Simulation for Basan Carbon Fibre Cycles

The simulation report provides comprehensive simulation outcomes for BASAN Carbon Fibre Company, which aims to provide customized carbon fibre bicycles globally. BASAN offers exceptional repair and maintenance services through excellent customer service. With this objective, the organization has decided to explore its bicycle business in new markets, particularly New York and Amsterdam. In addition, BASAN has manufactured new carbon bikes using 3D technology to meet its customers’ current needs. These carbon bikes will not only be lighter and have modern quality, but they will also be cost-effective (Lecture notes). The report is designed to provide a comprehensive outline of the significant factors driving the company’s performance in establishing itself in the market by employing various tools, models, and frameworks to assess and direct decision-making. A comprehensive review of strategic frameworks and tools, their application and analysis in the target setting, an assessment of the efficacy of group processes, a summary outlining the key conclusions, and practical suggestions for improving future strategies are all included in the report. This systematic approach provides a comprehensive analysis of BASAN’s primary objectives in its offerings, including the work of group cooperation and the choice of tools and frameworks. Our group aims to shed light on practical techniques and possible models for developing a business strategic plan by analyzing the simulation using strategic lenses, providing in-depth analysis that will help the organization succeed in the actual bike manufacturing. Despite this, the report offers quite a comprehensive review of opportunities and threats facing the company BASAN Carbon Fiber Cycles with recommendations to ensure it implements strategies based on crucial strategic management theories and provides an effective practical plan for its business.

Strategic Plan

Every organization in its market operation needs to plan strategies based on the best implementation. More importantly, planning is a deliberate procedure for setting business priorities, sensing how resources should be allocated (scarce) or utilized about the identity of the primary process that would facilitate the achievement of long-term goals (George et al., 2019). Moreover, planning involves analysis of the business environment in which the organization exists and evaluation to determine highly competitive or market trends by coming up with plans that guide. Strategic planning in our group simulation is a contributing element since it offers a guide for informed choices consistent with BASAN Carbon Fiber Cycle’s long-term objectives (George et al., 2019). Each planning team member to ensure all activities support the company’s goal efficiently executes goal congruency.

This procedure promotes flexibility, which helps us to deal with the ever-changing corporate landscape, foresee developments, and take advantage of new chances. In addition, strategic planning facilitates allocating scarce resources by allowing us to prioritize projects that align with the organization’s strategic goals. Furthermore, by establishing key performance indicators, we can continuously assess our performance, pinpoint areas that need development, and adjust our approaches appropriately.

ANALYSIS OF STRATEGIC TOOLS/MODELS AND FRAMEWORKS

PESTEL Analysis

Justification of PESTEL Analysis 

One essential technique used to comprehend the external macro environmental elements that might affect a firm is PESTEL analysis. This study makes sense in the BASAN Carbon Fiber Cycles context for several reasons.

Identifying opportunities and threats

PESTEL analysis is a good fit for BASAN Carbon Fiber Cycles because it makes it easier to uncover external factors that could affect how well the business performs. For example, in the political arena, the reasonably high likelihood (80%) of cities enacting cycling-friendly regulations is influenced by the understanding of sustainability and health advantages. Based on these results, BASAN Company has an excellent opportunity to increase its product offerings to match the emerging market for sustainable and environmentally friendly transportation products, which will lower pollution and traffic issues. In addition, the analysis revealed that rising tensions globally, such as the impact of the Ukraine-Russia conflict, might influence trade agreements, which is one possible threat to the market. This risk, therefore, implies that geopolitical turmoil, limitations, and changes to trade agreements could impact this company’s supply chain, coupled with its connections in terms of interaction negotiations between major partners and consumers.

Strategic planning

With the aid of PESTEL, this analysis extends our understanding of broader carbon fibre bike market patterns and their ramifications, which helps develop a rationale for business strategy—the statistical likelihood of viewing middle-class consumers’ affordability as a strategic economic opportunity for BASAN. The demand is high, and the growing industry may not keep up because carbon fiber bikes are becoming more accessible and environmentally responsible. This is the advantage of being BASAN; they can capture this trend and shift their price strategy towards lowering bikes’ costs for a more extensive consumer base.

