Business Strategy Reflective Report: Decision-Making in BSG Simulation

This report reflects on strategic decisions made during a Business Strategy Game (BSG) simulation, focusing on Company D's performance and key learnings. It analyzes internal, competitive, and external environments using tools like STEEPLE analysis, Porter's Five Forces, and Value Chain Analysis. The report highlights the impact of strategic decisions, such as free shipping and increased brand advertising, on market share and profitability. It also evaluates the potential impact of emerging technologies, specifically Eco-recycling Technology within the footwear industry. The reflection focuses on Year 16, emphasizing the factors contributing to its success, including increased EPS, return on equity, and positive brand image rating. The analysis provides recommendations for future managers based on the simulation experience and theoretical frameworks.

Business Strategy Individual
Reflective Report

EXECUTIVE SUMMARY
Business strategy is been defined as the strategies been prepared for the successful
implementation of the business. In case of the company the use of business strategy is essential
in order to improve the business performance. The present report highlighted that the game is
very essential in order to take decisions relating to the business. For the report also outlined the
use of different external models and tools like steeple analysis stakeholder analysis and many
others. In the end the report outline the use of Eco recycling Technology within the footwear
industry.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
1. Major strategic decision made during six round BSG simulation and reflecting on one round
which stood out and lesson learnt from it....................................................................................4
2- Reflecting relevant theoretical concepts applicable to comprehend internal, competitive and
external environments of D company..........................................................................................6
3- Evaluating the impact of one specific emerging technology and recommendation to future
manager......................................................................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
The business strategy is being defined as the different moves and activities which assist
the company in improving their business in better and effective manner. The reason pertaining to
the fact is that the use of various business strategies will assist the business in improving its
performance. Hence, as a result of this, the working efficiency will increase. The present report
is based on company D which is a leading brand in footwear industry. The company is
established with the aim of providing better services to the consumer to satisfy their passion for
sports and good sporting lifestyle. The mission and vision of company is to provide performance,
passion, integrity and diversity to the consumers.
1. Major strategic decision made during six round BSG simulation and reflecting on one round
which stood out and lesson learnt from it
With the analysis of the output of the BSG decision it is clear that the performance of D
company is effective and very much fluctuating. The reason pertaining to the fact is that the
working of the company is based on the market condition and these are much fluctuating. With
the analysis of the industry report and game to date scoreboard it is clear that the overall GTD
score is 98 for company D and this will be impacting the working efficiency of the business. The
reason pertaining to the fact is that company is ranked 5 out of all the company being involved.
With the analysis of the performance and earnings per share of the company it is clear that the
EPS is fluctuating. In the year 11 the EPS was 3 whereas in 12 it was 4.8 and in Y 13 it was 7.41
and again in next year it declines to 6.99.
Further on the basis of the analysis of weighted average EPS the investor expectation
score for D company is 24 and this implies that the working efficiency from the investor point of
view is that the company will be having good EPS. Moreover, with assistance from the data
relating to return on equity it was analysed that the return on equity is also fluctuating as earlier it
was 25.5 and further it increased to 31.4 and 35.9. Thereafter in the year 14 the return on equity
declined to 27.3 and further to 26.9. This implies that the return which is being provided to the
shareholders is fluctuating (Ukko and et.al., 2019). It can also be stated that in case the return on
equity will be fluctuating then this will not be attracting other people to invest within the
company. Hence, this might be reducing the performance and profitability of the company to a
great extent.

For the business to get successful it is very crucial that proper strategic decision to be
taken by the company. In order to improve the working and efficiency of the company in the
year 2016 the company decided to include the free shipping facility in the internet segment for
North America. The help of the free shipping it was evaluated that the market share of North
America in the year 16 has increased. This simply implies that the strategic decision of including
free shipping and time of providing services to the consumer resulted in increase in the market
share (Bai, Cordeiro and Sarkis, 2020). In addition to this with the increase in free shipping the
number of units sold has also increased in the year 15 it was 835 whereas in the year 16 it was
1151. This simply implies that the strategic decisions relating to including free shipping was a
good solution for the company to get successful.
In addition to this for the wholesale segment of North America the decision was taken to
increase the brand advertising. In the year 15 it was 19000 where does in year 16 at increased to
21000. This simply implies that with the investment and ran advertising the best sold increased
from 3833 to 4325 in the year 16 as compared to year 15. Hence this simply implies that the
strategic decision of investing in brand advertisement increased the market share and number of
units sold. Moreover with an analysis of the performance highlights of all the years it is clearly
visible that the EPS of company is continuously increasing which results in increase and market
share of the company. Thus as a result of this the performance and profitability of the company is
continuously increasing and this is good for the business. Moreover in addition to this stock price
of the companies also increasing continuously and this is good for the company. There is an
underlying this part is that the company's performance good and this attract the consumers to buy
the product of D company.

