition: For all the entities it is very important to make sure that they are
able to analyse the level of competition within the industry as it can help to formulate effective
strategies for future. As Phone Venture is a smart phone company which is operating its business
in different countries so it is very important for it to analyse the competition within the industry.
For this purpose, Porter’s five forces analysis could be used. Discussion of all the elements of it
in context of the enterprise is as follows:
Porter’s five forces: This model was developed by Michael Porter for facilitating
businesses to determine the level of competition within the industry in which they are operating
their operations. All the forces of it are discussed below for Phone Venture:
 Competitive rivalry: This force is mainly used to determine the level of competition
within the industry which may affect functionality of business. It is very important for
businesses like Phone Venture to be aware of all the key competitors so that effective
strategies for meeting all the business goals could be formulated. Some of the competitors
of the entity are I Tech, DHgate, Banggood etc. It shows that competitive rivalry for the
enterprise is very high (Crews, 2018).
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 Bargaining power of suppliers: The firms which are delivering material to Phone
Venture for performing all its operations in systematic manner are the main suppliers of
it. The number of suppliers in the industry is very high due to which they cannot bargain
with the company. It shows that bargaining power of them for the business is very low.
 Bargaining power of customers: All the external stakeholders who are buying goods
from the enterprises are known as customers and for all the businesses it is very
important to make sure that they are able to meet the expectation of all the customers. As
the number of players in smart phone industry is very high so the customers have
different options. Due to this, the bargaining power of them gets increased that results in
negative impacts upon functionality of business. For Phone Venture this power is also
very high because the targeted audiences are having various options to buy smart phones
from the market (deNoyelles and Raider-Roth, 2016).
 Threat of new entrant: A new business which will introduce in an industry could be a
threat to the businesses because it may grab attention to customers and leave impacts
upon the business. For Phone Venture it is very important to analyse the new entrants
which may get introduced within the industry. There are various to enter in the smart
phone industry and one of them is huge funding which may create issues for a new
business to enter within the industry. It shows that the threat of new entrant for Phone
venture is low.
 Threat of substitute: When different goods provide same benefits to the customers then
these are considered as substitutes for each other. As Phone Venture is selling smart
phones within the market so it will be very important for it to be aware of all the
substitutes which may affect its market share. Some of the main substitutes for the
enterprise are video calling portals, smart devices etc. These elements cannot take the
place of mobiles because there are various features which could not be added to these
devices. It shows that the threat of substitute to Phone Venture is moderate (Douglass,
2020).
Market share: It is the total market which is covered by an organisation. It is very
important for businesses to make sure that they are able to carry out all the operational activities
in systematic manner as it can help to retain the market share. By evaluating the results of Phone
venture, it has been determined that the market share of it on the basis of customer intimacy was
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around 256000 it was the total market segment demand for 2019. For 2020 the demand was
184320 which was decreased in this year as compared to previous year. This demand was same
for 2021, 2022, 2023, 2024, 2025 and 2026. For year 2027 this demand was 193536 which was
increased in this year after 6 years. It shows that the market demand of the organisation is high
but it is very important for the enterprise to make sure that it is retaining the clients so that
market share could be increased. This demand was related to Netherlands which is one of the
locations where the enterprise is operating its business (Dowlen, 2019).
Product and price analysis: It is the process which is undertaken by businesses for the
purpose of analysing the product quality and price. By analysing all the elements in context of
Phone Venture the management teams will be able to analyse that they are generating more
revenues or not. Demand of Phone Venture’s products on the basis of quality was 160000 and on
the basis of price it was 1200000 for year 2019. In 2020 These demands got decreased up to
115200 and 918000 respectively. Then for 2021, 2022, 2023, 2024, 2025 and 2026 it was the
same which means the demand on the basis product quality was 115200 and on the basis of price
it was 918000. In 2017 again the demand got changed and it was 120960 on the basis of quality
and 963900 on the basis of price. It demonstrates that the demand for the business was very high
on the basis of its product quality and the prices that are set by it. Apart from this, it has also
been evaluated that in Netherlands demand on the basis of price is very high as compared to
product quality which shows that the business is setting appropriate prices for all its products.
