Business Simulation Exercise In The Western european Car Industry

The motion of prices, vis-à-vis the budgeted costing has been considered next. It is seen that the budgeted costs for A-Star was £12, 169. 15 while that Plush was £16, 909. 69. However over another three periods, there have been fluctuations in the purchase price activities as envisaged in Table 1 shown in Appendix.

Thus over the time there's been typically 6% increase in prices of A-Star and around 2% for the reason that of Plush. These could be related to increases in materials prices and labour which will be taken up quickly. This could also be due to rivals increasing prices which have impacted upon this business also.

Forecast and Results: Development figures have been approximated at 1% of the 11. 25 market show. The total market share and not the market shares as per specific age ranges have been taken into account, primarily because city cars are preferred by all age ranges and not limited to any one generation.

Round 1

Estimated Sales: This has been projected by multiplying forecasted production with selling prices per unit; The Depreciation factor has not been considered, since for the first season, it is not essential to consider cost of developing fixed assets from selling prices.

Bank Balance: THE BUSINESS'S financial durability is indicated by its lender balance. However, in this case it requires to be seen that lender balance must improve.

Unsold stock: The question of any unsold stocks and options does not come up since all vehicles that were produced were sold out during the yr.

Gross Margin: No consideration of inflation has been considered during the first calendar year of operations.

Market Share: We've under produced the vehicles, when compared to other challengers, thus leading to lower market share.

Round 2

Estimated Sales: 83% of A-Star's Development and 100% Plush's production has been completely sold out.

Bank Balance: Excess of expenditure over earnings has resulted in negative bank or investment company balance. Adverse cash balance has necessitated infusion of fresh doze of mortgage.

Unsold stock: There were unsold shares of A-Star building around 17% of creation. It is hoped this might be sold through the next Round

Gross Margin: the effect for both was 21% but we approximated gross margin 25% for city car and 23% for medium car, so we were an unsold car for city car, which afflicted our gross margin actual results.

Market Talk about: Market show needs to be advanced by increasing better inroads into market segments and increasing presence and sale of cars. It could be through promotional initiatives.

Forecast and Results 3

Pricing : We added two new options to service. This is to match options provided by competitors who had been doing better business with these add-ons. There have been price boosts in done goods, since, due to the impact of inflation, wage monthly bill has increased from £425 to £430.

Production : Since there have been aspects of unsold stocks, productions of vehicles were reduced this season although the numbers of employees were the same and the productivity was the same. However there is greater production.

Gross Margins: : the effect for city car was 25%and for medium car is 21%, but we projected gross margin 29% for city car and 24% for medium car, so we were an unsold car for city car, which influenced our gross margin genuine results.

Unsold companies: Since our prices were relatively greater than that of our challengers, there have been unsold stocks.

Market share: All vehicles produced cannot be sold because of high prices. This also resulted in lower market share. Thus, selling prices needed to be brought at par recover of opponents.

Sales: We increased the creation, and since we produced more, we were able to sell more and gain better sales results.

Post Tax Income: While production forecasts were less than actual, the manufacturing plant producton hadn't modified. Thus, more production of cars led to more materials and labour costs. Starting stocks and options were however not considered while calculating post tax income. We sold less number of vehicles although we produced more, resulting in stocks, and also higher material costs.

Results of Circular 4

Sales: We redesigned the automobile options in order to stay in market- and reduced the selling prices of automobiles. This resulted in increase in the gross margins and medium size vehicles got a good market.

Production: Factory end result was at 60%

Gross Margins: the effect for city car was 15%and for medium car is 15%, but we estimated gross margin 24% for city car and 24% for medium car, so we were an unsold car for city car, which damaged our gross margin actual results.

Unsold Stocks and shares: Rivals have better brand image, better market talk about and improved upon popularity

Market Share: Very much like Round 3

Post Tax Revenue: Problem in calculating rates of interest in current bank account and interest on lending options.

