Simulation Report
1
Simulation report 1
Generic Strategy
As we reviewed in the text this week, product differentiation is one of the generic
corporate strategies. The strategy aims to distinguish a company's products from those of
competitors and involves identifying and communicating the unique qualities of a product or
company and its competitors (Arshad, 2020). This strategy is linked to a strong value proposition
that makes a product attractive to the target market. The target area for differentiation for AEV
was safety. The product is designed to meet the maximum threshold on safety, which is four
points out of the 5 potential points. The marketing and advertising efforts for the product focused
on safety as the sole product differentiation strategy to the segmented targets. This strategy seeks
to enable the company to refine the target audience and facilitate product customization to meet
and exceed the demands of this market. It is a competitive advantage that would allow the brand
to gain a competitive advantage in the market. Despite evolutions in business needs, the
competitive advantage did not change from the week I. Safety withstands the most fundamental
principles in designing an automobile, which explains consistency. It is among the critical selling
points for automobiles, which means a unique competitive advantage for the company.
Strategic Action Plan
The strategic action plan going round detailed in Blackboard was to identify the industry
performance regarding net incomes, stock prices, and the market share of different companies
concerning the company in question. These factors relate directly to the overall strategy of
product differentiation by supporting the location of a company's position relative to competitors
in the industry. The process was ideal for identifying potential threats and opportunities that offer
Simulation Report
2
a strong idea of the present and future scenario of the industry (Wei et al., 2022). This resulted in
identifying specific attributes in the industry: product quality, safety, interior design, and styling.
Other notable competitive advantages include horsepower and the size and class of an
automobile. One of the specific, measurable goals for the move was to identify the income dollar
value for the players in the three years. The other goal was to the trends in stock prices for the
industry players. I made operationally reactive moves unrelated to the strategy to create a
comprehensive picture of the industry before re-launching the new product with improved safety
standards. For example, I evaluated the manufacturing for the industry players like Eurom
Estruck and Efizz. The review involved previous sales records, current inventory, and scheduled
production. The information is necessary for scheduling the product's production costs to include
the safety standards.
Fact-Based Results
The next set of objectives and measurable moves that will be considered are the specifics
of implementing the differentiation strategy. Most of the information necessary, like the industry
performance and market trends, is already at hand. The next big thing would be focusing on
issues related to safety standards as the targeted differentiation strategy (Wei et al., 2022). For
example, the next move should consider the cost of developing products that meet the maximum
safety scores, which is four points for AEV. The consideration should also include the cost of
constructing a new center, opening and closing a dealership, and all other overhead estimates. I
wish to suggest production costs for different AEV categories based on class. An example
includes the cost of improving the safety standards and the attached dollar value. Another
suggestion to the partners in the next week’s moves is the cost of marketing the improved
Simulation Report
3
product. The suggestion is necessary for determining the benefits of emphasizing differentiation
strategy as the competitive advantage for the product.
Lessons from the Course
My greatest lesson from this lesson is to create a bigger mental picture in solving
complex problems. The activity is designed to support a holistic understanding of diverse
business disciplines by bringing together different departments like production, marketing, and
finance. The approach allows learners to envision the relationship between departments and how
their decisions influence the bottom line performance (Barnaby et al., 2020). This enabled me to
illustrate theoretical business concepts better. It offers diverse ways to introduce practical
elements like board games, case studies, and internships. The simulation activity offered an
interactive and dynamic learning environment that enabled me to learn during the process and
test my mettle against peers regardless of location and time. The process allowed me to learn
from my mistakes by experimenting freely with various business strategies without cost
repercussions. This allowed me to pay close attention to the likely development of the market in
which my target brand operates and explore innovative means for managing competition. In this
case, the intervention was deploying market differentiation.
The activities from this lesson are superior to other learning processes since they have a
wide potential for connecting the outcomes to interdependent subjects in many ways. This value
is instrumental in my course and career by allowing me to gain first-hand experience in the
interrelationships between management decisions. An example is how marketing decisions can
influence production and financial decisions. The course equipped me with skills like performing
Simulation Report
4
under pressure, analyzing environments to develop and implement a business plan, and
collaborating with teammates in conflict management. These skills are desirable in shaping my
course and career goals to become a competent professional in the business.
Log for Accessing the Simulation System
The meetings with my teammate are every Sunday between three and four in the evening.
The last access to the simulation system was yesterday at the said time. We reviewed and
discussed the simulation system data by reviewing the industry performance based on various
metrics. Examples include total distribution for major industry players in different markets, the
estimated costs of establishing and closing a dealership, and the estimated expenses for product
development based on various metrics such as quality, safety standards, and a class of an
automobile. Based on industry analysis, we settled on product differentiation as the strategic
move to bolster the automobile's reputation, create value for the products, maximize profit
margin, and build a network of brand loyalty.
