Business Simulation Exercise In The European Car Industry

barter Simulation course session In The atomic number 63an Car IndustryThe movement of pricing, vis--vis the budgeted pricing is beingness get hold ofed next. It is seen that the budgeted pricing for A-Star was 12,169.15 while that Plush was 16,909.69. stock-still over the next deuce-ace tips, on that point necessitate been fluctuations in the price movements as envis dated in enthrone over 1 shown in Appendix.Thus over the period there has been an add up of 6% increase in prices of A-Star and a around 2% in that of Plush. These could be attributed to increases in material prices and labour which sh only in all be taken up inadequately. This could as well be due to competitors increasing prices which take a focus furbish uped on this line of backup in addition.Forecast and Results Production figures lay down been estimated at 1% of the 11.25 foodstuff sh be. The organic market share and not the market shares as per individual days groups have been taken into account, primarily because city political machines are preferred by all age groups and not restricted to any iodin age group. refine 1Estimated Sales This has been estimated by multiplying forecasted mathematical production with cheating prices per unit of measurement The Depreciation factor has not been considered, since for the first year, it is not necessary to consider cost of manufacturing fixed assets from selling prices.Bank Balance The Companys financial specialisation is indicated by its money box eternal sleep. However, in this case it call for to be seen that bank balance needs to improve.Un interchange stock The question of any unsold stocks does not arise since all cable political machines that were manufacture were sold out during the year. everlasting(a) Margin No account of inflation has been considered during the first year of summonss. securities industry Share We have under produced the cars, when compared to other competitors, thus leading to trim back market share.Round 2Estimated Sales 83% of A-Stars Production and ampere-second% Plushs production has been fully sold out.Bank Balance Excess of use over incomes has resulted in negative bank balance. Adverse cash balance has necessitated infusion of fresh doze of bank bestow.Unsold stock on that point were unsold stocks of A-Star forming around 17% of production. It is hoped this would be sold during the next RoundGross Margin the result for both was 21% but we estimated primitive margin 25% for city car and 23% for medium car, so we were an unsold car for city car, which modify our gross margin effective results.Market Share Market share needs to be amend by gaining better inroads into markets and increasing visibility and sale of cars. It could be perfect advertising campaigns.Forecast and Results 3Pricing We added two new options to care. This is to gybe options provided by competitors who were doing better vocation with these add-ons .There have been price in creases in finished adepts, since, due to the impact of inflation, wage bill has increase from 425 to 430.Production Since there were aspects of unsold stocks, productions of cars were trim back this year although the numbers of workers were the same and the output was the same. However there was greater production.Gross Margins the result for city car was 25%and for medium car is 21%, but we estimated gross margin 29% for city car and 24% for medium car, so we were an unsold car for city car, which affected our gross margin actual results.Unsold stocks Since our prices were comparatively spiriteder than that of our competitors, there were unsold stocks.Market share All cars produced could not be sold because of high pricing. This too resulted in lower market share. Thus, selling prices needed to be brought at par with that of competitors.Sales We increased the production, and since we produced more than, we were able to sell more and gain better gross sales figures. mail se rvice Tax Profits While production forecasts were lower than actual, the factory producton had not changed. Thus, more production of cars led to more materials and labour costs. Opening stocks were just not considered while calculating post tax dineros. We sold littleer number of cars although we produced more, resulting in stocks, and also higher material costs.Results of Round 4Sales We redesigned the car options in order to remain in market- and put downd the selling prices of cars. This resulted in increase in the gross margins and medium sizing cars had a good market.Production Factory output was at 60%Gross Margins the result for city car was 15%and for medium car is 15%, but we estimated gross margin 24% for city car and 24% for medium car, so we were an unsold car for city car, which affected our gross margin actual results.Unsold Stocks Competitors have better label image, better market share and improved popularityMarket Share equal to Round 3Post Tax Profits Error i n calculating evoke rates in current account and interest on loans.Summary of Financial Results From a examination of Table 5 8 appendixed at the end of this study, it is evident that all is not sledding too smoothly for this auto making order. For one thing, its margins have been decrease and even the Post Tax Profits are showing losings at the end of Round 4. This is all the more intriguing when one considers that there has been consistent increase in production over the Rounds. Thus, the most(prenominal) sensible thing for the gild to do at this stage is to reduce production rationally and concentrate on producing only such products that are money spinners and could actualise hand close to profits for the fellowship in last mentioned years. There is no use of increasing inventory and carrying costs by producing cars that do not