Market entry and expansion

Urbanization is expanding, and the demand for commuter bikes in practically every area of earth. Urban bike products are mainly meant for cities, and their popularity today comes from a combination of functionality and efficiency with lightweight construction without compromise and low cost while being able to last long. This also meets the world’s demand and allows BASAN to adjust its products and increase the range of presented offerings for requirement satisfaction from urban customers across the globe.

Risk assessment

Understanding the political, economic, and legal aspects is essential to analyze the risks regarding the urban bike market. For example, there can be difficulties in BASAN’s supply chain due to increasing global tensions, which may affect trade agreements in the political space where significant policies on trade are formed. Understanding these risks allows the company to create backup plans to guarantee a steady supply of raw materials and handle trade interruptions.

Competitor analysis

The PESTEL study helps us to evaluate the competitive environment of the company in question. There is a high probability that enforcing laws or policies governing the use of bikes, such as bike lanes and sidewalks in the public sphere, affects not just BASAN but also its rivals. In addition, modern eco-friendly bikes are produced by several companies in response to the growing demand for sustainable products, which may also fuel high competition because of the need for eco-friendly production techniques and materials. By understanding these competitive elements, BASAN can assess the competitive landscape and modify its plans to reach its optimal objectives.

VIRO model 

The VIRO model evaluates an organization’s internal resources, assets, and competencies to determine which ones may help the company maintain a competitive advantage in the market. This paradigm is especially pertinent to BASAN Carbon Fiber Cycles because it enables a thorough analysis of the essential assets and competencies of the business and how they affect output.

BASAN Carbon Fiber Cycles has shown a diverse range of essential resources and capabilities using the VIRO framework. Importantly, it becomes clear that having access to capital is critical to success. Its value and rarity can be imitated, though, based on management techniques and the state of the economy. Success is attributed to the company’s broad reach, wide range of products, and focus on environmentally friendly manufacturing; nevertheless, these factors may provide short-term competitive advantages that new competitors and changes in the sector might compromise. Strong leadership and brand awareness, which are uncommon and precious, significantly improve performance and stand out as lasting characteristics. Although employee knowledge is unique and essential, it presently represents average performance, which means there is room for improvement. Temporary benefits are provided by customer loyalty and competition in distribution and logistics costs, highlighting the need for strategic adaptation.

TOWS Analysis 

By aligning internal strengths and weaknesses with external opportunities and threats, the TOWS (Threats, Opportunities, Weaknesses, Strengths) Analysis is a strategic tool that helps formulate successful plans and marketing strategies (Dandage et al., 2019). The TOWS study makes sense for BASAN Carbon Fiber Cycles because it offers an in-depth overview of the internal and external dynamics affecting the business’s success or possible difficulties.

1. SO Strategies (Strengths-Opportunities): BASAN’s robust goods and brand recognition are aligned with the chance to access global talent by using people worldwide to manufacture exceptional low-cost products and accessories. This strategic alignment emphasizes the company’s strengths to achieve opportunities available from the markets.
2. ST Strategies (Strengths-Threats): The new actors, among which are trade barriers and rivals that include climate change competitors, lead the study within time of research to address them by R&D through improvement in goods or accessories with uniqueness. By focusing on innovation and cyber security, the company’s market position will be ensured, and BASAN can remove any threats from this company.
3. WO Strategies (Weaknesses-Opportunities): The opportunities for global talent can be connected with weaknesses, such as developing a competent workforce and training new learners through foreign capabilities. This plan works around solving workforce development issues and upgrading internal strengths.
4. WT Strategies (Weaknesses-Threats): Policymakers assigning employees upskilling training for the static improvement of cycle output binds threats such as novel competitors and recession to weaknesses like an unfavourable ROI and no previous learnings. This approach aims to defend against any external threats through internal growth.

Significance in the product life cycle 

With the TOWS Analysis framework, this group perfectly directed favorable and unfavorable perceptions about internal possibilities throughout all stages of the BASAN Carbon Fiber Cycles product lifecycle. The initial step includes the introduction stage, at which SO strategies allow access to sustainability and tailored specifications known as middle-class affordability while cycling policies advance. ST strategies address the potential cybersecurity threats that ensure a smooth product launch (Dandage et al., 2019). WT strategies focus on contingencies of any regulatory barriers and economic uncertainty in periods of aggressive growth while including backup plans, whereas WO is concerned with developing logistical efficiency to seize opportune market entry during the Growth Stage. In the maturity phase, SO is sustained with ST and a proactive strategy about regulations used by market conditions using technical superiority. The figure shows that, for success in BASAN’s product life cycle, strategies must be modified differently.

