Business Game Essay

Submitted By jackspin
Words: 4463
Pages: 18

Business Game Assignment B

Name: Weichen LIANG
Student ID: 12025489
Seminar Group: Group 4, Team 2
Word Count: 4354

Contents
Introduction……………………………….…………………….3
Company performance………………………………………….4
Round 1……………………..…………………………………..4
Round 2........................................................................................6
Round 3………………………………………..………………..7
Round 4……………………………………..…………………..9
Learning………….……………………………………………10
Financial management……………….………………………..10
Marketing……………...………………………………………11
Operation…………...…………………………………………11
Human Resources….………………………………………….12
Team Performance……………….……………………………12
Personal Reflection……………………..……………………..14
Reference……………...………………………………………16
Appendices……………………………………………………17

Introduction
There is a trend that motors are playing more and more important roles in our daily life. So we set up Century Motor for looking forward to operate our business timely and make a profit under the concept of ‘superior quality, energy saving and excellent safety car’ with an affordable price. In addition, we want to obtain good reputation from our customers by offering an after sell service as well since the competition is fierce.
In general, the performance of our team was unexpected well. In the early stage of this simulation, we spent much money on both promotion and research. So our performance was not outstanding during that time. But as the game went on, our advantage of high quality help us to catch up with other teams. In the last round, we luckily became the best team which made the highest profit among the group. Our company chose proper segment, made an effective promotion and improved our product quality precisely. All these are the key performance to reach our goal.

| Round 1 | Round 2 | Round 3 | Round 4 | Total Sales | £1049 | £1931 | £2193 | £2549 | Total Unsold Stock | 0 | 0 | 0 | 1140 units | Shareholder Fund | £280 | £418 | £608 | £896 | Closing Bank Balance | -£337 | £60 | £268 | £495 | Outstanding Loan | £90 | £290 | £260 | £126 |
Table 1: Four rounds results

Company Performance
Round 1 KPM | Bubby | Cruisy | Selling Price(£m) | 10049 | 25899 | Production | 26600 | 30200 | Unsold Stock | 0 | 0 | Gross Margin | 14.68% | 27.73% | Market Share | 11% | 5.9% | Sales Income(£m) | 1049.4 | Post-Tax Profit(£m) | -0.773 | Loan(£m) | 90 | Closing Bank Balance(£m) | 17 |
Table 2: Forecast KPM of Round 1
In the beginning of the simulation, we set up our Century Motors Company in order to capture European automotive market share. At this stage, we started by choosing the market sector one and sector eleven as our first target. After reading the guidance, we found that in the past several years, the best selling cars on the rank of Europe are generally medium class. To avoid the fierce competition, we decided to build city car (Bubby) and large car (Cruisy). Bubby was in charge of capturing the market share and improving our company’s reputation.
Our strategy was using Bubby which made less profit to capture market share. With the utmost popularity, we gave Bubby 2/3 Door Coupe and Small Engine (4 Cylinder). This engine is both cheap and popular among customers under 25. For the options, considering that our main customers are young, we focused on safety and comfortable.
On the other side, Cruisy is a little specialized. It is necessary to make enough profit for the later rounds in order to keep our company running. So we need a product to earn money for feeding the company. In the meeting we even planned to build luxury car since it could offer an attractive gross margin. However we didn’t own reputation nor quality at that moment. That plan will be too much risk for us. So this model was designed between large and luxury. We didn’t want cause competition between our own products. So we gave Cruisy SUV and Large Engine (6-8 Cylinder) which was totally different from Bubby. Its option was also much more than Bubby since we…