Managing Strategy--Business Simulation Game - Book Report/Review Example

Managing Strategy--Business Simulation Game Introduction The advancement of technology is recognized to be a significant aspect for the modern society. It is also stated that the globalization in world business industry has been largely initiated with the help of technological innovation. One of the most appropriate examples of innovation of technology through globalization is the establishment of e-commerce. The implementation of e-commerce has eliminated the traditional way of trading process in a widespread manner (Bryce & Rutter, 2001). It has been observed that in the contemporary era, people prefer the digital gaming concept more than the traditional gaming concept. Currently the concept of computer gaming are grabbing the attention of modern youth as a contemporary leisure activity. In this regard, it is notable that on every day basis, people are interacting with each other with the medium of online communication games. It has observed that after the initiation of digitalise gaming concept; people are getting more attracted towards online gaming in a significant manner. In this regard, it has been stated that after the implementation of new technology, such as digital gaming concept, it becomes more popular among the young generation, who are constantly engaged in gaming activities. With the use of computers commonly in every household, the popularity of digital gaming has been increased. It has been noted that with the development in the technology, digital gaming has brought a large number of variety in the gaming genres (Chaffey, 2014). In this regard, business stimulation games are often recognised as one of the most strategically important games, which are applied for business purpose. Those games are popularly known as tycoons’ games. Some of the key features of such games in terms of business include their focus upon the management of economic process, which is an important of a business process. A Bullets is a particular company, which is mainly providing online gaming facilities for its customers. The principle objective of the study is to provide a brief description with regard to the e- commerce industry. The study primarily focused with the operations of the company i.e. A Bullets. The study will also take into consideration, the competitive aspects regarding the company i.e. A Bullets, which is a business of simulation game to run a sports footwear company. An industry analysis with regard to online gaming will also be executed for A Bullet. Tools such as PESTLE analysis and SWOT analysis will be taken into consideration in this context. Industry Analysis Industry analysis is recognised to be an important part for the every company’s operations. With the help of the approach of industry analysis, the company i.e. A Bullets can able to understand about the external market structure, which can be helpful for the business to understand the situation as well as to prepare for the future strategies at large. Thorough the external analysis the company will be set its future plans for executing the business operations in an effective manner. PESTLE Analysis In the modern scenario, companies need to develop its business process in an appropriate manner in order to sustain for a longer period of time. In order to develop a successful business operation, companies needs to consider few factors before making further progress within the operations. To establish a successful business, the proposed business will need to consider the external factors that can impact the business process. The analysis of the external environmental factor can be referred to as one of the beneficial for A Bullets and its future performance. It has been observed that the global market has been developing significantly in terms of business prospect (KPMG International, 2010). A Bullet is enhancing its image as an e-commerce gaming company all over the world. In the contemporary business culture, A Bullet has been facing the few obstacles in its business process. These obstacles are becoming the main pitfalls that are hindering the efficacy of the overall business process. In order to establish the business significantly in the respective industry, it is mandatory for every company to work in alignment with the macro-environmental factors (Christensen, 2007). These factors can be better analysed with the help of a PESTLE analysis tool discussed hereunder: Political Factor To establish a business in a country, the positive influence from the government polices is important for a company. Support from political entity will be very much helpful for the company i.e. A Bullets to establish its business. The political factor mainly includes the government policies, rules and regulation. In this regard, it can be expected that the government of United Kingdom, Asia Pacific region as well as America and many more provide positive influence for any business unit. The impact of the political factor results in huge impact or low impact upon the operational policies of business units. The political factors mainly includes the areas of the taxation polices, employment or labour law and consumer protection act developed for companies (Koumparoulis, 2013). In order to establish its business as per the global political domain, A Bullet has to follow the all the governmental rules and regulation for the further expansion of its business. In the US e-commerce and gaming industry, the company has levied higher priority. The government of the UK and Asia pacific country has made few policies online companies that are mandatory to be adhered from the year 2010. It has been observed that the US has brought few strict regulations and rules for the e commerce gaming industry, which is also vital to be followed for A Bullets. In this regard, A Bullet has faced several problems at the time of establishing its business in the global domain. In order to operate in the global domain, the company has to face or deal with different types of rules and regulation, which is quite challenging (Hamilton & Webster, 2012). The political background of the UK, America as well as South Africa is also