CANVAS business model 

The BMC is a method of choice, so the canvas gives full and pictorially demonstrated artwork based on the business plan BASAN Carbon Fiber Cycles. The canvas brings to the fore factors that are key towards winning in the competitive cycling position, as it directs its attention on brand recognition among satisfied, loyal clientele who own superior products (Dobrowolski and Sułkowski, 2021). This methodology ensures the success of BASAN because it offers complete insight into the company, fosters strategic alignment and guides operations.

A good business plan comprising crucial elements for success in the competitive cycling industry helps this performance. It allows the definition of client most minor groups that are ensured target marketing and products on demand, like urban commuters and performance supporters in specific localities (Dobrowolski and Sułkowski, 2021). BASAN uses geo-mapping algorithms and local infrastructure data to offer customized carbon fibre bikes using a hyper-customization approach over its competitors, ensuring client loyalty. Direct-to-consumer sales are more digital marketing through online platforms, and focused campaigns increase productivity and improve customer connection. Continuing consistent R&D programs and strategic partnerships with governing bodies at the peripheral levels suggests creative commitment, not least providing unique access to mapping databases and helping bond clients distinctly (Dobrowolski and Sułkowski, 2021). Various income streams, such as data and technology licensing partnerships, contribute to financial stability. Relevant assets’ critical capabilities for long-run competitive advantage include broad customization skills and awareness of using data from urban infrastructure. The company’s swift ability to adapt to market dictates is, he parallel contributed by emphasizing strategic alliances alongside effective marketing and continuous innovation (Dobrowolski and Sułkowski, 2021). Among other investments in manufacturing, R&D and cybersecurity security, BASAN’s commitment to a quality-focused cost structure has reflected its focus on exceptional performance innovation compliance—all supposed to drive success.

The business model canvas is crucial to the simulation process because it gives the team an organized framework to examine, develop, and refine BASAN’s business model (Dobrowolski and Sułkowski, 2021). It guarantees that essential elements, interdependencies, and strategy alignment are well understood. The group may evaluate how each component contributes to the success or possible issues of BASAN by using the canvas as a visual guide for decision-making. This technology allows the group to improve the business model iteratively, optimizing the company’s performance in the simulation and adjusting it to shifting market dynamics.

Task 2: Analysis 

PESTEL model 

The analyses from the PESTEL study yielded insightful insights into how outside forces influenced BASAN Carbon Fiber Cycles. The analysis allowed us to make decisions quickly because of the detailed political and economic descriptions—social, technical, environmental, and legal circumstances. Management of a firm can get a competitive advantage over rival firms only if top management closely watches its business surroundings (Çitilci & Akbalık, 2020). Activities such as blinds and deafness might have hit an ecosystem for organizations lacking environmental scanning procedures if one were to presume. It has guided the strategic planning, which helped to see changes and compare BASAN strategies with developments outside. The choice to throw the market and its growth was influenced by sustainability pursuit of trends, middle-class pricing acuity and economic stability.

Weaknesses

The method may neglect vital internal strengths and weaknesses as it focuses on external factors (Çitilci & Akbalık, 2020). In the case of BASAN, PESTEL did not provide any special consideration towards internal challenges like low-level skills and whether a company model is replicable. Another possible limitation of the analysis is its complication, where substantial research and data collecting are necessary. PESTEL analysis’s static nature additionally curtails prediction potential. Since it portrays the status quo, there can be no guessing concerning such transformation in future (Çitilci & Akbalık, 2020). With the challenges of unclear prioritizing, companies also seek help to understand and identify the most critical elements for which they need barrels.

