Pontifical Catholic University of Ecuador

Members: David Martinez, Jose Rosas, Margarita Pazmiño

Strategic planning
13-06-2023

COIL simulation CasaChoco

1) Analyze the rounds that you have played in the GAMEROI 2 game, have they
helped to position your company? Support your answer

In this simulation GAMEROI, we have taken into consideration a lot of aspects that we
have to cover to make the following decisions:

a) Installation area: We have decided to install our chocolate factory in The City
zone, which is the business area par excellence. On weekdays, a large number of
people from all social classes pass through. The rent for the premises in this area
amounts to $8,000 per month. We took this decision, because the rent is cheaper
than the other places.
b) Major competitor: El Emporio del Cacao
c) Decoration level: The level of decoration that we have chosen during these
rounds is top level in order to compete in the area.
d) Variety of Designs (Production): The level of variety that we chose during these
rounds is middle with 10 designs in order to attract more customers.

e) The productive capacity that we have chosen is 400 kg per month

f) Financial Decisions: we required a loan from the bank in the first round in order to
don´t have a negative cash flow

Also there is one report that we purchased in order to know the policies of our major
competitor.
Pontifical Catholic University of Ecuador
Members: David Martinez, Jose Rosas, Margarita Pazmiño
Strategic planning
13-06-2023

Next we can see a summary of the rounds

Round 1: In the initial round, the chocolate business was in its inception stage.
Significant sales weren't achieved due to market unfamiliarity and lack of marketing
strategies. During this round, a location was rented and the necessary equipment was
acquired to kickstart the chocolate production.
Round 2: In the second round, we made a decision to open our business on Saturdays and
Sundays. However, after analyzing the results, we discovered that these days were
underperforming. This prompted us to change our operating days to Monday and
Wednesday in the following round to follow the market trend.
During this round, quarterly sales came up to 62000 kg of chocolate. Even though there
was an increase in sales compared to the first round, the profit was negative, due to high
operational and production costs.
Round 3: For the third round, we made adjustments based on the lessons learned from the
second round. We changed the operation days to Monday and Wednesday. We
maintained the employment levels since the performance indicators proved to be positive.
Additionally, we made the decision to accept a soft loan of $20,000 offered by the bank
due to its favorable annual interest rate of 12%, compared to higher interest rates
available in the market.
In this round, projected sales were increased based on the previous sales period results
which exceeded our expectations. Stock levels were adjusted to 20 days turnover to
ensure a constant supply of products for sales.

Production:
In our production strategy we decided to work with three productors and we do not have
many designs but also not few designs too, we consider that we have worked with a
middle level of variety. To attract different kinds of customers we have worked with 10
designs. We have three types of stock. The premium stock in our business is 108kg, the
special stock is 132 kg and the standard stock is 160kg. Our productive capacity per
month in total is 400kg.

Sales:

First, we consider that we have evaluated the prices established in the market of our
sector. Due to the sector in which we are, we consider that the special stock is the
middle point of sale. While the premium stock is also included in the sector and the
standard stock, which is the least sold, is very basic for the sector where our business is.
We have the sales and stock by three types, the main sales are in special stock with 43
kg and $19.952 and the minor sales are the standard stock with 5 kg and $2.125 in cash.
The best sales flow are on Mondays and Fridays in the afternoon.
Pontifical Catholic University of Ecuador
Members: David Martinez, Jose Rosas, Margarita Pazmiño
Strategic planning
13-06-2023

Human Resources:
In our strategy we have decided to use basic human resources as much as possible so as
not to waste financial resources. Around $4,000 is paid for each salary of the vendors
and $3,600 for the salaries of each one of the producers who work with us, therefore, we
have 2 vendors and 3 producers on our payroll, each with 10 extra hours per month with
capacity Work Monday through Friday and off at the weekend. working hours are from
7:00 AM to 8:00 PM. Likewise, we make payments to suppliers every end of the month
(30 of each month).
Pontifical Catholic University of Ecuador
Members: David Martinez, Jose Rosas, Margarita Pazmiño
Strategic planning
13-06-2023

Prices:
In this section we had several approaches and necessary aspects to consider, first the
purchasing power of the people around us, and we also bought several reports to be able
to observe how each of the prices were established in the market of the city area where
we were located.

We focused on projected sales of 9.7 kg per month, each chocolate from premium which
generated 108kg with a price of 86.4 and what we were looking to sell was between 65
kg with a cost x unit of 373.5 with a price of $505 as it was the most expensive and with
the best quality.

On the other hand, we could observe the special chocolate that started with 132 kg with
projected sales of 14.3 kg per month with a price of 105.6 and what we were looking to
sell was at 80kg with a cost x unit of 343.5 with a price of $464 being a special and of
needs for the average public.

And with the last standard, we generated several observations that started with 160kg
with projected sales of 1.7 kg per month with 128 and what we were looking to sell was
at 96 kg with a cost x unit of 313.5 with a price of $ 425 being the most basic in our
market.
Pontifical Catholic University of Ecuador
Members: David Martinez, Jose Rosas, Margarita Pazmiño
Strategic planning
13-06-2023
Pontifical Catholic University of Ecuador
Members: David Martinez, Jose Rosas, Margarita Pazmiño
Strategic planning
13-06-2023

2) What are you planning to do in the last round on Tuesday 13 June, at 5:00
p.m. to improve your situation?

1. Adjust Prices: Given our sales have been increasing, we could consider adjusting
our prices to increase profit margins. This will need to be done carefully not to
deter customers.
2. Increase Marketing Investment: To keep sales growth, we will need to attract more
customers. Investment in marketing can help achieve this. We can use various
marketing channels such as social media, online advertising, and in-store
promotions.
3. Improve Operational Efficiency: We should look for ways to reduce production
and operation costs without compromising our product quality. This could involve
negotiating better terms with our suppliers or investing in technology to enhance
production efficiency.
4. Optimize Opening Hours: Based on the information gathered in the previous
rounds, we need to reevaluate our business opening days and hours to maximize
sales and profitability.
5. Inventory Management Strategy: We should continue adjusting our stock levels to
avoid overstocking and ensure we always have enough products available to meet
demand.
6. Consider More Financing: Since we have successfully used credit in the past to
boost our business, we might consider obtaining more financing if needed to
support expansion or acquisition of new equipment.
7. Staff Training: Continuous training of our staff is essential to maintain high
customer service level and increase sales. We can consider implementing training
and development programs for our staff.
8. Competitive Analysis: We need to keep a close watch on our competitors and
adjust our strategies accordingly. This could involve price adjustments, introducing
new products, or changing our marketing tactics.

-We decided to reduce the number of open hours from 13 to 9 hours daily
-We decided to reduce the extra hours monthly from 10 hours to 2 hours to reduce costs
related to unnecessary open hours.
-We also have decided to reduce the prices of the products that we sell, compared with
an other report which talks about the prices of the competition
-Moreover, we believe that a good decision will be to require more loans in order to
finance our company.
-Also, we will evaluate if we can make some changes in the stock of the different types
of chocolate and also in the level of decoration of the store.