have a ready market, or in expectations of revenues that may not occur. coming to market share, it may be seen that some aspects of this ratio ar e market driven and may not be controllable by the company. However, it is necessary that Sound Marketing Strategies need to be made that could address aspects of a sagging bottom line and minify market share in competitive auto making markets.Non-financial resultsComing to the non-financial aspects, it is evidenced that the number of work force has increased from the initial 391 for A-Star and 475 for Plush, congeries of 866 employees according to the budgeted estimates. However the intensity level of the work force in the subsequent rounds is as shown in Table 2 in AppendixFrom the above, it is instead evident that there has been an excess use of work force as compared to the budgetary figures. Coming to capacity utilization while in the graduation exercise and Second Round, there has been 100% capacity utilization, during the third round, it is just 65% of total.Regarding promotional activity expenses, it is evidenced that while the budgetary figure of 60M have been maintain ed in the First and Second round, in the Third round this has increased to 80M, an increase of 20M.Present scenario in the car manufacturing scenario in EuropeIt is also seen that, economic nook has severely affected the European car industry and therefore a clearer picture could only emerge if and when the recession fades away and the pipeline economies are realised perhaps after 2010 or so. Over the past five years, there has been a slowdown in economic output across the EU. Weak increase has led to cut back consumer and business confidence. Industrial production, including the production of durable consumer goods, has declined. This has impacted severely on the car industry, given the cars status as the ultimate consumer and fashion item, as well as the importance of engineering and design in the manufacturing process. mean(a) profit margins have declined from around 10% in the 1960s to less than 5% today, and some volume car learnrs are actually losing money. (EMCC Dossie r on the European Automotive Industry, 2004).A business study of this kind needs to also consider economic and non-economic factors like rate of inflation, GDP, industry growth, taxation, approachability of spares, etc. in order to be viable and competitive in global car markets. Segmentation and business opportunities in developing countries also needs to be seen as also the need for exploring exports in high growth areas. The non-economic factors like customer trends and preferences, road conditions and liking for the product are also major issues, especially when automakers are vying all(prenominal) other not only in technical competence but also in market sharing and target realization. Under such circumstances, costs, pricing, attitudes and selling stratagems all play crucial functions in determining the business opportunities and its future impact on business, especially in changing and volatile markets. The need for business projections and target setting in areas of prod uction, sales, finance and human relations are crucial in the highly competitive auto making industry. minute reflection on t all(prenominal)ingsThe t to each oneing and the analyzing are inter think they both amaze the guidance as the useful tool in the synopsis and in the final conclusion. The learning tummy be successful only when the contrastive traits and the complexities are understood becomingly by the guide and the knowledge whoremaster be proven beyond the boundaries. The critical reflection has the major role on the education and it is its major objective. The model of the critical reflection is shown which was put forward by meziro, for the explaining of the critical behaviour exhibited in Table 3 in AppendixThe reflection is the analyzing or the forecasting of the future period by the decision making approach with the complicated and the inter cogitate schema. encyclopedism as an important toolThe learning can be considered as an important tool for the analysis of the disparate divisions in the business endorse and the various functions of the same. To analyze the proper run of the different plane sections are vital to know whether the business game is a success in the different trait and whether the de fictitious characterments suits the requirement.HR DepartmentThe HR department is the one which deals with the state as the asset of the organization, the populate related activities and the contribution by the people to the organization. It is the strategic approach to the goal settings and the functions of the management. In the study of the department is considered the strength of the employees were considered to be less than 1000, during the start up but by the growth of the company and by the innovation the strength of the employees has reached upto 4000.The study of the departments are considered by the employees turnover and the capacity of the production output by the employees in the organization. The loan facility that are ac quired for the different operations and for the benefit of the employee. Professionalism of the Human vision (HR) department is implied to be twofold implications. A professional HR practician has a collective professional role to play to enhance the HR occupation. (HR Department Professionalism A Comparison Between the UK and Other European Countries, 2005). trading operations DepartmentThe operations department consists of the operations performed in the car industry, the operation starts from the purchase of the raw materials to the process and to the finished goods to the dispatching of the product is the duty of the operations department that has to be monitored. The different operation technique like the