“Our business objective is sustainable growth selling different car types and make a good position in the market with best customer service. Below is evaluation of 4 important factors for our next decision with the aim to achieve set target at the end:
Revenue: Our expected gross margin in the first year is 30%, whilst return on investment is expected to be only 1.2 % due to our high setup costProductivity: By adding automation, our desired productivity index is 1.0 and we aim to increase by 0.5% per year through keeping our employee satisfied with 5% increase in wage annual and advanced training systems. Every year, we aim to keep strike rate below 4 days.Market Share: Our expected average market share is 1.45% for each model launched and increase by 40% per year (to a target of around 2%). Quality: We offer extended warranty for both models with continuing investment in R&D to upgrade our car features and reliability in order to lower warranty claim costs (20% reduction per year). ” – Business Game , group assignment
We have chosen a hybrid strategy by producing high-quality cars with lower prices than our rivals. Our aim was to maximise the effectiveness of two main strategies – cost leadership and focused differentiation. For our marketing strategy, we chose three marketing channels: television, magazines/newspapers and promotional offers. Our desired customer group targets are 41-45 for luxury and 25-40 for medium, we aim to increase the popularity in all age groups.
The forecast from round 1 shows a few key performance measures. Key Performance measure or in other words Key Performance Indicator analyses a success of the business organisation through some aspects such as production, sales, gross margin, unsold stock, post-tax profit, net cash position and market share. My team included 5 members: I was the marketing director and business promotion branding, Trang was the Human Resource manager, Hang was the business strategy director, Arnub was the operational director, Emon was the finance director and facilitator, Hau was business development director. According to Tuckman (1995), all groups go through four stages of forming storming, norming and performing. In the first meeting we were forming and introducing ourselves to each other. We analysed our Belbin roles to have a brief idea about each other’s strengths and weaknesses.