Glo-Bus Final Report

Introduction

The Glo-bus firm has been successful at every level because of its intelligent business practices. This has been crucial in elevating the company to its present status in the camera market. Managers at all levels of the business use a combination of technical expertise and ethical principles to further the company’s mission. Because of this, ROI has been maintained for the business. The purpose of this essay is twofold: first, to provide a report on my work for the glo-bus webpage; second, to provide a thorough study of how the glo-bus team effectively used the strategic ideas shown by the firm in its expansion. The paper’s subsections elaborate on the relevance of the aforementioned strategic concepts to decision-making and the performance of duties.

1. Key developments in the simulation’s underlying markets and strategy for your allocated Region

My Region’s primary markets shifted as the scenario progressed: We first zeroed in on the beginner market. We priced our primary offering cheap to appeal to shoppers on a tighter budget. We extensively pushed our items through promotions and price cuts to increase demand. We eventually switched our simulation’s emphasis to the middle market (Schmeller, 2020). We upgraded our offerings and raised our rates to attract a more wealthy clientele. We improved our profitability by decreasing our reliance on sales and discounts. Finally, we aimed at the affluent middle class. We released expensive yet high-quality new items.

We spent a lot on marketing and branding to establish our premium status. Profits for our business can only rise as a result of the exceptional work of our workers. Hence, they served as the firm’s linchpin and primary source of strength. We planned to boost staff compensation since doing so would inspire crucial to raising productivity across the board. As a result of our skilled workers’ increased output, our company’s guarantee costs went down (Bright et al., 2019). In addition to strengthening the foundation of the business, we also instituted corporate initiatives to enhance workers’ living and working circumstances, which inspired them to put in extra effort and led to higher profits.

Our company’s overarching strategy has developed similarly. At first, we prioritized volume production above quality to take advantage of lower manufacturing costs. By the end of the simulation, our emphasis switched toward individualization and distinction. By the end of the simulation’s last several years, we shifted to a premium positioning approach.

2. How did you adjust your approach to better suit the tastes of your Region’s consumers?

I adjusted my tactics to adapt to the interests of my Region’s consumers, namely by shifting my attention from the entrance segment of the market to the middle-market and high-end businesses. Our tactics strategically presented promising prospects for penetrating huge markets (Schmeller, 2020). Our plans were meticulously organized around the goal of expanding our market share. That is why we adopted dynamic strategies that guarantee a more significant market slice, lower expenses, and more earnings. However, the gains we have accumulated over the years have been invested in expanding our business and giving us a financial advantage over our rivals.

Second, I raised pricing and added new product features to attract affluent customers and cut into the market share of competitors who, despite overcoming the difficulties caused by cyclical demand and knockoffs, remain formidable. Sony is still the most significant danger to Glo-bus Corporation among all of its rivals in the market. In spite of intense rivalry throughout the years, Sony has remained the market leader. Notwithstanding this fact, our company’s methods are rapidly narrowing the gap with Sony, and it is undeniable that the gap has shrunk.

I spent money on commercials and logo design to establish a classy reputation. As the firm’s only goal is to raise its revenue and share of the market, its leadership has devised specific techniques to propel the company toward this end. The firm seeks partnerships with department stores, internet merchants, and independent photography stores to reach consumers (Bright et al., 2019). This is accomplished with the help of intensive marketing that is supported by the specific marketing talents of its management. Technical assistance is also crucial in penetrating the anticipated markets.

3. Explain how you adjusted to regional competition pressures.

As a result of regional competition, I adjusted my approach as follows: I changed my efforts from the low-end to the higher-end and middle-end markets. This is a crucial aspect of the company’s long-term plan. This is because this section works to improve public opinion of the firm by catering to the general public’s preferences. This is the only way for the company to attract new consumers and keep the ones it already has happy. Moreover, this approach guarantees moral and appropriate interactions between employees and customers and between customers and products.

I upgraded product features and raised costs to attract a more wealthy clientele. Second, I have cut down on promotions and specials to increase profits. Customers are more likely to stick with businesses that provide personalized service in addition to meeting their basic needs. To better connect with its clientele and the community, the Glo-bus business has launched several corporate citizenship initiatives. Last but not least, I poured much money into marketing and branding to establish a reputation for high quality.

4. Explain how the market responded to the particular strategic choices that you selected for your Region.

The following are some of the most important strategic choices I took for my Regions that ultimately led to better market outcomes: I changed my efforts from the low-end to the higher-end and middle-end markets. Our profit margins and bottom line were both boosted as a result of this (Schmeller, 2021). Our group decided upon targets with the end aim of being the most successful camera business worldwide. We also planned to accomplish our firm’s mission via ethical and environmentally friendly means, with the final goal of making our product the best-selling compact camera in the world.