Competitors: All the entities that are operating business in the same industry are
considered as competitors for each other’s. It is essential for all the organisations to be aware of
all the competitors so that effective strategies to deal with them could be formulated. Some of the
main competitors of Phone Venture are I Tech, DHgate, Banggood etc. It is very important for
the organisation to formulate effective strategies so that the level of competitive advantage could
be improved (Fannakhosrow and Nourabadi, 2020).
Internal capabilities: These are the qualities of a business entity which are used by them
for the purpose of carrying out all the operations in systematic manner. With the help of them. It
will be very easy for a business to sustain in the market and reach to the desired objectives. Some
of the key capabilities of Phone Venture are discussed below:
 Very high demand in the market: By analysing the data of demand on the basis of
product quality and price it has been evaluated that the demand of Phone Venture in the
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industry is very high which is facilitating it to generate higher revenues. It is the main
capability of the organisation which is focused by the management teams for the purpose
of assuring the effective execution of operations systematically.
 Captured larger market: The market share which is captured by Phone Venture is very
high which is also a capability of it that facilitates the attainment of long-term objectives
such as higher profits, increased competitive advantage etc. With the help of this
capability Phone Venture will be able to sustain in the market for long run in upcoming
period (Gluyas and Harris, 2016).
Industry trends: These are the main aspects that are required to be focused by all the
businesses for the purpose of assuring attainment of all the business goals. If a business will not
be focused with use of these trends, then it may leave negative impacts upon functionality of
business and engagement of customers. Some of the key trends in smart phone industry that
should be focused by Phone Venture are discussed below:
 5th generation: 5G is one of the main trends which is taking place in the smart phone
industry. With the help of it, individuals will be able to access very high speed of
internet. It is very important for Phone Venture to make sure that it is paying attention
towards this trend as it can help the organisation to reach its long as well as short term
goals.
 Foldable mobile phones: It is also a major trend which is also required to be focused by
smart phone companies like Phone Venture. If it will be focused by the enterprise, then it
will be able to attract large number of customers. In current era, most of the companies
are launching such types of mobile in which feature of foldable screen is built. Due to
this, the expectations of customers are increased that also enhances their demand (Goode,
2019).
Explanation of simulation results: In order to analyse performance of an organisation it
is very important to analyse the final accounts because with the help of them it could be
determined that business is sustaining in the market or not. As Phone venture is a smart phone
company which is operating in different countries so, to analyse the simulation results all the
final accounts could be evaluated. Discussion of results of all of them is as follows:
 Income statement: It is the statement in which information of profit and loss of the
organisation is recorded for the year. All the direct and indirect expenses are listed in it.
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From the income statement of Phone Venture, it has been evaluated that net profit for the
year 2019 was around 34075 and in 2020 the entity faced a loss of 22372. In 2021 the
loss was decreased up to 19880 and for 2022 it was around 1777. In 2023 the loss was
increased with a boom and reached to 61548. In 2024 this loss was increased up to 73129
and in 2025 it was again increased up to 84297. In 2026 the loss was declined up to
74955. At the end of 2027 the loss was very high and it was around 116070. It shows that
the business is operating under very high losses and it is essential to formulate effective
strategies to overcome this situation (Gregersen and MacIntyre, 2017).
 Balance sheet: It is also known as statement of financial position which is used for the
purpose of analysing the actual position of business. While planning to reach all the long
as well as short term business goals it will be very important for the organisations to
make sure that they are formulating the final accounts properly. By analysing the balance
sheet of Phone Venture, it has been analysed that for year 2019 cash for the entity was
545195 and total liabilities were around 565895. For 2020 cash was 517363 and the
liabilities were around 537746. In 2021 the cash reflected in balance sheet was 484502
and the liabilities for the same period was 526872. In 2022, 2023, 2024 and 2025 the cash
which is reflected in balance sheet were 423267, 320935, 164661 and 111161
respectively. On the other hand, the liabilities for the same four year’s period were
571721, 549927, 452925 and 404508 respectively. In years 2026 and 2027 liabilities
were 283365 and 151327. On the other hand, cash for these two years were 23248 and 0
respectively (Grimard and Pellerin, 2018).
