Business Simulation Report: G Mobile Strategy and Development

This report provides a comprehensive analysis of a business simulation centered around G Mobile, a company aiming to enter the smartphone market. The report is divided into two main parts. Part A presents a strategic paper that outlines G Mobile's future plans, vision, and strategies. It includes an assessment of market dynamics, including Porter's Five Forces and market share analysis across key regions. The paper also examines G Mobile's competencies and capabilities using a SWOT analysis and details the company's HR policies, culture, and marketing strategies. Part B offers a reflection report on professional development, covering identified events, relevant concepts and theories, industrial practices, and the application of theory and practice, along with recommendations. The report emphasizes G Mobile's customer-focused approach, product development, and commitment to innovation, aiming to provide insights into the company's potential for success in a competitive market. The report highlights the importance of strategic planning, market analysis, and professional development in achieving business objectives.

Business Simulation

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A – Strategy Paper................................................................................................................1
A:.................................................................................................................................................1
Review and Future plans of G Mobile.........................................................................................1
B –................................................................................................................................................2
(1) Vision and Strategy of G Mobile...........................................................................................2
(2) Review on progress of business each year.............................................................................3
Cash flow statement:..................................................................................................................9
(3) Future plans and recommendations......................................................................................11
PART B – Reflection Report on Professional Development.........................................................12
Executive Summary...................................................................................................................12
Introduction................................................................................................................................12
Identified Events........................................................................................................................12
Review of relevant concept or theories.....................................................................................13
Review of industrial practices...................................................................................................13
Application of theory as well as practice...................................................................................14
Recommendations for practice and research.............................................................................15
CONCLUSION..............................................................................................................................15
References......................................................................................................................................17

INTRODUCTION
Business simulation refers to a computer-based model of dynamic business process, which
helps in creating the interactive learning experience among a team. Despite of giving attention of
one view, it helps in developing an activity where all individuals engage in a group-work to
establish own venture as per real time of market situations. Using this software, a person can
emulate real-world factors as well as challenges that a venture can faced, by setting a particular
goal and strategies for running a business (Lohento and Sotannde, 2019). It develops
professionalism under learners by creating a risk-free environment, where all participants can
determine consequences of their actions on whole business, without directly affect the same. The
present report is going to explore the concepts and process of business simulation that helps a
learner, how some ideas will help not only in start-up a venture, but also run it smooth manner. It
is based on a G Mobile, which is ready to take over market of smartphone industry, by launching
a new product with unique and innovative features. This study is divided into two main parts,
where first demonstrates paper strategically, by describing the way business simulation activity
will help in managing this venture for upcoming years. For this purpose, key aspects which will
be highlighted includes review on future plans, with evaluation on success of same. It also covers
major part like vision and strategy, review of progress in each year and more. While second part
will throw light on performance development review, in terms of events, review of industrial
practices, theoretical applications and more.
PART A – Strategy Paper
A:
Review and Future plans of G Mobile
In the international business plan, G Mobile has developed a number of strategies for
running business successfully in future. Based on strategic focus, its management has made
tactical decisions for progressing each year and reviewing performance of all departments. A
balanced policy as well as powerful vision of this company will help in sending a clear message
to all potential customers, company’s shareholders, staff members, with intention to make
alterations in business plan each year.
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Generic Strategy: It is based mainly on customer focus, with aim to concern on
establishing the great and ever-lasting relationship with targeted audience. For this purpose,
management will focus on developing a strong brand identity, by concerning on product and
customer development features.
Target: Offering the highest quality and become market leader in highly quality oriented
markets is the main target of G Mobile. To achieve it, maximum focus is given on education and
skill development of staff to increase competitive level of business, that would help in increasing
market share also.
Growth: For achievement of growth in business, Ansoff matrix as a strategic planning tool
is used, which emphasis on chosen one main strategy from product development, diversification,
penetration and market development. Among these, product development is chosen as main
strategy for creating innovation in its new smartphone, which is based on e-model.
Marketing: For promoting new product, investment is made on number of events like
support communities to fight with Covid-19, help NHS in increasing ventilator facilities,
advertising in worldwide programs like sport events by sponsoring them etc.
Thus, it has evaluated that strategies and future plan by management of G Mobile, will
help in sustaining growth with increase in market share more easily.
B –
(1) Vision and Strategy of G Mobile
Vision and mission statement:
The main vision of G Mobile is to offer more innovative and environment friendly
smartphone to people, which truly meet their expectations that they expect while purchasing a
new phone (Marciniak and Jarzębowicz, 2017). While main mission of this venture is to sale 7
billion phones in next 5 –years to 7 billion people, in order to gain high competitive position at
marketplace. For this purpose, its business core activities mainly emphasis on provide support to
local communities, so that CSR objectives of company also meet, to run sustainably in future.
