• Subject Code : SG7003
  • Subject Name : Management

Business Simulation with Professional Development



Vision, mission, and values.


Competition analyses.

Porters five force model

The threat of new entrants.


Bargaining Power of Suppliers.

Strategies to tackle dominant suppliers.

Bargaining Power of Buyers.


Simulation performance result of Gemma pasta.

Performance analysis.

Market analysis.

Market Segmentation.


Analysis of actual performance.

Decision analysis.

Key decisions for the next five years.

Changes in the business plan.


Introduction to Simulation Evaluation

Pasta is considered a staple food for numerous Australians. However, strong rivalry from private-label goods has limited manufacturers of recognized pasta over the past five years. In addition, imports have sustained to flood the marketplace over the period, which has harmfully affected local manufacturers. Firms in the Pasta manufacture business have fought back over the past five years with deep brand endorsement and product growth in an effort to motivate customer attention in locally made pasta. Industry profits are predictable to improve in the upcoming years. The main aim of this analysis is to assess the growth of a simulated business known as Gemma pasta. It will further assess the growth of the business by using different models and frameworks.

Vision, Mission, and Values


  • Superior Quality: to deliver superior quality goods in order to increase customer satisfaction
  • Value: To offer superior worth to the customer with nourishing products that have a wonderful flavor.

Competition Analyses

Pasta is an ideal base for a pleasing, nourishing, and healthy food. Pasta is suitable for other food products including fish, lean meats and poultry, rich tomato sauce, beans and vegetables, and cheese. The international pasta market is probable to be motivated by its rising reputation across the globe. Pasta, an Italian staple foodstuff, is now an enormously admired preparation found in diverse regions of the world (Fehér & Németh, 2017). Originate from Italy; pasta is now considered international food. It is normally made from dough of wheat flour which is merging with eggs or water; it is obtainable in the marketplace in a variety of shapes. To attract customers, small and big producers are now testing with a diverse component range from chickpea flour and rice flour to tomato, spinach, carrot, or beet juices and different herbs and spices for improved flavor and color.

Porters Five Force Model

The Threat of New Entrants

New players in business bring improvement, a new mode of doing stuff, and put stress on Pasta business through a lesser pricing approach, dropping expenses, and offering a novel value proposition to the clientele (Moreno, Rodríguez & Ribes, 2016). The business has to administer all these challenges and make effectual obstacle to preserve its competitive advantage.


  • By improvement of novel products and services: New foodstuffs not just bring a new clientele to the fold but also provide the old client a motive to purchase pasta and noodle products.
  • By building an economy of scale so that it can reduce the fixed cost per unit. 

Bargaining Power of Suppliers

Most of the business in the pasta business purchases its raw material from many dealers. Dealers in leading spots can reduce the profit of the company and may earn in the market. Dominant dealer in this sector uses their negotiating authority to pull out elevated prices from the companies (Arbin, Kask & Prenkert, 2018). The overall influence of superior supplier negotiation authority is that it decreases the overall productivity of pasta businesses.

Strategies to Tackle Dominant Suppliers

  • By making a competent supply chain with numerous sellers.
  • By research with product design using dissimilar resources so that if the cost goes up of single raw material then the business can transfer to another.

Bargaining Power of Buyers

Purchasers are often a demanding lot: They desire to purchase the finest products accessible by paying the least cost as possible. This puts stress on the pasta business’s success in the long run. The lesser and more powerful the client base is of the corporation the superior the bargaining ability of the clientele and superior their capability to seek rising discounts and offers.


  • By increasing a great base of clientele: This will be supportive in two modes. It will decrease the negotiation authority of the purchaser plus it will give a chance to the company to rationalize its trade and making procedure.
  • By swiftly innovating innovative products: Consumers repeatedly seek concessions and offerings on recognized goods so if the business continues to come up with new foodstuffs then it can reduce the bargaining authority of the purchaser.