JIT and the half-dozen sigma process are do in for the efficiency of the operation department for the competitive advantage. Focused query studies that advance the theory and practice of operations management. OMR is a rigorous, double-blind peer-reviewed journal that is o riented toward fast reviews and publication of high-quality research that makes a clear contribution to the science and practice of operations management in todays global institutions. (Meredith and McMullen, n.d).Marketing departmentThe merchandising department consists of the marketing of the manufactured cars to the customers with good promotion techniques and tactics like the offers to find the increased sales and the revenue. The main supposition is to promote the product to the customer but the proper market analysis and the research has to be put uped to make the product a success.The qualitative and the quantitative research are to be conducted to have a thorough analysis for the same for finding out the demand for the product and the forecast active the market. Statistics provide traders with the detailed information needed to make focused decisions only a complete market analysis can provide the story behind the numbers. (Market Analysis, 2010).Financial departmentThe f inancial department consists of the analysis of the financial data and the analysis of the cash flow and the stock flow of the company as the whole, the accounts personnel are to be hired as the financial controller where they have the ultimate control for the finance and the different kind of the financial aspects.The different pricing mechanism to be treated as the payback period to be made short and analysing of the different pricing ratios to be done,The fixed assets should be increased and the company turn over should be increased. The different tools are used for the analysis of the finance aspects. The commonly used ratios are the instant financial analysis, write up ratios, and financial statement analysis tools, with industry ratios tools and accounting ratios. (My Business analyst (MBA), 2010).If the game was played once more the surgical operation can be improvised to much extend because the first game can overleap the pose and the usage of the certain tools can be used more.The base hit aspects can be considered more and the competitor analysis are to be done,The car industry can also go for the hybrid compartmentalisation of cars in the industry as they are the common diverseness in demand ,the company also go for the variety of the alternative propulsion vehicle and electric vehicle which can add on the variety to the category of the brand. The completeness in the collection and the analysis may also have some of the inadequacy as a result of the lack of experience in the field.Business game is the practical tool to practice and understand business and its challenges, threats and opportunities. Business games help to identify oneself as the core part of the business and managing the situations.Regardless of the size of business you are in whether a large corporation, a small company, or even a home-based business effective communication skills are essential for success. (Improve your Communication Skills, 2010).The communication is truly important in a business It is the effectiveness in the company which contribute for the overall growth and the prospectus of the company and the smooth functioning of the different departments in the organization ir admireive of the functions in the departments, The World of Business Communication Every businesss aim is to gain profits. Whatever be the role of business you are in the bottom line is that you must earn something from it. (The world of Business Communication, 2010).It is through the communication that the operations are wieldd effectively and efficiently. The business game is usually to improve the performance and to boost up the skills of selling, marketing and the operations.Theres a lot of confusion about police squad construct event days. Often it is seen as an exercise to boost morale, to help workers fastening better, and as a fun day out at the companys expense. (Rose, 2010).The additions for the returns in the company are the guidance at the each o f the move for the avoiding of the mistakes and the error correction at the each level. The reference to the previous business game which are a success, The each step of the activities should be conducted in a aggroup. The open discussion should be conducted in order to have various opinions regarding the business and the management and the brainstorming ideas from the group up mates. It involves the activities to be conducted and the stark police squad building activities, exercises and ideas are for building teams and teamwork, corporate employee motivation, personal development, ice-breakers, energizers, and more serious learning and personal development. (Chapman, 2010).(ReferencesThe all round 1 and 3 and the graphs for the understanding of the companys performance).team Performance A critical evaluation of the performance of the teamFor every organization there will be a set of team trustworthy for particular activities within the organization. Team represents a set of people working together towards accomplishing a set of regulate goals and objectives. Effective, productive teams of all types have a positive impact on bottom line results and organizational success. (Cornelius, 2006, p.1) The important works were allocated to these four members. These team members were Yi Jiang, Adnan Hasan, Shanu Jain and Fawaz Khalid Ansari. All these members have performed in such a way that this enabled the organization to achieve it goals. They altogether took the decisions related to the various operational areas. The functions allocated to each member and their