Values: For increasing value of products, the main goal of G Mobile is to focus on
establishment of great as well as lasting relationship with its customers. For this purpose, it will
also concern on building a strong brand identity, where chasing innovation will result in making
the clients ambassadors of business.
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HR: As workers are considered as most crucial resources, where friendly, professional as
well as talented one helps firms to gain high success. Therefore, G Mobile will highly concern on
motivating and educating its staff by keeping them involved in every business activity, provide
them timely training and more, that lead to improve productivity of them as well (Marques,
2020). This firm will also purchase HCM i.e. Human Capital Management Support System,
which would help in supporting team to handle all process related to human resource more
efficiently. For this purpose, €15.000,00 for set-up and licensing cost annually as €15.000,00 has
been invested. This would help in increasing loyalty and high productivity of employees. In
addition to this, investment is also made on developing a program, which is specifically aimed
on development of high potentials. It will help in attracting and keeping the best future captains
of industry. The costs are high (€ 10.000,00) and this investment will increase its effectiveness if
the program runs for a minimum of 3 years. For every year longer than the 3 initial years, the
productivity of the staff will be increased with 1.5% per year (with a maximum of 6%), including
minimising the chance of employee turnover.
Culture: The organisational culture will be developed on the basis of three main aspects
that are equality, diversity and inclusion, which would help in getting highly motivated
workforce for achievement of corporate goals (Marr, 2016). Here, to promote all these aspects,
NES i.e. National Equality Standard will be implemented in company's global recruitment
structures, for ensuring that people regardless of their background and difference in
characteristics, will get equal chances for being hired. In this sense, setup fee is € 15.000,00 and
after that, the yearly costs are € 15.000,00.
(2) Review on progress of business each year
To conduct the competitor analysis, for determining own competitive position and
potential of business capabilities to sustain higher growth in future, a number of models can be
used, as explain below with respect to present company – G Mobile:
Porter’s 5 forces
This model is acknowledged with determining the intensity of major competitors and
potential of new ones, that might affect business of a company in a high manner. In context with
G Mobile, as it deals in manufacturing industry, where to run business sustainably, it is essential
to review the organisational performance over a specific period. For this purpose, porter’s five
force model is applied in following way –
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 Bargaining Power of customers: At initial stage of business, it has evaluated that extent
of this force might be high, because people when buy new phones, concern on
availability of substitutes also which fits with their budget (Palloff and Pratt, 2011).
Therefore, it forces new phone ventures to offer their product relatively at low cost. But it
might impact on competitive position, where to minimise extent of bargaining power of
customers, G Mobile has adopted the product development diversified strategy, by
concerning how its new products will provide better services to them, than others.
 Bargaining Power of suppliers: At initial phase of business operations of G Mobile, it
has been evaluated that extent of this force relatively as low, because number of suppliers
in mobile industry is much high. Therefore, present firm will concern on making better
relations with suppliers and distributors, to gain their support in meeting clients need
specifically on time. Threat of Substitutes: Presence of number of mobile companies at marketplace, shows
that potential threat of substitutes for G Mobile is much high (Preller, Patzelt and
Breugst, 2020). Therefore, to reduce this threat, company will concern more on
marketing its new product by providing brand knowledge to its customers. A number of
campaigns for new smartphone and brand will be emphasized, to differentiate the same
from competing brands and products. In this regard, such campaigns provide an
advantage to get high attention of targeted audience. Threat of New Entrants: In the mobile or smartphone industry, it has evaluated that to
start a new venture, a huge amount of funds is required, for manufacturing and creating
innovations in new product, which could diversify its business from others. Along with
this, high investment and time is also required for establishing a new brand within this
industry. Therefore, the threat of new entrants for G Mobile is relatively low. Competitive Rivalry: Various branded companies in smartphone industry which raise
high competition to G Mobile, for running its business successfully. Therefore, potential
of this force is high, which can be minimised by increasing branding image and
sustainability of business only. For this purpose, management has decided to make
investment in e-phone new models, quality of mobile at affordable price, help
communities to prevent from Corona virus, support NHS by donating 100 ventilators etc.
All these processes, will help in increasing brand awareness among targeted audience.