Alternative

Scenario planning

By aligning itself with such attitudes, the organization could achieve some success from scenario planning because they are prepared for a range of possible events that take into account the uniqueness and dynamics by which external factors vary over time (Schwarz et al., 2019). Scenario planning could have been advantageous in the ambience of BASAN Carbon Fiber Cycles. This method allowed the group to explore multiple potential futures that would undoubtedly lead to an adaptable paradigm due to the natural aspect of cycling. BASAN can be more robust in dealing with uncertainty through scenario planning of its ability to respond to and reinforce new market conditions and challenges.

Blue ocean strategy

The benefit stance may be significant for companies seeking to occupy a niche in the market as the Blue Ocean’s strategy promotes structurally innovativeness at a high rate due to its key concepts, uncontested market space capture and innovation (Rothaermel, 2019). The Blue Ocean Strategy enabled BASAN Carbon Fiber Cycles to compete in the ruthless cycling market. This tactical solution could have served to develop innovative approaches that allowed adding new value and creating unique demand for BASAN products against competitors. To dramatically become a differentiated player in the market, a promising application that aligns with Blue Ocean Strategies might be scanning lately unexplored client markets or introducing revolutionary innovations within their carbon fibre bicycles (Rothaermel et al., 2019).

VIRO analysis evaluation 

BASAN Carbon Fiber Cycles successfully used the VIRO analysis, which evaluates the value, rarity, imitability, and organizational support of resources and skills. It revealed information on the competitive advantages and possible weaknesses of the company. Important assets and proficiencies such as capital availability, local presence, variety of products offered, brand recognition, environmentally friendly manufacturing, capable leadership, staff knowledge, devoted clientele, and cost-effectiveness in distribution and logistics were carefully assessed (Ariwibowo et al., 2021). The research showed whether elements supported long-term or short-term competitive advantages and how they affected the company’s overall success (Ariwibowo et al., 2021).

Weaknesses of the VIRO analysis 

The subjective nature of the VIRO model is one of its limitations since individual viewpoints may affect the assessment of a resource’s scarcity, imitability, and organizational support (Ariwibowo et al., 2021). Furthermore, although the study offers a moment-in-time view of the available resources and skills, it could only partially reflect how the business environment changes over time. The market could change with time, and so may technology and customer preferences. Therefore, while the VIRO study supports many explanations for maintaining the sustainability of particular advantages, it only partially covers all sources affecting the durability of specific benefits.

Alternative model

Resource-Based View (RBV)

As regards the matter, it highlights several advantages of adopting the R B V paradigm, including knowing what aspects of a firm’s internal resources and skills contribute to sustainable competitive advantage (Lubis, 2022). Regarding the BASAN Carbon Fiber Cycles VIRO study, RBV can be a helpful option for a more detailed view of some resources’ and capabilities’ elements related to long-term outcomes. This paradigm gives phenomenal insight into the underlying intra-organizational mechanisms that created BASAN’s long-lasting success within a dynamic cycling environment, creating an opportunity to delve deeper into how distinctive capabilities drove rounded business regarding architecture riding bikes.

TOWS Analysis

TOWS analysis was the suitable strategy for BASAN Carbon Fiber Cycles, where we had to compare the strengths and weaknesses of an organization’s issues from the outside and the internal environment (Dandage et al., 2019). The external opportunities, whereby consumer disposable income would increase, and brand recognition was high, provided that foreign talent could be attracted, were aligned with the internal strengths, increasing the diversity of customized products. Hence, the research paper also discussed potential strategies that offered examples of increasing external strength factors and reducing weakness within limits, thinking about what should be ahead (Fitriani, 2021).

Weaknesses 

The first threat may be TOWS analysis for the acute and precise detection of exogenous internal elements (Dandage et al., 2019). There is a suggestion that faulty advice could be on strategies if the strengths, weaknesses, opportunities or threats are not identified. Additionally, the study may only sometimes consider the dynamic nature of the corporate environment, which changes sometimes but rarely over time (Dandage et al., 2019).

Alternative

This method of quick and detailed learning about the strategic environment for any organization is SWOT analysis, which has become well-known over time but needs more complexity. First, it is an antecedent to the TOWS and benefits in many ways because all free top management combines internal weaknesses and strengths. Moreover, SWOT analysis and TOWS may match each other regarding BASAN – Carbon Fiber Cycles that can provide a complete perspective regarding the business environment. However, advantages are given to it because of its simplicity in making fast conclusions about critical numbers and coordination between the internal fundamental segments alongside outside ones. This promotes the right direction in their strategic planning process for better comprehension and representation of how the company stands at every point concerning changes within the cyclical market.