Summary of Financial Results

From a examination of Table 5 & 8 appendixed by the end of this study, it is noticeable that all is not going too smoothly for this automobile making company. To begin with, its margins have been lowering and even the Post Tax Profits are demonstrating losses at the end of Round 4. This is even more intriguing when one considers that there has been consistent upsurge in production in the Rounds. Thus, the most reasonable thing for the business to do at this time is to reduce development rationally and concentrate on producing only such products that are money spinners and may earn handsome income for the business in second option years. There is absolutely no use of increasing inventory and carrying costs by producing automobiles that don't have a ready market, or in anticipations of revenues that might not exactly occur.

Coming to market share, it can be seen that some areas of this percentage are market motivated and might not exactly be controllable by the business. However, it's important that Audio Marketing Strategies have to be made which could address aspects of a sagging important thing and minimizing market share in competitive vehicle making markets.

Non-financial results

Coming to the non-financial aspects, it is evidenced that the number of employees has increased from the original 391 for A-Star and 475 for Plush, total of 866 employees in line with the budgeted estimates. However the strength of the work force in the next rounds is really as shown in Table 2 in Appendix

From the above mentioned, it is quite evident that there has been an excess use of employees when compared with the budgetary statistics. Arriving at capacity utilization within the First and Second Circular, there's been 100% capacity utilization, through the third circular, it is merely 65% of total.

Regarding promotional activity bills, it is evidenced that as the budgetary shape of £60M have been preserved in the First and Second circular, in the 3rd round this has risen to £80M, an increase of £20M.

Present situation in the automobile manufacturing situation in European countries

It is also seen that, economic recession has seriously affected the European car industry and therefore a clearer picture could only emerge if so when the recession fades away and the business economies are realised perhaps after 2010 or so. "Within the last five years, there has been a slowdown in financial output across the EU. Weak development has resulted in reduced consumer and business assurance. Industrial production, like the development of durable consumer goods, has declined. It has impacted severely on the car industry, given the car's position as the best consumer and fashion item, as well as the value of executive and design in the manufacturing process. Average income have dropped from around 10% in the 1960s to less than 5% today, plus some volume car creators are actually losing profits. " (EMCC Dossier on the Western european Automotive Industry, 2004).

A business analysis of the kind needs to also consider economic and non-economic factors like rate of inflation, GDP, industry progress, taxation, option of spares, etc. to become feasible and competitive in global car market segments. Segmentation and work at home opportunities in expanding countries also needs to be seen as also the necessity for exploring exports in high expansion areas. The non-economic factors like customer trends and preferences, highway conditions and preference for the product are also major issues, particularly when automakers are vying the other person not only in complex competence but also in market showing and aim for realization. Under such circumstances, costs, rates, attitudes and offering stratagems all play vital roles in determining the business enterprise opportunities and its own future effect on business, especially in changing and volatile markets. The need for business projections and aim for setting in areas of production, sales, money and human relationships are crucial in the highly competitive auto making industry.

Critical representation on teachings

The coaching and the analyzing are interrelated they both find the direction as the useful tool in the research and in the ultimate conclusion. The training can achieve success only when the several characteristics and the complexities are recognized properly by the guide and the data can be proven beyond the restrictions. The critical representation gets the major role on the training and it is its major aim. The style of the critical reflection is shown which was submit by meziro, for the explaining of the critical behaviour exhibited in Stand 3 in Appendix

The representation is the analyzing or the forecasting of the future period by the decision making strategy with the complicated and the interrelated schema.

Learning as an important tool

The learning can be viewed as as an important tool for the research of the several departments available game and the many functions of the same. To analyze the proper functioning of different departments are essential to know if the business game is successful in the different trait and whether the departments suits the requirement.

HR Team

The HR team is one which deals with individuals as the property of the business, people related activities and the contribution by the visitors to the organization. It's the strategic method of the goal settings and the functions of the management. In the study of the team is definitely the durability of the employees were regarded as less than 1000, during the start up but by the progress of the company and by the invention the effectiveness of the employees has reached upto 4000. The study of the departments are considered by the employees turnover and the capacity of the production result by the employees in the business. The loan center that are attained for the several operations and for the benefit for the worker. "Professionalism of the Man Resource (HR) division is implied to be twofold implications. A professional HR specialist has a collective professional role to experience to enhance the HR profession. " (HR Section Professionalism: AN EVALUATION Between the UK as well as other European Countries, 2005).

