INDIAN INSTITUTE OF MANAGEMENT TIRUCHIRAPALLI

POSTGRADUATE PROGRAMME IN MANAGEMENT-HUMAN

RESOURCES 2021-2023

STRATEGY MANAGEMENT

Simulation Reflection assignment submitted to

Prof. Deepak Kumar Srivastava

in partial fulfilment of academic requirement for

the course in the PGPM-HR programme.

Submitted by
Group-7
T Tejaswini - 2104020
Gourav Singhal - 2104024
Apoorva Agrawal - 2104028
1. Value proposition:

We chose to focus on the quality of our product. Our customers should feel on cloud
nine when their legs are in our brand’s footwear. Our brand would be exclusive, regal
and timeless; it is a symbol of status for the aspirational consumer and a lifestyle
insignia for the rich and famous.

2. For each stage:
a)    Which activities did you choose?
Warehouse: We choose to produce 3500 units of premium shoes with 100%
quality material. We keep in check about the deadline of delivery and we had
buffer time as per simulator. Due to which we decided to buy the raw material with
a “Buying Group” approach. For delivery we decided to send the shoes in the
“batches” although it may have costed us more but we decided to avoid any last-
minute threat of missing of delivery. For mode of delivery, we choose in-house
facility to cut the time in delivery, As the outsourcing was just giving the benefit of
.10 cents per pair extra but there was a significant possibility of delay in delivery.
Factory: We hire all the employees and assigned them individually in a particular
task while evaluating the efficiency ratio of each employee. We also provide
training to the employees to increase the productivity.
Showroom: We choose to go with 3 out of four embellishments. As we were
providing top quality shoes, we decide to provide a 6 months warranty, and we also
decided to go with the launch event.

b)    Was the outcome as anticipated?

Warehouse: Yes, our outcome was positive as anticipated. As due to high quality of
shoes our shoes were sold at 98.47$ each.
Factory: Yes, our outcome was positive as anticipated. From our results we come to
find out that our process was totally sustainable. As the employee at the last stage was
100% engaged. So we achieve zero wastage of raw material. We should have also
gone with over-timing to increase our profit.
Showroom: Majorly yes, our outcome was positive as anticipated. Other than one
embellishments every other promotion service gave us surplus profit.
3. Key simulation-related takeaways:

 We should stick to our value proposition and not try to accommodate both
price and quality: When we tried to compromise a little on quality for price we
had a net loss but when we solely focused on quality and targeted premium
buyers we were able to net high profits.
 Marketing (promotional event) works best when the product is quality driven.
 All add on don’t necessary give profit, one has to analyse and work according
to the value proposition to fit the add on.

4. Activity map

Training
employees High Price
($99 per
pair) Delivery
every week

Shoe
event
launch Add ons
from
showroom

Moderate
Volume Warranty –
(3500 6 months
units)

High
Quality
(o/p 75
quality) Buying
High
Quality group
Input
material
High
Quality
labor