Business Strategy Reflective Report: MONLUXE - MOD003337, 2021-22

This report provides a comprehensive analysis of MONLUXE, a footwear company, through a business simulation game. It evaluates strategic decisions made over six rounds, reflecting on a standout year and key lessons learned. The report applies theoretical frameworks like PESTLE analysis and Bowman's Strategy Clock to understand the internal, external, and competitive environments, shaping strategic decisions. It also assesses the impact of emerging technologies on MONLUXE's future, offering recommendations for future managers. The analysis covers the company's mission, vision, values, and corporate objectives, providing a holistic view of MONLUXE's strategic approach and market positioning. Desklib offers a variety of resources for students, including past papers and solved assignments.

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ANSWER OUTLINE
Executive summary
MONLUXE company is a well-known brand in the footwear industry who deals in the manufacturing of excellent
quality of footwear product. The firm provide their services in the different parts of the globe. The main motive of the
respective company management is to provide quality product to their customers and spread their presence all across the
globe. It has been analysed by the respective firm management that, the industry in the company is dealing is very
competitive in nature and it is very important for them to determined its feasibility. A business simulation game has been
conducted in this report in relation to MONLUXE company which helps them in taking effective decisions and developing
effective strategies.

Table of contents
Executive summary
INTRODUCTION
MAIN BODY
Mission: -
Vision: -
Values: -
Corporate objectives: -
(1) Evaluate the major strategic decisions made during the six-round BSG simulation. Reflect on one round that
stood out, why and key lessons learnt.
1.1 Year 11: -
1.2 Year 12: -
1.3 Year 13: -
(2) Reflect on relevant theoretical frameworks applicable to understanding the internal, external and competitive
environments of your business; and discuss how these frameworks helped in shaping decisions made in your BSG.
2.1 Macro-environment (External Environment): -
2.2 Micro-environment (Internal Environment): -
2.3 Meso-environment (Competitive Environment)
(3) Critically evaluate the impact of ONE specific emerging technology on the future of your business and make
useful recommendations to future managers.
CONCLUSION

Introduction - Mission, vision and values,
corporate objectives (Group business statements)
Business simulation is basically a learning experience which helps the company management in engaging with the
material properly. This assist the management of company in improving their conceptual knowledge instead of focusing on
the theoretical knowledge and present a big picture of organisational functioning in front of management. The following
report is based on the MONLUXE company which is a well-known brand in the foot wear industry (Wunderlich, 2018). The
firm provide their services worldwide and mainly focus in the market of US because of the well-developed economy and
high living standard of people. The following report is going to cover a business strategy reflective report which is based on
the MONLUXE company. This report also covers the mission vision, values and competitive of the company along with the
company major strategic decision year by year. In addition to this this report also discussed about the internal, external and
competitive environment of the chosen company and the impact of emerging technologies on the business future. In the
end this report also give recommendation to the future managers.
Mission
The mission of the MONLUXE company is to provide excellent quality of footwear product to their customers and become
their first choice. The moto of the firm is “comfort and bounce on every step”.
Vision
The vision of the MONLUXE firm is to become the best footwear brand all across the globe and live their purpose. Their
main purpose is to fulfil the client dreams, desires and expectations along with this motivate the employees on regular
basis in order to satisfied them (Mellahi and et. al., 2021). The firm vision is to be a benchmark in the market, with brands
that are admire and favoured in their sector.
Values
The core values of the MONLUXE is performance, passion, integrity and diversity. These are basically the principles
which helps them in keeping ahead in the footwear industry. It has been ensuring by the company management that all the
strategic approaches are align with the vision as well as mission of the firm. Focus must have to paid on the needs of all the
stake holders so that ultimate rate of performance can be maintaining (Revathi and Aithal, 2018). Designing, building and
selling the best footwear product in the world with the best services, experience and sustainability.
Corporate objectives
In order to become benchmark in the market and meet the vision of the company objective must have to be set in
proper manner. In context to the MONLUXE company SMART objective has been discussed below: -
 SPECIFIC: - their initial goal is to improve the market spending performance by 30 % along with the online presence.
 MEASURABLE: - this can be measure by dividing this into two matrix advertising agency spending and online market
spending. In the advertising agency spending it will track the cost per publication and in the online spending it will
track cost per click.
 ACHIEVABLE: -in the end of year 2023, the market share is improved by 6 % which means that the goal of improving
the market spending by 30 % can be achieved.

 RELEVANT: - the increase in the online presence and the market share is directly related to the specific goal of the
firm.
 TIME BOUND: -time to attain the goal is year.

