Mikes Bikes Intro: Simulation Analysis and Results Report - Business

This report analyzes a single-player simulation of Mikes Bikes Intro, where the student takes on the role of a new manager. The report details the simulation's interface, including decision screens, reports, and advisor tips. The analysis focuses on the impact of marketing and production decisions on shareholder value, comparing the student's company's performance with a competitor, Mountain Top Cycles. The student adjusted marketing spending, particularly in magazines, and optimized production planning to increase sales revenue, gross margin, and net income. The results demonstrated a positive impact, leading to increased shareholder value and retail sales, highlighting the importance of strategic decision-making in a manufacturing business. The report concludes with references to the simulation resources.

Smartsim simulation

Table of Contents
Introduction.........................................................................................................................................2
Simulation Analysis and Results........................................................................................................2
Conclusion............................................................................................................................................7
References............................................................................................................................................7
Introduction
1

Mikes Bikes is a bicycle manufacturer company. MY role in that company is the new
manager. This Mikes Bikes Intro consists of 5 market segments and 3 distribution methods.
The Single Player version is played by me. The simulation analysis is performed and the
results of the analysis is specified in this report. The Mikes Bikes Intro contains the
simulation interface elements known as Decision Screens in which the values are entered for
the functional areas of upcoming period, Reports are used to view the results of the company
and the advisor is a helper who provides tips for us.
Simulation Analysis and Results
Industry Report 2016
The industry report for 2016 is represented above. It shows that my company and the
Mountain Top Cycles is almost in the same position except slight variations. Share holder
value of mountain top cycles is just 0.01 ahead of my firm (Jancisw, 2017).
Industry Report 2017
2

The industry report 2017 is specified above. It shows the major variation in the
Shareholder value when compared with mountain top cycles. The value of market
capitalization and the total share-holder value is varied with a huge difference. The difference
in shareholder value for 2016 and 2017 is because of Debt/Equity ratio. The D/E ratio is
higher than the mountain top cycles, this affects the share price. Fixing a low price for share
results in the lesser revenue and also if the share price is too high, then it may affect the sales.
Marketing Information
The forecast sales units had been set to 21000 and the retail price has been set to 700.
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Advertising the products get an increase in sales. So promoting the products is most
important task. When the market information is shown as 50% of the people of Mountain
segment views the magazines and so it is very important to increase the expenditure in the
marketing through magazines (Smartsims, 2017).
So a slight variation is done in the advertising through Magazines from 3,75,000 to
4,25,000 (Evers and Wan, 2012).
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So the spending for public relations is made high in magazines than other media types.
Production Planning
The production is the very important process in the manufacturing industry. So
planning the production is very important and so it results in the Forecast Sales units also. So
the production has to be increases to increase the sales income and net income of the
company (MikesBikes-Intro Quickstart Guide, 2017).
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The above represented window is the production planner which consists of the In stock,
Possible Quantity, Production Quantity, SCU Units, Available Units for sales and forecast
sales. The production quantity is increased as 21000 which is very close to the possible
quantity value. The available units for sale and the forecast sale is also same as the
production quantity (MikesBikes-Intro Quickstart Guide, 2017).
Forecast Results
The above represented window specifies the forecast results overview. It shows an
increase of above 1lakh sales revenue from the actual result. The gross margin, net income
and Percentage of sales also gets increased in the next year. Percentage of sales income gets
increased from 18% to 22% by the next year.
Roll Over
So the decisions had been made in the marketing and in the production planning. After
performing the decisions, it can be checked once and then proceed with the “Rollover Now”
button to see the results of the decision that is made. Rollback Now is the button used to
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make changes in the previously made decisions and the Restore Now option is used to make
new decisions and it restores all the values that are entered previously in the functional areas
(Course.smartsims.com, 2017) .
Results of the Shareholder Value
Every company aims at an increase in their company’s Shareholder value (McPherson,
2017). So the Shareholder value is increased as above. The results of the new decisions had
made an increase in the value of the Shareholders and it has increased the Retail Sales also.
The retail sales of my company has increased when compared to the Mountain Top Cycles
and the Shareholder value is $15.82 and this is 0.33 ahead of the Mountain Top Cycles. So
this is considered to be a good increase. The results show that the decisions made by me is
good for the manufacturing company.
Conclusion
Simulation is made in the Single Player Version of the Mikes Bikes Intro. As I am the
new manager of the company, it is my duty to make right decisions on the production and
marketing of the company. These decisions make an increase in the Share values of the
company. The results are positive. This reflection report consists of the decision screens and
the reports that are obtained from the decisions.
References
Course.smartsims.com. (2017). Smartsims Login System. [online] Available at:
https://course.smartsims.com/student/course-page/mikesbikes-intro [Accessed 21 Nov. 2017].
Evers, P. and Wan, X. (2012). Systems Analysis Using Simulation. Journal of Business
Logistics, 33(2), pp.80-89.
Jancisw, P. (2017). An Introduction to Mikes Bikes Intro. [online] Available at:
https://www.google.co.in/url?
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sa=t&rct=j&q=&esrc=s&source=web&cd=8&cad=rja&uact=8&ved=0ahUKEwiw88Kw08_
XAhVMPY8KHTJrCnEQFghEMAc&url=https%3A%2F%2Fmikesbikes.wikispaces.com
%2Ffile%2Fview%2FMikes%2BBikes%2BIntro%2BSpring
%2B05.ppt&usg=AOvVaw3GMkStW69ZQAg4O5RqfabM [Accessed 21 Nov. 2017].
McPherson, I. (2017). How to Increase Shareholder Value in MikesBikes | Smartsims.
[online] Smartsims. Available at: https://www.smartsims.com/business-simulations/how-to-
increase-shareholder-value-in-mikes-bikes/ [Accessed 21 Nov. 2017].
MikesBikes-Intro Quickstart Guide. (2017). [online] Available at:
http://ftp1.smartsims.com/versions/6.84.10.16/manuals/MBIntroQuickStartGuide.pdf
[Accessed 21 Nov. 2017].
Smartsims. (2017). MikesBikes Introduction to Business Simulation | Smartsims. [online]
Available at: https://www.smartsims.com/business-simulation/mikes-bikes-intro/ [Accessed
21 Nov. 2017].
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