Competitive Advantage Analysis: INVIX Strategic Management Report

This report provides a comprehensive analysis of INVIX's strategic management and competitive advantage over four rounds, examining the company's performance through tables and graphs. It evaluates INVIX's decisions regarding production targets, workforce allocation, and new product launches, such as the introduction of Mufasa in Round 2. The analysis includes a critical reflection on departmental responsibilities, focusing on sales, marketing, R&D, and operations, and their impact on the company's financial performance, market share, and overall strategic goals. The report also covers trend analysis of production, sales, and profitability, highlighting the challenges and successes INVIX faced in maintaining and improving its market position. It concludes with reflections on team performance and personal insights gained from the strategic management simulation. Desklib offers a wealth of similar solved assignments and study resources for students.

Strategic Management
for Competitive
Advantage

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Analysis of the company performance with the help of tables and graphs.................................3
Give a critical reflection considering the responsibilities of various departments used in an
organisation................................................................................................................................11
CONCLUSION..............................................................................................................................15
Write a reflection on Team Performance and personal reflection.............................................16
REFERENCES..............................................................................................................................18

INTRODUCTION
The business objective of INVIX can be said that the business has focused in attaining a higher
position in the market and have a greater competitive advantage over its competitors. INVIX
forecasted that they will achieve a market share which will be greater than 2 %. The other
objective of the business was to keep introducing new models and products with advancing the
quality of the existing products (Barauskaite and Streimikiene, 2021). From the trend analysis of
their market share it can be said that from year 1 to year 4, INVIX was able to maintain the
market share of more than 2 % only for the product Timon. The company has seen slow market
growth for its product Pumba. The company has achieved the other objective of introducing new
product in the second year as they introduced new product named Mufasa.
Following table would analyse the trend of its different figures in the four rounds.
In £m
Particulars Round 1 Round 2 Round 3 Round 4
Total Sales 3879.51 6397.61 6397.61 6397.61
Total Unsold
Stock
0 0 0 0
Shareholder's
funds
767.83 1232.25 1599.21 1830.35
Closing Bank
Balance
216.64 614.5 819.47 897.17
Outstanding
Loan
100 0 0 0
MAIN BODY
Analysis of the company performance with the help of tables and graphs.
A. Round 1
Decision: The market research of the company revealed that the demand for the products Puma
and Timon is growing rapidly. So the target for manufacturing the product was set of 131000 and

47100 units. It is in the process of generating more revenue through sales by which its market
share can increase. The firm has managed to achieve the target of production of cars which was
forecasted and will be set by a high target with the high level of purchasing power (Deacon,
O’Neill and Gilfoyle, 2020).
Interpretation: The below mentioned table highlights the working of the business in the first
year / round of the business. The business has been started with two products mainly which are
Pumba and Timon. The projected sales of the business were same as were produced in this
round. The shows that the business was able to be efficient in its production (Yuen, Thai and
Wang, 2018). In the first year itself the business was able to achieve similar productivity rate
which shows that the strategies of the business were efficient and projected figures were duly
considered in running the business. The business has seen 3 strike days in its working. This
shows that the employees and the workers of the business were sort of unhappy with somethings
related to the working of the business. the most of the revenue have been earned by the product
Timon of the business. to cater the working of the business and the maintain the liquidity of the
business, a loan of £ 100 m have been raised.
Round 1
Forecast Results
Car Name Pumba Timon Pumba Timon
Target Under 25 41 to 55 Under 25 41 to 55
Workforce 1800 1950
Automation allocation 40 60
Effective Workforce 1800 1950
Productivity 52.81 53.77 50.28 51.28
Produced Cars 90500 100000 90500 100000
Unsold Stock 0 0 0 0
Selling Price 15399 24859 15399 24859
Market Share 1.74 2.07 1.74 2.07
Salary 28600 28600 28600 28600
Strike Day 3 3
Gross Margin 22.87 30.23 22.87 30.23
Sale income 3879.51 £m 3879.51 £m
Net cash position 216.64 £m 216.64 £m
Fixed Overhead 252.15 £m 252.15 £m
Promotion 151 £m 151 £m
R&D 138 £m 138 £m
Training Cost 16 £m 16 £m
Automation Investment 105 £m 105 £m

