Andrews Performance - the Simulation Overview - Case Study Example

Name: Tutor: Course: Date: Table of Contents Table of Contents 1 Part 1 2 The Simulation Overview 2 Critical Analysis 5 Porter Five Forces 5 Macro-Economic Environment 6 Exchange Rate and Demand 6 Competitors 8 Baldwin, Digby, Erie, Ferris, and Chester 8 Customers 9 Customer Satisfaction, Bargain Power And Customer Satisfaction 9 Performance Review 9 Part 2 10 Reflection 10 Works Cited 13 Part 1 The Simulation Overview Andrews was geared to provide reliable and quality market oriented genetic diagnostic devices for tests in Europe, America and Asia geographical regions in The Financial Year of 2016-2021. During the same period, the recorded profits of Andrews hit a margin of 10.7% market share with a figure of $9123000. This is attributed to sales worth about 106 million US dollar closing a stock market price at $44.4 which is 50.1%. The various regions hold the key performance and budget segments that consists of stiff competition from Digby, Erie, Ferris, and Chester. They all have the competitive pros. Figure: Representation of the Simulation Model and Competition According to the simulation, There was a major 6-year fluctuation in the development within the financial years. This was divided in 3 phases. During the first 2 year period, most of the funds of the budget went into the campaign and development of the new product. In this case, the market share attributed and grew to a market share of 22% in the activities of the launch and the investment in marketing Ace in 2017. This contributed to the expansion of the market share in Asia and Europe. Andrews expansion plan had some setbacks in the growth due to the limited plant space that hindered the growth of the product owing to the extensive demand for the product. However as it is seen in the Financial year of 2010-2021, the demand for Ace consistently increased and thus the product saw a surplus of competitive product that were almost exact to the Ace product. The Ace product saw a lot of challenged in the expansion of the market and cutting out the difference was the main setback during the financial year 2016-2021. There was need of state of the art technological innovation in the design of the Ace product in order to reduce the operational expenses and thus leading to the expansion of the product amidst the stiff competition that was seen especially from Baldwin, Digby, Erie, Ferris, and Chester. FY2021 Andrews Average Profit $9,123,000 $7,532,018 Cumulative Profit $281, 492,335 ($9,482,242) Sales $106,000,000 $146,994,606.5 Contribution Margin 50.1% 45.1% Figure: Andrews Revenue And Sales Margins In Essence, Andrews has achieved good performance and results in the sales and market shares with a high contribution margin. Critical Analysis Porter Five Forces The figure below summarizes the discussion of the porter 5 forces that are represented in the Analysis of Andrews case of the FY 2016-2021. Figure: A Representation Of Andrews Porter 5 Forces Model The porter five forces provides a framework of analysis on the level of competition within the Andrews product range competition and the number of business strategies that are drawn to come up with the competition intensity and the attractiveness of the industry profitability. As depicted in the Andrews case macroeconomic and microeconomic environments. Macro-Economic Environment Exchange Rate and Demand The risk that is exposed to the Andrews case is presented by the export of the products to the overseas geographical regions of Asia and Europe. The macroeconomic environment factors actually stipulate the decisions and strategy of the product base of Andrews and other market competitor. The foreign exchange risk occurs whereby trade allows for the exchange of the US dollar with a smaller amount of sales revenue due to the depreciation of the Euro in the European market. Similarly, the American region market presents a matured economy with a very big market size and this tends to bring about the risk of market saturation since the products are readily available and the strategy is to expand the market share as fast as possible especially at the beginning of the simulation. The innovative business strategy will allow for the acquisition of revenue that can be used to upgrade the related systems and the capacity space. The steady growth rate has seen an 18% to 31% rise in the budget and performance sectors respectively, but the risk of the Euro depreciation has caused foreign exchange costs and thus the Europe investment is not very attractive. This is shown in the graph below of the dollar dominance over the Euro during the FY 2016-2021. Figure: Dollar Dominance Over The Euro During The FY 2016-2021 for Andrews Case. In the same case, the Asia economic environment is attractive within the later time of the period due to larger demand and an attractive growth rate of 43% and the budget segment that presents. The performance is similar with a percentage of 43% and the currency in the Asia Pacific market of A$ has appreciated over the FY 2016-2021 with opportunities for the product export. Competitors Baldwin, Digby, Erie, Ferris, and Chester Baldwin presents the most competition within the performance segment. This has been attributed to the three products that are on sale towards the end of the simulation. According to the simulation, the FY2020 and FY 2021 has more accuracy and speed thus the fierce competition. This has seen Andrews go over to launch the Ace and Apple produce in order to boost the competition and beat the competitors. In the case of Digby, the reduced speed and accuracy between FY 2016 to FY 2017 has seen it as the top performer within the simulation. Andrews strategy is to invest and campaign for the Able products . This has made the product to keep a good economic position between the FY 2016 to FY 2019. The aggressiveness of Digby made it garner market shares due to innovative marketing. The Andrews market share was not tapped accordingly due to the lack of revenue and thus the fall experienced in FY 2019. However, Andrews invested in state of the art automation and technological machinery to reduce the expenses thus capture the satisfaction of the customer. According to the simulation Chester has not presented good performance and has taken emergency loans. This has led to its adjustment in the focus of the American and the budget segment by the launch of two products between FY 2017 and FY 2018. The financial records show gross mismanagement of business as seen in Capsim 2016-2021. However, Digby has continued to supply products that are acceptable to the customer amidst