Business Model Canvas

Using the concept in operating BASAN Carbon Fiber Cycles proved effective. It made it simple to view vital elements of a business in terms of customer segments, value propositions, channels, customer relationships, and cash flows, such as necessary resources, additional required partnerships, primary activities, and cost structure, in an organized manner. At this moment, the strategic convergence, referred to as pieces located within one canvas, was illustrated through the correlation of identifying urban commuters and performance cycling aficionados in combination with a proprietary geo-mapping approach that utilized hyper customization (Muller, 2019).

Weaknesses 

The model’s static nature is one possible drawback. Although it offers a moment-in-time view of the business model, it cannot depict how company strategies and market circumstances dynamically change over time. Furthermore, it could be more accurate in simplifying intricate corporate linkages and exchanges, resulting in a cursory knowledge of certain aspects.

Alternative

Value Proposition Canvas: A more in-depth investigation of how goods and services meet consumer expectations may be found in the Value Proposition Canvas (VPC), which focuses on the wants, benefits, and sufferings of the client (Henry, 2021). Combining the VPC with the Business Model Canvas (BMC) in the context of BASAN Carbon Fiber Cycles may be beneficial. Through further exploration of client needs and optimization of value proposition techniques, this integration may guarantee a more customer-focused methodology (Henry, 2021). The VPC model enhances the overall knowledge of customer demands and strategic coherence within the changing cycling market by complementing BMC’s overview with its focus on the nuances of customer satisfaction.

Group processes and effectiveness 

Group processes 

The group procedures matched well with several broad management theories about how productive groups should function. In addition, the team ensured a diverse range of roles by using Meredith Belbin’s Team Role Theory. These roles included manager, who doubled as the coordinator; implementers, who handled finance, brand management, and business analysis; and team members, who conducted research and company analysis. According to Belbin’s theory, this commitment to roles avoided disputes and allowed for optimum job addressing. Also, the group represented a significant investment in the social identity concept whereby members actively interacted and participated positively in associating with the team, among other factors. This promoted a sense of belonging through which team members were inspired by the need to achieve common goals.

In addition, the team continuously powered people with soon-coming thinking and judgment on accomplishing business for BASAN in simulation. This was a good illustration of SDT. Through the implication of relatedness, competence and autonomy that was registered by how this team operated, it became clear concerning dimensions to file, hence sustainable development theory concepts. Such suitable communication of roles and demands also reflected the expectation theory such that everyone in a group knew what they mattered to realize. This team approach also had some signs of transactional leadership that ensured stability through precise needs and rewards. Furthermore, it was possible to see the less evident aspects of transformative leadership, inciting creativity and commitment among individual members of the team. The two leaders’ strategies led to a supportive and committed team while helping foster stability.

Group effectiveness

Pros: The team proved efficiency in managing a clear target and desired effect, correlated with all decisions regarding the BASAN vision. The precise roles and responsibilities implied greater accountability, fighting conflicts of interest surrounded by a vigorous system of governance. This group’s varied and talented members gave richness to the planning processes and decision-making activities by offering varying experiences and knowledge. The group successfully highlighted strategic planning and monitoring, under which all actions aimed to achieve a company’s long-term goals. These assets made the team function better and launched a well-structured professional operation.

Cons: Concrete elements require improvement to the review. Although the group had talented and different people, more could have been done to foster open dialogue about strengths and weaknesses, teamwork in this case. A more defined risk management approach should be discussed to take up any potential threats that may arise. Group procedures should also include more formal integration of ongoing improvement and periodic self–assessment mechanisms to ensure continuous optimization of team efficiency. The upgrades would augment the group’s efficacy by fostering improved openness, communication, and risk minimization.

