Business Simulation Report: Pun Shresta Rasna Inc and RC_RockHopper

This report presents a project simulation analysis of Pun Shresta Rasna Inc, a leading company in the mountain bicycle industry, using SmartSim. The report includes an executive summary, overview of the company, strategic planning, SWOT analysis, market analysis, product marketing details, and an evaluation of the RC_RockHopper product. The market analysis is based on a multiplayer simulation, providing insights into stakeholder value, sales strategies, and financial performance over multiple rollovers. Key aspects covered include competitive advantages, marketing and sales strategies, and the company's vision. The report also provides a detailed market summary, comparing RC_RockHopper with a competitor's product, and analyzes factors like product awareness, distribution, and gross margin. References to relevant academic sources support the analysis.

SmartSim simulation

Executive Summary
This report gives a Project Simulation Report of Pun Shresta Rasna Inc which is one of the
leading company in the mountain bicycle industry. The market analysis of Pun Shresta Rasna Inc
is estimated according to the Multiplayer simulation. A simulation report along with the SWOT
analysis and market evaluation is provide. Through smartsim Stakeholders value is obtained. An
overview of the Rc_RockHopper product is given in this project.

Table of Contents
1. Introduction.........................................................................................................................3
2. Overview of Pun Shresta Rasna Inc..................................................................................3
3. Strategic Planning...............................................................................................................4
4. SWOT Analysis...................................................................................................................5
5. Market Analysis..................................................................................................................7
6. Product Marketing.............................................................................................................8
7. Evaluation..........................................................................................................................14
8. Conclusion.........................................................................................................................18
References.................................................................................................................................18

1. Introduction
Business simulation could be a scenario-based or numeric based. This kind of simulation is
mainly used in education, business training and analysis. For the business acumen training and
for the development the Business simulations is been used. Here in this report a Business
simulation the market analysis of the product RC_RockHopper in Pun Shresta Rasna Inc will be
done. The implementations are done to improve the stakeholder’s value. With the help of the
Smartsims the business simulation for Pun Shresta Rasna Inc will be done and the SHV results
will be added. Proper market research will be made on RC_RockHopper in PUN SHRESTHA,
Rasna Inc
2. Overview of Pun Shresta Rasna Inc
Pun Shresta Rasna Inc is a company which manufactures bicycle. The bikes which they are
creating is having a unique style. Their aim to produce the best quality bikes. So that person who
is having interested in riding should not face any problem. The main motive of this company is
to get number one position in the bike manufacturing world.
The products which are developed by us are can be useful in both indoor and outdoor. The
method which they are using during manufacturing is agile methodology so that each and every
individual need should meet in design manner as well as in cost manner. The Products which we
have manufactured in the industry was Everest bikes, Global bike, Smart bikes, Super fun,
SSUDA bikes and creative bikes. These are the bike names which we have manufactured till
now. Again we are going to introduce new bikes to overcome the drawbacks of the previous
bikes. So that we can provide improve the efficiency of the bike.
Pun Shresta Rasna Inc, is one of the major firms in the industry of mountain bicycle. The bicycle
which they are manufacturing is used in the mountains. As it is very dangerous to the people, the
government has created some rules and regulations to follow. By following that rules they are
making bicycle and there is a very high demand for this products. As per the market researchers,
the bikes which are made till now was not satisfied by the customers. So we started designing the
new models where they can become the number one bike in the bike industry.

The major goal of the company is to improve the shareholders. It can improve only when
we can return the get our investment return. The amount of the shareholders which we are
getting the return is called Shareholder value. The shareholder value which you are getting
should compare to the shareholders of the competitors. This amount will give the success amount
of the company (Schmidt, 2014).
3. Strategic Planning
The goals of the strategic plan were decided by taking the surveys. These surveys are going to
conduct to the customers and members on the product by the company. After getting the surveys,
the company will see where to improve themselves in terms of product and also in the
organization. They will improve to provide the high quality product. The products which they are
producing are will be different for the different riders. There will be a differentiation between the
competitors, which is going to keep in the marketing materials. For the individual customers, the
products will be marketed through the internet and for the small retailers it should be through the
distributors. The sales strategy is going to improve the product fact that it is less in weight and
safe. The strategic planning is divided into the following categories (Oosterhuis, 2014). They are
Competitive Edge
The Pun Shresta Rasna Inc competitive edge is the product. They are manufacturing the product
in such a manner that the product can withstand with normal and aggressive people. This bike
can be able to withstand any type of weight people safely. It helps users to move freely because
it is having the less weight. If the people with less weight will get a ride, they will feel quite
comfortable and the vibrations will transfer because of the stout post presence in the bicycle
(Piwoni-Krzeszowska, 2013).
Marketing Strategy
The Pun Shresta Rasna Inc will do marketing through the search engines. Whenever the people
use search engines, the advertisement has to show in some popular places. Popular search
engines like google can be used to advertise and can improve the product. The other marketing
strategy is about the shows. Mostly i.e., about 80% of the industries are preferring shows to
improve their products. By using shows we can show our models and products which have
released.

