Simulation Report

SIMULATION REPORT

Narayana Kunchala

New England College

Operational Planning & Policy

Simulation Report #1

Instructor: Fournier Marc

Date: 07/26/2020

Introduction

We choose Focused Low Cost Strategy for our company as we are in similar business model. The main intent to choose this strategy as suits our company's vision. The vision statement we thought for our company is "Our car at every home at your budget". We want to offer cars at affordable price and increasing the overall company revenue.

Action Plans

Main theme:- Safety, Quality and Performance.

Segments Targeted:- Families, Singles, Value Seekers

Cafav - Family

Camini:- Minivan

Climax:- Luxury

We mainly focused on the safety, quality and performance for Cafav, Camini and Climax. For our targeted audiences such as Singles, Families and value seekers, we wanted to build our strategy with prime elements safety, quality & performance (Thompson, 2020). One of our decision was to manufacture a moderate number of vehicles at every region. Although we wanted to wait on the sales report and customer, dealer feedback to play around the numbers for Camini. To attract the youth and singles we laid focus on the styling, performance for the Climax cars to make better selling point.

We wanted to give a dealer discount for Cafa (family car) a bit more compared to other cars as we are manufacturing more family cars and we are providing more options to seek the family cars. Increased distribution across North, South, West and East. Training and support is also very key element to success. We invested a good bit in training to support the products. We determined that paying short term debt would yield good results for the company by saving interests.

After these moves:-

Our stocks have increased from $59.07 to $69.76

The net income is about 1804 millions,

Total shareholder return is 33.2% and

Market share is 18.1%.

Based on these metrics we decided to reduce the MSRP on family car and increase the dealer discount so that the sales would go high for family cars. Later we increased the manufacturing family vehicles along with the style, quality and safety attributes which resulted in increase of stocks from $59.07 to $69.76. We also made mindful choice in technology as that is an interesting element for all the target audience. We focused more on interior along with other features which would want the Singles, youth to own Climax cars.

Next Moves

Invest in Research and Development

Automation

Improve customer relationship

Focus on upgrading options

Keep up the company position in the market

Explore CarPlay, Multimedia options

Conclusion

The success of an organization depends on the vision and values (Thompson, 2020). Positive moves, such dealer discount for family cars shows a caring edge to build a customer relationship. Our success factors were Safety, Quality and performance. The main goal for us to achieve as a company is to increase mass production of quality products.

References

Thompson et al., (2020). Chapter 10: Building an Organization Capable of Good Strategy Execution: People, Capabilities and Structure. Crafting & Executing Strategy: Concepts and Cases 22nd Edition. McGraw-Hill. ISBN: 978-1-260-07510-6

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