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Market share
A market share pertains to the proportion of the total business mass for one business
owned in respect of its competing companies in a certain market. Many corporations utilize
market share for their management purposes, i.e. a corporation may try and at some time obtain a
predefined market share (Syah and et. al., 2020). This share could be a helpful goal, because it
obliges owners to focus on the total industry and competitive actions. this is also simpler to
quantify than certain other prevalent goals, like profit maximization. But the setup of a
corporation aims of growing market share is potentially a problem. If a business does not very
often result in higher profit margins, it could be supposed to offer too limited a market value to
achieve that objective. There are major 3 markets of Company G Mobile: Netherland, Belgium
and France and. In this context, company has customer focused segment demand in Netherland is
319334.4 while quality focused demand is 199584 and Price focused demand is 1590435 in 2020
that attained the demand level of 319334.4 (customer focused), 199584 (quality focused) and
1590435 (Price focused) respectively in 2029. In market of Belgium, G Mobile product’s
customer focused demand is 432000, quality focused demand is 600000 and Price focused
demand is 1500000 in year 2020 which touched level of 359251, 498960 and 1325362
respectively in year 2029. In market of France G Mobile’s customer focused demand is 1500000,
quality focused demand is 1080000 and Price focused demand is 2040000 in 2020 which further
touched level of 1247400, 898128 and 1802493 respectively in year 2029. G Mobile can expand
market share via innovation, reinforcement of customer engagement, insightful recruiting and
competition (Tiwari, Nafees and Krishnan, 2014). Market share of corporation is the proportion
of its products that regulates the overall market. In Netherland market there is no change in
overall market share due to no change in demands. In Belgium company’s product demand is
greater as compare to other market.
Competencies and capabilities
To distinguish business from others, the best model that a company can use is SWOT
analysis, which helps in measuring competencies and capabilities of business by determining
major strengths and opportunities for growth, as well as identifying threats and weaknesses that
can be removed via taking timely actions. In context with G Mobile, it is going to launch new
phone at marketplace, which is manufactured on the basis of E-phone New Model, having 5G
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features. It makes new phone with fast, safe and will mark next generation phone. G Mobiles
mainly aims to reach to potential capacity throughout the world and expand its business, globally
within mobile making industries. For this purpose, it highly concerns on making its product user
friendly to everyone, by launching phone under slogan as “G for life G for everyone”. But
before launching this product, it is essential to measure competencies and capabilities of
business, by using SWOT technique in following way –
Strength:
 Finance
 customer care 24 x 7
 design
 service centre
 innovative features
Weakness:
 Fall down of international response
Opportunities:
 Involvement of business in many
events and organisations
Threats:
 market share
 government policy
 insurance
Strengths – There are number of factors present that shows major key strength of G
Mobile, to show its level of competencies and business capabilities. It includes sufficient amount
of funds and finance for making investment in R&D to develop innovation in business and
product design (Winston, 2016). This would also help in organising programs for staff
development, so that higher contribution of them can be gained to meet corporate objectives.
Another main thing is providing 24 x 7 hour customer services, that help people in responding
immediately towards customer’ complaints.
Weaknesses – This factor shows the negative aspects of business, that decreases
competencies at marketplace adversely, if timely actions will not take. In this regard, it has
evaluated that key factor that shows major weakness of G Mobile, is failure to get international
response in desired way, towards its new eco-friendly smartphone. Therefore, it will concern on
running programs to support local communities to fight with pandemic impact (Corona virus).
This will help in increasing brand awareness and getting international response towards its
innovation.
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Opportunities – For increasing competencies and business capabilities, some
opportunities are available for G Mobile like involvement in many events and organisations. It
includes a press release for providing short message on TV-shows and social sites about Quality
mobile at 10% affordable price; Stay home, Stay Safe and Stay connected with unlimited data;
Support NHS by donating ventilators, etc. Making investment or involvement in such events,
lead to gain opportunities for G mobile in branding its business (Zheng, Bender and Nadershahi,
2017).
Threats – A number of few threats present that impact on business activities of every
smartphone industry, where for G Mobile, it includes government policies and interventions
which concern more on society benefits, insurance and market share of major brands. Therefore,
strategies are needed to be taken for reducing potential of these threats.
Product / price analysis
A price analysis in sales promotion is related to study of consumer reactions to
compositional prices in strategy evaluation. The price analysis is in general the analysis and
comparison process of the recommended product after evaluating various costs and benefit
elements. These really are two key facets which must be taken into consideration by all
enterprises that strive to meet customer demands. G Mobile estimates that demands on the
Belgian marketplace is almost 240 000 in year-2020 on the basis of product costs, and revenues
in that period would be around 118,464 (Aoyama, M., 2016). On other hand, their demand per
price was 180,000, but their income was 0 for the same period. There would be 0 revenues
between 2023 as well as 2024, vary depending upon products relative quality and price, but
Netherlands had a quite large market. In year 2025, 2026 and 2027 no item seemed to be
available but 46268, 64451 as well as 58616 seem to be available on demands. The demands for
quality seemed to be 172800 as well as 117506 in year-2021, value would have been 1377000,
while sales amounted to 0. Selling depended on the requirements for quality. Around 2020 to
2029, the market for quality / costs was very huge, but the enterprise is not able to meet
demands. This indicates how organization began to satisfy the need for a small component of the
market, focused on the prices of cell telephones. Based on demand and product quality, the firm
won't release in year-2028. Stock levels revenue from year-2029 was zero and yet quality income
was 5,791, that is quite low compared to actual consumer demands (Bindon, 2017). The main
benefit of market analysis is which it allows a company avoid possible losses. If a company
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blindly incorporates product without understanding who could buy it and why, this is not likely
that the product will succeed. A consumer research tells the company what it wants to do to more
cost effectively satisfy the customer's needs. It determines how the company can achieve and
attract towards its potential customers.