Warranty cost per car 226.62 336.02 226.62 336.02
Depreciation 86.5 86.5
Operating Profit 352.22 352.22
Post tax profit 267.83 267.83
Loan 100 100
B. Round 2
Decisions: INVIX decided to launch a new product in round 2. The new product is named
Mufasa. The business is following its one of the objective formed at the start which was they
would bring innovative and new products in the market. This was due to the research and
development investments that the business did to find out which kind of products are demanded
in the market and what is the innovation that they can bring into their existing products. The
business has also paid back the bank loan which they took in the first year of the business (Eesee,
Qassim and Aziz, 2020).
Interpretation: From the below mentioned table it can be interpreted that the sales income from
the business have increased in the second round. This increment in the sales can be interpreted as
the result of the new product that have been launched in the market by the business of INVIX.
The forecasts related to the productivity of the business are showing a little difference of 2-1
units. This can be said due to the changes in the efficiency of the operations of business. The
workforce of the business has stayed same as the projected ones but it can be seen that there was
some level of dissatisfaction among the employees and the workers of the business as the
business have seen 2 days of strike. The strike days have reduced from the previous rounds. The
gross margin of the previous two products of the business have reduced in this year. This can be
said due to the introduction of the new product line by the business.
Round 2
Forecast Results
Car Name Pumba Timon Mufasa Pumba Timon Mufasa
Target 113100 130000 47100
Workforce 1800 1950 250
Automation
allocation 23 50 27
Effective Workforce 1800 1950 250
Productivity 72.27 85.58 187.25 62.83 66.67 188.4
Produced Cars 113100 130000 47100 11310 130000 47100

0
Unsold Stock 0 0 0 0 0 0
Selling Price 15499 24859 30000 15499 24859 30000
Market Share 2.18 2.68 1.85 2.18 2.68 1.85
Salary 35360 35360
Strike Day 2 2
Gross Margin 19.47 26.59 23 19.47 26.59 23
Sale income 6397.61 £m 6397.61 £m
Net cash position 614.5 £m 614.5 £m
Fixed Overhead 412.39 412.39
Promotion 270 270
R&D 44.34 44.34
Training Cost 10 10
Automation
Investment 190 190
Warranty cost per
car 165.84 246.36 716.2 165.84 246.36 716.2
Depreciation 183.35 183.35
Operating Profit 586.95 586.95
Post tax profit 464.42 464.42
Loan 0 0
C. Round 3
Decision: Market share of the Pumba, Timon, Mufasa is 1.97, 2.49, 1.71 respectively. It aims to
increase the production of the cars as to increase the market share of the company. As INVIX is
new to the market it has shown recommendable growth over the years. Company has invested
270 pounds to increase the production of the cars. Organisation has invested 42.43 in R&D to
increase the production of the cars (Fuentes and et.al., 2020).
Forecast and results: INVIX forecasted to produce 113100 Pumba, 130000 Timon, 47100
Mufasa with 1.97%, 2.49%, 1.71% of market share receptively. It was expected that there is nil
unsold stock. The productivity was expected to reach 114.5 for Pumba, 179.61 for Timon and
505.29 for Mufasa. The warranty Cost expected per car is 171.69 for Pumba, 254.38 for Timon
and 738.06 for Mufasa. Moreover, INVIX forecasted 819.47 in Net Cash Position, 468.22 in
operating profit, 366.95 in post-tax profit. The organisation expected 24 days’ strike day. It can
be derived from the results of Round 3 that INVIX has met all the forecasted data except the
productivity of the workforce which stood at 113.1 for Pumba, 144.44 for Timon and 417 for
Mufasa. The productivity of the work force is not as expected does not troubled the other states.

