Comprehensive Business Simulation Report Answer

Introduction

The current report depends on the point re-enactment game and the organisation which will be featured in the report will be RideReady carbon fibre bicycles. It will give you a brief overview of the simulation game. In addition, the report will provide a summary of the problem, issues, and opportunities facing the business, as well as the theories and models that connect them (Barišić and Prović, 2014). Even so, in order to master financial responsibility and face the main challenges of business integration, running a small business like RideReady carbon fibre bicycles requires a great opportunity to learn about various functional areas. RideReady, a bicycle maker, has decided to present a line of carbon fibre bicycles in 12 selected markets across North America, Europe, Latin America, Centre East Africa, and Asia Pacific regions. This report gives an outline of our reproduction experience, remembering the utilization of MBA speculations for vital administration, key promoting, finance, HRM, and initiative, examination of our exhibition, and suggestions for future activities (Tanner et al. 2012).

Application of Theories

We used various MBA program theories and models to guide our decision-making in our simulation of RideReady's introduction of carbon fibre bicycles into specific markets. To guarantee efficient decision-making and performance, these theories were applied to various aspects of our business operations, including finance, HRM, strategic marketing, strategic management, and leadership (Buil et al. 2019). We used numerous ideas from the MBA programme to assess market potential and competition in the 12 geographic regions chosen for test marketing. These ideas aided us in determining the potential of each market and assessing the competitive environment.

Market Research

In September 2021, the worldwide market for carbon fibre bicycles has been consistently developing throughout the long term. Carbon fibre bicycles are known for their lightweight, high-strength, and streamlined properties, making them famous among cycling lovers, proficient competitors, and sporting riders (Goi et al. 2019). The market for carbon fibre bicycles is driven by several factors, including rising disposable incomes in developing nations, technological advancements in carbon fibre manufacturing, rising consumer interest in fitness and sports, and growing awareness of the environmental and health benefits of cycling (Buil et al. 2019). The market is additionally affected by patterns like the developing notoriety of electric bicycles (e-bicycles) which can be made with carbon fibre outlines, the rising interest for altered and customised bikes, and the developing spotlight on maintainability and eco-accommodating items. Carbon fibre bicycles are in high demand from developed nations like the United States, Germany, Japan, and China in North America, Europe, and the Asia-Pacific region. Carbon fibre bicycles are also gaining popularity in emerging markets like Latin America, the Middle East, and Africa, despite their lower market penetration (Tanner et al. 2012). To stay competitive and make well-informed decisions, RideReady in this market has constantly kept an eye on market trends, customer preferences, and competitor activities.

Figure 1: Identify demand through market research

(Source: Simulation report)

Market Segmentation

The technique of splitting a market into discrete groups of consumers with comparable features and wants is known as market segmentation. Here's how RideReady should use market segmentation to better serve the highlighted segments: children, work, recreation, mount, and speed:

Youth segment: Customers in this category are typically between the ages of 12 and 24, and they are enthusiastic about cycling. Bicycles may be used for transportation, exercise, or leisure activities (Avramenko et al. 2012). RideReady might create bicycles that are tailored to the interests and demands of the teenage market, such as stylish designs, lightweight frames, and low prices.

Work segment: Customers who ride bicycles to go to work or perform errands are included in this segment. They may prioritise characteristics such as durability, comfort, and utility. To meet the demands of the work segment, RideReady has provided bicycles with robust frames, commuter-friendly attachments like racks and fenders, and ergonomic designs.

Recreation segment: Customers who use bicycles for leisure and recreation, such as family outings or weekend rides, make up this segment (Tanner et al. 2012). They might put ease of use, stability, and comfort first. To meet the requirements of the recreation market, RideReady has designed bicycles with seating that is comfortable, frames that are stable, and gears and brakes that are simple to use.

Mount segment: Customers who are enthusiastic about off-road adventures and mountain biking make up this segment. They might place an emphasis on features like sturdy frames, high-performance parts, and sophisticated suspension systems (Avramenko et al. 2012). To meet the requirements of the mounting market, RideReady has created specialised mountain bikes with long-lasting frames, advanced suspension technologies, and off-road-specific features like wider tires and disc brakes.

Speed segment: This portion incorporates clients who are ardent cyclists and focus on speed, execution, and streamlined features. Bicycles may be used for high-speed cycling or competitive racing (Shafudin et al. 2018). To meet the demands of the speed segment, RideReady has created high-performance road bikes with lightweight frames, aerodynamic designs, and cutting-edge components like carbon fibre wheels and high-end group sets.