Analysis of financial data:
The evaluation and analysis of company's financial statements is intended to establish
meaning and importance of financial data so that future earnings outlook, the capacity to afford
financial obligations maturity period are estimated, both capacitance and long-term, meaningful
dividend pay-out is profitable. Here following is comprehensive analysis of financial data
reported by G Mobile, as follows:
Income statement: P&L report on a corporation's financial performance over given period
by giving a brief overview of its income and expenditures. The report is used by a stakeholder to
assess the company's profitability for period. The income statements underline turnover over a
specified period (usually 1 year) where the costs backed by business are subtracted over same
period. This differencing indicates the corporation's gain or loss at close of financial year. As in
the scenario of G Mobile Company's income statements, revenues in year-2020 are 0 which
arrived at € 91.673.879,00, € 90.163.594,00, € 1.337.670.198,00, € 987.653.886,00, €
896.922.047,00, € 733.482.753,00, € 1.285.585.389,00, € 1.035.972.530,00 and €
745.836.568,00 during year 2021 to 2029 respectively. G Mobile’s gross profits are €
275.318.064,92, € 347.586.838,44, € 383.688.504,96, € 179.590.165,85, € 200.185.350,80, €
204.792.586,88, € 280.167.683,00, € 18.133.104,00, € 18.646.484,00 and 0 during 2029 to 2020
respectively showing upward trend in Gross Profit. G Mobile’s net profit is € -553.000,00, € -
40.851.717,91, € -40.113.416,49, € -125.667.281,52, € -149.692.398,49, € -428.149.911,15, € -
495.180.579,14, € -434.045.040,13, € -500.940.937,84 and € -614.804.863,99 during year 2020
to 2029 respectively. This indicates that corporation’s net profitability level is declining
continuously showing down ward trend (Borko and et. al., 2015). By boosting revenue, like
through selling additional products or by raising prices, businesses may raise their net profit. By
cutting costs (e.g. buying alternative sources for product materials), corporations can boost their
net profit margin.
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Revenue Gross profits Net profit Year
€ 91.673.879
€ 90.163.594
€ 1.337.670.198
€ 987.653.886
€ 896.922.047
€ 733.482.753
€ 1.285.585.389
€ 1.035.972.530
€ 745.836.568
€ 800.336.602
€ 275.318.064
€ 347.586.838
€ 383.688.504
€ 179.590.165
€ 200.185.350
€ 204.792.586
€ 280.167.683
€ 18.133.104
€ 18.646.484
€ 20.578.136
€ -553.000
€ -40.851.717
€ -40.113.416
€ -125.667.281
€ -149.692.398
€ -428.149.911
€ -495.180.579
€ -434.045.040
€ -500.940.937
€ -614.804.863
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
Balance sheet: A balance sheet is financial document released by a business to maintain
its assets, all liabilities and total capital employed. However, only the financial details of a
company are contained in balance sheet. That implies that if company trying to compare figures
on a yearly or quarterly basis will need exposure to historic records. Evidently businesses care
about such reports as they report their financial condition, but shareholders often find them
useful resources. From 2019 G Mobile balance sheets, it has been analysed that cash balance was
approximately during that year (Ceschi, Dorofeeva and Sartori, 2014). The company recorded
around €1700,000 in head-to - head capital fixed assets in year before, while its total liabilities
became approximately €521,187. The cash-fund went up to €513591660 in year-2020 and there
are 2100000 surpluses. It shows that the company has enhanced its working capital status over
the years. The very same forecasts for year 2021 have reported that next year's efficacy has fallen
as overall cash-balance for company dropped by 45951711 even before cash point during this
year. Company’s total assets level is € 521.187.000,00 in year 2019, which reached to €
519.634.000,0, € 485.132.282,09, € 441.568.865,60, € 414.550.309,07, € 233.395.900,29, €
243.501.094,27, € 227.163.072,92, € 282.723.614,77, € 245.558.994,22 and € 222.303.484,14
respectively from 2020 to 2029 respectively. These figures show that company’s overall assets
have been enhanced over the said period. Throughout this period company’s capital is stated at
same level i.e. 250000, while overall equity has been changed over the period due to net loss or
profit.
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