Simulation Report
5
References
Arshad, M. (2020). Artificial intelligence in business simulation analysis. European Journal of
Technology, 5(2020):16-33. Retrieved from file:///C:/Users/USER/Downloads/629Article%20Text-2441-1-10-20210105.pdf
Barnaby, J., Devins, D. & Beech, N. (2020). Using simulation to develop business strategy skills
of entrepreneurs - Some reflections on a pilot. SAGE Journal, 35(3): 270-275. Retrieved
from https://journals.sagepub.com/doi/epub/10.1177/0950422220945672
Wei, C., Wang, M.Y., Lin, H., Wang, Y., & Huang, J. (2022). Developing and validating a
business simulation systems success model in the context of management education. The
International Journal of Management Education, 20(2): 100634. Retrieved from
https://www.sciencedirect.com/science/article/pii/S1472811722000362
Simulation Report
6
Simulation report 2
Corporate Generic Strategy
Generally, a company that implements and executes a better strategy is well placed in the
market to generate profits and maintain its place in a competitive market. I know that strategies
are a set of processes geared to a given business to access more profitability and attain ambitious
goals. In this case, based on the weekly textual review, product differentiation remains to be one
of the corporate strategies. The strategy aims to differentiate the company's products from those
of the competitors by identifying and communicating the unique qualities of the product or
company and its competitors (Surono et al., 2020). The strategy is associated with a strong value
proposition that enhances the product's appeal to the target market.
Safety is one of the critical selling points in the AEV product differentiation. For this
reason, the product is designed to meet the maximum safety threshold, four out of five possible
points. Advertising and marketing plans for the product concentrate on safety as the single generic
differentiation strategy to segmented targets (Surono et al., 2020). The strategy works by enabling
the company to refine the target audience and enable product customization to realize and attain
market demands. The plan gives the company a competitive edge in the market (Surono et al.,
2020). Regardless of the business growth needs, the competitive advantage did not change from
the first week. Safety is one of the most crucial selling points for automobiles since it can endure
the fundamental principles of automobile design and, thus, consistency.
Simulation Report
7
Blackboard Strategic Action Plan
The generic corporate strategy in the strategic action plan is focused on two critical factors.
Firstly, focusing on the company's cost is geared toward realizing the cost advantage in the target
market segment (Min & Kim, 2021). Secondly, the focus is on differentiating the services and
products offered in the market niche. These factors are directly connected to the product’s overall
differentiation strategy by recognizing the company's position compared to industry competitors.
The generic corporate strategy deal with costs and product prices sold in the market. The
differentiation focus strategy exploits the buyers' needs in the market niche of the customer and
product (Min & Kim, 2021). In our case, the strategic action plan involved reviewing detailed
industry performance regarding stock prices, net incomes, and market share of various
organizations.
It is an ideal process for detecting possible opportunities and threats that offer a distinct
picture of the present and future industry scenarios. It has resulted in examining specific features
in the industry, such as product quality, styling, safety, and interior design. Other prominent
competitive advantages include automobile class and size. One of the goals is to identify the
competitors' revenues in the past three years. The other goal is to monitor the trends in share prices
of the industry players. I took a reactive approach concerning the strategy to generate a
comprehensive look at the industry before relaunching the new product with enhanced safety
standards. For instance, we evaluated and examined the manufacturing for industry players such
as Euro, EcoStar Estruck, and Efizz. The assessment included inventory, a preceding sales record,
and planned production. The data is essential for planning product production, including safety
standards.
Fact Based Results Compared to Intended Moves
Simulation Report
8
Measurable moves and objectives to be considered in the next phase are ways of
implementing the differentiation strategy. The information at hand includes trends in the market
and industry performance. The next thing would be concentrating on the issues associated with
safety standards, such as target differentiation strategy. For instance, the initiative considers the
expenses of developing products that satisfy the minimum safety threshold. The consideration
should consider the cost of upgrading, setting up a new center, opening and closing a dealership,
and all other expenditure estimates. We suggest that the production costs for various AEV be based
on class. For instance, the cost of improving safety standards and its associated dollar value. In
addition, I suggest to the partners the cost of marketing the enhanced product. The suggestion is
necessary for determining the benefits of emphasizing product differentiation strategy as a
competitive advantage (Mitropoulos, 2012).
Lesson Learned
I learned the criticality of combining diverse cognitive skills in handling complex issues.
The exercise supports a holistic understanding of various disciplines by integrating marketing,
production, and finance departments (Xu & Yang, 2010). The strategic approach allows the student
to envisage between departments and how critical decisions impact the bottom line performance.