Simulation Performance Result of Gemma Pasta

Market Analysis

The international pasta marketplace is being determined by a number of positive factors. The altering preference of the customers, resulting from the western influence and urbanization in the emergent area, has contributed to the marketplace expansion. As an outcome of chaotic existence, the customers desire easy-to-make food products. Furthermore pasta is a strong carbohydrate-rich foodstuff and suitable to prepare, the order for diverse kind of pasta goods such as fusilli, macaroni, and vermicelli, has been on a surge. Furthermore, producers are introducing product innovations such as gluten-free pasta, organic pasta, and vegan pasta to attract superior consumer-base. The market can be separated into three target markets, individuals, families, and take-away selling (Curtain, Locke & Grafenauer, 2020). The growth approach is to further enter the accessible markets by starting an extra store For instance: Marketing expenses can be increased over numerous profits centers. This plan lessens the threat concerned with opening a new store.

Market Segmentation

The market segmentation will focus on three different segments:

  • Individuals:individuals that cook food for themselves.
  • Families:a group of natives, either associates or a group of non-nuclear family members dining mutually.
  • Take away:people that favor eating particular pasta at another location.


The approach of The Gemma pasta will be to originally push our three most admired pasta products including fettuccine, linguini, and spaghettini. The plan is to launch the rest of the Gemma pasta product line as sales augment and they can negotiate more space for products. The company will promote its foodstuffs with a 20 percent off normal price coupon throughout the initial month of the product being launched into the superstore. The Gemma pasta will use a store display that will include the voucher and draw client attention. The sales approach is to present pasta and noodle products as a reasonable and quick dinner thing that is easy to make.

The objective is to attain $190,000 in gross sales in the first year of the process. This will be achieved through an advertising plan which is built by the business office of Gemma pasta. The objective is to augment sales 10 percent in the second and third years of the process. This will be achieved by:

  • functioning with the small Business union and the Franchiser to make an absolute marketing plan
  • evaluate process (budgets/costs) monthly with the franchiser and accountant
  • Offering better products and services, beyond client expectations

Analysis of Actual Performance

Consumer packaged supplies performed optimistically in 2019. Development was determined by food expenditure, mainly the use of fresh produce. Discount and Specialist stores sustained to be the most active channels, recording further development; supermarkets also performed fine while huge Hypermarkets sustained to resist. The enlargement in private labels and small brands was important (Hopp & Greene, 2018). During 2019, the business benefit from constructive performance and development in almost the entire group in which it functions, in particular in the bakery and sauces segment. In the Meal Solution business, the sustained expansion trend in sauces mainly added to by the pesto section.

The economies in the pertinent marketplace recorded superior enlargement in 2020 than in the previous year.

Decision Analysis

The constant alteration in the international financial, social, and ecological systems are influencing the sustainability of the complete food and farming business. Nourishment, personal comfort, weather alteration, and food waste are all topics that Gemma pasta has to tackle. It is an easy idea that translates into a promise followed through from field to fork: Gemma pasta wish to present its clientele superior nutritionally balanced and sensibly sourced foodstuffs that are stimulated by the Italian lifestyle and the Mediterranean diet.

Key Decisions for The Next Five Years

 For the next five years, the business will advertise its pasta foodstuffs out of its personal storefront and in the metropolitan stores. The business will focus on building a trustworthy buyer base with consumers that have augmented sales by 15 percent every year for the past three years. In the present year, Gemma's pasta will gross more than $400,000 in trade (Palavecino et al., 2020). This was generated from a preliminary savings of $90,000. Furthermore, Gemma pasta is trying to enlarge its process to comprise allocation to the main superstore chains in the whole metropolis. In order to fulfill the augmented product demand, Gemma pasta will have to increase manufacture. Proprietor financial support and internally generate cash flow will allow only a section of the growth plan. In addition, Gemma pasta will secure a $60,000 credit to fund the development of its manufacturing ability. Sales projections for the next five years will be based on present sales achievement with the target purchaser base in the region. This arrangement will result in trade profits rising to almost $520,000 by year 4.

Gemma pasta is situated in a 3,000 square feet place that functions as a storefront and a manufacturing capacity. With the growth, 3/4 of the region will be devoted to production. The arrangement of the fresh production room will cost $15,000. The new equipment will charge an extra $30,000. The business will also have to improve its covering equipment to fulfill the changing needs and requirements. This will cost $15,000.