 Cash flow statement: It is the statement which is used for evaluating liquidity of the
organisation. Details of cash inflows are mentioned in it for the accounting year. For
2019 the inflows were 187023 and outflow for the same year was around 161314. Apart
from this, for 2020, 2021, 2022, 2023, 2024 and 2025 the cash inflows were 94853,
277479, 903477, 1377972, 1502350 and 1294678 respectively. On the other hand,
outflows for the same six year’s period were 122684, 310341, 964712, 1475304,
1654624 and 1343178 respectively. During the year 2026 and 2027 inflows were 977225
and 862621. The outflows for these two years were 1059118 and 880869. It shows that in
the cash inflows for all the years are lower than the outflows which shows a negative
balance and it means liquidity of the organisation is very low (Gynther, 2016).
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Analysis of performance: By analysing all the key elements of business simulation
game for Phone venture it has been analysed that the marketing strategy of the organisation I
very good as it is able to generate more demand for all its products. On the other hand, its
marketing strategies are facilitating it to meet all its business objectives such as increased
demand for its products. It HR strategy is also very effective because with the help of it all the
operations are executed by the organisation in systematic manner. Additionally, the logistics
related activities of the company are very effective because with the help of them the enterprise
is managing its operations all around the world. Finance strategies are also formulated by the
entity in systematic manner because with the help of it, it is able to meet all the expectations of
business such as higher market share. The product development strategy of the enterprise is
highly effective because it is resulting in increased demand of all the smart phones that are sold
by it in the market (Harteis, 2017).
Development of future plans and recommendations
Key decisions for next five years: It is very important for Phone Venture to make sure that
it pays attention towards changes in current business strategies. The organisation is not able to
maintain its liquidity and profitability due to which its profits and current assets are very low.
Performance of business is changed because of high level of competition within the industry and
decreased profits. Following are some of the key future plans that could be focused by Phone
Venture for attaining growth:
Future plan 1: Conducting market research in future so that more customers could be
attracted to increase profitability.
Recommendation: It is recommended to the organisation that it should make changes in
the marketing strategies and formulate new research strategies so that all the business goals and
objectives could be conducted (Hewett and Bourelle, 2020).
Future plan 2: Focusing towards diversification so that market share could be improved.
Recommendation: It has been recommended to Phone Venture to make sure that it pays
attention towards key trends in the industry so that the number of customers could be increased.
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PART B
Abstract
This part of report is based upon personal and professional development within the
organisation or the smart phone company which is Phone Venture. It will be focused with the
events that have taken place within the organisation. The two events which are selected for
completion of this part are weak performance of the company and conflicting decisions. In order
to perform appropriately in these events different theories could be implemented by the
management. Apart from this, the way in which staff professional development is also very
important for businesses to focus as it is required to perform operations systematically. It is
recommended to the enterprise to make sure that it uses effective leadership theories so that staff
development could be improved (Liau-Hing Yep, 2018).
Introduction and identified events
Professional development could be defined as the development and improvements on the
skills of individuals which can help the students to meet all their future goals such as improved
skills and capabilities. There are various elements that are focused in it which includes technical
assistance, business simulation, mentoring, review of case studies, coaching, consultation etc. It
is very important for all the individuals to make sure that they are focused with professional
development of themselves which will help them to meet all their career goals and objectives. If
the individuals will not be able to pay attention towards it then it may leave negative impact
upon their career aspects. The two selected events for this part are weak performance of
company and increased number of conflicting decisions. It is very important for the businesses to
make sure that they are able to respond the issues that are taking place because of the events in
systematic manner. It will be beneficial for development of business. In order to find solution for
the issues of events different theories are applied. On the other hand, some recommendations are
also made for the enterprise so that it can improve the staff development (Micallef, Huet and
Kayyali, 2020).
