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CompanyDTigers.pptx

Company d (tigers). Group presentation for bsg simulation game

By: Khalid, Hassan, Abdulaziz Alabdali, and Abdulaziz Alojairi

MGT 495.

08-14-19

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Initial thoughts on success plan

Offer high quality products

Low prices demanded in all markets

Operate in all market regions

Engage in corporate social responsibility initiatives

To achieve image rating expectations.

High focus on advertising to mobilize sales

Effective management of operation costs

As a team, we felt that these items on this slide will help us perform better than any one else. We felt that offering high quality products at low prices would help us a lot. We also thought that by operating in all regions, we will have a better chance of high revenues. We also knew that we needed to keep costs at a low level.

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Early strategic moves undertaken

No participation in private-label segment.

To focus on wholesale and internet

No offers of free shipping.

Kept brand advertising costs at industry average.

Retail/wholesale price slightly below industry average.

High retailer support costs in Europe-Africa & North America.

Heavy investments in workforce compensation and training.

In the early stage of this simulation, we decided not to sell in the private-label segment so that we could focus on the wholesale and internet. We decided not to offer free shipping and to spend industry average on advertising costs. Our company also decided to keep our prices slightly below industry average, and invest heavily in workforce training.

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Structure of company dtigers

Hassan, CEO

Aziz Alojairi, President

Khalid, HR Manager

Aziz Alabdali, Operations Manager

This slide shows the structure of our organization. Our CEO is Hassan, while Aziz is our President. Khalid is the HR Manager, while Aziz Alabdali handles the operations aspect of the company and is the Operations Manager. While Aziz Alojairi reports directly to the CEO, Khalid and Aziz Alabdali both report to the President.

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Division of responsibilities & decision making

Finance/sales/pricing Decisions

operation Decisions

strategy Decisions

This chart shows how responsibilities were divided among us during this simulation. Both Azizs worked on bringing up ideas about things that related to financing and pricing decisions. Khalid and Aziz Alabdali handled everything that had to do with operations, while the CEO Hassan and Aziz Alojairi were in charge of strategy decisions like the direction of the company and what things we needed to change about our business structure.

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Aziz Alabdali & Aziz Alojairi

Khalid & Aziz Alabdali

Hassan & Aziz Alojairi

Strategy modification & decision making process employed

Sharp increases in retail/wholesale price across regions

Significant increases in brand advertising expenses

Ventured into private-label segments.

Decision Making Process

During this simulation, we decided to make a change after Year 11. We increased retail and wholesale prices to be higher than industry average and we raised our expenses on advertising very high. We also entered into the private-label segment to increase offerings across the markets. As for the chart, this shows how we arrived at every decision during the game. We allowed each person handling the particular subject to bring ideas, then we discuss it as a team, and then we choose the one that has most votes among us.

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Alternatives brought by decision makers of subject

Team deliberates on alternatives

Choice with most votes is adopted

Historical timeline- performance assessment of company dtigers

Metric Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18
Net Revenues ($) 492,784 599,376 839,684 837,878 1,077,112 1,062,345 1,166,004 1,401,752
EPS ($/share) 2.37 4.59 5.19 5.21 7.79 6.88 8.25 8.42
ROE (%) 22.7 41.5 38.4 24.4 27.3 22.7 26.9 28.8
Stock Price 48.77 120.70 122.75 99.07 159.71 119.06 130.34 107.40
Image Rating 71 68 81 76 84 81 84 83

This table is a picture of how our company performed during this game. As you can see, our net revenues increased consistently with only slight drops in Year 12, 14, and 16. We also performed very well when it came to EPS and ROE. These results means that we were satisfying out investors because their money and investments were bringing in good rewards.

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Graphical Illustration of Performance (Revenues)

This is a graph showing the trend in how our net revenues looked from Year 11 to 18. As you can see, it is showing an upward trend which means that we expect things to get even better if the years were increased and the game continues. Our company is performing well financially.

