12
WORLD: DINGLEY TEAM: 2 Stallion Creativity in motion

Business Simulation - Stallion

Embed Size (px)

DESCRIPTION

Report of Business Simulation

Citation preview

Page 1: Business Simulation - Stallion

WORLD: DINGLEY TEAM: 2

StallionCreativity in motion

Page 2: Business Simulation - Stallion

2

Group Members

Sr.no Name Student ID

1 Nawaz Shaikh P14164977

2 Diego Teixeira P14178884

3 Fatma Albastaki P09272265

4 Patience Masara P13243583

5 Aditya Dutta P14183090

6 Pai Liu P13239301

7 Kartikay Nayyar P14181851

•Summary of the original strategy & plan•Summary of financial & business results•Impact of the external environment upon performance•Strategic overview of future plans•Summary of learning experiences

Page 3: Business Simulation - Stallion

Vision StatementTo be the first choice for cars across the globe by

focusing on efficiency, innovation, quality, growth and highest customer satisfaction.

Core Values• Service Excellence.

• Strengthening Customer focus.

• Passion for sustaining stakeholders satisfaction.

• Deliver Long-Term Investment Value.

Business Plan• To manufacture affordable fuel efficient cars.

• To deliver to our clients the best experience at a reasonable price.

• Investments in Research & Development to continuously innovate and sustain competitive advantage.

• Launch two SUV models targeting medium and large markets.

• To diversify into different market segments and different age group.

• Key targets:

• Investment for the production of a car model for the city market.

Summary of the original strategy & plan

3

Page 4: Business Simulation - Stallion

Summary of initial Investment plan

• For the intended business activities, our initial funding plan was based on a bank loan.

• Initial loan was used to finance our investment for a new factory, R&D projects and the new product launch for year 2.

• Maintain low gearing.

• As a financial policy, our company had intended to repay loans within 5 years.

Target Market Segment

• Year 1 Two SUV models were targeted for the medium and large markets.

• Medium market targeted for ages 25- 40

• Large market targeted for ages 41-55

• Later years we had plans for investment in to launching new model targeting the city market.

Summary of the original strategy & plan

4

Page 5: Business Simulation - Stallion

5

Summary of Financial and business results

Page 6: Business Simulation - Stallion

6

Summary of Financial and business results

Year 1 Year 2 Year 3 Year 4 Year 5

Current Ratio1.58 % 2.07% 2.43 % 1.63 % 2.01 %

Profit per Employee

145,487.23 247,223.42

131,849.23

32,688.10

88,271.58

Gearing33 % 14% 6 % 20 % 15 %

Productivity (cars/worker/year)

74.10 % 40.66 % 39.95 % 40.96 % 43.75 %

Page 7: Business Simulation - Stallion

• Competitors – we operated in a very competitive market and it influenced our pricing

strategy for our cars as we had to ensure that our prices are reasonable and doesn’t

affect our sales.

• Inflation – Soaring inflation ensured the constant increase in our overhead costs, this

further affected our profit margin as our cars were very reasonably priced as compared

to our competitors.

• Technological development – Technological development over the period was a key to

our investment decisions to further our interests in automation and investing in world

class research & development.

7

Impact of the external environment upon performance

Page 8: Business Simulation - Stallion

• Customer demands – Ever changing tastes and preferences of the customers in

terms of more options in the car and premium quality at affordable prices led us

to invest in market research that helped us to decide about our final product.

• Labour – We had to pay more than the industry average wages to our workers

during the entire period of five years as the inflation was on the rise and we had

to ensure that our workers are content and this in turn ensured that our

productivity index was good.

8

Impact of the external environment upon performance

Page 9: Business Simulation - Stallion

• Investing and developing an art of the centre R&D facility.

• Engaging employees in training and development programs.

• Developing more customer service culture and becoming customer-centric

organisation by providing good quality after sales service

• Increasing profit mark up or margins so that we earn substantial profit to fulfil our

commitment to our stockholders.

9

Strategic overview of future plans

Page 10: Business Simulation - Stallion

• Launching new variants of the current models and increasing production capacity in

order to remain competitive

• Expanding our market to other EU countries.

• Collaborating with other automobile companies in BRIC nations.

• Working along with Universities across Britain to promote innovative ideas and

creating a prospective pool of talent that Stallion can depend on in the future years.

10

Strategic overview of future plans

Page 11: Business Simulation - Stallion

• Practised and gave us an in depth understanding of various management functions

• Gained and developed team work and personal skills portfolio.

• Developed decision making abilities and skills.

• Understood and practiced the concept of Goal settings and goal congruency in a

team environment where differences might arise on minor issues.

• Improved our communication skills in a multi-cultural group.

11

Summary of learning experience

Page 12: Business Simulation - Stallion

12

Summary of learning experience

• Time management is one important skill that we developed during this exercise as we

had set deadlines for each activity.

• Working with people from varied backgrounds ensured that we exchanged our thoughts

and contributed to each others learning process.

• Boosted our confidence to apply the knowledge and experience gained from this

exercise and our course in general to the real world.