Strategic Management Report: Brandz Co. Market & Financial Analysis

This report provides a comprehensive analysis of Brandz Co.'s strategic management, focusing on its performance across multiple rounds of a business simulation. The introduction outlines the company's objectives, including financial targets like ROI and profit margins, as well as customer satisfaction and internal process improvements. The report examines Brandz Co.'s decisions related to product lines (PAJO S, PAEN X, and AGRBTI C), workforce allocation, automation, and marketing strategies. Detailed financial results, including sales figures, gross margins, and cash flow, are presented for each round, along with an assessment of the company's performance against its objectives. The analysis highlights key areas for improvement, such as cost control, marketing effectiveness, and workforce management. The report also includes a trend analysis of key performance indicators and personal reflections on the simulation experience. The strategic management report provides a detailed overview of the content and outcomes, including financial performance, market share, and competitive strategies.

STRATEGIC MANAGEMENT FOR
COMPETITIVE ADVANTAGE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Company performance.....................................................................................................................6
A. Round 1..............................................................................................................................6
B. Round 2..............................................................................................................................7
C. Round 3..............................................................................................................................9
D. Round 4............................................................................................................................11
TREND ANALYSIS.....................................................................................................................13
LEARNING...................................................................................................................................22
Strategy ................................................................................................................................22
Financial decisions...............................................................................................................23
Marketing decisions..............................................................................................................23
Operating decisions..............................................................................................................24
Human resource decisions ...................................................................................................25
Conclusion ....................................................................................................................................25
Team Performance.........................................................................................................................25
Personal reflection ...............................................................................................................25
REFERENCES..............................................................................................................................28

INTRODUCTION
The organisation aims to enter in new markets with new products in order to achieve high
customer satisfaction and profit in the market. Brandz co. is planning to produce new models in
order to target new customers in the market. The simulation of operations, finance, human
resources, productions management etc will be analysed. The customers will be approach with
new models and brands so that sales of these cars can be increased.
The business objectives are as mentioned below -
Business Objective:
Perspective Objectives Key performance
indicator
Target Indicator
Financial
perspective
 The main
objective of
organisation
can be
incorporated
with making
satisfactory
rise in net
profit after
tax,
operating
income as
well as to
reduce the
costs implied
in each
operational
activity.
 Considering
the return on
investments
 ROI%
 Post tax
profit%
 Operating
profit
 10%
 4-8%
 10%
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there, is need
of effective
policies
which will
result in
satisfactory
rise in
returns
Customer
perspective
 As per
considering
the buyer’s
satisfaction
as well as
profitability
of entity
which will
be based on
rise in the
market value
of the cars in
each period
around 5-
10%
 Effective
dividend
policies will
lead the firm
in attaining
adequate rise
in the market
 Share value
of the cars.
6-12%
2

share
Internal
planning
process
 Focus
needed to be
payable over
reducing
CO2
emissions in
each model
which is
dealt by the
business.
 Professional
s are needed
to emphasise
over making
reduction in
the warranty
claims
 Warranty
claims
 CSR
reporting.
 28%
Learning
growth
 Analysing
workers’
needs and
wants which
will result in
reducing the
strike days
to 1- 3 years.
 Improvemen
ts needed to
be made in
the
production
 Considering
the number
of strike
days in a
period.
 Analysing
the
production
capacity of
the business
per car
 Strike
days -1
 Producti
vity
needed
to be
around
120
million
3