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Net Revenues ($) Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Yea r 18 492784.0 599376.0 839684.0 837878.0 1.077116E6 1.062345E6 1.166004E6 1.401752E6

Graphical Illustration of Performance (EPS)

This graph shows how our EPS performed and it is a good sign to our investors that they are making good returns on their investments with us.

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EPS ($/Share) Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 1 8 2.37 4.59 5.189999999999999 5.21 7.79 6.88 8.25 8.42

Strategic modifications to improve performance

Increased prices across market regions

Improved product quality to achieve high S/Q ratings

Heavy and consistent participation in private-label segment

Increased brand advertising costs to grow revenues

Increased base pay and best practices training

All started from Year 12

As a company, we decided to make some strategic changes that would help improve our performances across all the market regions. First, we decided to increase our prices very high across all the market regions, improve our product quality, and participate well in the private-label segment. We also decided to spend a lot more on brand advertising and increase the base pay for our workers while increasing costs in best practices training for them.

10

Potential next moves if game continued

Purchase more capacity to increase supply

Continue best practices training

Acquire a company to grow Company D

Carry out plant upgrade Option A

To reduce defective pairs by 50%

Stock repurchase of 500,000 shares

To raise stock prices & EPS

These are some of the next steps that we have considered we would take as a company. We believe that we need to increase our capacity so that we can produce more to sell, and that we would need to continue the expenses on best practices training.

11

Assessment of overall team performance

Company DTigers performed very well

Net revenue grew 215% from Years 11-18

Happy investors due to rising EPS

Impressive image ratings for the company

Among top 3 market share % yearly

Dedicated to corporate citizenship since Year 12

Based on our performance results, we believe that our company and team performed very well. We saw our net revenues grow by 215% from Year 11 to Year 18. We also saw our image ratings and EPS rise steadily during the game. From our assessment, our company was always among the top 3 in terms of market share in all regions and markets throughout the game.

12

Possible actions we could have taken

We could have raised prices faster

This could have helped us grow faster

Saved costs spent on Corporate Citizenship

This slide shows some possible actions we could have taken if we could. First, we could have raised prices even faster to increase profitability and revenues Secondly, we could have saved from the expenses on corporate citizenship if we could. We know that this could have affected our image rating, but it would have saved us a lot of money.

13

Advice to invest in company or not to?

Yes! A great company to invest in.

Steady increases in revenue

One of best image ratings in industry

Growth in EPS

Strong corporate culture

Focus on growth and development

We would advice anyone to invest in our company because we have seen how successful our performance has been over the years of the game. We saw steady increases in revenue and EPS. We also had one of the best image ratings in the industry. Our company has a strong corporate culture and we are focused on growth and development.

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Insights gained from participation

Better understanding of market forces

How to work effectively in teams

Improved idea of how to price products

Knowledge gained about workforce management

Financial management tips gained

Operations costs management knowledge gained.

This slide shows some of the lessons we gained from the BSG simulation game. First, we developed better understanding of how market forces interact. Second, we learned how to work effectively in teams. Third, we learned how to properly price products and manage workforce. We also learned how to manage finances of a business and minimize operation costs.

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Applicable class concepts to bsg game

Strategy implementation and execution was applied

Assessing strategic moves of rivals also applied

Evaluation of company’s present strategy concept applied.

Application of competitive strategies was done

Business ethics and social responsibility provided guidance.

Some of the concepts we learned in class and were applied in the BSG game are discussed on this slide. We applied knowledge of business ethics, strategy implementation, social responsibility, evaluation of corporate strategy and application of competitive strategies.

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Suggestions on improving simulation experience

Video tips on how to succeed.

Providing testimonials of successful entrepreneurs that played

Show how it helped real people

This slide shows our suggestions on how to improve the experience of this simulation. First, we believe that there should be video tips and not only literature to give users more information about how to succeed. Secondly, we believe that it is important to see and read testimonials of people who played this simulation and used the knowledge they gained to start up a successful business of their own.

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