roles being in a team are explained as followsYi Jiangwas trusty for look after the marketing department. His duty was to design the marketing research programs and to give instructions and appropriate guidance to his team members. He used to prepare slides for presentation in the team. After conducting marketing research he decides the promotion strategy that has to be implemented for their produc t to convey successful in the market. He was having a clear idea about the European market conditions and based on those ideas he gave appropriate suggestions related to the production measure and the percentage of market share that has to be captured by the company. He was the person who gave the idea to produce city and medium size cars. He helped me in the operations department by deciding the quantity of products that has to be produced by the company. The company was having huge stock that was not sold in both the second and the third round. This was a great business for the company. For firmness of purpose this problem he provided an excellent idea to redesign the car. This was mulish in the fourth round and the result was outstanding.Adnan Hasan was responsible to manage the finance department. He was responsible to handle all the financial operations of the company in all departments specifically the accounts department. Deciding the finance required for each activity is not an easy task and he was much undecided person to give all financial instructions to the company. He has helped the operations department by stating the quantity to be produced by the firm and also provided the accurate number of human resources required for the operations department.Shanu Jain was responsible to look after the human resource department within the organization. She is a person who is very talented and highly committed towards the work. She was responsible to conduct the meetings within the organization. She prepared the agenda and the minutes of the meeting conducted between the team members from all the departments. Inorder to smoothen the team work a team take up was created by Shanu JainDateAttendanceDiscussion17-11-2009100% decision related to market segment and selected the design and options.18-11-2009100%Decision related to pricing of cars.20-11-2009100%Estimating the production units and sales value.22-11-2009100%Forecasting the profit and the cash flo w and designing decision form.NX0441 Managing for Sustainable Competitive serviceIn the second round she found that the productivity of the employees has been reduced and for solving that problem she suggested to increase the wages of the worker. This resulted in an increase in the productivity among the employees and it was found in the following rounds..The last key member is Fawaz Khalid Ansari and that is me. I was the team leader for the operation department and i was responsible to handle the operations department within the organization since I am a mechanical engineering graduate. I took the decisions related to the quantity of output to be produced by the company. I gave my complete effort to give my best to the team and thereby to the organization. With my available knowledge about the cars and the latest trends in the European market I helped the marketing department to understand the consumer behaviour with respect to the car market. I also helped my team, members to c reate excellent designs for the cars. I suggested an idea to purchase a single factory and give the maximum from it. As a key team member in the organization I took the decision to produce less at the first stage and this was a great help for the firm, because till round 2 the company was having legion(predicate) stocks that were not sold.All the activities that have to be performed by each team members are prepared in a chart and it is termed as team accept. Every team will have a particular charter and it will be in a written format. The charter typically includes a statement of mission, objectives or statement of work background authority, bourn conditions (scope, constraints, resources, and schedule) membership high-level requirements or specifications, and interface responsibilities. (Project Management Training and Resources Team Charter, 2009).I realised that the team work increases the level of motivation. This encourages members to work impregnable for the benefit of th e team and the team is motivated because its members get their emotional and intelligent needs met by the team. (Working in Teams, 2010).The most important benefit for all the team members is that they will realise the value of a group work. In a teamwork environment, people understand and believe that thinking, planning, decisions and actions are better when done cooperatively. People recognize, and even assimilate, the belief that none of us is as good as all of us.(Heathfield, 2010). All the decisions that are taken with respect to each department within the organization have its own significance in achieving the target of the organization.ConclusionThis is a business management game where the team members are asked to select and start a business and they have to sell the product. Various discussions have been held at different levels. It was able to learn a lot of things from this work. The participation of the team members towards a common goal was the major attraction of thi s game.From this game it was also able to understand how a team is working towards the predetermined goal for achieving the organizational goal. The important objective of theteam members was to increase the value of the shareholder. For accomplishing this objective the team has listed out various locomote that have to be followed. There is a team leader who is responsible to guide all the performance that is performed by the other teammembers.