Figure 2: Market segmentation of RideReady

(Source: Simulation report)

Competitor Analysis

Companies like RideReady can better understand and evaluate the opportunities, threats, strengths, and weaknesses of their competitors by conducting competitor analysis, a crucial step in strategic management. A brief look at RideReady's rivals is as follows: Gear, DealsonWheels, Wheelie Great Bicycles, and Pikainen Tech:

RideReady faces stiff competition from Gear in the carbon fibre bicycle industry. Their cutting-edge designs and high-quality goods have earned them a reputation. Gear has areas of strength for standing and a wide client base. They have a large customer base and a vast distribution network. To remain competitive in the market, RideReady must closely monitor Gear's product offerings, marketing strategies, and approaches to customer engagement. DealsonWheels is one more contender of RideReady, known for offering reasonable carbon fibre bikes. They emphasise cost-effective solutions and target customers who are price-conscious. In order to comprehend DealsonWheels' competitive positioning and market share, RideReady must evaluate its pricing strategies, distribution channels, and customer value propositions (Blažič and Novak, 2015). A rival that focuses on eco-friendly and sustainable bicycle solutions is Wheelie Good Bikes. They focus on eco-friendly designs and materials, which may appeal to a particular group of customers. To identify potential market opportunities and remain ahead of the curve in terms of sustainability practices, RideReady must evaluate the sustainability initiatives, product innovation, and customer base of Wheelie Good Bikes. In the carbon fibre bicycle market, Pikainen Tech is a rival that focuses on cutting-edge technology and innovation (Goi, 2019). Their advanced features, intelligent connectivity, and incorporation of technology into their products have earned them a reputation. RideReady requirements to screen Pikainen Tech's mechanical progressions, product differentiation, and client commitment systems to evaluate their upper hand and expected influence available (Blažič and Novak, 2015). In their analysis of these rivals, RideReady has also taken into account market share, customer feedback, distribution channels, marketing strategies, and customer service.

Figure 3: Market demand and market share of existing competitors

(Source: Simulation report)

Balanced Scorecard

The Balanced Scorecard is a strategic management framework that can be used to identify and evaluate RideReady's capabilities in a variety of areas, such as financial performance, customer satisfaction, internal processes, organisational learning and development, and so on. The following methods can be used to identify capabilities using the Balanced Scorecard:

• Financial perspective

Financial performance indicators like “return on investment (ROI)”, profitability, and revenue growth are the primary focus of this perspective. RideReady has assessed its capacities for creating income, controlling costs, and achieving financial objectives by analysing financial data (Farrenkopf et al. 2016). This viewpoint has also aided in identifying places where modifications are required to improve financial performance.

• Customer perspective

This point of view sees client-related measurements like consumer loyalty, faithfulness, and maintenance. RideReady is able to evaluate its capabilities for meeting customer needs, providing superior customer experiences, and fostering customer loyalty by evaluating customer feedback, conducting market research, and analysing customer data (Farrenkopf et al. 2016). Customer relationship management's strengths and weaknesses, as well as opportunities for improvement, can be better understood with this perspective.

• Internal processes perspective

Internal operational processes and efficiencies are the primary focus of this perspective. RideReady is able to evaluate its capabilities for optimising internal processes, improving operational efficiencies, and delivering products and services in a timely and efficient manner by analysing key operational metrics like production cycle time, product quality, and supply chain management.

• Learning and growth perspective

From this point of view, the organisation's capabilities in terms of employee development, innovation, and learning are examined. RideReady is able to evaluate its capabilities in fostering a culture of continuous learning, promoting innovation, and developing the skills and capabilities of its employees by evaluating employee training and development programs, innovation initiatives, and organisational culture.

Figure 4: BSC after Q4

(Source: Simulation report)

Financial Management Theory

The income statement, balance sheet, and cash flow statement of RideReady were analysed to determine the company's financial performance. Evaluations of RideReady's financial performance, liquidity, profitability, solvency, and efficiency are typically included in a comprehensive financial situation analysis (Hu et al. 2017). This involved looking at important financial ratios like the debt-to-equity ratio, the current ratio, the quick ratio, revenue growth, gross profit margin, net profit margin, return on assets (ROA), and return on equity (ROE). Additionally, RideReady's cash flow generation, operating, investing, and financing activities have all been evaluated with the assistance of a review of its cash flow statement. This has revealed RideReady's capacity to manage its debt, fund operations, invest in growth opportunities, and generate positive cash flows.

Figure 5: Financial performance of RideReady

(Source: Simulation report)

Analysis

Market Research

We led extensive statistical surveying in each market to assemble information on customer inclinations, buying power, competitor, and market patterns. Surveys, focus groups, interviews, and data analysis were all components of this primary and secondary research. We were able to gather data-driven insights from market research and make well-informed choices based on the opportunities and competition in each market. We were able to gain a thorough understanding of the carbon fibre bicycle market thanks to the application of market research theory (Hughes and Scholtz, 2015). We used market research theory to gather relevant and trustworthy data on the carbon fibre bicycle market at the present time. Market size, trends, customer preferences, rivals, distribution channels, and pricing strategies were all included. We were able to acquire a comprehensive comprehension of the market's size, rate of growth, and key players by analysing this data.

