Analysis of the mogul solo simulation results
Step 1 Developing a Business Plan
My company wanted to earn profits as well as develop an image in the market, so I
considered two different company missions. One would be to meet the customer need for a
premier-quality product that is (product 1) relatively price inelastic. It will give me
confidence to built trust in the customers. The opposite focus would be to meet the
customer need for general product (product2) where quality and price will be maintained
accordingly.
Step 2 Strategy planning
My company had different mission statement for each of the products. I choose different
strategies to accomplish the mission. For the high quality product1, high investment was
made while taking marketing and operations decisions keeping in line with the financial
decisions. For product 2 low priced was preferred to gain more sales. The low priced
production balanced the differentiation strategy of the high quality product.
Step 3 taking decisions
Quarter 1
Marketing decisions, Operational decisions and financial decisions:
In quarter 1 the price and quality of both the products was increased from quarter 0.
Product 1 price and quality was increased to $70 and $4, product 2 was $52 and $7. The
newspaper Ads was increased to 13 and 11. The sales forecast was the difficult task as it all
depends on the market share. While taking marketing decisions S & A report and the
marketing research report was considered. As the worker productivity depends on the
training provided and the maintenance of the equipment, the $5000 for each was invested
to get the better results. I also felt the need to increase the plant capacity for the future
quarters, so I increased to $1000. I subcontracted some of the parts for the production. I
took a loan half the AR to balance my profits and repay the bank for the short term
investment at 10% rate. As the urgent loan interest was high, it was preferable to take the
short term loan. I did not want to make it complicated so, I took few challenging financial
decisions according to the scenario.
Step 4 key learning’s of the quarter1
After the quarter 1 results were processed, I understood some key points. In quarter 1 my
