Business Simulation Game Based on the Mobile Phone Industry - Case Study Example

Team Name: Group Members: ID Numbers Word Count: 2022 Introduction The purpose of this report is to describe the group’s strategic plan of a business stimulation game based on the mobile phone industry in three regions the USA, Europe and Asia. The areas to be covered include situation analysis that explains about the business environment in the areas of operation. Another area to be covered in the report the SWOT analysis that will explain the strengths, weaknesses, opportunities and threats that might face the business during its operation. The report also presents the mission statement of the business and explains how it can be achieved. The objectives of the business are presented including functional and corporate objectives and explaining how the business intends to achieve them (Scott, 2010). The other section of the report is the choice and decision part that explains the choices available to the business and the best decisions that will suit the business. Another section of the report is the tactical implementation part that explains about the business operations, productions, source of finances and how the business will market its products (Pahl & Richter, 2009). A business stimulation game is any action taken by a new or a small to company so as to increase the volume of sales of their company. The business strategy of the company will be aimed at improving the quality of the products taken to the market so as to attract increased customers and have a large share of the market. The name of the business will Direct communications (DC). Situation Analysis This part of the report explains about the evaluation of how current and past political, economic, social, and technological, legal and environmental (PESTLE analysis) factors help companies identify external and internal factors that affect operation of the business both in the short run and long run (Scott, 2010). Political factors Political factors are the changes that arise as a result of government influence. These include policies passed by the governments and other regional policies in the area of company’s operations. The policies to consider are such as operations of a new company and the way to start the business (Pahl & Richter, 2009). The company should also consider taxes imposed by the government in their countries of operation. These also include policies such as fiscal, tax and trade tariffs that would affect the financial and revenue gains of a company. The company should invest in a region and a country that has the most favorable political environment. The selection of investing in the three regions was influenced by the political stability in the regions (Pahl & Richter, 2009). Economic factors These are the factors that directly affect the profits of a company. These are the factors that have long term effects on the survivor of the company. These may include inflation in a certain region because increased inflation would affect the pricing of company’s products. If there is inflation the prices will increase and the consumers will buy less because their demand for certain products will go down. The company should also consider operations in countries that have favorable interest rates because financing loans will be cheap to the company. There are countries that limit foreign direct investment and, therefore, this should be a factor to consider (Pahl & Richter, 2009). Social factors The company should also consider and research about the social factors such as the composition of the population so as to decide the target population. The company should also consider the cultural trends in a region because they help in creation of the market. For example, the buying trends in the three selected regions increase during holidays and the middle age people are the main players in the economy. The social factor may appear as not important to a business but they highly influence a company’s investments (Scott, 2010). Technological factor Direct communication being a mobile company should consider the technological factors in the regions of investment. In the mobile phone industry there is a lot of technology use and the companies keep on innovating new technologies so as to have a large market share because of increased competition (Scott, 2010). Therefore, the company should highly invest in research and development so as to keep pace with the main players of the mobile phone industry. This technological awareness in the countries will ensure that the company does not lag behind in acquiring the market share. Legal factor The company should take into consideration the legal requirement in the regions and countries of investment. The legal requirements include registration of the company in these countries because there are countries with unfavorable policies related to company registration this might delay companies operations (Pahl & Richter, 2009). The company should also consider factors such as consumer laws in a certain country so as to ensure that they provide what is needed in the market. There is also need to consider labor laws because there are laws that require payment of very high salaries and they will affect the company’s financial stability (Scott, 2010). Environmental factors These factors are the surroundings in a certain area and include location, geographical, climate and other environmental issues. The company should consider a location that is near its market and a country that has favorable environmental policies. This will allow company operation in a smooth way maintaining the environmental set laws. There also increased cost on energy in most countries and, therefore, the company should put this into consideration so as not to affect its financial stability (Scott, 2010). SWOT Analysis The section explains the strengths, weaknesses, opportunities and threats that the company will face in its operations. Strengths The company’s strength include that the company being a new entrant in the market will offer high quality products at lower prices this will enable the company to attract a lot of customers and this will help in stabilizing its financial position (Pahl & Richter, 2009). Another factor of strength is that the company has experienced workers who have high level skills on the operations of the company which will help increase the productivity of the company (Scott, 2010). This experience will