deemed to be highly influencing for the market decisions of the online gaming industry. Currently, few countries have imposed strong and strict regulation of taxation for the products and services. It is also observed that with the increase of the regulation in the business, the e- commerce industry has been affecting from the Taxation rate (Koumparoulis, 2013). Economic Factor The economic factors of a particular nation also have significant impact upon the operations of companies in the same with regard to the success of the business. The economic factors involve economic growth of a country along with interest rate, inflation rate and exchange rate among others. Therefore, the success of the business in the market of the UK, America and India would depend on the economic growth of the nations. The impact of the economic factors can mainly be seen in the decision making approach of the units comprehensively. The economic growth of the UK has risen significantly in the recent years compared to other nations, which is one of the advantages for the business units including A Bullets operating in the same. The economic growth of the UK and other nation ensure growth of the online business further achieving competitive advantage (Koumparoulis, 2013). The UK is also known as the seventh best country in the world for doing the business. The economic factors of the nation will help the company to improve its growth in considerable manner. The tax reduction of the UK for the corporate sector is also an important aspect for the development of the business because it helps the organization to increase their profit as well as the economic growth of the country at the same time. Therefore, the economic factors of the UK will help A Bullets to make the right decision related to the business and sustain in the market. In addition to the same, approach of the countries towards improvement in the financial system, which can be benefit the business units to maintain the financial records, will also be crucial to operate within the e-commerce sector of the nations (Lancashire Global, 2015). Social Factors Social factors also play a vital role for the success of any business including that A Bullets in a particular country. Social factors involve the social elements along with the population growth rate, career attitudes, age distribution and consciousness about health among others. The healthcare system as well as education system of the UK is one of the best in the world comparatively. Good educational system of the UK and America attracts the students from the various parts of the world (Koumparoulis, 2013). Due to good education system of the UK the students are well educated people have adequate knowledge about the game business. It is one of the advantages for the online game industry. The people of America and other nations are also well educated. The knowledge of the students in these parts of the world can also benefit for the improvement of the game company. Furthermore, increasing number of foreign students in the UK and America will also benefit the overall online gaming sector and the company at large (Lancashire Global, 2015). Technological Factor To develop the business in a country, technological factors are also deemed to be quite essential for an organization. The technological factors involved in several technological aspects such as automation and R&D activity among others. Technological factors also cover the area of development of technology, which is important for the success of the business. The UK, America and other parts of the world have effective R&D process as well as innovation process which further ensure technological development in a considerable manner (Koumparoulis, 2013). Companies of the UK implement the advanced technology for the development of business. Due to the effective R&D and innovation infrastructure of these global nations, A Bullets will be able to operate in the same effectively within the e-commerce and gaming sector. However, the legislation related to the intellectual property rights will need to be adhered in this context. This is important with regard to the developments of the online companies, especially including A Bullets and others. The development of Information technology (IT) within these global markets has great impact on the process of achieving the business goals by A Bullets, since technology has a key role to depict with regard to their operations. The advanced technology prevailing in UK and America also influence the expansion of business in the various places within the e-commerce market of the world (Lancashire Global, 2015). Legal Factors Legal factors are also vital for the development of business in a country. Legal factors generally associate with laws such as safety law, employment law, health law and consumer law among others. The UK, America and other global nations are among the best environment for doing business (Koumparoulis, 2013). The legislations of the UK and other parts of the world especially including the laws for online business deemed to have significant impact on the business of A Bullets since the company needs to operates its business with due adherence to the same. The government of the UK gave its best effort to ensure that the legal environment of the nation ensures a good business place for the foreign and domestic companies. The government of the UK, America and other parts of the world have stern safety law, employment law, health law as well as regulations, which governs the operations of the companies at large (Lancashire Global, 2015). Environmental Factors Environmental factors are also paly the important role for developing a business within a country. Environmental factors cover several factors such as weather, climate and the changes of climate among others. The environmental factors have both positive as well as negative impact on the online game business. However, the environmental norms of the UK and America are quite appreciative for the doing the business especially for the online business domain. Online game business mainly focuses on producing online game for the customers. Today people are more advanced than the earlier and they