Do you Know Organizational Management?
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.
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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.
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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.
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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.
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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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