Business Strategy and Analysis: Strategic Business Simulation Report

This report presents a strategic business simulation analysis for Company D, focusing on its micro and macro environments. The micro analysis examines factors like suppliers, production capabilities, and market pricing across different regions. Industry reports are analyzed to assess the business's strategic plan, including investor expectations for EPS and ROE. Competitive intelligence is evaluated, considering credit and image ratings. The macro analysis considers value chain analysis, emphasizing primary sectors and activities to enhance product value, and strategic capability, assessing the company's ability to leverage resources for competitive advantage. The report concludes with a summary of the company's mission, vision, and objectives, highlighting key performance indicators and the importance of attracting customers through value propositions. The analysis includes references to relevant academic sources to support the findings.

Running head: STRATEGIC BUSINESS SIMULATION
Strategic Business Simulation
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Micro Analysis.................................................................................................................................2
Industry report analysis................................................................................................................3
Competitive report intelligence analysis.....................................................................................4
Macro analysis.................................................................................................................................5
Value chain analysis....................................................................................................................6
Strategic capability......................................................................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................8

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Micro Analysis
The micro analysis of the company mainly points out the micro factors which affects the
overall strategy of the business along with decision making of the business. Company D
currently produces the footwear at two different facilities that requires space facility which are
required to be initiated over the time period (Harrison et al. 2014). The sufficient space facility
involves different tasks that are required to be included in the overall time period of foot-wear
making equipment which assembles around four million pair of shoes. A three year business
strategy plan is to be applied which includes the effective implementation of strategy and those
include the operating report analysis of the company. Different factors mainly affects the
company in their micro environment which points out the suppliers and resellers along with
customers and open competition in the targeted market. The suppliers of Company D mainly
controls the success of the business which focuses on the largest suppliers that focuses on the
core part of the business that consist of finished products and others (Al-Basyouni, Tounsi and
Mahmoud 2015). The assembly capability of the company points out the number of pairs which
can be produced by the company over the allocated time period.
It can be seen that the company has the capability of preparing 11 million pairs of shoes
in the year 12. Thus the company has increased their rate of production from 4 million pair of
shoes in year 11 to 11 million pair of shoes in year 12. The overall capability of assembly have
been increased by 20 % which provides the company a current annual production capability that
are required to be associated at the time of installing the additional equipment (Chen et al. 2014).
The demand for the worldwide buyers includes the capacity of overtime accessibility which
includes the effective requirement in the management of the business. The market analysis is to
be included with the effective nature of business that points out the source of funds in the

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business (Huang et al. 2016). The price of the shoes have been mentioned by the management of
the company which is to be associated with the tariffs and other costs. The average price of the
shoes have been set around $ 4 per pair for North America, $ 6 per pair in Europe and Africa and
$ 10 per pair in the region of Latin America.
Industry report analysis
The report of the industry is required to be analysed by collecting the data that help the
business is assessing the business for formulating the strategic plan. The appointed equity
research analyst primarily work on the industry report which reveals the nature of the dynamics
of the stakeholders. It is the essential part of competitive advantage that help in overall course of
business (Wang et al. 2014). Retaining the value of the existing customers mainly generates the
revenue the business that consist of significance of generating the business competitors.
Offerings to the customers and need of the customers is to be included with certain strategy that
mainly attracts the customers for formulating the value proposition. Perpetual value of
proposition mainly attracts more number of customers in their business which is to be associated
with different perspective and workings of the competitors. Sustainability of the business is to be
ensured that knows the competitors which creates the threat for the new entrants in the targeted
market (Löder et al. 2015). The analysis of the industry mainly assist the business for providing
the framework that involves the presentation of valuable information of the business. Analysis of
the industry help in understanding the skills of the employees that supports the skills which are to
be associated with generating the competitive advantage.
The operation of the company have been included in the report that are disclosed by the
management of the company. The three years business strategy plan is to be developed for the
year 13, year 14 and year 15. The expectation of the investors have been disclosed by the

