Strategic and Operations Management: Online Corporate Simulation SBU

This report delves into strategic and operations management through the lens of an online corporate simulation, focusing on key decisions across marketing, operations, human resources, and finance within a multi-divisional company. It examines the business case for joint reproduction under multi-system administration, detailing the organizational structure and decision-making processes at both the SBU and corporate levels. The report further analyzes marketing strategies, operational improvements through automation and capacity adjustments, human resource management practices, and financial performance, including revenue, expenses, and profitability. Special decisions, such as negotiations and stock management, are also explored, along with an assessment of venture performance and overall industry dynamics. The analysis incorporates both internal and external factors, utilizing pro forma statements and cash flow inspections to evaluate the simulation's outcomes and inform strategic conclusions. This document is available on Desklib, a platform offering a range of study tools and resources for students.

Running head: STRATEGIC AND OPERATIONS MANAGEMENT 1
Online Corporate Simulation
Author’s name
Institutional Affiliation

STRATEGIC AND OPERATIONS MANAGEMENT 2
Online Corporate Simulation
Introduction
Creation of a business simulation involves a close link between actual events in a real
environment and models of the artificial surrounding (A. Ghani, 2017). A business requires a
combination of various activities and decisions to operate within a specified period. Four
individuals are to be appointed to make decisions and account for the Strategic Business Unit in
my multi-divisional company. Computer skills and knowledge are the requirements for the firm.
The president as well as the manager evaluates designs, establish arrangements and generate
proposals for operations of the company. The Chief Financial Officer test and regulates all
financing activities while the Chief Executive Officer acts as a general correspondent, motivator,
and arbitrator. Both internal and external factors are to be considered to control the outcomes.
Technological expertise to be introduced to reduce the risks encountered. The existence of
other global enterprises dealing with internet reproduction models initiates a competitive
environment. Record updates to be done after every six months of business years and made
available to team members according to the standards raised by my instructor regarding
blueprints, operation worksheets, logbooks, conventional proceedings and networked associate
assessments (Smith, Golden, & Deighan, 2012). Also, the company's briefings, comprehensive
education, strategy developments and implementation are to happen within the required period.
Decisions made are for improvements and future reviews for repetition of all processes in all
stages. At the end of all the actions and occurrences, success is inevitable.
The Business Case
The joint reproduction under multi-system administration operates on a vastly ambitious
global market basis. It comprises of large-scale firms like computer hardware producers, small-

STRATEGIC AND OPERATIONS MANAGEMENT 3
scale companies including specified computer software or hardware producers and all-purpose
producers dealing in both hardware, software and online services. The hardware SBU
distribution trades electronics like desktops and scanners while the software system creates and
advance applications and operating systems. They had an increase of $800 and $975 respectively
in sales within four years before employing the management unit (Smith, Golden, & Deighan,
2012). With $885 sales increment, the systems section handled integrated data combinations for
particular task functions.
The Corporate Organizational Chart involving the hardware, software, and systems
respective presidents under the CEO was made (Smith, Golden, & Deighan, 2012). It showed the
comparison of decisions between each SBU and the corporate. For individual SBUs, decisions
based on pricing, budgeting, sales, exportation, merchandise inquiry, technological operations,
scope extension, human resources, quality indices and utility agents ("Reflection on knowledge
gained from business simulation," 2015). Corporate agreements were about credits, bindings,
stock, surplus, occurrence feedback, display research, and venture exchange. The fragmentation
enabled the growth of the industry.
Marketing
Decisions made under marketing involve prices, budgets, and workforce employment or
reduction. A unit product charge price averaged to $500 at the onset of each of my company’s
SBUs following the exchange of hardware at $10,000 and $2,000 units with a small-scale group
and a hospital respectively (Smith, Golden, & Deighan, 2012). Sales personnel comprise of
employee payments, sales expenses, and welfare. They were worth $30,000 periodically for each
representative. Minimal investment amounts were encouraged to regulate customer service.
Exports

STRATEGIC AND OPERATIONS MANAGEMENT 4
Exportation involves pricing, budgeting and region and SBU selection according to their
merits and demerits for the development of new markets. Charges guarantee for each boundary
that assets exportation occurs by the SBU. An original marketing budget of about 10 percent of
the domestic budget was required for my firm for next increments. Unit-time cost of $100,000
was charged for each range of supply by each SBU (Smith, Golden, & Deighan, 2012). Before
changing the business approaches, extensive research and learning are necessary (Sakellari &
Loukas, 2013). Business trips allow exploration of new cultures and financial legalities practices
in different boundaries.
Operations
Automated management processes perform under the objective of diminishing costs in
the firm. They include motivational acts, resolution programs and advanced knowledge and
skills. My capacity within each SBU declined at a rate of 5% due to wear and tear of accessories.
So, a capacity increase step was taken, and it cost $1,000 per unit. The startup capacity was $3.6
million which ended up being $3.61 million for period 0(Smith, Golden, & Deighan, 2012). The
software operations included learning, repository gadgets, and reinstatement manuals. Computer
hardware production occurred in the remote area according to the strategical planning aiming at
lower production costs. $200,000 was debited for particular operations (Smith, Golden, &
Deighan, 2012). After an extended period of service, the plant was transferred back to home
country after a charge of $200,000. A one-time fee of $100,000 was done to allow supply from
the new region (Smith, Golden, & Deighan, 2012). A brand-new hardware division was
purchased in the home country under the influence of the board of directors. A 3% shortfall
based the start of all the SBUs. The costs for quality circle program, training, export programs
and coordination indicated $10,000, 20,000, 40,000 and 80,000 respectively (Smith, Golden, &

