Reflection of Simulation Performance

Reflection of Simulation Performance

            The strategy chosen was Niche Cost Leader (Low Technology). This strategy was chosen to focus on pricing is lower than competitors. The strategy choice was made based on R & D, Finance, Marketing, and Production. R & D – decreased performance from 6.4 to 5.3, size increased from 13.6 to 14.5, then decrease in reliability from 21,000 to 19,000. These changes were made to make the product more appealing to the Low Technology customers. The goal was to facilitate pricing while ensuring that profit was made and also ensuring that customer reliability in the product was attained.

Comparing the simulation report from each round, it was possible to identify that the simulation data indicated a similarity in various aspects in the two rounds. The strategies of choice were made based on the capability of either approach to focus on lowering pricing that the competitors while maintaining profitability. For instance, the variances in the data collected were co-related. There was an observed decrease in performance in various measurement points in the R & D simulator. For instance, the performance was observed to decrease to 5.3 to 6.4 and consequently increase to 14.5 from 13.6.

There are certain aspects of the two simulations that I could have done differently in future operations. For instance, rather than focusing on lowering pricing than the competitors, one could adjust the simulations following quality adherence. The prices would therefore be standardized, thereby ensuring that there is the maintenance of the desired profit margins while at the same time maintaining customer reliability in the product. This would be a better approach that could help in enhancing competitive advantage in the market while at the same time maintaining viable productivity sustenance.

References

Intro to Business: A Primer Companion text to CapsimCore TM Business Simulation Edition 1