like to play online game and video game among others mostly young people. However, these games have little impact on the external environment (Koumparoulis, 2013) Therefore, it is apparent that the environmental factors do not affect the growth of the online game business (Lancashire Global, 2015). SWOT Analysis A SWOT analysis is an organized planning, which is used to assess the strengths, weaknesses, opportunities and threats of a company. SWOT analysis also involved analysis of goals of a business along with the internal as well as external factors that are required to attain these goals. Strengths and weaknesses are considered as the internal factors of a company on the other side opportunities and threats are considered as the external factors of company or the market place (KPMG, 2010). New businesses are required to use SWOT analysis as a part of the development process for the improvement the business. Current business can also use SWOT analysis to evaluate the changing atmosphere. In this study, a SOWT can be conducted with regard to the operations of A Bullets to understand its strengths, weaknesses, opportunities and threats (KPMG, 2010). Strengths Strengths primarily include the positives internal factor of A Bullet Company through which the company is able to attain long term sustainability. A Bullet company has several strengths as well as strong points, which can improve the performance of the company. The strengths of Bullet Company include its diversity in the types of online games to the customers, which attracts attention of the customers mainly including the young boys. Therefore, the company has been able to attract large numbers of customers (KPMG, 2010). In recent trends, most of the people like computer and online game as a part of their daily life. Other strength of A Bullet Company includes its increases growth of mobile gaming as well. It expansion in widespread markets of the world including the market of Europe, Africa and Asia-Pacific countries are also among its strengths. It also enhances the position of the company among the various online gaming companies. This also enables the company to expand the business in several countries within the world to increase the growth of the business. Some of the countries where the business of A Bullets is prevalent include Japan, China, Hong Kong and America among others. A Bullets Company also helps to improve the quality of life of the people by delivering high quality gaming experience, which is again one of its strengths. The company also provides training facility to their customers related to online game, which is much appreciated (KPMG, 2010). Weaknesses Along with several strengths, A Bullet Company also has various weaknesses, which are the negative factor of the operations of the business. Weaknesses creates problem towards the success of the business in future. Therefore, employees of Bullet Company should focus on eliminating the weaknesses of the Company. Some of the weaknesses of Bullet Company include the perception of the customers regarding online gaming. Since people believe that online games can hamper the education of young boys, the sales of the company have got negatively impacted. Notably, the company also provides online games, which can be played with the uses of internet. Without internet people cannot use the online games, which is again a negative aspect at large. Another weakness can be the technical problems encountered while playing online game (KPMG, 2010). Opportunities Opportunities are the external factor of the company, which helps the same to flourish in the long run. One of the major opportunities of Bullet Company is that the business has the scope to expand the business in the global market place. The company has the ability to attract the attention of the customers by delivering attractive online gaming facilities. Another opportunity for the business can be the enhancement of the efficiency of the learning process through which in future people can easily obtain the knowledge about online game and its facilities. A Bullets hold seventh position in the market, which is one of the opportunities of the company since it will help the company to improve their position in future (KPMG, 2010). Threats Along with several opportunities, A Bullets also has certain threats, which are considered to be among the external factor of the company that can impact its performance in the global market. One of the major threats of the company can be the competitors in the market because there are several companies in the market, which offers online game to the customers. Another threat of the company can be hacking of online games, which can corrupt the game, further ensuring significant loss. These threats might create problems in growth of the business. Due to the presence of competitors in the market, the company also face problem in attracting more customers and also in entering into the new market to expand the business (KPMG, 2010). Company Decision Year 11 Objective Strategic Action Outcome To make planning for the setup of the business Raise capital by issuing shares Formulate appropriate advertisement Ensure proper execution of business activities Generate awareness about the business To conduct an analysis of the sector Information about competitors Knowledge about the demand of the customers Performing operations competitively Meeting the preferences of the customers In this year, A Bullets will make appropriate planning based on which the operations of the company are needed to be organised and performed. Accordingly, an analysis will be conducted with the intention of having required information about the conditions of the market. In this context, required capital is required to be raised, so that operations are performed competitively. Respectively, the company will be able to generate better awareness and in meeting the needs of customers. Year 12 Objective Strategic Action Outcome To enhance brand identity Investing on research and development (R&D) Adopting innovation Improve competitive position Performing operations as a leader To improve customer base Provide online gaming products in accordance with the needs