Sales Strategy
The sales strategy is dividing into two groups. They are
Individual customers
The sales of the product will focus on the individual customers. It will check whether the need of
the customer is satisfied or not like lightweight, flexible and comfort. It also checks the
durability of the product and gives some warranty of five years.
Distributors
Another important factor in the sales strategy is about the distributors. Distributors will play the
main role in selling the product. So the relationship between the company and distributors should
be very strong. The distributors will be very sensitive. They only will handle all the warranty
problems and the customer problems. The company will try to meet the needs of the distributors
and will make the product to sell quickly (Stádník & Miečinskienė, 2015). The company has to
show to the distributor that the product is having high warranties at less price. So that they can
happily take the product.
Vision
The vision of the company is to satisfy the customer with better quality and better product. It is
also going to change the vision of bike in all over the cycle industry.
Company Structure
Pun Shresta Rasna Inc is marketed in almost all countries.
General Director: XXX
Manager: XXX
Secretary: XXX
4. SWOT Analysis
Strengths

1. The bicycles are enhanced or modeled by athletic coach and by well-trained bicyclists. Thus
the bicycles are more advanced working structure and follows the kinesiology (Fukushima,
2007).
2. They have highly developed technical tools for assessing the products
3. It has a well-developed and qualified bicycles
4. It develops good relationship with the consumers
5. It creates the best advertising standard.
6. A good deal and relationship with the different companies.
7. Well trained cycling enthusiasts and excellent staff ensure complete customer satisfaction
8. A wide selection of goods.
Weakness
1. The new models enters in the market, can increase the difficulties resilient.
2. Only limited bicycles are available in the first two years.
3. For normal people, the products are highly professional.
4. The difficulty of increasing visibility among all the consumers.
5. The industry nature does not have a constant flow of goods.
6. A glut of inventory create by a wrong choice.
Opportunity
1. It has a chance to be a major manufacture of bicycles and takeover the market.
2. Use of new technology idea. The production of bicycles improve.
3. Increasing profit margins, by ensure fixed cost all over sales area.
4. While the industry is affected by a circular nature of the economy, accessory and bicycle sales
never fall entirely flat since many people that rides bicycles.
Threat
1. Opponent Company made a direct move are the threat for the company.
2. For the firm to produce, the products move is expensive.
3. Entry into the comfortable and suitable position in the market, and distributor established the
area for growth in the industry.

4. A drop in the quality for manufactures to have a stock available for sale to retailers via
wholesalers, instead directly selling all their excess to the mail order houses.
5. Market Analysis
In this financial year of 2017 the bicycle price was fixed as $660 it has matched with our division
where the priced advised by the concern was $700-$720. But our division finally gave the price
as $660 and their retail sales were $11,902,440 for this 2017 year end. The Profit after the tax
was $957,301 and the overall amount of shares are 1,000,000.The amount of earnings for each
share were $0.957to the margin. We think other concerns would highly increase the price of the
bicycles .So this $660 price would be a nominal prices with 40% gross margin. But if the market
is not going good the amount will be further adjusted according to their needs. Our goal is to
achieve a valuable position in the market but unfortunately we are near to the last place. The
advertisement expenditure was $1,000,000 this year and total PR expenditure $500,000.The
Product Awareness was 17% and sales was up to 18,034.
Our shareholder value didn’t change but the highest change is reported in Everest and
SSUDAbikes (Szwagrzak, 2014).
In the Second rollover we detected the limitations in the first rollover and we made our decision
related to that such as branding and distribution. We had set the new sale price as $730 in
2018.The advertisement expenditure is reduced and share price is also reduced. The amount had
been spent to advertise in magazine Tv and internet (Browne, Knoller & Richter, 2012). The
Profit was good compared to the previous year.
In the third rollover we decided to advertise the brand and the brand awareness was 41%.We
have introduced a new bike for children named Kids Bike which costs $390.During the next roll
over the manufacturing capacity has been increased. The awareness about the brand was 46%
and the net profit was also increased. In the sixth rollover we have planned to design a new bike
with focus on the capacity, the price of the mountain bike was $725 and youth bike is $370 the
sales of the product is good. The retail sales of the year 2021 was $49,178,468 and profit after