Application of theory and practices
Event 1- Weak performance of business: It is one of the main events which has taken
place in Phone Venture in which the company is not performing operations according to the
expectations. During last few years the enterprise made significant losses and the managers are
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not sure that the same strategies should be followed for future or not. Apart from this, the
management of business is not appropriate as each and every individual within the organisation
is blaming each other and all of them are not having any idea that what they should do to deal
with issues. These issues are resulting in weak performance of business and making reduction in
profits continuously. It is very important for the enterprise to deal with it in systematic manner so
that performance could be improved (Mohamed, 2020). For this purpose, the management of
Phone Venture can use effective leadership theory such as democratic leadership. If it will be
applied by the managers, then they will be able to interact with all the staff members so that they
can provide suggestions regarding the issues that are taking place because of the event. Detailed
discussion of theory is as follows:
Theory 1- Democratic leadership: It is one of the best theories which could be applied
by businesses for the purpose of improving staff engagement so that performance of business
could be improved. As one of the events which is affecting development of Phone Venture is
weak performance and huge losses since past few years. It is very important for the organisation
to make sure that this issue is dealt by the enterprise in systematic manner. If this theory will be
applied by the entity, then it will provide opportunity to the employees to provide suggestions
which could be focused for responding the issues taken place because of the event. It is also
known as participative leadership because when it is implemented then managers try to take part
in the organisational activities so that improvement in performance of business could be made.
On the other hand, proper implementation of this theory will result in effective focus on
individuals towards the decisions of senior management (Mouza, Codding and Pollock, 2018)x.
By applying this theory, the managers will be able to allow the employees to take part in
decision making process which will be beneficial for finding ways to respond the issues
systematically. If the managers in Phone Venture will ask the staff to provide suggestions to
perform appropriately during the critical event, then it can motivate them to work hard and it
may result in improved productivity of whole organisation as well as the workforce. Apart from
this, as the employees have practical knowledge of dealing with all the issues at workplace so it
will be very easy for the managers to find the alternatives so that profits could be increased. On
the other hand, adoption and application of democratic leadership style will inspire the
employees to take responsibility of dealing with the organisational issues. This leadership theory
is very beneficial for businesses to find ways in which all the negative events could be dealt in
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systematic manner. When the employees will not get opportunity to take part in decision making
process then it will be very difficult for managers to keep them motivated therefore in order to
improve organisation’s performance. Democratic leadership will increase engagement of all the
employees in the decision-making process of finding solution for the issues taken place because
of the event of weaken performance. When the staff members will be engaged in the decision
making then it will help the managers to get different types of suggestions from them which
could be focused for making strategies of dealing with the event. The application of this theory
will provide different types of ways to the management which will be beneficial for analysing
the best suitable one that can respond to the organisational issues (Mouza, Codding and Pollock,
2018).
Event 2- Conflicting decisions: It is another event which is taking place in Phone
Venture and due to this all the employees are facing different types of issues like decreased
performance. The organisation has made various conflicting decisions and due to which all the
efforts were not coordinated and it affected the performance of business. Most of the employees
are believing that they have performed well but other may not have performed in systematic
manner. CEO of the organisation is willing to lead and issuing the goals and direction due to
which all the staff members are agreeing with the decision but they should be disagreeing to it. In
this event the employees would have not said yes for the decision of CEO because it is not good
for the organisation. If it will be taken, then it may leave negative impact upon functionality of
business. It is very important to deal with the issues that are taking place because of this event.
For this purpose, the managers are required to use effective theory which can help to
communicate the right message with the staff members. As the CEO is willing to lead but it is
not right because it may result in improper execution of business. It is very important for all the
employees to be aware of all the positive and negative aspects of the decision because due to this
decision of CEO the enterprise may have to face challenges in future. For communicating the
detailed information of the decision, constructivism theory could be implemented (Mulyadi,
Sumarto and Maknun, 2017). With the help of it the way in which individual make sense of
things will be differentiated. Detailed discussion of the theory in context to the event is as
follows:
Theory 2- Constructivism communication theory: This theory is focused with
differentiation in the way in which individual are sensing different types of things. With the help
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