Business Simulation Analysis (Task 1)

Business Simulation Analysis (Task 1)

Simulation Results Analysis

Actions during Simulation

I started a new company that entered in the business of microcomputers. For this business simulation I have taken several actions, starting with organizing the company and setup shop; for which I named a company Megajeg Corporation. After that I sold 2 million in stocks and assigned the company's responsibilities to my team. Then I took the most important step i.e. market survey, for which I spent $120,000 in order to increase my probability of launching a successful product. After which I selected my target market and designed a brand for each target market keeping in mind their wants and demands. Finally, I scheduled the opening of sales offices, for which I incurred expense amounting to $430,000. I incurred advertising expenses amounting to $30,000 and also purchased $15,000 worth of marketing research information.

When I tested a market, I conducted a survey of potential end users and came up with their needs and demands, after which I developed company's goals and strategies. I establish employee compensation packages and hired service and sales personnel. Using branding tactics I establish my brand price and advertising campaign in order deliver value proposition to my target market. So, starting with company's establishment I moved on towards further outlets opening and surpassed the competition in market.

The Relationship between Actions and Simulation Results

The most important action I took initially was a thorough market research, which enabled me to come up with effective results regarding market demands that I have focused in my business simulation. This action helped me out with the results that for Workhorse customers most significant demands are easy to use, low priced, and include office application; where Mercedes customers demands that it should be fast and powerful, and include engineering application; finally, Traveler involves portability, and incorporation of office application in his high demands. The results of simulation shows that Megajeg Co.'s market effectiveness is 0.57, where the score ranges from 0 to 0.1, which indicates that marketing efficiency actions that were taken are slightly lower than good score. However, the market research also included price research and it was evaluated that customers are willing to pay 2,500, 4,000 and 3,200 for Workhorse, Mercedes, and Traveler, respectively. While, simulation results shows that Megajeg Co. priced at 4,000 and 3,600, which are at number 1 and 2 priority in world market.

When goals and strategies were set, company planned gain competitive advantage by providing most reliable product and building a strong market position. Where, the results of simulation indicates that company implemented its strategies as it were planned, since Megajeg moved around its competitors in terms of number of sales offices, total sales force, total RD features available, factory location, and fixed capacity. However, company differed with its competitors in terms of price (slightly higher than competitors), operating capacity (lower than competitors because company is at initial stage), and number of brands (less than competitors because company has just entered the market ...