Report of CESIM Simulation of Marketing and Logistic Department - Research Paper Example

Report of CESIM Simulation of Marketing and Logistic Department Background The current market operations and developments in the handsets industry continue to experience mixed trends in view of the contextual occurrences involving market changes and demands for the products. Conspicuously, the factors of the demand for phones in the various markets entail features of both the macro and micro continuums, affecting the industry developments accordingly. Notably, the aspects of stakes involved in the industry influence the developments of the various trends accordingly (Onkvisit & Shaw 2009, p. 21). In the aspects of internal influential factors, security is key. Various news such as the safety of using phones n airplanes and quality of the mobile phones to withstand pressure. For instance, the case of a phone exploding in airplane reported in China influenced the USA market demand for phones, decreasing it by 3%, and in Asia it decreased by 7%. Europe, case is conspicuous as demand remains unchanged. Further, as the oil wars diminish, the transportation costs reduce by 6%. Nonetheless, product costs remain unchanged. The factor of outsourcing in USA stand at capacity of 13% while in China is 19%. This results in reduction of up to 6% in outsourcing costs. Additionally, another elemental factor of consideration is the macro environment of the department in handling the handset sales. The factors within the global context, such including the finance industry, affect the organisation performance. The corporate tax rate raises to 22%, as aspects of competitiveness of the various economies impact the markets. Consequently, currency rates fall against the USD such as the Rmb, which fell by 10%. The EU rebounds, bringing the interest rates in Europe down. However, the rates in USA and China increase by quarter and half respectively. Thus, such developments present Europe as the destination for the organisation, as the market is viable and stable. The influence of these factors in the macro environment influence the outcome of the business environment remarkably as the department pursues its establishment in the various sectors of operation within the industry (Kotler 2013, p. 67). Thus, in view of these factors affecting the macro environment of the department, the effect is visible on the results presented by the department. The poor results in the marketing and establishment of the department to success are evidence of the impacts within the micro and macro environments within the industry. Introduction The CESIM model entails several strategic simulations to evaluate and formulate perceptions of the dynamics of global business operations. The marketing and decision making within the departments entail an elemental factor of development for the evaluator of the business engagement presented. Therefore, in view of the trends within the handset industry, the aspects incorporated in the micro and macro environments, it is essential to reflect accordingly on various levels of engagements to develop strategic processes for the success of the department; thus, the entire context of this dissertation. Critical review of academic literature Notably, the marketing process entails a configuration of the product to the customers and potential markets to promote the products accordingly (Blythe & Megicks 2010, p. 45). Therefore, theories entail a useful tool in the propagation of the marketing structures within the department to foster the success of the department in engaging the customers and expanded markets (Thomas, Housden & Thomas 2011, p. 78). The two applicable theories in this context will entail the product life cycle approach and the Ansoff’s theory. The product life cycle as a strategic approach to the department in marketing and logistics entails understating the various stages of the product life. The logistic approach to the lifecycle of the product entails the various elemental stages of introduction, growth, maturity, and decline of the product. In these stages, the marketing and logistics management ought to understand the introduction of the product into the market, the process through its growth and eventual maturity within thin the customer reception platforms. Additionally, the department ought to understand the factors of addressing the procedural decline of the product (Kaul & Vithala 1995, p. 297). The lifecycle also will incorporate the elements of the understanding the aspects of technology as affect the aspects of product penetration in the market. Innovative areas continue to evolve vastly, affecting the procedures of development for the various positions of the product in the lifecycle curve. Further, the factor of consideration in the lifecycle also entails the maturity state of the product as perceived in the market by the customers. The sales in round 3 continue to reflect with a progressive curve slowly picking; thus, product penetration into the market. Further, the product experiences aspects of incorporating the market development and the eventual diversification of the markets (West, Ford & Ibrahim 2006, p. 89). These are developments as marketing and logistics department will incorporate in view of the developments in the global trends affecting the industry as the product lifecycle prescribes. Anoff’s matrix entails a decision-making tool on the various engagements of marketing as a department. The experience of the department in the situational influences the various happenings and market reception behaviors over new products entail an essential consideration to deliver quality decisions over the product marketing (Aburto 2010, p.1). Therefore, in managing the factor of decisions regarding the various platforms for engaging the new market ventures, the handset industry may prove remarkably successful in areas where the customers prefer trying new