Glo-Bus global business strategy simulation

1. Ketaki|Megha|Neha|Sugan|Team|Yash
DIARIES

2. VISION & MISSION

3. Vision
To be the global leader of the Innovative
Digital Camera Industry
Mission
Provide Quality Entry Level & Multi Featured
Cameras by motivating our employees to
deliver at their highest potential while also
having a strong sense of CSR.

4. Trial – The game begins…

6. OBSERVING
OBSERVING
COMPETITION
COMPETITIO

7. The game begins before
first round
 How
competitors do?
 What
decisions went well?
 What
decision went wrong?

8. HERD MENTALITY

9. D-Company was the best
Everybody will learn:
What D did?
How D did?
Why D did it?
And follow suit

12. The Rise of
Hummingbird

13. BUSINESS STRATEGY
BUSINESS
STRATEGY

14. We are in business to
make
MONEY

16. PRODUCT
STRATEGY

18. PRODUCT STRATEGY
Entry
Multi
• Global best cost
• Standard P/Q
• Reasonable
price
• 5 models
• High R&D

19. PRODUCT STRATEGY
Entry
Multi
• Global best cost
• Standard P/Q
• Reasonable
price
• 5 models
• High R&D

20. MARKETING STRATEGY

22. PRODUCTION STRATEGY

24. FINANCE
STRATEGY

27. WHY DID WE DO

28. Entry-level
High model, Low quality, Higher price
To get higher profit margin
But lower market share
High price = above industry average
We refused to take part in price wars

29. Multi-Featured
High model, lower quality, lower price
Lower quality = higher profit margin
Lower price = bigger market share
First-mover advantage
Capitalize on the market share

30. Hummingbird
flying
to
the
TOP

31. Humming bird flying to the top
Winning strategy
Industry leader
Global top 100 best performing team

32. All
good things
must come to an
end

33. The Fall of
Hummingbir
d

34. What went wrong?
Myopic Vision – only Focussed on MF.
Poor planning - lost market share in EL.
Did not develop strategy to keep low Cost/unit
for EL.
- Forced us to keep a higher price
Our image rating was below our main
competitors

35. Competition is heating up
Price War had begun in EL.
Big Drop in Quality, Huge Drop in Price
Competitors dropped both quality and
price

36. Changing Market Dynamics

37. Changing market condition
Failed to adopt to the dynamic Market trend
( Apple vs Samsung)
Unable to maintain 20% Market share in MF
Market share in entry dropped
Clash of opinions in boardroom

38. The biggest enemy lies within
Lower profit margin
Higher volume
Higher market share
High profit margin
Lower volume
Lower market
share
HAMMERED!!!!

39. Poor Decision Making

Sales & profit drop by 47%

Image rating went crashing (33%)

Stock price go down (36%)

Team dynamics gone sour

Competitors laugh their ways to the banks

41. Lost Opportunities
Demand(000's of
units)
Market Share
97
92
17.9% 17.0%
46
84
64
66
54
39
8.5% 15.5% 11.8% 12.2% 10.0%
7.2%

46. Final Result

#3 in Competition.

Overall Score of 98.

Overall Game to date Score of 99

47. Decision making process

Chose Collaborative Effort to craft strategy

Assigned Functional Area Strategists

Jointly chose among strategic alternatives
by evaluating Pro/Cons

Every Team Members buy-in was required

48. What we could have done
better?

Failed to create Conflict Management
System

For Year 10 - Conflict in Board Room

Resorted to Democracy.

Conflicting & Inconsistent strategic
elements impaired firms performance

49. Competitors analysis

50. Entry-level

F & D- our biggest competitor

How they did it?

Low P/Q rating = Low production cost =
Low price

51. Multi-Featured

F & B - our biggest competitors

Good P/Q rating at lower price

How did we beat them?

Best- cost leadership

53. Always stick to the plan
•
Make Decision by Strategy
•
Do not rely on Gut Feeling or Projection
Numbers
•
Have a Proactive and reactive Strategy

54. Leader today, irrelevant
tomorrow
•
Never Relax in the game of Business
•
Use Competitive Intelligence Reports to
keep an eye on Competitors Strength &
Weakness
•
We were market leaders for first 4 rounds.
We should have evaluated how our
competitors were catching up to us.

55. Different region, different strategy
•
Focus Decision Making on Geographical
Regions
•
We had same prices and same
marketing prices for each region. Forex
was the only reason for price change

56. To be the best, you need the best
•
Invest in compensations, benefits and PAT
training
•
Improve productivity due to high incentive for
reduced warranty claims ($2.5/ unit).
•
Reduce absenteeism by giving highest quarterly
bonus for attendance ($250/PAT member)
•
To attract and retain the best employees.

57. Don’t depend on single source of income
-Warren Buffet
•
We were too dependent on multi-level
segment
•
Things may not go according to plan
•
We couldn’t rely on entry-level

58. Don’t let finance control your
business, use business to
control your finance
• Finance was controlling our strategy
• We adjusted our decisions according to the financial
projection
• We abandon long-term goals for short-term gains

59. What you can learn from
us?
COMPANY/STATIS NET SALES
TICS
REVENUE
NET
INCOME
DIVIDEND
DECLARED
RETAINED EARNINGS
A
1,328,439
64,353
8,647
55,706
B
1,695,374
144,153
17,488
126,665
C
1,283,218
104,241
36,755
67,486
D
1,446,558
123,083
56,600
66,483
E
990,544
57,744
23,886
33,858
F
2,033,440
163,175
76,276
86,899
G
1,414,503
73,185
23,320
49,865
H
1,423,306
159,509
11,343
148,166

60. Taking the learning beyond simulation
•
Do not get comfortable with your current
position, always strive for more.
•
Respect opinions from every member of the
team.
•
Never take hasty decisions based on
intuition.

61. Project Hummingbird was a
FAILURE!

63. We will rise
again!
Thank you