tax is 1, 397,901, the share value has also highly increased and we are the third leading company
in the world (Lu, Wang, Wu & Cheng, 2017).
6. Product Marketing
The marketing analysis is done on the product RC_RockHopper in PUN SHRESTHA, Rasna
Inc. The product marketing report is done on 31 December 2016. The market research report is
done for RC_RockHopper side-by-side with the comparison of all the products in the market
(Fukushima, 2007). The forecast sales for RC_RockHopper is 18,000 units and its actual sales is
calculated as 18,000. This time there is no lost ibn sales. The revenue is calculated as $8,190,000
in 2016 and its Gross margin is 49%.

6.1 Market Summary
A detailed report about the RC-RockHopper of PUN SHRESTHA,Rasna Inc and the
MT_RockHopper of the MountainTop Cycles is made and the market analysis for both the
products is made. It is analysed that the sales unit for both the product is 18,000 units and both
have zero loss of sales. They both have a same market share of 50%. Both the products have the
same retail price $700. The product awareness of the people is calculated as 0.13. The PR for
RC-RockHopper and MT_RockHopper is 0.08. 0.07 is the distribution rate for both the bicycles
and their quality is 0.75. Their previous delivery is 1 and their current delivery is also 1.Both of
the products have 0.06 as product specifications. The total percent of the product gross margin is
49%.The contribution of the product before the marketing is calculated by subtracting the
inventory cost from the gross margin. The inventory cost is calculated by adding the inventory
holding cost to the disposal cost. The inventory holding cost is estimated as $3,750. Thus the
contribution is calculated as $4,028,151. The contribution before the development is calculated
by reducing the product marketing from the contribution of the product before the marketing.
The product marketing includes the product advertising and the public relation of eth product.
The product advertising is $750,000 and the product public relations is $500,000 hence the
contribution before the development is $2,778,151. Thus the product total contribution is
$2,778,151. The product information is provided. The cost of goods manufactured is $4,192,750.
$185 is the prime cost per unit. Thus the average manufacturing cost per unit is $231. The
inventory level include planned production is 16,500 units and the actual production units is
18,150. The estimated units of sales is 18,000. The closing inventory is 150 units. The delivery
performance index is 1. 0.50 is the required SCU for the product. Total wastage is 25%. 9.075
SCU is used for production and 3,025 SCU was wasted. The total SCU used is 12,100

6.2 Summary of the Product
In the product summary the complete details about the RC_RockHopper regarding the margin,
sales and the production is provided. The product RC_RockHopper is developed under the
mountain Market segment. Initially the product’s retail price is fixed as $700. The average
wholesale price is $455. $235 is the average unit cost of the product. The average unit margin for
the product RC_RockHopper is $224. The forecasted unit of sales for product RC_RockHopper
is estimated as 18,000 and the sales unit is achieved as 18,000 units as estimated. Since the sales
of the units is equal to the forecasted unit the loss of sales is zero. Next is the product
contribution, the revenue is $8,190,000 and the cost of goods sold is reduced from it where the
gross margin is obtained as $4,031,901

7. Evaluation
The process of the management involves strategic plan, developing the implementation plan and
the performance evaluation. For meeting company's objective, evaluate the period of the process
have developed is nothing but evaluation. It is the cyclic process. It is very essential to evaluate
the present position of the company.
The industry benchmark report in the year of 2016:
The shareholder value for the period of 2016 is $11.33 with the cumulative change in
shareholder value is 0%. The net shareholder value is 11,331,317$. The retail sales, and the total
margin is $12,600,000 and 4,031,901$.The profit after the tax is 1,444,347$. The ratio D/E is
0.29. The net product PR in the year of 2016 is 500,000$. The value of the wholesale sales is
8,190,000$. The wastage, efficiency index and the quantity of the product is comes under the
internal results. There are 15% wastage in the year of 2016 in the industry benchmark report. The
quantity of the products is one and the value of the efficiency index is 0.75. The value of the

efficiency or the quality of the process is 275,000$. The percentage of the required forecast
accuracy is 100.
The industrial benchmark report is given as follows.