Operations Division

The operations section consists of the businesses performed in the automobile industry, the procedure begins from the purchase of the recycleables to the process and also to the done goods to the dispatching of the product is the duty of the operations department that must be monitored. The various operation strategy like the JIT and the six sigma process are done set for the efficiency of the operation section for the competitive edge. "Focused clinical tests that advance the idea and practice of operations management. OMR is a thorough, double-blind peer-reviewed journal that is focused toward fast reviews and publication of high-quality research that makes a clear contribution to the technology and practice of businesses management in today's global establishments. " (Meredith and McMullen, n. d).

Marketing section

The marketing division consists of the marketing of the made cars to the customers with good advertising techniques and strategies like the offers to get the more sales and the earnings. The primary idea is to promote the merchandise to the customer however the proper market examination and the study has to be conducted to make the product a success. The qualitative and the quantitative research should be conducted to truly have a thorough evaluation for the same for learning the demand for the merchandise and the forecast about the marketplace. "Statistics provide professionals with the comprehensive information needed to make concentrated decisions; only a total market analysis can provide the story behind the numbers. " (Market Examination, 2010).

Financial office

The financial division consists of the analysis of the financial data and the analysis of the money flow and the finance flow of the company as the whole, the accounts employees should be chosen as the financial controller where they may have the ultimate control for the finance and the various kind of the financial aspects. The different pricing system to be cared for as the payback period to be made short and analysing of the several charges ratios to be done, The fixed belongings should be increased and the company start should be increased. The different tools are being used for the research of the financing aspects. The frequently used ratios will be the "instant financial analysis, accounting ratios, and financial statement examination tools, with industry ratios tools and accounting ratios. " (My Business Analyst (MBA), 2010).

If the overall game was played once more the performance can be improvised to much extend because the first game can lack the knowledge and the use of the certain tools can be utilized more. The basic safety aspects can be viewed as more and the competition analysis should be done, The automobile industry can also go for the hybrid variety of automobiles in the industry as they are the common variety in demand, the company also go for all of the the alternative propulsion vehicle and electric vehicle which can add the variety to the group of the brand. The completeness in the collection and the research may also involve some of the inadequacy because of this of the lack of experience in the field.

Business game is the practical tool to apply and understand business and its own challenges, hazards and opportunities. Business game titles help identify oneself as the primary area of the business and managing the situations.

"Whatever the size of business you are in - whether a huge corporation, a small company, or perhaps a home-based business - effective communication skills are essential for success. " (Transform your life Communication Skills, 2010).

The communication is very important in a company; It's the effectiveness in the company which contribute for the overall progress and the prospectus of the business and the easy functioning of the several departments in the organization irrespective of the functions in the departments, "The Business world Communication: Every business's goal is to get earnings. Whatever be the sort of business you are in; the end result is that you need to earn something from it. " (The world of Business Communication, 2010).

It is through the communication that the businesses are handled effectively and successfully. The business enterprise game will be to improve the performance and to boost up the skills of offering, marketing and the operations.

"There's lots of confusion about team development event days and nights. Often it sometimes appears as a fitness to improve morale, to help staff bond better, so that a fun day out at the business's charge. " (Rose, 2010).

The additions for the improvement in the company are the guidance at the each one of the steps for the avoiding of the mistakes and the mistake correction at the each level. The mention of the previous business game which can be a success, The each step of the actions should be conducted in a team. The open up conversation should be conducted in order to obtain various opinions regarding the business and the management and the brainstorming ideas from the team mates. It involves the actions to be conducted and the "Free team building activities, exercises and ideas are for building groups and teamwork, corporate and business employee determination, personal development, ice-breakers, energizers, and more serious learning and personal development. " (Chapman, 2010).

(Referrals:The at all times 1 and 3 and the graphs for the understanding of the company's performance).