level which
will result in
rising the
revenue of
the firm.
Productivity  Focus has
been payable
by the
organisation
on
enhancing
consumer
satisfaction
by designing
their desired
level of
products.
 Improving
the worker
compensatio
n which will
result in
better
analysing
and
understandin
g towards
the
enhancing
the
production
 Consumer
satisfaction
 Product
design
 Employee
wages
 Reduction
in costs
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level of the
business.
 Reducing the
costs
incurred in
each product
line such as
material
costs, etc.
which will
result in
better
operational
gains to the
business.
Quality  Analysing
buyer’s
comfort
regarding car
models and
their
preferences.
 Controlling
costs will not
affect the
product
quality.
 Rising the
market share
with motive
of attaining
the
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satisfactory
amount of
gains.
Summary of the performance
Rounds Total sales Total unsold Shareholder
funds
Closing
bank
balance
Outstanding
loan
Round 1 3801.28 0 781.88 -29.65 100
Round 2 6483.22 1472 1529.10 -221.59 0
Round 3 4608.52 135827 1500.98 -1380.79 500
Round 4 5322.97 236263 -4.78 -3613.65 1000
COMPANY PERFORMANCE
A. Round 1
Decisions
Considering the research techniques and methods on which various components have
been addressed and analysed with relation with having appropriate determination of operations
as well as various areas of improvements. In Round 1,there has been operational records and
estimation based on 2 models of Bandz Co. such as PAJO S and PAEN X. Thus, frim has been
emphasised on the small petrol engine and large petrol engine which will based on consumers
who belongs to the age group under 25 and between 25-40. However, it has been estimated that
frim will have sales of 1000000 in PAJO S and PAEN X it will have 62000.
Forecast and Results
By considering the operational activities of Bandz Co. in the first round on which they
have estimated to sale the both the cars with no unsold stock. Thus, they have the positive
outcomes and it has been estimated as the favourable outcomes from such business game. The
allocation of the workforce in each unit has been administered as 60.26% were in PAJO S while
39.73% were in PAEN X. These brands have gross profit of the firm as 38.82% and 22.26%
respectively. The sales made the professionals in the year was 3801.28. It reflects the negative
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cash flow -26.65, Fixed overheads 233.15, promotion 266.00, R&D 163.40 and training 20.
Warranty cost per car on which PAJO S has 252.04 and PAEN X has 405.09. Thus, out of all the
outcomes it will be recommended to the professionals of Bandz Co. that they must reduce the
costs incurred in production process.
Round 1
Forecast Results
Model Small petrol
engine
Large petrol
engine
Small petrol
engine
Large petrol
engine
Car name PAJO S PAEN X PAJO S PAEN X
Target Under 25 Between 25-40 Under 25 Between 25-40
Workforce 60.26% 39.73% 60.26% 39.73%
Automation
allocation
40.00% 20.00% 40.00% 20.00%
Effective workforce 2199 1450
Productivity 45.48 42.76
Production 100000 62000 100000 62000
Unsold stock 0 0 0 0
Selling price
Market price 21429 26748
Market share 1.78% 2.23%
salary 84.26
Gross margin 38.82% 22.26%
Sale income 3801.28
Net cash position -29.65
Fixed overheads 233.15
Promotion 266.00
R&D 163.40
Training cost 20
Automation
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investment
Warranty cost per
car
252.04 405.09
depreciation 80.5
Operating profit -368.14
Post tax profit -281.88
Loan 100
B. Round 2
Decisions
In the Second Round Bandz Co. has been considered the three brands on which they will
operate all the operations such as PAJO S, PAEN X and AGRBTI C. considering the category of
individual which belongs to the age group of under 25, between 25-40 and between 41-55.
AGRBTI C is a small petrol engine and Electric/ Hybrid Engine. Work force has been divided
among them as 43.09%, 26.72% and 30.18%. It has been estimated by professionals that these
brands will have production and estimated sales as 150000, 90000 and 80000 respectively.
Forecast and Results
Considering the operational outcomes on which the firm has estimated to sale these cars
such as PAJO S as 150000, PAEN X as 90000 and AGRBTI C as 80000 respectively. They
have also estimated that there will not be any unsold stock but brand PAEN X has 1472 as
unsold stock. Considering the outcomes on which Gross profit of these brands are 40.72%,
17.96% and 13.29% respectively. A negative cash flow has been demonstrated which is -221.59,
warranty costs for each brand as 183.19, 286.70 and 234.25 respectively. Moreover, it will be
recommended to the professionals of Brandz Co. that they must have effective control over costs
and try to enhance the marketing of PAEN which will result for the growth and operational
advancement in the product line.
Round 2
Forecast Results
Model Small
petrol
Large
petrol
Small petrol;
engine and
Small
petrol
Large
petrol
Small petrol;
engine and
8

engine engine Electric/Hybride
engine
engine engine Electric/Hybride
engine
Car name PAJO
S
PAEN X AGRBTI C PAJO S PAEN X AGRBTI C
Target Under
25
Between
25-40
Between 41-55 Under 25 Between
25-40
Between 41-55
Workforce 43.09% 26.72% 30.18% 43.09% 26.72% 30.18%
Automation
allocation
40.00% 20.00% 20.00% 40.00% 20.00% 20.00%
Effective
workforce
2499 1550 1750
Productivity 59.39 58.01 45.71
Production 150000 90000 80000 150000 88528 80000
Unsold
stock
0 0 0 0 1472 0
Selling
price
Market
price
22481.00 25448.00 11200
Market
share
2.56% 3.16% 1.54%
salary 144.83
Gross
margin
40.72% 17.96% 13.29%
Sale income 6483.22
Net cash
position
-221.59
Fixed
overheads
413.25
Promotion 261.00
9

R&D 13.64
Training
cost
16
Automation
investment
Warranty
cost per car
183.19 286.70 234.25
depreciation 138.29
Operating
profit
-963.48
Post tax
profit
-747.22
Loan 85.18
C. Round 3
Decisions
In the third round, brands will focus on increasing the automation of small petrol engine
to 40%, and 20% for large petrol engine as well as electric engine. PAJO S is a small petrol
engine model which is targeting customers under 25 years and will be producing 150000 units
PAEN X is consists large petrol engine which will target customers form the age group 25-40
years and the production will be 90000 units. The third bran AGRBTIC C consists Hybrid engine
which will focus the age group 41 – 45 years and will be produced at lowest level of 80000 units
Forecast and Results
The result of this round concludes that PAJO S successfully achieve its target by
producing 150000 units with the help of 2499 employees, PAEN X failed to meet its production
goal which was 90000 and manufactured 88528 units and the last brand AGRBTI C also
successfully produced 80000 which was forecasted. The total sale income was 6483.22 and net
cash was -221.59 which was due to increased operation cost such as the fixed overheads was
413.25. The results present that the organisation needs to have risen in operational performance
as well as make various changes in costing activities.
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