Clean Start Business Simulation Assignment

Clean Start Business Simulation Assignment

Write brief sentences or bullet points

1. What was your key strategy in running the simulation?
As the simulation started, we were given an initial 1$ million cash in hand with zero
customers and product that company manufacture is electronic gadgets.
Strategy is based on:
1. Hiring more sales guys then engineer, to grab a market segment, as in start
we don’t have customers.

Strategy didn’t work as it is thought. Hiring so much sales team didn’t give
profit as first customer grabbed in 3rd quarter, effecting net income of the
company. After increasing compensation of employee’s net income of
company goes high as employee feel motivated. In 4th quarter high over ratio
is seen due to extensive work load.
2. What did you achieve in the simulation?
We were successful in making the sales, increasing the cash flow but was not able
to increase the net income of company. Projection of our strategy shows that we did
well in running the company. In projection it can be seen that sales and net income
of company is increased.
3. How would you do things differently in the future?
 In future we can launch IPO in start at low price to raise a funding required for
expenses of company.
 In last quarter it is seen that people start quitting job due to extensive work
load. In future we can hire more engineers and sales team to keep a balance
and will make sure that employees are not burden.
 In start as funds were $ 1 million, through which we can’t hire more of the
sales teams’ members and have to price high the product to maintain
cashflow. Through this we were unable to make sale in first quarter. Later VC
financing help a lot through which we reduce our product price and able to
attain a customer. In future we can ask for VC financing in early stage to
better compete in market.