The market data for the PUN SHRESTHA, Rasna in the year of 2016:
The different market segment includes youth, road and mountain. The estimated net retail sales
value for each market segments are three hundred, thousand and four hundred dollars. The actual
demands for the three segments are 36,000 units in the year of 2016 and the forecast demand for
the segment road is 9,400 units. The segment youth and mountain's forecast demand for the year
of 2017 are 45,000 and 39,000 units. The retail price for the road is 1,975$. For the youth and the
mountain, the retail prices are 400 and 700$.
The percentage of the television media channel for the road segment is 10. And for the mountain
and youth, the percentage is 70 and 40. For the internet media, the proportion of the segment
road, mountain, and the youth are 40, 30 and 20.
The details for all the products:
In this product details, the report illustrates the several information for the products on the
markets. The rating 1 denotes the highest possible rating. The rating values are in between 0.00
to 1.00. There were no sales in the segments namely road and youth in the period of 2016. The
products on the market namely RC RockHopper and MT RockHopper. The product namely RC

RockHopper and MT RockHopper had the same sale of 18,000. The market share is also same in
both the products. And the percentage of the both product's market share is 50 and the average
market share is 100%.
The summary for the products
For the product RC_RockHopper, the report illustrates the information about the sales and price
for the product. The retail price is 700$. The average unit cost is 231$. The value of the forecast
sales unit is 18,000 and the average wholesale price is 455$. The gross margin for the product is
4,031,901$ and the percentage value is 49. The contribution of the product value is 2,778,151$.
The contribution of the product value before marketing is 4,028,151$. And before development,
the prodcut contribution value is 2,778,151$. The goods manufactured cost is 4,192,750$.
Market information
Segment price and size range
Several media channels
Product details
Product summary

8. Conclusion
Thus the project simulation report for the RC_RockHopper in Pun Shresta Rasna Inc is made
successfully. For the purpose of the simulation the multiplayer is used. By www.Smartsims.com
simulation is made for RC_RockHopper in Pun Shresta Rasna Inc and all the results regardinf
the market research, product summary is done. Thus the share price sales and profit of
RC_RockHopper in Pun Shresta Rasna Inc is calculated. Sales revenue, gross margin and the net
income is calculated.
References
Browne, M., Knoller, C., & Richter, A. (2012). Behavioral Bias, Market Intermediaries and the
Demand for Bicycle and Flood Insurance. SSRN Electronic Journal.
http://dx.doi.org/10.2139/ssrn.1982483
Fukushima, T. (2007). Symposium article: Simulation in JFL: Business writing. Simulation &
Gaming, 38(1), 48-66. http://dx.doi.org/10.1177/1046878106298208
Lu, T., Wang, S., Wu, M., & Cheng, F. (2017). Competitive Price Strategy with Activity-Based
Costing – Case Study of Bicycle Part Company. Procedia CIRP, 63, 14-20.
http://dx.doi.org/10.1016/j.procir.2017.03.102

Oosterhuis, H. (2014). Bicycle Research between Bicycle Policies and Bicycle Culture. Mobility
In History, 5(1). http://dx.doi.org/10.3167/mih.2014.050103
Piwoni-Krzeszowska, E. (2013). Logics of Creating Relations Hip Value Between Enterprise and
Market Stakeholders. Organization And Management, 2013(2 (155).
http://dx.doi.org/10.2478/oam-2013-0015
Schmidt, K. (2014). Complementary Patents and Market Structure. Journal Of Economics &
Management Strategy, 23(1), 68-88. http://dx.doi.org/10.1111/jems.12041
Stádník, B., & Miečinskienė, A. (2015). Complex Model of Market Price Development and its
Simulation. Journal Of Business Economics And Management, 16(4), 786-807.
http://dx.doi.org/10.3846/16111699.2015.1076028
Szwagrzak, K. (2014). Strategy-Proof Market Clearing Mechanisms. SSRN Electronic Journal.
http://dx.doi.org/10.2139/ssrn.2406877