For this reason, it has improved the illustration of business concepts. Also, it offered various ways
to introduce practical elements such as case studies, board games, and internships (Xu & Yang,
2010).
This simulation exercise provides a dynamic and interactive learning environment that has
allowed me to learn during the process while evaluating my ability against my friends in regards
to solving complex business problems. Mistakes made during the process served as a stepping
stone, freely experimenting with various business approaches without cost consequences (Xu &
Simulation Report
9
Yang, 2010). It also allowed me to focus on the possible growth of the market in which the target
brand works and discover inventive ways of managing competition. In this case, the intervention
is the deployment of market differentiation.
The lesson activities are distinct from any other processes since they have a way of
widening the potential for linking the outcomes to interdependent subjects in many ways (Clarke,
2009). The value is instrumental in my career and course by allowing me to gain insights into
management decisions and interrelationships. For instance, determining how marketing decisions
affect financial and production decisions (Xu & Yang, 2010). The course is equipped with skills
such as performing under pressure, analyzing environments to implement and develop a business
plan, and collaborating with teammates to resolve conflicting issues. These skills are critical in
shaping the career trajectory of becoming a competent professional in the business (Clarke, 2009).
Figure 1: Decision timeline
Simulation Report
10
Simulation System Access Log
The group members assembled every Saturday between two and three in the afternoon.
The most recent system access was today at the same time. We extracted data followed by
discussions on the best course of action based on an analysis of different performance matrices.
For instance, the total distribution for major industry players in various market segments cost
estimates of establishing and closing dealerships and estimated product expenses when considering
multiple metrics such as safety, quality, standards, and a class of an automobile. Based on industry
Simulation Report
11
review, product differentiation was deemed a suitable strategic move to boost automobile brand
reputation, generate product value, create a network of brand loyalty, and maximize income
margin.
Simulation Report
12
References
Clarke, E. (2009). Learning outcomes from business simulation exercises. Education And
Training, 51(5/6), 448–459. https://doi.org/10.1108/00400910910987246
Min, S., & Kim, N. (2021). Competitive Imitation Strategy for New Product-Market
Success. Australasian Marketing Journal, 183933492110479.
https://doi.org/10.1177/18393349211047929
Mitropoulos, S. (2012). A simulation-based approach for IT and business strategy alignment and
evaluation. International Journal of Business Information Systems, 10(4), 369.
https://doi.org/10.1504/ijbis.2012.048334
Surono, S., Suryanto, T., & Anggraini, E. (2020). Comparing Cost Leadership Strategy with
Differentiation Strategy towards Firm Performance on Jakarta Islamic Index. The
Winners, 21(1), 35. https://doi.org/10.21512/tw.v21i1.5963
Xu, Y., & Yang, Y. (2010). Student Learning in Business Simulation: An Empirical
Investigation. Journal of Education For Business, 85(4), 223-228.
https://doi.org/10.1080/08832320903449469
Simulation Report
13
Simulation report 3
Corporate Generic Strategy
The main corporate generic strategy is broad differentiation whereby we focus on the products
with specific features and have the organizational blueprint (Islami et al., 2020). The main
production plans entail addressing the challenges through competency and key issues in making
significant solutions and addressing the perfection and quality forms in making the right
decisions matter. An ideal approach to the differentiation strategy is to address the threats
through the sieving of the right products and addressing successful measures in making things
work out as recommended for competitive solutions to be realized in the best ways possible.
Strategic Action Plan
Going into the rounds in the Blackboard, the strategic action plan to take is financial
leverage in the manufacturing process. The organizational products can do well in the market if
the right strategy is implemented in promoting a focused approach and helping solve the
challenges as recommended(Elia et al., 2022). The focus and key solutions require a basic
strategy to make things work, especially in addressing the challenges and working to make
things better. A good production process is necessary in helping make the products better. With a
good capital investment beyond the current expenditures, the products can be good and excel in
the market, especially in the global space. Ideally, working to resolve the challenges is through a
good strategy to make things better through perfection and a competitive strategy in applying the
basic solutions as needed (Oehlhorn et al., 2020). A good focus on capital issues is a necessary
solution to make things better through better and perfect measures.
Simulation Report
14
Addressing the challenges and enhancing the quality strategy and implementing of best
strategies is a good approaches to work (Oehlhorn et al., 2020). The main focus is to help in
making the organization gain through the best techniques and following desirable solutions in
enhancing the needed processes as per the identified information. Applying a basic and
competitive solution is one of the best ways of making the right solutions see the light of the day
through quality services and employing a good product differentiation and blueprint in making
good decisions as required. Additionally, a strategy to increase the upgrade for the trucks such
as Estruck is good in helping promote the organization to focus on key issues and enhance the
major protocols of improving and working on the main solutions to the market.
