Analysis of Orange and Blue Firms in a Business Simulation

This report provides a comprehensive analysis of a business simulation involving Orange and Blue firms, focusing on their market positions and performance. The introduction highlights the use of business simulations in enhancing decision-making and problem-solving skills within a competitive environment. The analysis includes an examination of internal factors such as market capitalization, sales revenue, research and development expenses, and profit, comparing the performance of Orange and Blue firms across multiple rounds. External factors are assessed using PESTEL analysis, considering political, economic, social, technological, environmental, and legal aspects, particularly within the UK telecommunications market. The report also explores demand, production, research and development, marketing, logistics, and financial aspects, emphasizing the importance of global challenge simulations in preparing action plans and enhancing competitiveness. The conclusion summarizes the significance of business simulations in formulating strategies and improving marketability, with references to relevant literature and online resources.

BUSINESS SIMULATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
A) INDIVIDUAL REFLECTION ON MARKET POSITION OF ORANGE AND BLUE
FIRMS..............................................................................................................................................3
B) REFLECTION OF SIMULATION STRUCTURE AND RULES..........................................13
C) IMPORTANCE OF GLOBAL CHALLENGE SIMULATION AND CONCEPTS OF
BUSINESS STRATEGY AD BUSINESS ...................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCE.................................................................................................................................15

INTRODUCTION
Cesim global challenges are as international business game for increasing knowledge of
students towards business drives. However, it increases an individual's learning with team work,
decision making and problem solving skills. Including this, simulation games are used in
advanced graduate and undergraduate program to enhancing skills through corporate training
programs. In this assignment, we are able to understand business simulation for mobile handsets
and game of different coloured groups as orange, blue and green.
A) INDIVIDUAL REFLECTION ON MARKET POSITION OF ORANGE
AND BLUE FIRMS
Internal and external environmental factors analysis: Orange group is the highest profit
making and leader in telecommunication services for providing mobile phones of specific
features (Abdullah, Hanafiah and Hashim, 2013). However, it aims to improve its services and
increasing demand for goods at higher level. For this purpose; its environmental factors can be
analysed as below:
Internal environmental factor's analysis: It includes management and performance analysis of
the firm. Therefore, on performing simulation of the group, result obtained regarding its
excellency, creditability are as follows:
Number of round Particular Orange Blue
3rd Market capitalisation 9297005 8513872
7th Market capitalisation 21946209 5028042
3rd Share price 315.2 277.3
7th Share price at the end
of round (USD)
580.6 125.7
3rd Sales revenue 184245 1872731
6th Sales revenue 3916563 2172657
6th R&D 220000 62778

6th Profit for the round 1002977 7202
3rd Profit at the end of the
year
561860 196898
Interpretation: It is interpreted that market capitalisation of Orange groupin 3rd round is
9297005 and in 7th round, it is 21946209 which is good and effective for sustainability for longer
time period. On the other side, for blue firm, market capitalisation in 3rd round is 8513872 and in
7th round, it is 5028042 which is not effective for marketability and competitiveness. For
analysing sales revenue of both firms, it is observed that orange group's sales revenue in 6th
round is greater than that of Blue which impacts on profit earning capacity of the group.
Similarly, expenses on research and development of orange is 220000 and of Blue is 62778. It
can be forecasted that orange group can sustain its good position in competitive market that is
able to maintain customers' interest towards featured mobile phone services on large scale
effectively.
Market outlooks: In UK, market outlooks in telecommunication sector including
demand, costs, social responsibilities are determined as below:

External environmental factors' analysis: These external environmental factors are
uncontrollable (Cannon and Smith, 2014). However, PESTEL analysis consists of factors as
political, economic, social, technological, environmental and legal of orange and blue companies
belonging to telecommunication sector can be presented as follows: Political: These factors as changes in government policies like; income tax rate, foreign
trade, export-import policies etc. However, by analysing these environmental factors, it is
evaluated that this time political environment of UK is moderate (Hall, 2014).
 Economic: It is analysed as monetary position of group and its operations with other
countries. However, gained revenue with business operations of other nations as USA,
Asia and Europe can be identified as below:
Interpretation: It is interpreted that in different rounds, orange and blue companies'
position varies from each other. As per comparative analysis, it is evaluated that orange group
operated business with other countries as USA, Asia and Europe at higher level than blue team in
telecommunication sector of UK.

 Social: This environmental factor demonstrates social and cultural factor of any country.
It is considered that different countries' people have various choices, interest towards
services of telecommunication (Holst, Musshoff and Doerschner, 2014).
 Technological: It is recognised from time to time, that technologies keep on changing
that affects business operations and environment of group. Thus, analysing these changes
and getting adjusted according to them, impacts on telecommunication sector of the
country.

 Environmental: It is external environmental factor which remains beyond control
therefore, changes in this environmental factor impact on business operations and its
effectiveness (Tao and Wu, 2017).
 Legal: There are some rules and regulations present in every country which are required
to be followed by the firm. Hence, legal environmental factor affects business group and
its activities.
Demand: Forecasting on demand for featured mobile phone services impact on its
production and profitability (Thavikulwat, 2014). For this purpose, demand from other countries
for mobile phones of blue group is to be identified as below:

Interpretation: It is analysed that demand for mobile phone is highest from USA which
influences its productivity and profitability at most. Thus, by creating innovations in mobile
phone handsets and improving features, marketability can be enhanced efficiently.
Production: In different rounds, production of mobile handsets of groups are different.
However, production planning for orange colour groupis 6.77k, 1.6k, 1.65k and 1.84k for
technologies 1 to 4 respectively. While, on the other hand, these data for blue team is lower than
orange in all technologies and contexts.

Research and development: For analysing research and development factor of blue
group in telecommunication services, total cost incurred is as 33 for market research and product
promotion (Wellington and Faria, 2014).

Marketing: It is an activity of launching, promoting and sustaining product and services
in market. However, for promotion of featured mobile phone, team has incurred approx. 5907.
Therefore, group has good marketability and competitiveness that can be maintained and
sustained for longer time period.
Legislatics: From different countries as USA, Asia and Europe, Logistics are various
from each other that impacts on production system of product services. However, it is interpreted
that logistics from USA is the greatest in comparison to Asia and Europe.
Finance: It is analysis of flow of funds and earning capacity of group by which decisions
are made regarding investment and income (Business Simulation, 2017). Therefore, earning and
business operations with other countries are analysed for improving monetary position of the
firm.

As per analysing business game, it is evaluated that in comparison to other coloured
groups, oranges is at the highest level in terms of profit level. However, in relation to research
and development as well for finance, performance of mobile phone companies can be identified
as:
Research and development  In 3rd round, performance of orange coloured group is
the highest.
 Business operations are created with USA at most for
exchanging goods and services.
 Production of mobile phone is done through Orange
group at most which influences its increasing
productivity and profitability.