Conclusion

Strategic techniques, models, and frameworks were used in the BASAN Carbon Fibre Cycles study to assess simulated performance. The strategy emphasized the importance of making well-informed decisions that align with long-term objectives. Applications such as the PESTEL study, which determines external effects; the VIRO model, which evaluates internal competencies; the TOWS analysis, which aligns strengths and weaknesses; and the company Model Canvas, which outlines essential company components, have proven successful. The internal emphasis of the PESTEL model, the subjectivity of VIRO, the static nature of TOWS, and the rigidity of the Business Model Canvas were identified as needing improvement. Many solutions were implemented to overcome these constraints, including the Value Proposition Canvas, RBV, SWOT analysis, Blue Ocean Strategy, and scenario planning. In addition, the use of managerial theories, including Belbin’s Team Role Theory, Social Identity Theory, SDT, Expectancy Theory, and Transactional and Transformational Leadership, was effectively shown in group processes. The team upheld its mission, implemented effective governance, welcomed diversity, and placed a premium on strategic planning. The identified improvements in group effectiveness were improved communication, better risk management, and formal methods for ongoing improvement.

Recommendations

Several vital suggestions are made to maximize the group’s use of strategic models and theories. First and foremost, emphasis is placed on understanding BASAN’s objectives, vision, and purpose in management, particularly in introducing BASAN bikes in a new business environment with high competition. To use the model effectively, a comprehensive examination of all internal and external aspects impacting the company environment. The group is urged to match strategic models with particular issues or choices by considering elements like issue complexity, data accessibility, and organizational resources. Model selection is vital. The importance of trustworthy and current data is emphasized, underscoring the need to use it to support strategic decision-making. To present a variety of viewpoints and promote cooperative decision-making, stakeholders, especially influential executives, and staff members, are urged to get involved.

Planning for implementation of the strategic plan is considered crucial, requiring the creation of precise action plans with assigned roles and deadlines to ensure that derived strategies are executed successfully—a long-term perspective and weighing the long-term effects of strategic choices to balance short-term profits with sustainability objectives. Continuous assessments prioritize monitoring and adaptation to ensure the group stays flexible in changing circumstances. It is advised to support organized approaches with innovation to create a culture of experimentation and open-mindedness within the team. In complicated settings, integrating several models might lead to a more holistic knowledge of the problems and possible solutions. Constant enhancement is facilitated by learning from prior experiences and reflecting on achievements and mistakes.

References

Ariwibowo, P., Saputro, F. B. and Haryanto, H. (2021). Analysis of Strength & Weakness, Using the Concept of Resource-Based View with the VRIO Framework in Sharia Cooperatives. Jurnal Manajemen Strategi dan Aplikasi Bisnis, 4(1), 279-294.

Çitilci, T. and Akbalık, M. (2020). The importance of PESTEL analysis for environmental scanning process. In Handbook of Research on Decision-Making Techniques in Financial Marketing (pp. 336-357). IGI Global.

Dandage, R. V., Mantha, S. S. and Rane, S. B. (2019). Strategy development using TOWS matrix for international project risk management based on prioritization of risk categories. International Journal of Managing Projects in Business, 12(4), 1003-1029.

Dobrowolski, Z., and Sułkowski, Ł. (2021). Business model canvas and energy enterprises. Energies, 14(21), 7198.

Fitriani, E., (2022). TOWS Analysis on Recissbar to Increase Its Competitiveness. Revista CEA, 8(16), pp.e1876-e1876.

George, B., Walker, R. M. and Monster, J. (2019). Does strategic planning improve organizational performance? A meta‐analysis. Public Administration Review, 79(6), 810-819.

Henry, A. (2021). Understanding strategic management. Oxford University Press.

Lubis, N. W. (2022). Resource based view (RBV) in improving company strategic capacity. Research Horizon, 2(6), 587-596.

Müller, J. M. (2019). Business model innovation in small-and medium-sized enterprises: Strategies for industry 4.0 providers and users. Journal of Manufacturing Technology Management, 30(8), 1127-1142.

Rothaermel, F. T. (2019). Strategic management.

Schwarz, J. O., Ram, C. and Rohrbeck, R. (2019). Combining scenario planning and business wargaming to better anticipate future competitive dynamics. Futures, 105, 133-142.

Yamagishi, K., Sañosa, A. R., de Ocampo, M. and Ocampo, L. (2021). Strategic marketing initiatives for small co-operative enterprises generated from SWOT-TOWS analysis and evaluated with PROMETHEE-GAIA. Journal of Co-operative Organization and Management, 9(2), 100149.