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Prepare a competitive strength assessment for your BSG company and two other BSG companies that you and your co-managers consider to be very close competitors.
Work on strategy and decisions for Year 12. (Company co-managers will generally need to meet outside of class to complete their decision-making for Year 12.)
Write a 1000-1200 word paper, including 2 or more scholarly sources, answering the following:
Which of the companies is competitively strongest?
Which is competitively weakest?
Does the strongest company appear to have a significant competitive advantage over the other two companies?
Why or why not? Explain your answer and integrate data (reports, statistics, etc.) from the simulation to suppport your answer. Be sure to explain what that data means and how it “proves” your answer.
Format your paper according to current APA and NAU standards. Include two or more scholarly resources over and above your textbook for this course.
Submit your paper to the dropbox, “Assignment 04.2: Organization Advantage.” This is an individual assignmnent and should be written in academic voice.
***These are our meeting notes for the decisions that our team made for the Business Strategy Game (BSG) for Week 11. It describes what decisions we made for each of the sections in the game. Please note: the title of each section is bolded below.
Year 11 Meeting
Comp/Training: Since we gave too much compensation in the practice round, we backed down to 1% wage increase and decreased fringe benefits as well.
Branded Production: We invested a great deal into TQM/6-Sigma because these effects are compounding. If we invest early, a smaller amount has the same effect as throwing a greater sum of money at it later.
Production Facilities: In the practice round, we had shortages of supply in every market. To alleviate this, we had to buy new equipment. We also went ahead and bought additional space in the markets we could afford to do so and used Option B to counter those costs.
Distribution: Our main goal was to have a surplus of 200 shoes in each market. It may get more difficult to meet demand in the years to come so a cushion needs to be built.
Internet Marketing/Wholesale Marketing: Latin America is shrinking our profits. It is almost as if a win in another market is offset by a loss in LA. Year 13 we will see how profitable this market really is and decide to be more active in the marker to abandon it. We had to set really high prices in internet marketing just to make it worth it, wholesale marketing is currently a losing situation.
Private Label: Not sure a whole lot of profit/revenue come from this screen, but this screen affects our credit rating, which affects our demand. We may have gone too low.
Finance/Cash Flow: Took out enough money to cover our investments and have change left over. Should be small enough that we do not have trouble paying it back. Increased dividend by 2%.
Additional Notes: In the practice round, we did not pay attention to the red box showing projections so we cannot compare our projected results versus last week, but these numbers are far greater than last week’s outcome. They will be even greater next week if we are able to provide more model/styles than our competition and if we do not invest as much (best practices, TQM, additional warehouse space). One thing we forgot to discuss/research is the effect of models/styles. I noticed that if we have 300 and competition has 250, our revenues and profits nearly double. I am not sure if there are any downfalls of heavily increasing models and styles early on, so I was hesitant to change it without a group consensus.
I’ve attached our Year 11 performance results. My company is BRK Shoes. You will see in the results that they are all the same; revenues, pairs ofshoes sold, etc. There isn’t much of a competitive advantage and we’re all in a 4-way tie. In my paper, I need to support my conclusion, and I don’t see much of a competitive advantage between our company and company A Superior Shoes. Please note: C Company and D Company are played by the computer.
If you have any questions please reach out. Thank you!