Request assistance in developing a Business Strategy for running a Simulation.
This assignment involves participating in a simulation exercise.
I need assistance in explaining a strategy for the following decision:
Overall, after considering the information, I have decided to change the plan as X5 market has settled and there is limited chance of new customers in the ensuing period. I have decided to cut the research and development budget for this model to 5%. In contrast, I will increase the budget for the X6 model, while increasing its price to $500. According to research, the X7 model is a less expensive low quality model, therefore, to capture the maximum market through price penetration, I have decided to reduce its price to $150.
While many simulations focus on just one general area of management (e.g. supply chain management or leadership), I have selected one that integrates several areas. In particular, you will be looking at income statements and sales reports. You will be making decisions about production, pricing, and investment.
Your first step is to come up with a strategy for how you will make these decisions. I don't want you to run the simulation yet! We will be following the following sequence:
The simulation itself is short, so we will have the opportunity to repeat the above sequence three times.
For this module:
1. Access the simulation site (Click here). We will be using the PDA Sim
2. Read the introduction, and study the Financials and the Market Information. Review the Decisions you will be asked to make, BUT DO NOT ENTER ANY DECISIONS! (If you have difficulty with impulse control, try one of the other simulations!)
3. Help describe the strategy that you will use and defend why you think that strategy will work Hints for success!
You are asked to make business decisions under conditions of incomplete information and uncertainty. You strategies in approaching this decision need to rely on models, ratio analysis, and theories from such classes as Economics, Finance, Accounting, Marketing, Strategy, and Quantitative Analysis. In addition, the simulation will give you some additional market information as you progress.
It is necessary to make specific recommendations as to any pricing changes or allocations to R&D. (Drop the price of model X? By how much?) Your recommendations must make sense given your analysis of the market and chosen strategy.