of customers Performing operations with better profitability margin During this year, focus has been levied on enhancing brand identify and customer base. Thus, investments are made in R&D and innovation. Correspondingly, the company will be able to conduct operations as a leader. Year 13 Objective Strategic Action Outcome To provide online gaming products and/or services cost-effectively Adopt cost leadership strategy Increase sale Improve productivity To enhance credit rating Increase operating profit Performing operations competitively In this year, the company aimed at enhancing credit rating and cost effectiveness. Accordingly, the company has planned to adopt cost leadership strategy for improving sale figures and productivity. Year 14 Objective Strategic Action Outcome To use environment friendly materials Adopt ‘green’ strategy Enable operating in eco-friendly manner Able to minimise negative impacts on environment To recycle products To enhance corporate social responsibilities (CSRs) Adopt recycled packaging materials Make charities and contributions Able to enhance its foothold in CSR activities May reduce profitability margin During this year, A Bullets focuses on CSR activities by adopting environmental strategies and recycled materials. In this context, the company will be able to conduct operations with lessened impact on environment. Year 15 Objective Strategic Action Outcome To improve energy efficiency Adopt renewable source of energy Preserving energy Reduce energy cost To maintain workforce diversity Training and development Increase cost of the company Maintain code of ethics in the workplace In this year, the company will be emphasizing towards energy efficiency and workforce diversity. In this respect, the use of renewable source energy with the aim of the reducing energy cost and energy preservation. In addition, training and development will assist in managing workforce diversity, so that professional ethics are maintained. Strategic Direction By developing a strategic vision and mission, the company i.e. A Bullets can achieve its strategic goals. The competition in the market should also influence the company to apply new strategy for the development of the business within the online e-commerce sector, which can further differentiate it from other companies (Thompson & et. al., 2015). Cost leadership strategy is also one of the major strategies to be followed while strategic direction to achieve the strategic goals as well as objectives of the business by the management of A Bullets. Cost leadership strategy mainly focuses on the production department to generate good quality of products by applying high technology. Therefore, by implementing cost leadership strategy and innovative technology, the company can produce high standard of online game based on the demands of the customers. By using cost leadership strategy the company can also enhance the effectiveness of the learning process through which the knowledge as well as information about the online game can be obtained easily (Afuah, 2009). Strategic Planning With the help of strategic planning, A Bullets can also make the strategic decision regarding the development of the company and increase the satisfaction level of the customers to raise the profit (Colorado State University, 2013). With the help of strategic planning, the company can also enhance the learning infrastructure of the business as well as gain the knowledge regarding strategic direction to accomplish the objectives of the business. Strategic planning also helps the company to know about the weaknesses and threats prevailing within the business such as analyzing the competitors in the market and the technical problems associated with the product among others (Stappenbeck, 2015; Colorado State University, 2013). Conclusion From the above discussion, it can be states that the A Bullet company is an online gaming company, which provides online game to the customers according to their needs. A Bullets Company has certain strengths, weaknesses, opportunities and threats, which are the part of the operations of the business at large. Strengths and opportunities are important for growing the business in future and while weaknesses as well as threats are the negative factor that can impact its long-term operations. From the above discussion, it can also observe that the political, economic, social, technological, legal and environmental factors of a country also impact the development of the business with the global nations. Different factors have their own impact, which are essential for the development of the business. Strategic direction and strategic planning are also important for the improvement of A Bullets. Both are essential to achieve the goals of the company as well as increase the profit of the company at large. References Afuah, A., 2009. New Game Strategies for Competitive Advantage. Strategic Innovation, pp. 1-473. Bryce, J. & Rutter, J., 2001. The Gendering of Computer Gaming: Experience and Space. University of Central Lancashire, pp. 1-20. Chaffey, D., 2014. E-Business & E-Commerce Management. Strategy, Implementation and Practice. pp. 1-722. Christensen, J. W., 2007. Business Development Management. Best Practices in Managing and Executing Business Development, pp. 1-72. Colorado State University, 2013. Information Technology Strategic Plan and Review. CSU-Pueblo IT 2013-2018 Strategic Plan, pp. 2-33. Hamilton, L. & Webster, P., 2012. The International Business Environment. Oxford University Press. KPMG International, 2010. Online Gaming A Gamble or a Sure Bet? Information, Communications & Entertainment, pp. 1-20. Koumparoulis, D. N., 2013. PEST Analysis: The case of E-shop. International Journal of Economy, Management and Social Sciences, Vol.2, No.2, pp.31-36. Lancashire Global, 2015. The Business Environment: Sustainable Development & PESTLE. Sustainable Skills, pp. 1-23. Stappenbeck, J. G., 2015. Corporate Lobby A Bullets. Industry 60 BUSI1324 Managing Strategy. [Online]. Available at: http://www.bsg-online.com/users/CorporateLobby.html [Accessed March 21, 2015]. Thompson, A. & et. al., 2015. The Business Strategy Game. Player’s Guide, pp. 2-34. Read More