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company which points out the scoring measures and those are to be included in the financial
report (Arpino, Esping-Andersen and Pessin 2015). Business strategy is to be developed by the
outcomes of the business that points out the current data which have been observed during the
industry analysis of the company. It can be seen that, the expectation of the investors includes the
EPS or earnings per share around $ 1.66 and $ 3.50 for the year 13 and year 14 respectively. The
expectation earnings per share in the year 15 has been estimated around $ 4.50 which mainly
shows that the business is moving forward the growth of the overall industry. Return on equity is
the amount of money that is derived by the company from the equity shares of the business
which are available in a certain fiscal year (Dewachter et al. 2015). It can be seen that, the
expectation of the investors includes the ROE or return on equity around 10.3 % and 23.0 % for
the year 13 and year 14 respectively. The expectation earnings per share in the year 15 has been
estimated around 45.0 % which mainly shows that the business is moving forward the growth of
the overall industry.
Competitive report intelligence analysis
Competitive intelligence report consist of the actions and analysing the information that
are directly associated with the business along with distributing the intelligence of the products
and services of the company. any kind of aspect of the environment requires the support
executive that are required to be included in the process of strategic management decision which
points out the action that influences the effective nature of the business (Olson, Nolin and
Nelhans 2015). Company D mainly focuses on the competitive nature of the business which
mainly focuses on the external environment of the company that are relevant to the organisation.
It is a type of legal business practice which mainly focuses on the external business environment
of the Company D and those are the process which involves the techniques of converting the

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intelligence for the use of decision making. Phasing the intelligence involves the process of
gathering the user information that points out the identification of risks and opportunities in the
business (Kassem and Succar 2017). The factual information that is widely available points out
the difference between the yielding of competitive edge and those are to be included in the
competitors’ analysis.
The administrator’s report analysis has also pointed the performance of Company D in
the process of manufacturing the shoes. The financial information that are provided by the
company includes the effective analysis of credit ratings as well as the image rating. It can be
seen that, the expectation of the investors includes the credit rating around A - and B + for the
year 13 and year 14 respectively. The expectation earnings per share in the year 15 has been
estimated more than previous year which mainly shows that the business is moving forward the
growth of the overall industry. It also includes the other rating that points out the image rating
which are to be included in the scoring measurement of the company. It can also be seen that, the
expectation of the investors includes the credit rating around 58 and 72 for the year 13 and year
14 respectively. The expectation earnings per share in the year 15 is around 88 that has been
estimated more than previous year which mainly shows that the business is moving forward the
growth of the overall industry. It also points out the net revenues as well as the net profit of the
company which are disclosed $ 434470 as net revenue. The net profit of the company have been
disclosed by firm is around $ 33169. The ending cash balance of the firm is $ 150771 and $
42281.
Macro analysis
Macro analysis of the Company D points out the different forces which are impacted on
the segments that are typically included in the natural characteristics of the business. Certain

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factors affects the business that involves the decision making process of the company along with
mitigating the risk of the company. Both value chain analysis and strategic capability have been
implemented on the company for better outcome from the business which are discussed below.
Value chain analysis
It is the process where the company points out the primary sectors along with the
activities that are required to be added for finalising the value to the final products. Analysing the
activities help in reducing the cost which also points in increasing the product differentiation.
Representation of internal activities transforms the inputs towards the output that increases the
profitability of the business (Wang et al. 2016). It is the strategic tool that analyse the internal
activities of the firm and these are to be involved with the most valuable activities. It also points
out the advantages as well as disadvantages for the firms competitive nature which competes
with the advantages of cost.
Strategic capability
The ability of the business for harnessing all of its risk, capabilities along with the
resources that are available with the business. It mainly help in gaining the competitive
advantage which helps the business organisation in surviving in targeted market and increasing
the values over a certain period of time. The ability of competing the skills of the business
includes the strategic capabilities which includes the resources of the business (Noori, Kucukvar
and Tatari 2015). Company D points out the strategic capability of the business which measures
the attempts for future success and growth.

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Conclusion
The study that have been mentioned above, includes the mission and vision of the
company along with the strategy that are associated with the business. Moreover, the objectives
of the company is to maximise their profit that points out the increasing trend of the company.
Perpetual value of proposition mainly attracts more number of customers in their business which
is to be associated with different perspective and workings of the competitors. The market
analysis is to be included with the effective nature of business that points out the source of funds
in the business. The key performance indicator is included in the study which includes the micro
analysis and macro analysis of the business.

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