Business Simulation Report: Modern Televisions' MikeBikes Analysis

This report provides an executive summary and detailed analysis of a business simulation game called MikeBikes, focusing on the fictional company "Modern Televisions." The student, Umair Amir Dar, used the simulation to understand business processes, management accounting, finance, marketing, and strategic decision-making. The report outlines the strategy employed in a multi-player environment, including decisions related to production, pricing, advertising, and product development. It details the company's performance over several years, highlighting key challenges, successes, and lessons learned. The report emphasizes the importance of brand awareness, distribution, and financial management in maximizing shareholder value. The student reflects on the experience, identifying crucial points regarding product marketing, distribution, and financial planning, offering insights applicable to real-world business scenarios. The report also mentions the launch of multiple products including mountain bikes, plasma TVs, and kogan televisions. The student also analyses the different channels used for marketing such as brand stores, television, and discount stores.

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FINAL INDIVIDUAL MULTIPLAY REFLECTION
COMPANY NAME: Modern Televisions
WEBSITE: www.moderntelevisions.weebly.com
Student Name; Umair Amir Dar
Student ID: 11401344

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EXECUTIVE SUMMARY
In today’s competitive market, it is very important to understand the business process and
activities in a proper way. One of the very effective ways to understand the business is
Business simulation. A business simulation program, named as MikeBikes, helps to give a
clear view of a business in today’s world. Throughout the whole simulation, it enhances the
overall understanding of management accounting, financial accounting, pricing, market
situation, product, marketing, bench marking and so on.

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Table of Contents
EXECUTIVE SUMMARY........................................................................................................2
Introduction................................................................................................................................4
STRATEGY...............................................................................................................................4
Multi-player experience..........................................................................................................6
The Summary of Game Play:...............................................................................................14
Important points learnt after the game play..........................................................................16
Conclusion................................................................................................................................17

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Introduction
This business simulator can easily be understood for its intended business users. The
simulation game creates its own assumptions and future models to give a real idea of the
business, which will ultimately help making plans and different decisions in the real world.
This simulation game is known as MIKEBIKES which contains two different versions within
itself, enabling single play and multi plays. Playing this simulation make you feel like being
in the real world and gives you a strong source of understanding the business.
STRATEGY
Multiplayer experience contains three parts production, capacity distribution, equity, price,
development, PR and debt etc. All these parts require the player to play smartly and need to
make brilliant decisions. In the beginning of play, the target is to maximise the shareholder
value. It is recommended to start playing with the advertisement and the next areas will open
automatically one by one. A proper research was made on the strategy of the price and
advertisement of the product. In accordance with the strategy, we made certain campaigns on
advertisement and implemented adequate Price mainly in Newspapers. More TVs were
produced to eliminate the loss off sales. In the 2nd year, we tried to create more awareness of
our brand and less distribution margin was paid with additional support. To reduce the
interest expenses, we paid off all the debts in the 3rd year which effected the profits and
shareholder value. The wastage was cut-off and the efficiency was increased by controlling
capacity which lead the improved quality by 90%. 4th year was very challenging which

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required us to improve the TVs, it costed us around $2m as well as we had to launch a new
product. This year was best for us to launch the Plasma TV according to the market research
and reports. Launch of TVs costed us $1m just because it was highly demanded by the
current market. During the year we created brand awareness and increased our production
capacity as well as the quality.
Alongside these, we have also started to buy back the equities. This contributed a handsome
amount to the increase the shareholder value. We paid the shareholders a dividend amount of
50 cents. We faced the biggest challenge during our 5th year. We made improvements on our
plasma and modern televisions. We also launched the kogan television in this year which had
cost us a whopping amount of almost $4 million. We improved the product and thus revised
the product price. The kogan television is one of the most expensive products available in the
markets. The market surveys reported that the most important factor for the kogan televisions
is their quality. Thus, we spent a huge sum for PR in the Magazine. We finally gained the
control over the game in the 6th year. There had been a scope of launching a new product but
we did not do so as we had launched the complete product. The launch of a new product
would have resulted in self-competition as we already had three products in circulation in the
market. We concentrated on the quality, efficiency and the capacity due to the increment of
the product price and the expansion of the sales. We bought the possible amount of equity
that we could and brought about an increase in the amounts of dividend that was to be paid.
We abided by the same strategy in the next year too. We concentrated on the decreasing the
product price in order to bring about stability in the sales section and had stopped making
improvements on our products. We attempted to increase the shareholder value by paying the
maximum amounts of dividend that we could. During the final year, we decreased the price
of our products in order to maintain the sales but made the minimal amount of changes in our
decisions.