The organization has an AEV, and thus the investment was solely on the decision that was most
favorable. Another action is focusing on the “Euro” and “Estruck” to help in delivering the right
financial goals and objectives. Thirdly, an investment of 8 million dollars in marketing is a good
strategy to improve on the situation and promote the anticipated success (Oehlhorn et al., 2020).
As per the decision, the financial leverage is good in solving the major market variations and
fluctuations to make things work out as recommended, and ensure that success is accomplished
in the best ways possible. Additionally, a capacity increase of between 50k to 150k is set to
achieve great milestones in the simulation and project.
How the objective was
The objectives of the simulation decision was to promote the company’s profitability and
reduce the debts. through the right information and application of crucial content in making the
organization. From the increment of the engine capacity from 50k to 150k, the objective is good,
especially in the promotion of the right progress applied with a good focus on the measurable
Simulation Report
15
outcomes as needed. A strategic entry and key solutions matter in making significant moves and
addressing the major challenges to solve and work on the solution in a manner that is
recommended.
The projected results was a debt reduction both in the term and long term. From the
results, there is a failure due to the presence of debt accrued from the simulation of more than 8
million. The challenge in every organization is to run positively and have everything well-placed
to make a successful venture and promote a better focus. The key solutions and competencies
matter in making things better for the solutions and perfection to be realized in the best ways
possible.
The next move and set of objectives
The main plan is to enhance the broad product differentiation when more money is
injected into the production process. Additionally, an 8 million dollars expenditure is considered
a key thing in the market to help in promoting a well-balanced market scope to help in the
absorption of the products. With the AEV decision on the investment, the focus is to help make
things better through a good enhancement approach to make things better for competitive
solutions to address the challenges in the right ways possible. Additionally, a capacity increase
from 50k to 150k can help in promoting product entry into the market and competition. The
revenues can be stable with the right products in the market and key investors making their way
into the global market to impact positively. For periods 7 and 8, the focus on Euro is a strategic
plan to change things, and address the key challenges to make the right information come to the
market and promote the essential marketing approach.
Figure 1: Decision timeline
Simulation Report
16
Lessons learned
From the simulation, the main lessons learned are the need to focus on strategic
production and the elimination of cost challenges to make things better. In a career, good
planning for success starts with the identification of the faults and working through all the
processes to make things better. Enhancing a competitive strategy and capacity to work on the
solutions is a better approach to making things better through enhancing the key focus as needed.
An element of success is one in which the major issues are implemented and applied in making
better and perfect moves as needed. A good solution and competitive working formula are one in
which the major approaches are following a good plan and strategy to address the threats as
needed (Anser et al., 2020). Additionally, enhanced productivity and capacity building is key to
solving the main problems through enhanced solutions and major applications in making better
decisions as needed.
Simulation Report
17
Simulation Logs
We as a team had time to assemble this Sunday at 5pm to access the simulation system
and carry out the required objective information. Addressing the challenges is through a
competitive protocol to make things work and enhance a key solution in making the right
decisions as needed. Good strategy and focus are on the way things happen, especially on the
measurable ones. We also discussed the main outcomes to make things better through a good
focus on the organizational system as needed throughout the week through text messages.
Simulation Report
18
References
Anser, M. K., Yousaf, Z., Usman, M., Yousaf, S., Fatima, N., Hussain, H., & Waheed, J. (2020).
Strategic business performance through network capability and structural
flexibility. Management Decision, 59(2), 426-445.
https://www.emerald.com/insight/content/doi/10.1108/MD-06-2019-0741/full/html
Elia, G., Raguseo, E., Solazzo, G., & Pigni, F. (2022). Strategic business value from big data
analytics: An empirical analysis of the mediating effects of value creation
mechanisms. Information & Management, 59(8), 103701.
https://www.sciencedirect.com/science/article/pii/S0378720622001100
Islami, X., Topuzovska Latkovikj, M., Drakulevski, L., & Borota Popovska, M. (2020). Does
differentiation strategy model matter? Designation of organizational performance using
differentiation strategy instruments–an empirical analysis. Designation of organizational
performance using differentiation strategy instruments–an empirical analysis (February
14, 2020). Islami, X., Latkovikj, MT, Drakulevski, L., & Popovska, MB, 158-177.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3933795
Oehlhorn, C. E., Maier, C., Laumer, S., & Weitzel, T. (2020). Human resource management and
its impact on strategic business-IT alignment: A literature review and avenues for future
research. The Journal of Strategic Information Systems, 29(4), 101641.
https://www.sciencedirect.com/science/article/pii/S0963868720300494
Purchase answer to see full
attachment