Market segmentation

We divided each market into distinct segments based on demographic, geographic, psychographic, and behavioural factors using market segmentation theory. We were able to identify the most attractive market opportunities with high growth potential and minimal competition by comprehending the characteristics and requirements of each segment (Hughes and Scholtz, 2015). We were able to better tailor our offerings and marketing strategies to each market segment as a result of this. We were able to gain a thorough understanding of the needs, preferences, and actions of various customer segments in each market thanks to market segmentation (Wang et al. 2020). For instance, we may have discovered that a growing number of environmentally conscious urban dwellers place an emphasis on bicycle performance and sustainability, making them a potential customer base for our carbon fibre bicycles. Based on the results of the market segmentation, we were able to identify five potential target markets in the selected regions such as youth segment, work segment, recreation segment, mount segment and speed segment (Wang et al. 2020). Market segmentation theory empowered us to fit our advertising methodologies to the particular requirements and inclinations of each fragment in each market. We were able to design marketing messages, promotional campaigns, and product offerings that would resonate with the needs and preferences of each segment by comprehending the distinct characteristics and behaviors of each segment.

Competition in the Market

To examine the competitive situation in each market, we used Porter's Five Forces Analysis. This theory assisted us in assessing customer and supplier negotiating power, the threat of new entrants, the threat of replacement products or services, and the intensity of competitive rivalry (Hernández-Lara et al. 2019). We were able to identify markets with higher profit potential and lower competitive intensity by comprehending the competitive forces at work in each market (Huang et al. 2023). In order to identify and compare our competitors, Porter's Five Forces Analysis was used in each of the twelve regions where we were introducing our carbon fibre bicycles. This data assisted us in developing region-specific strategies to compete successfully and acquire a competitive edge in each market.

Balanced Scorecard

RideReady's financial performance, including revenue, profitability, and return on investment (ROI), has been tracked and measured by the BSC. RideReady has monitored its financial health and made data-driven decisions to improve its financial performance by setting financial objectives and key performance indicators (KPIs) in the BSC (Huang et al. 2023). Additionally, BSC has helped RideReady concentrate on satisfying customer requirements and expectations. By recognising client sections and setting client-driven targets and KPIs in the BSC, RideReady has estimated consumer loyalty, a piece of the pie, and client maintenance, among different measurements, to check its exhibition in the reproduction. RideReady has monitored and improved its internal processes in order to improve its operational performance (Huang et al. 2023). To do so, the company has set goals and key performance indicators (KPIs) for product development, supply chain management, and production efficiency in the BSC. RideReady has focused on developing its workforce and organisational capabilities with the assistance of the BSC.

Financial Management

Financial management theory offered the frameworks for RideReady to evaluate investment possibilities and make capital budgeting decisions. RideReady has assessed the feasibility and profitability of various investment options, such as expanding into new markets, launching new products, or upgrading production facilities, using capital budgeting techniques such as "net present value (NPV)", "internal rate of return (IRR)", and "payback period”. RideReady has been able to effectively prioritise investment decisions and allocate its financial resources as a result of this. RideReady has developed a clear financial roadmap for the simulation by applying principles of financial planning. This includes setting sales goals, budgeting for expenses, and projecting cash flows, all of which have assisted RideReady in directing its financial decisions throughout the simulation (Hernández-Lara et al. 2019). RideReady has improved its liquidity position and overall financial performance in the simulation by utilizing working capital management principles to optimize its cash flow, reduce inventory costs, and manage credit terms with suppliers and customers (Ferreira et al. 2021). RideReady has protected its financial performance in the simulation by utilizing risk management strategies like hedging strategies, diversification, and credit assessment to reduce the financial risks associated with its operations in various markets.

Conclusion

In conclusion, business simulations that make use of models and theories, like RideReady's introduction of carbon fibre bicycles in particular markets, can greatly improve analysis and decision-making. However, it is critical to understand the models and theories thoroughly, apply them in the context of the situation, use relevant data, engage in critical thinking and analysis, integrate findings from multiple sources, foster effective communication and collaboration, and continuously learn and improve. By doing this, my team and I can make the most of these models, tools, and theories to get better results and make better business decisions. By carrying out these suggestions and ceaselessly working on the utilization of models and speculations, RideReady and its group can acquire improved brings about re-enactment practice and possibly apply these experiences to true business circumstances.

Recommendations

Based on RideReady's simulation experience as well as the application of a variety of tools, models, and theories, the following suggestions have been made for making better use of them:

• Understanding the models and theories

Ensure that everyone in the group understands the models and ideas being employed. Understanding the underlying concepts, assumptions, and limits of each model or theory is part of this (Buil et al. 2018). To gain a better understanding, it may be beneficial to read the relevant material, seek professional advice, or attend training sessions.