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Multi-player experience
In the first place we had to assign a new name to the company. The new name assigned to the
company for the multi-player simulation was Modern Televisions. I went through the reports
of the previous year in order to form a general idea on the market and to get an idea of the
required steps in the process of decision making in business.
During the initial year, we were only granted mountain bikes in the operation of the
company. We tried to incorporate amounts higher than the default prices with low changes in
the advertising and PR budgets. As a result, after the first roll, the SHV dropped from $11 to
$9. A discussion with the fellow students helped me to focus on the advertisements in the
initial year. I revised my decisions to find an increase in the SHV. The following year was
vital for the distribution and branding wherein I decided to push the sales by bringing about a
decrease in the pricing of the product at $705 from $710

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In the second week of gaming, I begun with a better understanding of the very basic ideas of
the simulation. I had shown better decisive qualities in the initial years than in the past week.
The recoerding from the game play are enlisted below.
The generic price for each modern television unit were set to be $707. A sale of about 18000
units were forecasted while the actual number of units aavailable for sale was 16500. I aimed
to increase the price of the products by bringing about an increment in the PR and the
advertisements. I brought about an increment in the capacity of production and then rolled
over. The results are as follows:

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On going through the market research, I came to realise that some amount of sales were lost
due to high awareness and low production. Thus, I took a decision to forecast the sales ann
increase the production. I brought about a rise in thein the budget for brand awareness to
700000 from the previously set amount of 250000. I had launched support for the mountain
bikes in three different channels whereby the main focus rested on the stores of the sports. I
had provided a 25% of the margin over the sales across almost 60 stores. The roll over results
are as follows:
The outcomes were promising when compared over the time spent over the simulation. The
rise in the PR and the awareness were well paid off. There were no reports of the lost sales.
the rise of the share market also threw some light on the path that should be taken from the

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point we were stuck at. It was crucial to spend on the branding areas in order to achieve these
results. I had been lacking in the department of distribution as I had not reached out to the
required number of distributors. The level of capacity was under control. The expense for the
storage of the bikes in the warehouses were reduced due to the fact that there were not many
products in the closing stock.
The decision planning of the year 2020 were provided under the “year ahead report”. I made
sure that I followed the same. I spent on the PR and the advertising campaigns and thus
increased the retail price of the products. The budget seemed to be correct according to my
understanding thus I kept the figures intact. I came across a drop in the quality level that was
forecasted with the same figures remaining for the next year. Thus I brought about a raise in
the budget reserved for the quality sector on order to keep it at 80%. I also brought about an
increase in the production in order to keep up the market and sales in a rising position in
accordance to the earlier reports. I also attempted to provide for the brand stores alongside the
television and the discount stores. The major focus however lay on the brand stores due to the
television category. The commission was increased for the stores to enhance the sales.
Following are the outcomes of the roll over.

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The latest product was introduced in the multiplayer as well iin the fourth year of the
business. The most vital and reasonable help neededd to formulate adequate decisions and
strategies were provided in the “year ahead summary”.
 The cost of launching a new product will be around $1 million
 The cost of improvement of the specifications of the product would be $1 million
 The cost reduction of the existing product would cost $1million
 The total cost incurred for the improvisation of specifications and the reduction of
costs would be around $2 million.

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I decided to launch a Plasma Television considering my income level. I had decided to
increase the support of the discount shops during the launch of the plasma product. The PR
and advertisements were also set at the required levels which were displayed within the
research reports. I had spent equal amounts in the fields of administration and PR in case of
the plasma televisions as maximum buyers can be reached through the television mediums.
The results of the year 2021 had been on an encouraging side due to the rise in the SHV. The
spot-on distribution strategy had made this possible. I had, however, come to the realisation
that I had incurred losses due to the low production in the field of the sales of plasma
televisions. Thus I needed to focus on the production levels and the maintenance of the
customer follows.

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In the planning for the following year, I decided on a vague topic of buying back the shares
and distributing the dividend. I had also made plans to launch the road bikes at the price of
$2100. The production capacity was set at 50000 along with the production of the plasma and
modern televisions at 25000 each. The prices were hiked for both the plasma and the modern
televisions. The decided dividend amount was $0 and shares worth $200000 wre decided to
be bought back. All the above decisions were considered favourable as compared to our
competitors.
On comparing 6 long years with the machine, I found that I had perfored well in the initial 4
years and then encountered 2 bad years. These two years provided me with an insight into the
finance factors where I needed to put in more focus. There had been a rise in the SHV for the