Team Performance: A crucial analysis of the performance of the team

For every company you will see a couple of team in charge of particular activities within the business. Team presents a set of folks working along towards accomplishing a couple of predetermined goals and targets. "Effective, productive clubs of all types have a positive impact on bottom line results and organizational success. " (Cornelius, 2006, p. 1) Quite works were allocated to these four associates. These team members were Yi Jiang, Adnan Hasan, Shanu Jain and Fawaz Khalid Ansari. Each one of these customers have performed so that this enabled the organization to accomplish it goals. They altogether had taken the decisions related to the various operational areas. The functions assigned to each member and their tasks being in a team are explained as follows;

Yi Jiang was responsible for look after the marketing section. His obligation was to design the marketing research programs and to give instructions and appropriate direction to his team members. He used to prepare slides for presentation in the team. After conducting marketing research he determines the campaign strategy that has to be implemented because of their product to become successful in the market. He was using a clear idea about the Western european market conditions and predicated on those ideas he gave appropriate ideas related to the production volume and the ratio of market show that should be captured by the business. He was the person who gave the theory to create city and medium sized cars. He helped me in the functions office by deciding the quantity of products that has to be produced by the business. The company was having huge stock that was not sold in both second and the 3rd round. This is a great problem for the business. For solving this issue he provided a great idea to redesign the car. This was chosen in the fourth circular and the effect was remarkable.

Adnan Hasan was dependable to control the finance section. He was responsible to handle all the financial businesses of the business in every departments specifically the accounts section. Deciding the finance required for each activity is not a fairly easy process and he was much able person to give all financial instructions to the business. He has helped the functions department by proclaiming the quantity to be produced by the organization and also provided the correct number of recruiting necessary for the operations office.

Shanu Jain was in charge to look after the human resource department within the organization. She is somebody who is very proficient and highly devoted towards the task. She was responsible to perform the meetings within the business. She ready the plan and the minutes of the meeting conducted between the associates from all the departments. Inorder to smoothen the team work a team charter was created by Shanu Jain






Decision related to market segment and preferred the look and options.



Decision related to charges of vehicles.



Estimating the development devices and sales value.



Forecasting the income and the cash flow and creating decision form.

NX0441 Controlling for Sustainable Competitive Advantage

In the second round she found that the production of the employees has been reduced and for dealing with that problem she suggested to increase the income of the employee. This led to an increase in the efficiency among the list of employees and it was found in the next rounds. .

The previous key member is Fawaz Khalid Ansari and that is me. I was the team innovator for the operation division and i was in charge to take care of the operations office within the organization since I am a mechanised executive graduate. I needed the decisions related to the quantity of output to be made by the business. I offered my complete effort to give my better to the team and in that way to the business. With my available understanding of the autos and the latest trends in the European market I helped the marketing team to understand the buyer behaviour with regards to the car market. I also helped my team, users to produce excellent designs for the autos. I suggested an idea to purchase a single factory and present the utmost from it. As an integral team member in the organization I took the decision to create less at the first level which was a great help for the organization, because till round 2 the business was having many companies that were not sold.

All the activities that contain to be performed by each associates are prepared in a chart which is referred to as team charter. Every team will have a particular charter and it will be in a written format. "The charter typically includes a statement of mission, objectives or assertion of work; track record; expert, boundary conditions (scope, constraints, resources, and schedule); regular membership; high-level requirements or specs, and interface obligations. " (Job Management Training and Resources: Team Charter, 2009).

I realised that the team work increases the level of determination. "This encourages people to work hard for the benefit for the team - and the team is determined because its associates get their psychological and intellectual needs found by the team. " (Working in Groups, 2010).

The most important benefit for all the associates is that they can realise the worthiness of a group work. "In a very teamwork environment, people understand and believe that thinking, planning, decisions and actions are better when done cooperatively. People recognize, and even assimilate, the fact that "none folks is really as good as most of us. " (Heathfield, 2010). All the decisions that are used regarding each division within the business have its significance in achieving the target of the organization.


This is a company management game where in fact the associates are asked to select and start an enterprise and they have to sell the product. Various discussions have been organised at different levels. It had been in a position to learn lots of things from this work. The contribution of the team members towards a goal was the major interest of the game.

From this game it was also in a position to know how a team is working on the predetermined goal for obtaining the organizational goal. The important aim of the

team members was to improve the value of the shareholder. For accomplishing this target the team has listed out various steps which have to be used. There is a team leader who is responsible to guide all the performance that is conducted by the other team


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