BUSINESS SIMULATION

Final Report

Submitted to: Submitted By:

Prof. Arpan Anand (167) Tanmay Saha
(168) Taran Singh
(169) Tarun Tiwari
(170) Tubhyam Kr. Pandey
INTRODUCTION
Learnings from the course:

 We learn the concepts and application of marketing, operations, finance and HR

functions and their impact on business in a simulated company, where the decision at one
function affect the overall working and profitability of the company. We also understand
the importance of holistic and detailed analysis in a dynamic, uncertain and complex
business environment.

Goals & Objectives of the company:

 To capture the largest market share

 To generate higher profits for the company

Specifications of Decisions for Doing Phase:

 This table shows the final picture of our company. Profit and loss till period 3 were good
as we were generating good profits but in the last which is period 4 we incurred loss
which is 2,180,679. This loss is result of selling of 70 machines and estimating less
demand of the products in the market.
 Net profit was also shake in the period 4 and we incurred loss here.
 Debt and equity ratio should be less than 160%. Our score is always less than 108% and
in the last period we have 104% of debt equity ratio which results in the score as 8 in the
balance score card.
 So our overall performance in the doing phase is 6.94 out of 10.0 this the good score but
some decision which were taken by the company were not up to our expectations and
goes wrong for us. If we take do better forecasting for period 4 then this 6.94 score will
definitely be improved.
 Rejection Rate means whatever you produce have some defect so the company have to
produce more then the required demand. Each period we invest our capital and this
rejection rate had reduced.

 Our company had not taken much of financing decisions. But in period 3 we invest our
money in fixed term deposit with bank. As in this year we earned huge profits so to
utilize those profits and get some returns we invest 300,000 in FD. Again I period 4 we
invest 300,000 in FD to generate some returns.

 Total Quality Management at period 0 is 270,000 and in the last which is period 4, we
had invested 450,000. TQM is helpful in increase the efficiency of the company and
reduce the rejection rate. Lesser the rejection rate better the image of the company in the
market.
 Production Technology is helpful in the improvement of the product. Between the
technologies higher the quality of the product will be there. In the period 0 we invest
320,000 but in the ending of period4, we had invested 480,000 in production technology.
 We don’t purchase any machines and do not give any overtime to the workers. These
both decisions will help us in saving of huge amount which we invest in other
components. And we do not have that much of demand which were not fulfilled by the
current 300 machines which we have.
 In the last period we sold 70machines se we also have to dismiss that much workers from
the company.
 Training of Personnel is important as it will helps in the improving the image of the
company. If our personnel is trained then the wastage will also be reduced in the
company.

 Bought in goods means the company outsource the finished goods. Our company do
bought in just for Quarto in Period 2 only. In this period we have high demand of Quarto
and in this period we also got some discount if we outsource more than 10,000 goods.
10,000 is the standard quantity which we have to outsource minimum. Except this, our
company had not done any outsource of the goods.

 From the starting to the end of the periods we kept the price of the products same. If we
increase the price then it directly impact our demand. But we decreases the prices then
our revenues will be less. So we maintain the price all over the periods.
 We invest good amount of money in the product policy as compared to period 0 which
was 135,000 for Petra, 250,000 for Quarto and 150,000 for Rondi but after the ending of
period 4 we had invested 138,000 in the Petra, 300,000 in Quarto and 181,000 for Rondi.
This investment will results in the improvement of the product and increase the demand
of the product in the market.

 Lean Management is used to improve the efficiency of the company. this will reduce the
fixed cost of the company. so, in the first 2 periods our lean management is 160,000 but
in period 3 we increase it by 5000 which becomes 165,000 and we put same amount
again in the period 4 which is 165,000.
 Payment of Dividend is fix for all the periods which 8% because our dividend score is
always 8 which means it is very good score so we don’t feel to do any type of change
here
Learnings from Learning Phase:

 Investing money in few factors will not results in the achievement of earning profits. The
company have to allocate it resources in all the factors such as communication, lean
management, training of personnel etc.
 Read market research report which will give us the insights about the economy. It tells
that whether the economy will growth, mature or decline. Them on this research report
our decisions should be made.
 Cross check whatever we had not entered anything wrong in the software like number of
zeros should be not less or more etc.

Decision for doing phase -1

  In the 1st period, company weighted average score is 6.25. We need to improve training
of personnel by investing more fund in this segment. As this factor directly impacts the
image of the company. As this is 1st doing face so we need to increase the profit of the
company.

 Our rejection rate should be reduce so that there could be less losses and we don’t need to
manufacture the extra products. Which will help us to save money and time.

 As our main objective was to capture the largest share of the market. So, we have just
started it we are going to capture a larger part of it.

 Our debt to equity ratio is 103% which leads to 9 score. This means that our company is
at very good position and we can do much better than this.

Decision for doing phase -2

  In the 2nd period, company weighted average score is 6.98. We need to improve more
training of personnel by investing more fund in this segment. As this factor directly
impacts the image of the company. As compared to previous period here company did
well because company has increased there weighted average score from his last period.
There is a bit of fall in profit as compared to last year which we are going to take care of
it and going to increase it & talk it to better position.

 Our rejection rate is also improved as compared to previous period which means there is
less wastage in manufacturing. We are focusing on it properly and investing the fund so
that company could do less wastage.

 As our main objective was to capture the largest share of the market. So, here we are in
good situation as we achieve 8 score in market share and going to make 10 we will try to
stick on that.

 Our debt to equity ratio is 103% which leads to 9 score. This means that our company is
at very good position.

Decision for doing phase -3

Decision for doing phase -4

 In the period 4, company weighted average score is 6.94. We improve training of

personnel by investing more capital in this segment. As this factor directly impacts the
image of the company. As compared to previous period here are company does not do
well in generating the profit. Here we are in loss of 2,180,679. This loss incurred due to
selling of 70 machines and terminating of employees from the company.
 Our rejection rate is also improved as compared to previous period which means there is
less wastage in manufacturing.

 As our main objective was to capture the largest share of the market. So, here we have
very good as we achieve 8 score in market share.

 Our debt to equity ratio is 104% which leads to 9 score. This means that our company is
at very good position.