STRATEGIC AND OPERATIONS MANAGEMENT 5
Deighan, 2012). Service costs amounted to $30,000 each per period after a retention of two sales
and one service representatives. The index of production started at 100 and increased to 110
(Smith, Golden, & Deighan, 2012).
Human Resources
Human resource management involves stockholdings and hiring, teaching and equipping
individuals for the sole purpose (Rahn, 2017). Valid methods of working are taught to the new
participants to analyze and carry on the beliefs to the expected level. Talents and other abilities
are nurtured to produce the best results. Partners and professionals gain more knowledge to
tackle any emerging issues. Encouraging good relationships between members controls
behaviours. All the programs including employment, developments, benefits, and bonuses were
chosen at a total cost of 4.0 percent (Smith, Golden, & Deighan, 2012).
Finance
All the firm units start with an economic status as follows. Both the hardware (26.9%),
software (33.8%) and systems (39.3%) production totaled to $1.7 million $2.135 million and
$2.485 million respectively hence giving a gross revenue of $6.320 million (Smith, Golden, &
Deighan, 2012). The total cost of assets at 50 percent was $3,159,000 while the remaining 50%
of gross margin amounted to $3,161,000. Under expense reports, SBU operations had $2.495
million, $450,000 for loan interests and $31,000 for marketing research (Smith, Golden, &
Deighan, 2012). Also, SBU gains record indicated $185,000 with a net profit of $129,000
(Smith, Golden, & Deighan, 2012). All overhead charges amounted to $65 million each for more
than 12,000 units (Smith, Golden, & Deighan, 2012). The income statement is concluded after
hiring the team members.

STRATEGIC AND OPERATIONS MANAGEMENT 6
Special Decisions
Decision making in a firm requires teamwork (Ola Strandhagen, 2014). Any idea
generated from a particular section undergoes a thorough review by all the departments for
complete comprehension and implementation (Rahn, 2017). Under periodical trade rules,
negotiations between the seller and me to obtain price agreements enabled the carrying out of
SBU selling after checking the market trends and history of the firm. Stocks aided in
reconstructing finances. To copy the structure of the whole SBU, upgrade systems were made for
all goods and services by addition of staff members. Instructions also allow trading of projects to
accompany the field portfolio before dispatch especially during the first few seasons. The total
value of startup ventures for Enigma, Borealis, Cares, and Abendland was $53 million and an
overall net gain of $1.156 million following a total capital investment of $43 million (Smith,
Golden, & Deighan, 2012). All revenues amounted to $19.113 million after the entire unit sale
for all ventures was 37.614 million (Smith, Golden, & Deighan, 2012). Experiments require
fresh choices concerning commerce, procedures, and labour pool. Industry devising holds its
future and secrets regarding Identities, objectives, schemes, statutes, and settlements (Neumann,
2015). A plan allows proper resolutions basing on the surroundings, expenditure, uncertainties,
emanating issues and information (Simona Ghita & Emilia Titan, 2017).
Results
Every operation in an industry depends on the results. It narrows down to the specific
capacity of performance; costs incurred, the area expansion, movements from one situation to
another, gains and losses (Amoguis, 2016). Satisfactory results indicate the excellent competence
of the industry (Rahn, 2017). Any negative consequences force the existing system to upgrade.

STRATEGIC AND OPERATIONS MANAGEMENT 7
The total measurement of the firm performances showed that it progressed and so there was a
possibility for satisfactory results.
Analysis
Simulation analysis in both external and internal levels is very important for making
conclusions. All the necessary knowledge is combined to form a basic understanding of each
activity on the firm. Discoveries and innovations are assessed to obtain their potential factors
before introducing them to the field (Sterman & W. Forrester, 2017). All the fragments of
information and secrets of the business are put together for an overall outlook. The pro forma
shows all the inputs and predictions for outcomes. Cash flow inspections indicate causal agents
of money transfers based on decisions projects made. Total cash inputs amounted to $6,876,000
and $6.743 million outputs (Smith, Golden, & Deighan, 2012). The net result for cash was
$133,000 (Smith, Golden, & Deighan, 2012). SBU cost detectors enable identification of price
tags in businesses.
Conclusion
Simulations have been used successfully over the years to train and prepare personnel.
Standardized skills and knowledge forms the basis of management aiding in the learning of
business theories and implementing them. However, some of the functions of models are
difficult to simulate due to their dependence on the real environment. Simulations help develop
career opportunities and improve the task performance ability. Companies can perform to their
level best when proper management and idealism is incorporated.

STRATEGIC AND OPERATIONS MANAGEMENT 8
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