Second, I raised pricing and added more product features. This set our items apart from the others, attracting wealthier buyers. Finally, I spent less time waiting for deals and discounts. Our profit margins and bottom line were boosted as a result. To get a foot in the door, we opted for a low-cost approach to gain a competitive edge. Setting competitively low pricing for our goods was integral to our low-cost approach. To continue the theme of multi-functionality, our team opted for the differentiation approach in the hopes that it would set the firm apart from the competition. The team used a differentiation approach to set their cameras apart by emphasizing their unique characteristics, such as a higher price-to-quality ratio, a broader selection of models, and extended warranties and discounts. At long last, I poured resources into marketing and branding. This helped establish our brand as high-end and set our wares apart from the competitors.

5. Ways in which you ensured the company’s continued success in the Region after your departure

The future of my firm seems bright. Our reputation and fan following are both solid. We have a diverse selection of goods to meet the needs of various markets. We have a solid foothold in essential areas and a robust distribution system. The caliber of our workforce boosts our ability to generate profit. They were the bedrock upon which the company’s success rested. We planned to enhance compensation for our staff since doing so would inspire crucial to achieving our company’s lofty productivity goals (Reavis., 2021). Our company’s warranty rates decreased because of the increased production from our skilled workers. We not only strengthened the foundation of the business but also created corporate initiatives to enhance the working circumstances of our personnel, which in turn inspired them to put in more effort and guaranteed greater profits. The variety of camera options we provided also contributed to our success in the marketplace. Our firm benefited from the increased returns from investing in a skilled staff, which allowed for creation of multi-featured camera models.

However, we also need to fix several critical flaws. We are making less money than we might be. Maintaining a technological edge requires a sustained financial commitment to R&D. Moreover, we need to enlarge our distribution channels into other markets (Gibbons et al., 2022). We manufactured entry-level camera products that were less capable than our main competitor and came with shorter warranties. Consumers preferred cameras backed by guarantees. Therefore this could have been improved. In addition, the camera industry is evolving rapidly, which meant we had to invest more in creating cameras to meet the ever-shifting desires of our clients.

6. Your progress toward company goals on the most important metrics

The following is a timeline showing how our company’s performance goals developed across the simulation’s major dimensions: Our initial EPS target was $4.00, and we are on track to meet or exceed it. We were successful in doing so, finishing the exercise with an EPS of $4.50. Our initial target was a 20% ROE (return on equity stake) for our equity investments. We achieved a 25% return on equity capital after the simulation, far more than our original goal (Schmeller, 2021). Our first target was a share price of $40, and we worked hard to get there. We succeeded in doing so, with the simulation ending at a company’s stock of $45.00. Our first goal was to get an A- on the credit report. We achieved this goal and finished the simulation with an A- grade for our creditworthiness. Our initial goal was to get a 4.0 rating for the image we wanted to portray. We were successful in doing better than this goal and completed the experiment with an overall look score of 4.5.

7. Critical criteria forsuccess in Glo-Bus

Prospective students should consider the following if they want to be competitive in my Region’s job market. We are switching from the budget-friendly entry-level position market to the more lucrative middle and upper-tier markets. The second is to raise pricing and add new features to existing products. Finally, put a heavy emphasis on marketing and branding so that you may rely less on sales and discounts.

8. Lessons acquired by playing the simulation

I came away from the simulations with a few key “takeaways”: Market segmentation and its significance. The market has to be segmented so that possibilities can be found and the most profitable sectors can be targeted. Differentiating one’s products is crucial. In order to draw in customers and increase demand, it is crucial to set the items apart from the competitors—the value of consistent branding. A well-established brand helps set the wares apart from competitors and drives sales.

In conclusion, Glo-bus Firm’s goal-setting is going nicely. Despite severe competition from comparable industries, the company has maintained excellent customer and stakeholder satisfaction. Despite the flood of imitation cameras that have already driven the market down prices, it has maintained good quality. Once the fake market hurt sales, the firm had to change its pricing to provide competitive market rates. The company’s senior managers’ apparent management abilities have helped it through all its trials and disappointments. Hence, Glo-bus will survive future challenges.

References

Schmeller, R. (2020, March). Does Glo-Bus Strategy Simulation Demonstrate Novak’s Training Theory?. In Developments in Business Simulation and Experiential Learning: Proceedings of the Annual ABSEL conference (Vol. 47).

Bright, C. F., Bateh, J., & Babb, D. (2019). The relationship between simulation strategies and exit exam scores: A correlational assessment of Glo-Bus and Peregrine. American Journal of Business Education (AJBE), 12(4), 53-60.

Schmeller, R. (2021, March). How to Make Strategy Simulations Relevant in Times of Pandemic. In Developments in Business Simulation and Experiential Learning: Proceedings of the Annual ABSEL conference (Vol. 48).

Gibbons, B., Fernando, M., & Spedding, T. (2022). Innovation Through Developing a Total Enterprise Computer Simulation: Teaching Responsible Decision Making. Journal of Management Education, 46(1), 16-42.

Reavis, M., Singh, K., & Tucci, J. (2021). Millennials’ Strategic Decision Making Through the Lens of Corporate Social Responsibility and Financial Management. Journal of Business Strategies, 38(2), 125-146..