the company rows. Chester has paid attention to it and improve the market share Customers Customer Satisfaction, Bargain Power And Customer Satisfaction In order to boost customer satisfaction, bargain power and customer satisfaction, Andrews has closely monitored the demands and buying characteristics of the clients. This is represented in a Guide research whereby the client seems to have different behaviors during the buying of various products. This has attributed for the growth of the demand for products within the FY2016 to FY 2021. The stiff competition within the market segments has been counteracted by the innovation and design of products that meet and exceed the customers' expectations. The capacity of the plant has been upgraded regularly to match the increasing demand and enhance the economic advantage and expansion of the company. Performance Review Andrews has implemented a state of the art cost leadership strategy in order to boost and operate the genetic diagnostic test equipment within the industry in order to keep a competitive edge over the market segments between FY 2016 to FY 2021. This has established Andrews as a market leader and thus the analysis and assessment of the strategy is shown in various success segments such as; Market share, Return on Equity (ROE), Share Price, and Accumulated Profit Part 2 Reflection During the analysis of the Andrews case, I was seen as the most crucial and effective team member. This is according to the review of Mike Baird in the NSW Premier. Leadership is following a passion and believing in what one is doing. Leadership is the way people influence another team of players to ensure that the vision and mission of the set goals is achieved at the end of the project. I was involved in the process of influencing and motivating the team and organization to put in all their efforts in order to achieve the set goals and objectives. Moreover the cheerleading and vision uptake that makes all the obsession and consistency into the project. By being an effective team player, I sought the cooperation of the team and motivated them to produce the best they could. As a good leader, the results of the team were not identified as only one person but a collection of team activities, each contributed by the several team members. According to Terry Orlick of The Zone of Excellence, Lydia Level of the Sydney University of Technology and Peter Terry of the University of Southern Queensland, in their book Applying Sport Psychology to Business, they elaborate the characteristics of world class performance that has been identified in eight critical factors that put together influence positively to success and peak performance within the expertise or business domain. They identified the most important factors as self belief and commitment. (Mike, 2015) Within the scope of the work, I had a lot of commitment and self belief towards the success of the project assigned. I wanted to bring out the best in others within the task. The process of bringing the team to realize its vision made me to bring out the best in myself too. During the task, I also accounted to other important factors of a leader that helped me to be successful. These major and key factors to success include: Motivation: This was emulated in the stirring of the proving of one's worth within the task Authority: Empowerment of the team through direct self development Status: I established my status through the ranking of my skills within the task, the skills were shared among the team members Productivity: I encouraged the team members to be productive by ascertaining their skills and putting them into good use as an individual and as a team Accountability : The accountability within the team was boosted by the trust within the team members that the end goal will be achieved through accurate input from the members of the team Communication: Most of the work was communicated by me as the leader as well as the other team members who showed the current state of the individual tasks within the project. In order to improve the team's performance, all the people were engaged in comprehensive discussions and the ideas of all the team member were respected and appreciated. This helped to boost the motivation and the morale to produce the best results. Making everyone within the team to be productive and beneficial helped to achieve the best results. My personal values and strengths were focused towards producing the best results through my commitment and self belief. The task needed core values of accountability and trustworthy in the ideas that were contributed. All the team members provided written or documented evidence of the research work towards the contribution of the task. I always focused on the personal improvement of the team. This has motivated me to realize myself and improve my skills in the course. The simulation has taught the team members and me to look at a wider view of the facts about economical growth and the data presented in a clear manner. The research has helped me to work in harmony with the team and appreciate the task that is at hand, and most importantly making a good relationship with all team members. Any mistakes or errors were discussed in a team oriented environment to avoid any conflict of ideas and the decisions of team members considered towards the achievement of the final simulation task. According to McCrae and Coster in Northouse 2010, The openness and agreeableness of the team members ideas and decision helped me to accept and conform to the ideas of others. This has given me a good experience of the team and the curiosity has lead me to learn a lot from myself and others. This has made me to be sociable within the task. Works Cited Mike, H ’Passion Key To Being A Successful Leader’ BOSS Emerging Leaders Event, 18 August 2015 Http://Sydney.Edu.Au/News- Opinion/News/2015/08/13/- Passion-- Key-To- Being-A-Successful- Leader.Html Dipboye L. Robert. “Structured And Unstructured Selection Interviews:” Beyond The Job-Fit Model. N.D. Web. 23 Sep. 2014. Http://Www.Researchgate.Net/Profile/Robert_Dipboye/Publication/234095559_S RUCTRED_AND_UNSTRUCTURED_SELECTION_INTERVIEWS_BEYON D_THE_JOB FIT_MODEL/Links/0fcfd50f07cc277c11000000. Erickson Robin “4 Critical Challenges Facing Leaders Today” Bersin By Deloitte. February 18, 2010. Web. 19 Sep 2014. Http://Www.Bersin.Com/Blog/Post/2010/02/4-Critical-Challenges-Facing-HR- Leaders Today.Aspx. Heathfield M. Susan. “The New Roles Of The Leader Professional” Traditional HR Is Transforming And Adding 3 Critical Roles. N.D. Web. 21 Sep 2014. Http://Humanresources.About.Com/Od/Hrbasicsfaq/A/Hr_Role.Htm. Read More