products, such as in Europe. Such experiences, lead to decision fostering the establishment of markets within the Europe market, as it has the elemental features for consideration by the department. The selection of techniques to engage in the decision process will maximize and control the transactions entailed in the factors of costs of trade and marketing processes. These elemental platforms factor in sectors such as transport, taxation, and finance impacts within the confines of the markets projected for the products. Thus, through these features of the Ansoff’s matrix the department will foster its success remarkably as applies to the various critical areas for the department. The theories reflect a simulative approach to manage the department in dealing with the business issues present a remarkably simulating approach to the decision-making processes. The product lifecycle and Ansoff’s matrix both present a strategic approach to the developments and engagements that can foster the department in engaging the various micro and macro issues relating to the department. Therefore, the Anoff when applied in the launching round 4, will incorporate elements of the shifting demand as the customer’s request. Further, the strategy is useful for product differentiation and pricing practice; hence, the department will apply accordingly to revew impact of tax rates and share costs in the plan. Critical Evaluation of departmental activity The result of the organization, the sales revenue increased by around 42.84% from 1.78 Million USD to 2.77 Million USD and the decreased of profit by around 11.15% from 1, 455 229k USD to 996, 644k USD. The promotion cost changed from 11,000k USD to 8,000k USD from the previous round. The transportation cost also increased from 65,071k USD to 68,028k USD due to the increased of tariff at 3USD per unit in USA and Asia. The income taxes expense also increased at 13.43% from 35,065k USD to 42,746k USD. I got the highest global market share in this round. This result can explain about the objective that affect the highest market share and be the leader in the market The establishment of the department in the fourth round should hold the strategic goals of having the leading global market share, with the highest shares price and leading in production. These are visionary approaches to the marketing strategies in engaging the various platforms for the success of the business (Bryan, Pass & Sanderson 1994, p. 31). However, its operation strategic and implementing of the strategy faces remarkable challenges in fostering the department towards its goals. Further, its performance remains under need for improvement from the various establishments as relates to the industry. The micro and macro elements in the industry within the global setting continue to affect the decisions as relate to the operational strategy of the department. Therefore, as a critical factor for consideration, the department ought to adopt procedural factors in addressing these cases as the simulation case presents (Geri 2005, p. 167). Individual reflection on management of departmental Department management entails a critical factoring of various management strategies and skills to foster the objectives of the department. Planning within the department setting entails consideration of critical factors the capture the entire goal of the organization. In logistical approaches to the factors of strategic planning and approach to the factors of management, the department needs to reflect results to show its working (Schiffman, Kanuk & Hansen 2012, p. 67). Further, in observing the various sections as founded in this evaluation, the management of a department entails factors of cooperative approaches as the various theories of marketing suggest. Moreover, it is essential for the department as it fosters service to have a clearly defined vision for the project, reflecting the success of the organization. Thus, with these establishments, the notable factor of success in the management of the department is strategic planning and observation of principles of management to the department. Conclusion In view of the department case, the factor for consideration entails the strategic plans of the department in addressing the various stakes as they emanate. For instance, operating in the confines of external approaches to the strategic establishments affects the operation of the department. Further, marketing and logistics establishment continues to reflect the achievements of the department as the previous results. Therefore, the department ought to implement strategic plans for its success. Bibliography Aburto, T. (2010) Ansoff’s Matrix For Marketing Objectives. http://taydeaburto.com/ansoff-matrix-for- marketing-objective/ Blythe, J., & Megicks, P. (2010). Marketing planning: strategy, environment and context. Harlow, England, Financial Times / Prentice Hall. Bryan, L. Pass C. L & Sanderson S. (1994). Companies and markets : understanding business strategy and the market environment Oxford : Blackwell Business. Geri, C. (2005). International marketing environment analysis. The marketing review, 2005, Vol.5(2), pp.159-173 Kaul, Anil, & Vithala R. Rao. 4 (1995) "Research for product positioning and design decisions: An integrative review." International Journal of research in Marketing, 12(4), pp.293-320. Kotler, P. (2013). Marketing insights from a to z 80 concepts every manager needs to know. Hoboken, N.J., Wiley. Onkvisit, S., & Shaw, J. J. (2009). International marketing strategy and theory. London, Routledge. Schiffman, L. G.Kanuk, L. L. , & Hansen, H. (2012). Consumer behaviour: a European outlook. Harlow, Financial Times Prentice Hall. Thomas, B., Housden, M., & Thomas, B. (2011). Direct and digital marketing in practice. London, A. & C. Black. West, D. C., Ford, J. B., & Ibrahim, E. (2006). Strategic marketing: creating competitive advantage. Oxford [u.a.], Oxford Univ. Press. Read More