Business Strategy Game

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BUSINESS STRATEGY GAME

Title:   SIMULATION REPORT 2

        Group        :        1        

        Student’s name/SID        : Giap Thi Kim Dung   1132300018

                                                         Tran Thi Ngan Giang 1132300194

                                                         Tran Thi Kieu Diem 1132300175

                                                         Le Anh Linh   1132300231

                                                         Nguyen Thi Luyen Anh 1132300005

                                                         Vuong Gia Huy   1132300221

        Class        :        BUS 496

        Academic Period        :        ______________

        Lecturer        :        Pham Hoang Hien, D.B.A.

2015

Simulation report 2

by

Group 1

A SIMULATION REPORT 2

Submitted to

Becamex Business School (BBS)

Eastern International University (EIU)

in partial fulfillment of the requirements

for the course of

BUS 496, Capstone: Business Strategy

A Simulation Report 2 entitled

Simulation Report 2

By

Group 1

We hereby certify that this simualtion Report submitted by Group 1 conforms to acceptable standards, and as such is fully adequate in scope and quality. It is therefore approved as the fulfillment of the simulation report requirements for the Course of Capstone: Business Strategy (BUS 496) in Business Administration program.

Approved:

Pham Hoang Hien, DBA                [signature]        

Lecturer                date

Becamex Business School                        

Eastern International University                date

Comment:

Score:

Your Lecturer’s Evaluation:        /100        

CERTIFICATION STATEMENT

We hereby certify that this research constitutes our own product, that where the language of other is set forth, quotation marks so indicate, and that appropriate credit is given where we have used the language, ideas, expressions or writing or others.

Signed __________________________
Giap Thi Kim Dung  1132300018

Tran Thi Ngan Giang 1132300194

Tran Thi Kieu Diem 1132300175

Le Anh Linh   1132300231

Nguyen Thi Luyen Anh 1132300005

Vuong Gia Huy   1132300221

Not like every other groups they focus on setting low price with high star products, our strategy is make we different to them. We do not set a low price to compete with then, we differ by paying more attention on supporting services. Although our products with high price, low stars (in compare with the top star companies), running business is sustainable. We focus on supporting services like free shipping, paying more support for retailers, advertising strategy, and rebate offer.

However, in year 2015 budget that we decision to spend on those supporting activities is not strong enough. We not heavily spending our money for those activities, it just a little bit higher than industry average. In internet and wholesale segments, we lose our revenue by not offer those added values strong enough. While, with the wrong decision making, sold goods with high price, but low star in private segment, we sale nothing in 4 areas. It results from increase price, reduce models offer, limit budget for advertising, and decrease numbers of outlets.

In year 2016, we decide to strengthen our competences by continuing strategy of free shipping, rebate offer, supporting retailers, utilizing more outlets, reducing delivery time. In addition, we will pay more for advertising, try to win more celebrities, upgrade our factories to reach 6 stars in all plants, offer more models, and expend capacity, by some ways to raise S/Q rating.

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In year 16, our group keeps all criteria in corporate social responsibility and citizenship sector as the year 15 due to with this sector Avan only want to keep it above the industry average. In addition, it is not bring much profit to us by concentrating on expenditure increase for improving image rating.

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Avan’s reject rate is similar with the average of the industry, but we want to have more capacity by investing more on reducing reject rate. We do not want to invest in upgrade plants at same time because we need much capital whereas the interest rate is pretty high (6% and 6.5% for credit rate A and A+ respectively). The choice of option A in L.A plant because of in this plant we have already had six stars of S/Q rating. Furthermore, we choose Latin America as the main market to compete on.