SG7003 Business Simulation Report: Evaluation and Development

This report provides a comprehensive analysis of a business simulation, focusing on the performance of Super Iconic. The report is divided into two parts: Part A evaluates the simulation, including the company's vision, strategy, performance reviews, competitive analysis using Porter's Five Forces, and financial data. It assesses the internal capabilities through a SWOT analysis and evaluates the company's actual performance against targets. Part B is a professional development reflection report, reviewing relevant theories, industry concepts, and providing recommendations. The report covers HR practices, organizational culture, and strategic decisions, offering insights into the company's market share, competitor analysis, and future plans. It also includes a reflection on personal development within the simulation context, connecting theory with practical application and providing recommendations for future practice and research. The report aims to provide a thorough evaluation of the simulation experience and its impact on professional development.

SG7003 Business Simulation with
Professional Development

Table of Contents
Part A: Simulation Evaluation.........................................................................................................4
INTRODUCTION...........................................................................................................................4
Vision and Strategy .........................................................................................................................4
Performance review.........................................................................................................................6
Competitive analysis...................................................................................................................6
Simulation Performance Results.................................................................................................8
Performance Analysis...............................................................................................................10
Future Plans and recommendations..........................................................................................10
Part B – Professional development reflection report ....................................................................11
Executive summary ..................................................................................................................11
Introduction ..............................................................................................................................11
Identified events .......................................................................................................................12
Reflection theories ...................................................................................................................13
Review of industrial practices...................................................................................................14
Application of theory as well as practice .................................................................................15
Recommendations for practice and research ...........................................................................16
CONCLUSION .............................................................................................................................17
REFERENCES..............................................................................................................................18

Part A: Simulation Evaluation
INTRODUCTION
Business simulation can be defined as a simulation that is generally used for training and
education purposes. It can help in learning theoretical concepts in an enhanced way. Also, there
is an increase in the student engagement and they are able to retain their knowledge for a longer
period of time. There are many benefits of business simulation like, the decision making and
teamwork skills of the students are improved. Business simulation not only helps in increasing
the overall knowledge about a particular theoretical topic (Bindon, 2017). Not only this, business
simulation can also enable an organisation in improving its overall productivity as well as
performance in the industry. This leads to more informed and structured decisions taking place
along with an increase in the overall profitability. The respective report is based on business
simulation and will help in enhancing overall knowledge about the same.
Organisation chosen for this report is Super Iconic and the report provides a brief
description of vision and strategy. It also includes an explanation of the performance review as
well as future plans. Recommendations are also included in the report in order to provide a better
understanding. The report includes an analysis of the competition with the help of Porter's Five
forces Model. An explanation of the market share, competitors as well as internal capabilities of
the company are also included to provide a better understanding about the company's
performance. Apart from this, the performance analysis includes an evaluation of the strategy,
decisions as well as the different departments of the company (Bosch-Sijtsema, Gluch and Sezer,
2019). These departments include marketing, product development, finance and human
resources. The future plans of the company based on the performance analysis is also included in
the report. This will help the company in growing its business operations across different
geographic locations. A professional development reflection report is also included in the report.
There is a review of different relevant theories and industry concepts. A discussion on the same
along with recommendations is a part of the respective report to facilitate better understanding.
Vision and Strategy
Vision can be defined as a statement that informs the customers about how a company
views a future. It explains what a company wants to achieve in order to enhance its growth in the

market. A good vision statement is always short and easy to understand. The vision of the
respective company is - “To build a sustainable future and secure the personal data of
customers.” On the other hand, strategy plays an important role and helps a business in achieving
its goals and objectives in an effective way. Super Iconic can adopt any of the four strategies,
which can include diversification, product, development, market penetration and market
development.
The company has decided to adopt the strategy of product development, wherein it will
develop new products for its existing markets (Gatti, Ulrich and Seele, 2019). The company
determines that how can it serve its existing customers in a better way and how can the products
be enhanced so that they stand out from competitors. Adopting this strategy will help the
company in gaining new customers as well as satisfying the needs of existing customers. The
company will also adopt the strategy of cost leadership, wherein it will offer best quality
products at affordable rates in the market. Here, the min aim of the company will be reduce any
unnecessary costs and only focus on the necessities. As a result, the profitability of the company
will increase and it will be able to survive in a highly competitive market.
Human Resources
As far as Human Resources is concerned, the maximum work load of each employee is
110%. The company also provides rewards to the employees in the form of increased
remuneration and bonuses. The recruitment is done globally and once the new hires join the
company, they undergo an on boarding program. The HR department of an organisation is
responsible for building a positive working environment within the workplace so that the
employees are able perform in an effective manner and produce desired results. The HR
department of respective company has decided to buy a human capital management support
system. It will help in managing all the different HR processes (George and Sanders, 2017).
Currently, nearly 10% of the company's staff is performing effectively, while 80% is performing
on target. The HR department of the company has decided to develop a program that will mainly
aim towards developing high potentials among the employees. Apart from this, mandatory
internal courses as well as coaching programs will also be developed.
Culture
The organisational culture of is such that the employees are always supportive of each
other. There are different divisions and each division has different responsibilities. The