Round 3
Forecast Results
Model City Large City Large
Car Name Pumba Timon Mufasa Pumba Timon Mufasa
Target 113100 130000 47100 113100 130000 47100
Workforce 1000 900 100 1000 900 100
Automation
allocation
25 50 25 25 50 25
Effective
Workforce
1000 900 100 1000 900 100
Productivity 114.5 179.61 505.29 113.1 144.44 471
Produced Cars 113100 130000 47100 113100 130000 47100
Unsold Stock 0 0 0 0 0 0
Selling Price 15499 24859 30000 15499 24859 30000
Market Share 1.97 2.49 1.71 1.97 2.49 1.71
Salary
Strike Day 24 24
Gross Margin 18.3 25.38 21.03 18.3 25.38 21.03
Sale income 6397.61 £m 6397.61 £m
Net cash position 819.47 £m 819.47 £m
Fixed Overhead 425.04 £m 425.04 £m
Promotion 270 £m 270 £m
R&D 42.43 £m 42.43 £m
Training Cost 10 £m 10 £m
Automation
Investment
270 £m 270 £m
Warranty cost per
car
171.69 254.38 738.06 171.69 254.38 738.06
Depreciation 297.52 297.52
Operating Profit 468.22 468.22
Post tax profit 366.95 366.95

Loan 0 0 0 0 0 0
D. Round 4
Decisions: The business have not taken any major decisions in the fourth round. The business
can be seen to have projected same production units as the last year and it can also be seen that
the business is dealing in those three products only. The automation allocation has changed in
this year (Gudiksen and Inlove, 2018).
Interpretation: The target production and the actual production of business have same that
means that the business was able to meet its projected values. The business is yet to achieve its
productivity rate as the actual ones are a less than the ones projected. There has been no unsold
stock in the business. The business can be seen earning similar income from its sales as it did in
the round 3 and 2. The business have reduced majorly in its research and development expense
as it is not focusing on bringing new product or any advancement into its current product. The
business is only focusing on the market and the performance of its current product. The profit
after tax of the business have reduced in the 4th round comparing it to the 3rd round. There have
been no loan obligations for the business in the 4th year.
Round 4
Forecast Results
Car Name Pumba Timon Mufasa Pumba Timon Mufasa
Target 113100 130000 47100 113100 130000 47100
Workforce 1100 1000 200 1100 1000 200
Automation allocation 25 50 25 25 50 25
Effective Workforce 1100 1000 200 1100 1000 200
Productivity 126.16 204.44 425.12 102.82 130 235.5
Produced Cars 113100 130000 47100 113100 130000 47100
Unsold Stock 0 0 0 0 0 0
Selling Price 15499 24859 30000 15499 24859 30000
Market Share 1.76 2.32 1.61 1.76 2.32 1.61
Salary
Strike Day 2 2
Gross Margin 15.88 23.37 19.01 15.88 23.37 19.01
Sale income 6397.61 £m 6397.61 £m
Net cash position 897.17 £m 897.17 £m

Fixed Overhead 442.25 £m 442.25 £m
Promotion 350 £m 350 £m
R&D 19.22 £m 19.22 £m
Training Cost 10 £m 10 £m
Automation Investment 260 £m 260 £m
Warranty cost per car 176.02 260.57 542.4 176.02 260.57 542.4
Depreciation 426.26 426.26
Operating Profit 267.59 267.59
Post tax profit 231.14 231.14
Loan 0 0 0 0 0 0
Trend Analysis
Production of Cars
Year 1 Year 2 Year 3 Year 4
0
50000
100000
150000
200000
250000
300000
350000
90500 113100 113100 113100
100000
130000 130000 130000
47100 47100 47100
Car Production
Pumba Timon Mufasa
The increase in brand awareness strategy, INVIX plan to sell the two product named
Pumba and Timon by manufacturing the 90500 and 100000 units respective in Year 1. Further it
developed a new range called Mufasa by enabling the production increment of the former
established cars. Though the initial production of Mufasa is 47100 units in year 2. The
production of all the three products remains same in year 3 and 4 as of year 2. Overall, the
company has managed to supply the production units from the market research.
Total Sales

3879.51
35360
6397.61
6397.61
Total Sales
Year 1 Year 2 Year 3 Year 4
The sales of the year 1 is 3879.51 £m to 35360 £m in year 4 with an increase in
approximately 31480.49 £m. The increase in the revenue has major contribution due to the
launch of the Mufasa in the year 2. It has augmented the sales of the cars among the customers
by managing the expenses and various costs.
Unsold Stock
Year 1 Year 2 Year 3 Year 4
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Unsold Stock
The stock remained for all the year was zero, it depicts that the cars manufactured were not
sufficient. Because the following year sales manufacturing must be done before of some of the
units. It will have led to a financial impact to the performance and productivity of the
organisation.