extend even to the sales and marketing department that will help increase the sales of the company due to increased customer care. Weaknesses One of the company weaknesses is that it will be facing high cost in paying employees their salaries this will reduce the company revenues and it will lead to another weakness (Fine, 2009). This weakness is that the company will fail to carry out research and development in the most suitable way that will help the company to improve its products. The company also faces another weakness because being a new company it has incurred a lot of debts and this are not good for the business because paying debts drains the company’s profits which could be reinvested. The best thing about the weaknesses is that they are not permanent and can be eliminated (Scott, 2010). Opportunities One of the company’s opportunities is the increased demand of telecommunication tool there are also no regulations in the telecommunication industry. This means that if a company meets the required standards can get into the business without any limitations. Another opportunity is that being a new company it will be exempted from being taxes for a given period of time the company should ensure it stabilizes during this grace period by earning high profits. Therefore, the company should strategize on how these two opportunities should be grasped so as to benefit the company in the long run. This will help the company increase its revenue and be able to compete with the existing companies (Scott, 2010). Threats One of the company’s threats is that being in the telecommunication sector there is ever changing technology that makes it difficult for a company to stabilize with its products because there is need to keep on improving them. For example, there are companies that develop a new product every month this causes threat to Direct Communication because it will incur a lot of costs so as to compete with the big companies for the market. Another threat is that there is increased competition and this can push the company out of the market because of the excess capacity. This will to an extent that the big companies will try to under sell in new and small companies so as to have a big market share (Pahl & Richter, 2009). Mission Statement The purpose of a mission statement for a company is to help summarize the reason behind the inception of a company, it operations and its target market (Pahl & Richter, 2009). The mission statement for Direct Communications will be: To be the leading telecommunication company in USA, Europe and Asia offering high quality products. The target market will be the middle aged people because they are the ones with high use of technology. Corporate and Functional objectives The objectives of the company include production of high quality telecommunication products in the USA, Europe and Asia. Another objective is to provide latest technology in the products so as to cater for the middle aged population. Another objective is be the leading telecommunication company in the world by increasing its sales capacity. The company also is aiming at widening the range of the products it offering to its customers. Strategic choices and decision This section presents the strategies and the choices that are available to the company. These are the plans that a company should undertake to achieve its objectives (Slack, & Lewis, 2011). A strategy that the company will dwell in, is offering high quality products to its customers so as to penetrate the market and under sell the main players in the telecommunications. This will help the company develop a competitive advantage that will help increase its products. The company will also apply a strategy of mass production so as to enjoy the economies of scale which will enable the company to reduce on its operation costs. Another strategy is to focus on small size of the market at a particular given time so as to help penetrate the market fully (Slack, & Lewis, 2011). Tactical Implementation The company will ensure that it hires highly trained personnel who are endowed with experience to make sure that the company produces high quality products that can compete with other companies in the industry (Slack, & Lewis, 2011). The company will also invest in research and development to keep on improving their products so as to increase the volume of sales to enjoy economies of scale. The company should embark on marketing in divisions so as to allow achieve the strategy of focus on small segments of the market. This will be key to penetrating the market because the whole focus will be on that particular area. The company need to keep on offering on job training to its employees so as to enable keep up with the technology required in the telecommunication sector (Waters & Waters, 2006). This will help the company be consistent in its operations and be a leading telecommunications company. Conclusion In conclusion, the report has presented the both the PESTLE and SWOT analysis of Direct Communications breaking down how it will have the best investment in the world. The set objective of producing the high quality products in the telecommunication industry has been achieved because the company has highly invested in research and development. The company has achieved success in its marketing strategy because small segments of the market have helped it penetrate the market. Given the changing technology in the telecommunication industry the company needs to increase its expenses in innovation to keep on producing unique products that will help it win the largest market share. The company has achieved in becoming the leading company in telecommunication industry in the three selected regions of investment USA, Asia and Europe. This has been made possible because of its strategies of targeting the middle aged population who are the majority and those who use high technology. There also need for the company to spread to other countries so as to enjoy increased economies of scale. References Fine, L. (2009). The SWOT analysis: using your strength to overcome weaknesses, using opportunity to overcome threats. AuthorHouse: New York. Pahl, N. & Richter, A. (2009). SWOT analysis. GRIN Verlag: New York. Scott, J. (2010). International business. Cengage Learning: Philadelphia. Slack, N. & Lewis, M. (2011). Operations strategy. Pearson: London. Waters, D. & Waters, C. (2006). Operations strategy. Cengage Learning EMEA: London. Read More