In the present case the year 16 is being reflected and selected for inclusion in analysis.
The reason underlying this fact is that the year 16 stands out from the other years and its
performance. The reason underlying this fact is that in the year 16 everything is good the EPS is
also increasing and the return on equity is also increasing. This implies that the company is
performing well and is also providing good returns to the shareholders. Along with this 3 image
rating of the company is also increasing and in the year 16 it is highest. Moreover, the
performance of the company that is the net revenues of all the different segments like internet
wholesale private label is high in the year 16 only (Olson and et.al., 2021). Thus this is the major
reason for evaluating the performance of a 16 and to analyse the key reasons in strategic
decisions taken before the commencement of your 16. This was essential as it provided a wide
range of the performance of company and it can be critically evaluated. In addition to this there
are different reasons which can be analysed for the increase in the performance in year 16 and
this can be e implied as the strategic decisions behind the increase.
2- Reflecting relevant theoretical concepts applicable to comprehend internal, competitive and
external environments of D company.
Macro environment-
STEEPLES analysis-
Social-
Changes related to any social factor such as customer age, preferences and other things,
may out direct impact on current process such as decision-making of a sector organizations. In
case of D-company, current market trend put positive impact on firm business in term of
increasing number of shoes pair sales. As from 10 to 16 years, organization sells 1,151 pairs of
shoes via internet.
Technological-

It can be said that technology advancement play vital role in success and growth of
companies. For instance, the decision made in D-company BSG influenced positively by this fact
in term of taking pleasure of increasing goods sales online and offline.
Economic-
Fluctuations related to economic factors may affect the way firms may take decision to
grow their ventures. In case of D-company, income level of individual person may put negative
impact on decision-making and shape the similar thing. In the recent time, people are unable to
get job with better salary package that affect their buying decisions.
Ethical-
Business ethics, intellectual property and other factors may impact positively upon BSG
in term of shaping this concept in better manner. For instance, by using specific and most
effective IP tools such as copyright, trade mark or patent, firm may take pleasure of shaping
decision in the context of BSG in form of protecting its ideas to other companies.
Political-
Change related to tax policy and trade may put negative impact on similar concept in
term of driving management attention to pay extra charges in the context of exporting and
importing items, which is not possible for them to do so, but essential as well.
Legal-
Employment, business and other types of law also contribute to shape decisions of D-
Company and outcome of BSG in term of enabling, management to take decision to hire skilled
people and retain them on the basis of better salary package as minimum wage.
Environmental-
Illustration 1: STEEPLE
(Source: STEEPLE Analysis, 2021)

Customers and governmental bodies concern regarding sustainable environment may put
positive impact on firm decision and shape in beneficial manner in term of continuing
sustainable practices that boost brand image in the footwear industry.
D-iversity-
Cultural diversity also affect or share decision made by firm in term of making possible
change related to shoes, which it may plan to offer to people in a nation where company has
established its venture or outlet.
Kaplan and Norton's balance score card-
By using this framework, management may take approach to measure their organizational
performance, success and growth in footwear industry by utilizing a specific set of percentage
measures (Hasan and Chyi, 2017). For instance, they may utilize ROI to measure the
performance and success of organization and to identify the effectiveness of its key operations.
Management may take approach to use level of returns, new product lead time and employee
retention as methods of key performance indicators.
Competitive environment-
Porter's five forces-
Potential new entry-
The degree of this force is high, because organizations need to put a lot of efforts to enter
into new market or footwear industry in term of capital investment, that put negative impact on
firm current tactics.
Bargaining power of buyers-
The extent of this force is medium, because individual customers may have key
information about what products and services are accessible that worth it or not for them.
Substitutes-
The degree of this force is low, because there is not substitute product is accessible in the
market that customer prefers to choose.

Bargaining power of suppliers-
The level of this factor is medium to low, because number of suppliers are accessible in
the footwear industry, which firm may select to build and maintain longer term relationship.
Competitive rivalry-
The degree of this porter's five forces, is high because wide number of companies are
available in the sector that are giving tough competition to each other.
Value chain analysis-
Primary activities-
Inbound logistics-
With proper location of distribution facilities it may reduce risk of being failure and face
challenge to satisfy customers.
Illustration 2: Porter's Five Forces Framework
(Source: Drive Business Strategy & Competitiveness With Porter’s Five
Forces, 2021)

Operations-
D-Company may able to consider standardized model that play vital role in its growth
and unpredicted success in the industry.
Outbound logistics-
It may have own product delivery or supply chain sources that help to gain competitive
benefit and allow to enhance customers satisfaction.
Marketing & sales-
Firm may able to use the best marketing tool, which enable it to be competitive and
generate brand awareness worldwide.
After sales service-
Firm is able to provide after sale service to customers as it may have customer service
department, among which each candidate is able to solve target market issues.
Illustration 3: Value Chain Analysis
(Source: Value Chain Analysis, 2021)

Support activities-
Firm infrastructure-
With teams of legal, financial, management and planning firm may grow rapidly as they
may contribute to deal with varied challenges and overcome the impact on any factor in term of
strategic action and decision-making.
Human resource management-
By using effective recruitment and selection as well as employee retention technique,
HRM may support to build diverse workforce at workplace.
Technology development-
Technology utilization in the D-company may contribute to enhance organizational
performance and productivity level in term of online selling that in turn increase sales.
Procurement-
Effective communication with key suppliers enable company to beat its rivals and gain
competitive advantages in bulk. They may also gain benefit by using real time inventory
approach.
Macro environment-
SWOT analysis-
Strengths-
Skilled and experienced staff members & training investment capabilities as strengths put
positive impact on D-company in term of increasing operational effectiveness.

Weaknesses-
Lack of resources and unclear unique selling proposition may included in category of
organizational weaknesses that may impact negatively upon firm success and decision-making
process.
Opportunities-
Technology advancement and accessibility of talented candidates may drive the attention
of company toward grabbing these chances to grow venture continually in term of business
expansion.
Threats-
Intense competition in the industry and changes related to regulatory compliances may
possess threat for D-Company, which may put negative impact on its venture success.
Stakeholder matrix- For the success of the business it is very essential that the stakeholder needs
and requirements are being met. This is necessary because the stakeholders are the one who are
interested in success of the business. In the present case of D company the stakeholder the
involved are as follows
Illustration 4: SWOT Analysis
(Source: SWOT Analysis, 2021)