1.Evaluate the major strategic decisions made
during the six-round BSG simulation. Reflect
on one round that stood out, why and key
lessons learnt.
1.1 Year 11: -
In the year 11 the revenue of the company is 512575 which is very good as compared to their
competitors. The reason behind is the quality of the products and proper utilization of all the
resources. In this year the Earning per share of the firm is 3.04 and the image rating is 98. This is all
because of the charity which is done by them along with the development of the effective training
programme for their employees. In addition, this, the MONLUXE company also won the BULL eye
award because of their good image in the market. Hence, within the first year assist the company
are able to secure a good market position and develop a good image in the market.
1.2 Year 12: -
In the year 12 the strength of the respective company is the return on equity which is 25.8 %.
This shows that the company management utilize the investor money in proper manner. If the ROE
is more than 20 % then this is being considered as the best because this shows that the profits and
asset is increases. In this year the revenue of the firm is 609621 and the EPS is around 4.25. Along
with this the image rating of firm is also increase from 99 which is higher than the previous year. The
firm lacking in the area of credit rating which is A- and this is all because of less focus paid on the
marketing and advertising.
1.3 Year 13: -
In the year 13 the strength of the firm the earning per share which is around 4.58. The
revenue of the firm is 645514 and the image rating of the company is 100. The reason behind
increasing the EPS from 4.25 to 4.58 is increases in case of buyback shares. Focus has been paid by
the company management in decreasing their cost due to which the earning of the firm has been
increase along with the sales. The credit rating of the firm is B+ which is not good and they have to
paid focus on the improving this.
(B)
From the above discussion it has been analyse that the year 15 is being considered as the
stood out year for the MONLUXE. In this year the revenues 645514 of the firm is the best among all
the years and also the credit rating (B+) along with the image rating (100) is also very good. The key
lesson which have to be taken by the company management form this year is that they regularly
must have to paid focus on the innovation of the product and do the CSR activities. along with this
they also have to paid focus on the marketing spending so that they attract the large base of
customers towards them. As in the year 13 they have generated the maximum revenue and this
happened because of the effective decision making power. Along with this they are able to influence
their customers in very proper manner.

2.Reflect on relevant theoretical frameworks
applicable to understanding the internal,
external and competitive environments of
your business; and discuss how these
frameworks helped in shaping decisions
made in your BSG.
2.1. Macro-environment (External Environment)
PESTLE analysis: -Pestle analysis framework is being considered as the most important
framework which assist the company management in analysing the company management in
analysing the external environment of the firm. In relation to the ELETIK company this analysis has
been discussed below: -
 Political factor: - the political stability of the nation paid a huge impact on the performance
of the firm (Chen and et. al., 2022). If the rules and regulation change by the nation
government on regular basis, then this directly affect the MONLUXE business operations.
 Economical factor: - As the footwear industry is the fastest growing industry all across the
globe so the changes in the inflation rate, GDP, interest and many more affect the company
performance on a very immense manner.
 Social factor: - this factor includes the belief, value behaviour and many more of the
customers. As the individuals are moving towards the healthy life style so it is very important
for the MONLUXE management to paid focus on providing the excellent quality of services to
their customers according to their needs.
 Technological factor: - this factor is related to the utilization of the technologies by the
company management. Different types of digital marketing technologies are utilized by the
company management in order to increase their online market presence (Blank, 2019).
Along with this online market campaigns on the social medial platform are also developed by
the firm.
 Legal factor: - this factor comprises the rules and regulation which are made by the council
of the nation. It is very crucial for the company management to paid focus on the laws which
are made in order to carry out their business operation in a very a very effective manner.
Because, unfollow of any law result in big legal consequences.

 Environmental factor: - Eco friendly production process is used by the management of
MONLUXE company in the manufacturing of shoes so that they don’t harm the environment.
The hand stitched process result in improving their sustainability and protect the
environment from pollution (Bagdasarov, Olson-Buchanan and MacDougall, 2019).
2.2. Meso-environment (Competitive Environment)
Bowman Strategy Clock: - this frame work is basically a strategy tool which assist the
company management in position them in the market on the basis of price and perceived values. In
relation to the MONLUXE company this analysis has been discussed below: -
 Low price and low value added: - the price of the product must have to be low if large
quantity of product is offer by the firm.
 Low price: - the low price of the shoes, assists the company management in the
developing a presence in the market and become competitive in the market.
 Hybrid: - it is very important for the company management to make sure that effective
profits are earned by the firm.
 Differentiation: - this is all about manufacturing of excellent quality of shoes at a very
reasonable price with different features.
 Focused differentiation: this strategy is all about offering the high value at higher price
so that high amount of profit can be earned (Yilmaz and Flouris, 2019).
 Risky high margin: - this is all about offering the shoes at a very higher prices. If this is
done, then this may affect their customers.
 Monopoly pricing: - this is basically a position in which single firm control the prices of
the products. As the well-known brand are engaged in the footwear operations so this
may be difficult for the firm.
 Loss of market share: - if the low value product is offered by the company then this may
result for MONLUXE in decreasing the market share.
Porter’s Five Forces
This framework is being considered as the most important framework which are utilized by
the company management in analysing their competitive environment. This framework helps them
in developing the different types of strategies in order to attain competitive advantage over their
rivals (Khedmati and et. al., 2019). In relation to the MONLUXEE company this analysis has been
discussed below: -
 Bargaining power of suppliers: this may be defined as the power which is posses by the
supplier of the business and how they drive the prices of raw material. Low amount of threat
has been faced by the MONLUXEE from this force because of the availability of the number