employees have an expertise in their respective areas and the company also focuses on practising
corporate social responsibilities. This is because the company is aimed towards reducing its
overall carbon footprint in the environment. It will not only be beneficial for the company, but
also for the environment. Apart from this, the managers are always open to meeting different
clients in order to build networks. Also, the employees are encouraged to share their inputs
during the decision making process. As a result, they have a sense of belonging and perform
more efficiently.
Performance review
Competitive analysis
It refers to an analysis of the strengths, weakness and overall performance of the
competitors. This helps in identifying any new opportunities as well as potential threats that can
have an impact on the overall productivity and performance of the company.
Porter's five Forces Model
It is referred to as an analysis model that explains different threats which can have a
potential impact on the business operations of the company (Harper and Bindon, 2020). The
model is described below for Super Iconic.
Threat of New Entrants – This is a weak force because the company has been
previously ranked at number 4. So, if any new entrant enters the market with similar products, it
will have to invest a large amount.
Bargaining Power of Suppliers – This is a weak force because there are many suppliers
available from whom the company can get its raw material supplied. So, suppliers have a less
negotiating power.
Bargaining Power of Buyers – The buyers possess a high bargaining power because
their preferences keep on changing and there are other brands in the market that offer similar
products (Hernández-Lara, Perera-Lluna and Serradell-López, 2019). To retain its existing
customers, the company should focus on implementing advanced technology in its products.
Threat of Substitute Products – This is relatively strong force because a competitor of
the company can offer substitute products that are better in quality and are affordable. In order to
reduce this particular force, it is important for Super Iconic to hire staff that is highly skilled and
has relevant experience.

Rivalry Among Existing Competitors – If the rivalry among existing competitors will
continue to exist, both the company as well as its competitors will not be able to serve the
customers in an effective way. In order to reduce this force, the company can partner up with an
existing competitors or conduct a market research.
Market Choice/Share
The market choice of Super Iconic is to offer products of lowest prices within the market.
The position of the company based on the market share as well as marke6t segments that are
quality oriented is average.
Internal Capabilities and Industry Trends
Internal Capabilities of a company can be referred to as the ability of a company to
transform the inputs into useful outputs. The company is basically into manufacturing high
quality smartphones (Lee, Longhurst and Campbell, 2017). Currently, the Research and
Development department of Super Iconic has 55 employees. They are responsible for
researching different improved processes so that the overall features can be enhanced. As of
now, the company has a budget of 41,250,000 euros and if there is any reduction in the same, the
effectiveness of the products will drop to 85%. The demand for smartphones is high in the
industry and the company can increase its production in order to enhance its sales. The internal
capabilities of the company can be better understood through a SWOT analysis.
SWOT Analysis
It is a strategic tool that is used by organisations as well as individuals to understand their
strengths, weaknesses, various opportunities as well as potential threats that can have an impact
on the overall performance. It can helps in developing effective strategies and making informed
decisions. The SWOT analysis of Super Iconic is as follows -
Strengths – One of the strengths of Super Iconic is that its smartphones use advanced
technology (Lin, Yen and Wang, 2018). Also, all the products are based on innovative ideas as
the research development department is always looking for processes that can help it in
developing products that attract customers. Lastly, the overall management of the production
process is done effectively.
Weaknesses – Weaknesses of the respective company include the managing skills of the
team leaders. They are not able to manage different tasks that are assigned to them. Although,

technology is one of the strengths of the company, some of its products still have issues with the
same.
Opportunities – There is an opportunity of increasing overall sales by increasing the
production of the products. This can help the company in growing its business and attracting a
greater number of customers.
Threats – One of the major threats that can impact the overall performance of the
company in the market can include the misuse of data. If the data is used in an illegal way, the
company will have to deal with the negative consequences. Also, there is a potential threat of
scams.
Therefore, this was an analysis of the internal capabilities of the respective company as to
how can it avail different business opportunities and increase overall profitability.
Actual performance against targets
The current performance of the company is good as it has implemented advanced
technology in to its products. Not only this, the research and development department has
included different innovative ideas in order to attract the customers (Qian and et. al., 2018).
Lastly, the product management of Super Iconic is also very good as compared to the
competitors. One of the targets of the respective company is to enhance its profitability as well as
generate a high revenue. This is important for the company in order to run its business properly.
Also, since the company is targets to offer lowest possible prices for its products, it is currently
performing fairly good. But still, the overall current performance of Super Iconic against its
target is average and it needs to work on the same.
Simulation Performance Results
Financial Data Analysis
Analysis of the financial data involves studying the different items that are involved in a
business. The analysis helps in determining if the company has been making profits or is running
into loss. By analysing the financial data, useful insights have been drawn which can help in
understanding the current performance of the company.
Balance sheet- This is defined as a type of statement that consists information about company’s
total assets and liabilities at the end of a financial year. By help of it, managers of companies
take suitable actions in regards to financial aspects. In regards to Super Iconic company, this can
be find out that in year 2019, there is no current assets because it is an initial year though, there

