BUS 405

BUSINESS MANAGEMENT SIMULATION

McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved

 AGENDA

 WHICH REPORTS YOU NEED TO FOCUS ON TO MAKE

BETTER DECISIONS

 GETTING YOU READY TO MAKE DECISIONS IN THE

FIRST PRACTICE ROUND

 SELECTING A TRIAL STRATEGY IN THE FIRST

PRACTICE ROUND

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FIGURE 2.1 The Strategy-Making, Strategy-Executing Process

Strategic Plan

2–3 1-3
START WITH SITUATIONAL ASSESSMENT

 THREE KEY REPORTS (TO IDENTIFY PROBLEMS AND OPPORTUNITIES)(STRATEGIC ISSUES)

 FOOTWEAR INDUSTRY REPORT

 EXCHANGE RATE IMPACT
 TARIFFS
 SUPPLY/DEMAND
 MATERIAL COSTS
 FINANCIAL STRENGTH
 OPERATING BENCHMARKS

 COMPETITOR INTELLIGENCE REPORT

 COMPETITOR STRATEGIES
 COMPETITOR POSITIONING (STRATEGIC GROUP MAP)
 PRIVATE LABEL COMPETITION
 YOUR RELATIVE VALUE PROPOSITION
 MARKET SHARE

 COMPANY OPERATING REPORTS

 INCOME STATEMENT

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FIGURE 2.1 The Strategy-Making, Strategy-Executing Process

Strategic Plan

2–5 1-5
TABLE 2.1 Wording a Vision Statement—the Dos and Don’ts

The Dos The Don’ts

Be graphic Don’t be vague or incomplete

Be forward-looking and directional Don’t dwell on the present

Keep it focused Don’t use overly broad language

Have some wiggle room Don’t state the vision in bland or

uninspiring terms

Be sure the journey is feasible Don’t be generic

Indicate why the directional path Don’t rely on superlatives only

makes good business sense

Make it memorable Don’t run on and on

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 YOUR VISION STATEMENT

 Example:
 “ABC aspires to become the leading company in the global athletic footwear industry.
We will lead the industry in terms of market share, corporate social responsibility and
returns to shareholders.We will accomplish this by pursuing a global differentiation
strategy with a heavy emphasis in the Asia/Pacific region”

 Answer these questions:

 What do we want to become:?
 How do we measure success?
 How will we get there?

 ABC aspires to become____(what)_____in the global athletic footwear industry. We

will ____(describe what company will look like)________. This will be accomplished
by ____(strategy you will pursue)________.

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FIGURE 2.1 The Strategy-Making, Strategy-Executing Process

Strategic Plan

2–8 1-8
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FIGURE 2.1 The Strategy-Making, Strategy-Executing Process

Strategic Plan

2–10 1-10
 BUSINESS STRATEGIES

 LOW COST PROVIDER

 BROAD DIFFERENTIATION
 FOCUSED
LOW COST
DIFFERENTIATION
INTERNET
PRIVATE LABEL
 BEST COST
 GLOBAL OR MULTICOUNTRY
 NO CONSISTENT STRATEGY
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1-12
FIGURE 2.1 The Strategy-Making, Strategy-Executing Process

Strategic Plan

2–13 1-13
 FUNCTIONAL TACTICS

 MARKETING
 FINANCE
 HUMAN RESOURCES
 PLANT LOCATIONS
 SHIPPING/DISTRIBUTION APPROACH
 OPERATIONS

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FIGURE 2.1 The Strategy-Making, Strategy-Executing Process

Strategic Plan

2–15 1-15
MONITORING-EVALUATING-CORRECTING

 FOOTWEAR INDUSTRY REPORT

 COMPETITOR INTELLIGENCE REPORT
 COMPANY REPORTS

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HOW DO WE LOWER OUR PRODUCTION COSTS

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SHOULD YOU REPOSITION YOUR BUSINESS

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RELATIONSHIP BETWEEN PRODUCTION –
DISTRIBUTION-MARKETING

PLANT
CAPACITY

PRODUCTION
QUANTITY/TYPE

WAREHOUSE
DISTRIBUTION

DEMAND
INTERNET
WHOLESALE

PRIVATE LABEL

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McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved
McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved
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