Changes in The Business Plan

The constant enhancement plan adopts by Australian hardware has assisted the business in moving a step forward toward its trade goals. The most appropriate for the corporation would be total quality management as its reliable and will assist in achieving higher competence with reduced cost and elimination of fault and waste. Furthermore, the quality upgrading efforts must be continually observed through steady data gathering, assessment, reply, and growth agenda (Herawati, Kamsiati & Bachtiar, 2020). The organization should use total quality administration and lean practice to achieve proficiency in the feature by cutting back on everything that is not adding worth. The use of total quality management techniques has improved performance at every stage and in all areas of accountability.

 In order to assist the organization realist its deliberate aim, it is essential to ensure a harmonized and integrated approach to performance executives across the organization. It is also necessary to evaluate the strategy and policies. Furthermore, it is also essential to ensure with line managers and other executive stakeholders to assure support and smooth performance (Gklaveris, 2016). In addition, it is also essential to review the factors that are distressing the overall competence of the products and services. It has been noted that the business is facing issues in dropping the waste and raising the quality of the existing products. The workers are complaining about the lack of visible management guarantee to training and growth, lack of rewards, and recognition. For all departmental executives, it is essential to learn to inspire the workers so that they can attain the objectives in the appropriate manner.

Conclusion on Simulation Evaluation

It has been identified from the above analysis that the Gemma pasta company is providing high-quality products and services to the customers. Furthermore, the company has realized the importance of targeting the right customers. It has also been identified that high competition and other factors may affect the market share of Gemma pasta. Furthermore, the business must focus on providing effective and quality products in order to increase market share in the most effective manner. In addition porters, five force models have been used to assess the competition and other factors that influence profitability. The analysis highlighted that threat of new entrants is high as they bring innovative products in the market. However, the analysis also revealed that the company will be able to attain success with the help of quality and health products. The company has understood the requirements of the current population. Also, they have healthy options like gluten-free pasta which will help attract other target segments.

Reference for Simulation Evaluation

Andre, R. S. (2016). The factors required for winning the business simulation game: A regression analysis (Doctoral dissertation, Capella University).

Arbin, K., Kask, J., & Prenkert, F. (2018). Is there a Hierarchy among Activities, Resources, and Actors in Business Networks?: Exploring the Relationship Between the Components of the ARA-model. In 34th Annual IMP Conference and Doctoral Colloquium:" From Business to Research and Back Again", Marseille, France, September 4-7, 2018.

Curtain, F., Locke, A., & Grafenauer, S. (2020). Growing the business of whole grain in the Australian market: A 6-year impact assessment. Nutrients12(2), 313.

Fehér, I., & Németh, N. (2017). Analysis of the Situation and Competitiveness of Hungarian Pasta Industry (based on Porter’s model). Volume of Management, Enterprise and Benchmarking in the 21st century IV, 55-65.

Gklaveris, K. (2016). A proposed business plan for a new start-up venture.

Herawati, H., Kamsiati, E., & Bachtiar, M. (2020). Canvas business and feasibility model of cassava gluten-free noodle processing in Cirendeu Village. E&ES443(1), 012035.

Hopp, C., & Greene, F. J. (2018). In pursuit of time: Business plan sequencing, duration and intraentrainment effects on new venture viability. Journal of Management Studies55(2), 320-351.

Moreno-Izquierdo, L., Ramón-Rodríguez, A. B., & Perles-Ribes, J. F. (2016). Pricing strategies of the European low-cost carriers explained using Porter's Five Forces Model. Tourism Economics22(2), 293-310.

Murray, J. C., Kiszonas, A. M., & Morris, C. F. (2018). Influence of soft kernel texture on fresh durum pasta. Journal of food science83(11), 2812-2818.

Palavecino, P. M., Curti, M. I., Bustos, M. C., Penci, M. C., & Ribotta, P. D. (2020). Sorghum Pasta and Noodles: Technological and Nutritional Aspects. Plant Foods for Human Nutrition (Dordrecht, Netherlands).

Ruszkowska, A., & Wardaszko, M. (2016). Process-oriented research method for teamwork effectiveness assessment in business simulation games. In Developments in Business Simulation and Experiential Learning: Proceedings of the Annual ABSEL conference (Vol. 43, No. 1).

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