• Contextual application

The group should tailor the application of the models and theories to the specific context of the simulation or real-world business situation and take into account the particular characteristics of the industry, market, or company being studied. The team must adapt its methods to the specific circumstances rather than relying solely on generic or textbook methods.

• Data-driven analysis

The group can support the analysis and application of models and theories by utilizing pertinent data. Complete and accurate data must be gathered from trustworthy sources, and thoroughly analyzed, and data-driven insights must be used to guide decision-making (Buil et al. 2018). The group ought to try to avoid making inferences or speculations without solid data evidence.

• Critical thinking and analysis

The group ought to be able to foster critical thinking and analysis among its members, challenge presumptions, take into consideration a variety of points of view, and critically examine the results and effects of utilizing the theories and models. This can assist in identifying potential biases, limitations, or unnoticed factors that could influence the analysis's accuracy and efficacy.

• Collaboration and communication

Promoting teamwork and maintaining open lines of communication within the group is absolutely necessary to increase the effectiveness of the application of tools, models, and theories. Regular team meetings, discussions, and brainstorming sessions can help ensure that everyone's ideas and points of view are taken into account, resulting in better decisions. In order to use tools, models, and theories to their full potential in subsequent decision-making processes, a culture of continuous learning and improvement is also necessary. The sharing of ideas and examples from the game should be encouraged in this culture.

• Continuous learning and improvement

The group should be capable of establishing a culture of continuous learning, regularly evaluating the models and theories' efficacy, identifying areas for improvement, and adjusting accordingly. To continuously improve the models and theories' application and efficacy, the group can share best practices and lessons learned.

References

Avramenko, A., 2012. Enhancing students' employability through business simulation. Education+ Training.

Barišić, A.F. and Prović, M., 2014. Business simulation as a tool for entrepreneurial learning The role of business simulation in entrepreneurship education. Obrazovanje za poduzetništvo-E4E: znanstveno stručni časopis o obrazovanju za poduzetništvo, 4(2), pp.97-107.

Blažič, A.J. and Novak, F., 2015. Challenges of business simulation games-a new approach to teaching business. E-Learning-Instructional Design, Organizational Strategy and Management, pp.227-259.

Buil, I., Catalán, S. and Martínez, E., 2018. Exploring students' flow experiences in business simulation games. Journal of Computer Assisted Learning, 34(2), pp.183-192.

Buil, I., Catalán, S. and Martínez, E., 2019. Encouraging intrinsic motivation in management training: The use of business simulation games. The International Journal of Management Education, 17(2), pp.162-171.

Farrenkopf, T., Guckert, M., Urquhart, N. and Wells, S., 2016. Ontology based business simulations. Journal of Artificial Societies and Social Simulation, 19(4).

Ferreira, C.P., González-González, C.S. and Adamatti, D.F., 2021. Business simulation games analysis supported by human-computer interfaces: A systematic review. Sensors, 21(14), p.4810.

Goi, C.L., 2019. The use of business simulation games in teaching and learning. Journal of Education for Business, 94(5), pp.342-349.

Hernández-Lara, A.B., Perera-Lluna, A. and Serradell-López, E., 2019. Applying learning analytics to students' interaction in business simulation games. The usefulness of learning analytics is to know what students really learn. Computers in Human Behavior, 92, pp.600-612.

Hu, B., Leopold-Wildburger, U. and Strohhecker, J., 2017. Strategy map concepts in a balanced scorecard cockpit improve performance. European Journal of Operational Research, 258(2), pp.664-676.

Huang, Y.M., Silitonga, L.M., Murti, A.T. and Wu, T.T., 2023. Learner engagement in a business simulation game: impact on higher-order thinking skills. Journal of Educational Computing Research, 61(1), pp.96-126.

Hughes, S. and Scholtz, F., 2015. Increasing the impact of a business simulation: The role of reflection. The International Journal of Management Education, 13(3), pp.350-361.

Shafudin, M.Y., Chin, F.G. and Raihanatul, Z.M., 2018. Factors influencing the use of Monsoonsim business simulation by UTM undergraduate students. International Journal of Learning and Development, 8(2).

Tanner, J.R., Stewart, G., Totaro, M.W. and Hargrave, M., 2012. Business simulation games: Effective teaching tools or window dressing? American Journal of Business Education (AJBE), 5(2), pp.115-128.

Wang, Y.Y., Wang, Y.S. and Jian, S.E., 2020. Investigating the determinants of students’ intention to use business simulation games. Journal of Educational Computing Research, 58(2), pp.433-458.

You Might Also Like:-

Management Assignment Help

How to do an In-Text Citation APA Style?

DEM311: Emergency and Disaster Management in Context - Assessment Answer

Looking For Complete Assignment Sample Get It On WhatsApp