of supplier who provide rubber, cotton, Eva and many more. If supplier drive up the prices,
then the firm can easily switch to the other supplier.
 Bargaining power of buyers: this factor analyses the power of buyer and their impact on
the prices and quality of product. High threat has been faced by the respective company
form this force because of the presence of well-known brand in the market ( Cagnin, 2018). If
any change in the price or the quality of product done by the firm, then this result in
switching of the customers towards other brand at zero cost.
 Threats of new entrants: - this factors sates that how easy or difficult for the new company
to enter into the industry. From this force, the firm faces the low amount of threat because
of the well-developed goodwill of the existing firms in the minds of consumers and huge
investment. So it is very difficult for the new entrant to enter in to the market and attain a
successful position (Ahmed, 2018).
 Threats of Substitutes: this force states that how easy for the consumers to switch form one
brand to the another brand. The MONLUXEE management face low threat form this force
because of their unique designs and reasonable prices of shoes. Focus has been paid by the
company management on the market spending which result in increasing the market base or
share.
 Existing competition: - this factor analyses the availability of the competition in the
marketplace. Footwear industry is being considered as the fattest growing industry and huge
amount of competition has been present in the industry (Moskovich, 2018)
. It is very important for the MONLUXEE management to paid focus on the innovation on the
regular basis so that they remain competitive in the market. The biggest rivals of the firms
are DO IT, Fine tech, GOTO.
2.3. Micro-environment (Internal Environment)
SWOT analysis: - this framework is being considered as the most important technique which
are used by the company management in order to analyse the internal environment of the firm. In
relation to the MONLUXEE company this analysis has been discussed below: -
 Strengths: - the biggest strength of the respective company is the low production cost. This
helps them in providing the reasonable products to their customers at a very low prices
which result in increasing their customers base.
 Weaknesses: - the biggest weakness which is faced by the company is that the sector in
which the respective firm is dealing is very price sensitive nature (Koneri, Green and Gilder,

2021). Most of the income is earned by the company from selling to the retailer. The
uppercut margin of the retailer result in reducing the customer base for the company.
 Opportunities: - the firm have the opportunities to start manufacturing of the sports shoes,
sports accessories, fashionable shoes and many more because not everyone wants the
simple footwear always. The firm also have the opportunities to improve their online
presence by doing advertising on the social medial platform.
 Threat: - the biggest weakness which is faced by the company is that the sector in which the
respective firm is dealing is very price sensitive nature. The small increases in the price of
product result in switch of the customers the other brands as the other brands also have the
well-known image in the market (Ngo, 2019).
3.Critically evaluate the impact of ONE
specific emerging technology on the
future of your business and make useful
recommendations to future managers.
Emerging technologies is basically a term which are used in order to describe about the new
technology. This may also be defined as the development within the existing technologies.
Technology is very dynamic in nature its changes every day. Important role is played by the
technologies in almost all the sectors like artificial intelligence, robotics, 3D technology, automation
(Tatton, 2020). Artificial Intelligence may be defined as the simulation of the human intelligence
through machines like computer systems. This basically comprises of expert system, voice
recognition, machine vision and many more. The emerging technology of robotics is become very
common in the footwear industry. These are basically act as an assisting employees who do their
actions on repetitive basis with less errors and wastage. In the todays era, the 3D technology is
becoming very trendy. This implementation of the 3D technology helps the company management in
improving the experience of the customers and this also helps in making the process of goods
simple. Automation of the all the machines is also become very trendy in the footwear industry. The
automation all the machines result in functioning of all the machines without any human operator
due to which errors in making the product has been reduced and standard quality of the products
has been effectively maintained.
From the above stated technologies 3D technology is the trendiest technology which
comprises of printing, modelling and effective visualization of the product. This technology can be
used by the company management in digital scans and versatile materials, creating products faster,
more efficiently, and economically. The 3D technology provides different types of opportunities

which allows the production of complex structures that optimize shock absorption while making the
footwear lighter (Soltani, 2020). By displaying the 3D animations of the footwear result in attracting
the large base of customers towards the company product and helps them in enjoying the
competitive advantage over their rivals. The biggest disadvantage which is related to this is that this
requires huge knowledge as well as the expert employees.
It has been recommended to the future senior manager that in order to grow effectively in
the market the 3D printing technology must have to be adopted by the MONLUXEE management. By
using this they are able to design their products in a very flexible and fast manner. With the help of
this wastage can be reduces and experience of the customers can be effectively enhanced.
Conclusion
From the above report, it could be concluded that the performance of the company was not in
relevance or as per the expectations of the investors. Except for the year 2015, the credit ratings,
earning per share are not up to the mark. But the company's overall position was good but it could
not meet the expectations of the company but the organization enjoyed huge profits which resulted
in improving its market share and making its online presence much stronger.
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