Need report based on cesim simulation
Round 1 Report
Headings help organize your paper and help indicate the important elements to the readers. Each headings can repeat multiple times. The most common headings are 1 and 2. Level 1 headings are used for top level.
Market Condition
This is used as a subheading for the above level one topic. An example of this heading would be “sample” or “design.”
Business Plan / Strategy
Headings help organize your paper and help indicate the important elements to the readers. Each type of heading can repeat multiple times.
The most common headings are 1 and 2, and often you will not need more than that. If you would like to learn more about the levels of headings, please the see APA Quick Guide under Library Resources.
Marketing strategy
In the first round the only accessible technology is Tech 1. Since the competition is still unknown and we are not aware of their power and strategies, we’ve decided to add one feature to our product compared to the previous round. We will sell all three products with three features. In the Us market, although we added one feature, due to the difference between the unit cost which was USD 95 we’ve decided to increase the price slightly compared to the last round. Moreover, American market is less sensitive to higher prices, so considering all aspects we’ve increased the price from USD 280 to USD 283. We increased the promotion amount from USD 5,580 to USD 6,000. In Asian market, since customers are more sensitive to prices we’ve decided to decrease the price compared to last round and despite adding a new feature. We decreased the price from RMB 2,000 to RMB 1800 and decided to add USD 1,000 to the promotion to reach 17,000 due to higher forecasted growth. In the european market, since the customers are less sensitive to the prices we’ve increased the price from EUR 150 to EUR 153. On the other hand, we’ve decided to keep promotion the same as the previous round at USD 7,600.
Manufacturing strategy
Headings help organize your paper and help indicate the important elements to the readers. Each type of heading can repeat multiple times.
Human resource strategy
At the beginning of the simulation in around when the HR department started with 200 in order to reach the required man-hours for developing and implementing our strategy of developing 55% of Tech 2 and also developing one additional feature for Tech 1, we have decided to recruit a hundred employees totaling to 300 employees giving a total man-hour of 75,000 which can be utilized in the research and development department. Keeping the employees the same amount, not recruiting or playing any of them, we invested all the available man-hours in developing 55% of Tech two for round two and one additional feature for Tech one. Keeping the wage rate at 4050 and estimating the turnover to be 1% less from last round, that is a 6% to 5% decrease. We have allocated the same amount of training budget at 300. The total cost of the HR department came to $44,775
HR Figure 1
The strategy has been placed to reduce the turnover of the employees, which in turn reduces the recruiting costs and many other variable costs for the company, which directly helps in creating profits and earning more shareholder return.
As to the results of our strategy implemented in the human resource department, the results indicated that the efficiency of HR is reported as 0.98, which is on par with the competition. Due to the increased wages which we have implemented in order to reduce turnover, the strategy worked, and he did a lower employee turnover ratio from past Data off 6% to 5.4% (HR Figure 1)—resulting in a lower cost of recruiting, which is only chargeable when the turnover rate is higher. Although may seem that we have spent a lot on hits our budget while comparing it with the results and looking at our competitors, we spend the efficient amount, not the least but not the highest either creating a sweet spot of wage rate and efficiency ratio combined with a lower percentage of employee turnover made the HR strategy we have implemented successfully in the markets.
HR Figure 2
As we can see from above, we have created an efficiency which is that far with the competition although we have increased the number of employees, after all the strategy applications and seeing the results of the total cost of the HR department came up to $ 24,452 which can be set up as a success of our strategy applied in round one. Being optimistic, we move on to round two, hoping to create lower employee turnover and higher efficiency.
Research and development Strategy
At the beginning of the simulation, the company had Tech 1 ready for production with one feature, but since the markets are very competitive with five companies operating in the market with 20% market share each to increase said market share, we have decided that an additional feature is required to stay ahead of the need for which we have spent fifty-five thousand dollars in purchasing one additional feature for Tech 1 to sell in all the three markets and gain more market for the product as indicated in (
R&D Figure 1
).
R&D Figure 1
To be more aggressive in the market for the next round, we have devoted our research and development department to develop one additional feature for Tech 1, which will be ready for the next round. Also, since the demand for Tech two is still dormant in the second round as per the network coverage forecasts and coverage is rising in the Asian and European markets by 35% and 32% respectively, we have estimated that it was not worth the elocution of new man-hours so we have decided to utilize our existing man-hours to develop tech two so that we can have 50% of Tech 2 ready by round two. So as per our plan, we would have Tech 1 with two features in round one, and thanks to our in house research and development department, we have one additional feature for Tech 1, and 50% of the research progress would be achieved for Tech 2 as indicated in (
R&D Figure 2
).
R&D Figure 2
With a plan to get the Tech 2 ready for round three, we have developed tech 2 to 55% in round one, so it will be only 45% left to develop. Allocating such a resource thoughtfully, we moved forward with an organized plan to increase our market share and create more profit and market presence while keeping in mind the possible growth in the market and cashing in on the Asian market by attracting the customers in the market with introducing new features and making sure to meet their tech-savvy requirements by offering Tech one with one additional feature. We were then being ready when the tech 2 reaches its origins in the market.
Financial strategy
Headings help organize your paper and help indicate the important elements to the readers. Each type of heading can repeat multiple times.
Assessment
This is used as a subheading for the above level one topic.
Actions are taken compared to the business plan – Justification of the departures
Headings help organize your paper and help indicate the important elements to the readers. Each type of heading can repeat multiple times.
Significant events are affecting the company and/or market.
Headings help organize your paper and help indicate the important elements to the readers. Each type of heading can repeat multiple times.
The result vs. performance goals based on key performance indicators
Headings help organize your paper and help indicate the important elements to the readers. Each type of heading can repeat multiple times.
The Reason for Achieving/Not Achieving the Goals
At the beginning of round one, there’s only demand tech one in all three markets, and US and European markets were not receptive to new features but not really considering to be cost-sensitive but in Asian markets, they are receptive to new features and are price sensitive we have decided that our strategy is going to be aggressive and the way we achieve a higher market presence. We strategized that we are going to sell the one with two features and with a competitive price in Round1.
Our strategy in round one was successful, and we have reached our goal not fully but partially to increase our market share. Although we have increased our market share when compared with our competitors, we have the third-best market share and earnings per share. This was due to the lower prices of the competitors, which led us to the third position we’ve had. And due to our higher cost in R&D, by purchasing one feature from Round1, we have increased the R&D budget.
Our partial success was only because the competitors have chosen to Tech one at a lower price than we did in all three markets. Due to the fact that customers are attracted to companies who offer the same product for a lower price, we have received less market growth and then our competitors. Our market growth was 0.55%. Although it was an increase from the starting of 20%, we were aiming to get a higher market growth. To be ready for the next round to increase our market growth, we have decided to follow a more sustainable way of reducing other places then the competitors.
Plans for the Next Round
Headings help organize your paper and help indicate the important elements to the readers. Each type of heading can repeat multiple times.