Give a critical reflection considering the responsibilities of various departments used in an
organisation.
During this I have gain information about the different business functions that is helpful for
successfully and effectively conducting business practices. It has been analysed that their
business functions such as financial, marketing, operations and human resource management
material will lead to have major impact over attaining desired goals. Through effective and
proper functioning of these respective companies will be able to take right and accurate decision
for enhancing business practices (Sharma and Atyab, 2022). During this semester I have
analysed that financial, marketing, operations as well as human resource management are very
important function of organisation that is responsible for taking important decision for business.
These decisions of organisation will lead to have impact over internal as well as external
stakeholder group. This will lead to have significant influence over effective and successful
performance of business as well as help in meeting with desired business objectives.
Through this I have analysed that financial management is crucial part of business and it will
lead to have impact over decision making practices. as per the learning in the semester regarding
financial management it has been determined that financial Management implies planning,
organizing, directing and controlling the financial exercises like acquirement and use of assets of
the enterprise. It implies applying general management standards to financial resources of the
enterprise. It has been identified that financial management practices will help organisation to
analyse about different aspects related to business such as cost, budgeting and so on (Borio,
Drehmann and Xia, 2020). Through this organisation will be able to take right and accurate
decision for organisation in order to attain desired goals. Financial choices connect with the
raising of money from different resources which will rely upon choice upon kind of source, time
of financing, cost of financing and the returns accordingly. To guarantee ideal finances use.
When the assets are secured, they ought to be used in greatest conceivable manner basically cost.
A money manager needs to make assessment with respect to capital prerequisites of the
organization. This will rely on anticipated costs and benefits and future projects and
arrangements of a worry. Estimations must be made in a sufficient way which increments
procuring limit of enterprise. Financial Management is the conscious management of planning
and organizing of financial exercises. It applies the essential management guideline to control

the progression of assets and appropriately uses financial resources. It puts forth the financial
objectives by appropriately examining the accessible information (Tepe, Geyikci and Sancak,
2022). Financial management activities will lead to improve overall activities of organisation as
well as provide correct information to internal stakeholder in order to take appropriate decision
for growth of business. The significance of financial management practices is more significant
for the smooth run of the association. Assuming these practices are should have been followed
and it very well may be guaranteed that the financial construction and practices of an association
are the way to manageability and development. Great consistent returns and keeping up with
long term investment draw in new financial backers on a persistent premise. Finance
management is appropriate in identifying the actual cost of business practices in order to analyse
profits and losses of respective organisation.
Through this learning experience it has been analysed that marketing management is a
course of controlling the marketing viewpoints, defining the objectives of an organization,
organizing the plans bit by bit, taking choices for the firm, and executing them to get the most
extreme turn over by fulfilling the consumer’s needs. Marketing management is one of the
crucial part of business that is significant in order to attain desired goals. The significant goal of
marketing management is to draw in new clients to expand the sales of items. Marketing
management practices play crucial role with in organisation as it will lead to have positive
impact over increase sales and profitability of business. Various strategies are set to ensure that
most extreme clients get drawn to the organization's items like showing advertisements on TV
channels or social media, handouts, and orchestrating a sales group that exhibits the items
(Henry, 2021). Through this I have analysed that marketing management practices help
organisation to provide right and accurate information to customers. Marketing management is
of significance as it assists with standing skilled in exceptionally flourishing contest on the
lookout. This likewise assists with creating strategies to further develop benefits and lessen the
cost of items. Marketing management activities will lead to have impact over decision making
practices of business as well as enhance performance of business. Marketing management has
turned into the significant wellspring of trade and move of products. Management is the most
common way of finishing things in a coordinated and productive way. Marketing management
focuses on productive activity of marketing exercises. Marketing management smoothen the
course of trade of responsibility for and services from merchant to the purchaser. It is significant