was current liabilities in the form of loan of 1000 Euros. In year 2020, their current assets raised
in the form of stock and accounts receivables whose value was around 643700 and 30003600
Euro respectively. While in this year, their current liabilities were of 1188040 and 19314818
Euro in form of loan and accounts payable. From year 2019 to 2022, overall total assets of
company were raised year by year such as from year 2019-22 it was of € 521.187.000,00,
€ 572.861.360,94, € 577.094.517,25, € 552.170.948,81 respectively. But after year 2022, the
value of total assets starts to decrease and became of € 431.586.385,86 in year 2025. One notable
thing in all years is that their current assets were higher as compared to current liabilities that is
good sign of liquidity position. Below a graph is presented that consists information about
current assets and liabilities from year 2020 to 2025 in such manner:
Income statement- It is defined as a type of statement that is prepared in order to find out amount
of net profit and loss at the end of a financial year. In the context of above Super Iconic
company, this can be find out that they are not able to generate profits after year 2021. Like in
year 2020, their net profit was of € 32.536.939,84 that reduced and became of € 20.998.125,90 in
year 2021. It was the last year when company generated profit and after this year their income
statement was producing following outcome from year 2022 to 2025: € -19.986.357,75, € -
34.762.450,05, € -40.328.169,20, € -45.402.647,90. These all figures are showing a trend that
value of net loss is increasing year by year from huge margin. The reason behind this poor
performance is that their cost of sales is too higher as compared to total revenues in above

mentioned years. Below a chart is presented that shows company’s net loss and profit in different
years:
Cash flow statement- It is a type of statement that shows company’s cash position in a particular
accounting year. This provides detailed information about total expenses and cash receipts whose
difference is considered as net surplus. Herein, a detailed summary of total income is mentioned
from 2020-25 that is as: € 293.372.800,00, € 144.051.545,00, € 95.652.553,00, € 65.706.690,00,
€ 89.272.127,00, € 93.611.723,00. Along with their total expenses are as for similar time period:
€ 292.264.539,06, € 155.262.421,78, € 145.129.120,34, € 122.473.174,62, € 144.858.635,46,
€ 146.615.839,90. From these data, this can be stated that company had negative outcome
almost in each year. Their net surplus or deficit as from year 2020-25: €110826094, €-
1121087678, €-4947656734, €-5676648462, €-5558650846 and €-5300411690. These figures
are showing that company is unable to perform well in all years except year 2020 because there
is net deficit in all years. The reason behind this poor performance is lack of control over
expenses. Below a chart is presented that shows company’s net surplus and deficit in different
years:

Ratio analysis- It can be defined as a type of technique in which various kinds of ratios are used
in order to assess a company’s performance. This depends on companies’ that which types of
ratio they implement to analyze their financial performance. In the context of Super iconic
company, some key ratios are interpreted in such manner:
Return on assets ratio- It is a form of ratio which is computed with an aim of determining value
of return on a particular asset. From year 2019 to 2025, above company’s performance is as
follows in regards to this ratio:
Year 2019 2020 2021 2022 2023 2024 2025
Return
on assets
turnover
ratio
0% 5.95% 3.65% -3.54% -6.51% -8.11% -9.98%

Analysis: The above graph is showing that company has generated return on assets in year 2020
of 5.95% that started to reduce after next year and became of 3.65% in year 2021. While in
following years, company was unable to produce positive return as from year 2022 to 2025, their
ratio was as: -3.54%, -6.51%, -8.11% and -9.98%. The reason behind this poor performance is
lower net sales as compared to higher purchasing of assets.
Return on equity ratio: This ratio is used to find out value of return on each equity so that
investors can determine about whether they should make invest or not. From year 2019 to 2025,
above company’s performance is as follows in regards to this ratio:
Year 2019 2020 2021 2022 2023 2024 2025
Return
on equity
ratio
0% 6.20% 3.82% -3.56% -6.55% -8.19% -10.12%

Analysis- This line chart is an indication of poor performance of Super iconic company. This
company failed to generate positive return since 2022 as their ratio was showing negative return
which is a sign of loss to company on equities. The reason of this ineffective performance can be
volume of higher debts in these years as compared to investment by investors in company.
Performance analysis
From above done analysis of various financial aspect of Super Iconic company, this can
be stated that each statement is showing poor financial performance whether it is balance sheet
or income statement. In the aspect of balance sheet, this can be find out that company’s total
assets were decreasing in each year except from initial years. As well as company was facing net
loss in each year except year 2020. After this year, company’s profit and loss statement was
showing net loss. In addition to this, company’s cash position is also poor due to higher amount
of expenses. As there are less number of activities which are generating cash for company. Due
to this, company faced net deficit. Along with, return on assets and equity ratios were also
negative after two years from start. So overall company’s performance is poor and need to be
improve as soon as possible.
It can be seen that the demand for the company's products is growing constantly, but it not being
able to fulfil the same. Therefore, in order to meet the demands, Super Iconic will have to
develop a business plan and ensure that it is being followed at all times. The plan will help the
company in conducting its business operations effectively (Todd, 2020). Also, the company has