GLO-BUS - Online Business Simulation Analysis

Essay by KatwirlUniversity, Master'sA+, May 2005

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I. The Firm's Objectives

A clear strategic plan was set out in the beginning, and adhered to throughout the course of the simulation. Our overall objective was to determine the correct mix and balance of camera components, which enabled the most favorable outcome in the competitive arena. In order to offset the cost structure of the multi-feature camera, a low cost structure for the entry-level camera was implemented. This was achieved by offering a differentiated, high end multi-feature camera, offset by a low cost leader entry-level camera.

Entry-level strategy

o Low cost strategy

o Minimal features

o Low cost per unit on core components

o Market leader

o High sales volume

o Low P/Q rating

o High Image rating

Multi-Feature strategy

o High End

o Target P/Q rating of 5 star

o High per unit spending on core components

o Higher profit margins

o High image rating

Increase market share in AP and LA where sales are weaker

Remain market leader in every country for Entry-level camera, while growing market share in Multi-feature cameras

Maintain a higher Image Rating than competitors

Maximize retail representation in all three avenues

Decision Making Strategy

To remain stable and consistent through out the simulation

Be consistent with decision making, never increasing or decreasing decisions one way or the other

Do an external analysis of competitors moves, before determining ours

Keep the same position, in relations to competitors moves, adjusting prices and P/Q ratings accordingly

Keep and A+ credit rating

Grow Revenues, EPS, ROE, Image rating, Stock Price and Credit Rating enough to withstand a competitive market.

(see associated financial graphs in Appendix A)

Buy back stock in order to elevate EPS

Maximize production for both cameras, by 10%, in order to assure no shortage of cameras in retail inventory

Maximize labor cost to ensure...



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