Discussion Strategy for capsim simulations
What strategy will you use and why? What are the strengths of your approach? What immediate things will you need to focus on to actualize this strategy? What will you need to focus on in the longer term?
To complete this assignment, review the Capstone Discussion Rubric PDF document.
Answer 1
What strategy will you use and why?
Although I am still familiarizing myself with the six basic strategies, I believe that I will be using the Broad Differentiator with Product Lifestyle Focus strategy will be best. I believe this because this strategy will focus on marketing efforts, which my company has been falling short on. With this strategy, our company will also focus on R&D by keeping our existing product line while introducing a new product line which will aid in the revamping of our company and recognition that our company needs to grow and excel.
What are the strengths of your approach?
Strengths of this approach is that introducing a new product within the company can also allow new consumers to be exposed to our other products, which can also increase profit margins and revenue. Additionally, adjusting to consumers desires will help the company stay relevant and our products desirable. Pricing products above average will also portray value of our products.
What immediate things will you need to focus on to actualize this strategy?
Immediately, the company will need to focus on R&D which be the start of innovating our new product. Next, would be to focus on aggressively marketing our current product by any platform possible in order to reach past consumers, current consumers, and potential consumers. Once the new product is out of the R&D stage, we can then focus on aggressively marketing the new product as well. An aspect of this strategy is to make our products well known and easily accessible and aggressive marketing will allow us to achieve both objectives.
What will you need to focus on in the longer term?
In the long term, our company will need to focus on the issuance of long term bonds to investors, as this will be the main source of finance. Additionally, our company will need to focus on developing and introducing new products (R&D) regularly to maintain our market share in our industry and keeping our company relevant and desirable.
Answer 2
I have decided that I will use the Broad Differentiator Strategy as my approach. I tried to select a strategy that most aligned with my own personal business beliefs. This approach is adverse to generating debt and tends to finance the organization through stock issued and cash earned from operations and aligns with my beliefs regarding not creating more debt. I also like the mission statement for this type of strategy, specifically products that stand the test of time. I would like my company to be known as one that creates quality products.
The strengths of this approach are that because the organization is cautious regarding how it funds the business, the company never leverages itself to the point of having more debt than equity. Overspending could cause a company to go out of business. Another strength to this approach is that it maintains a foothold in both the low-tech and high-tech sector. The organization has not put all of its eggs in one basket and can generate revenue from both sectors of the business. Should one sector falter, the other is available to pick up the slack.
There are a few things that I will need to focus on immediately in order to generate sales and brand awareness. I will need to work with my R&D Team to develop at least one new product line to show that my company is innovative. I will also need to work with this team to maintain the brand excellence that my customers will come to expect. I will need to set aggressive marketing and sales budgets, which will allow consumers to know about my products and where they can purchase them.
In the long term, I will need to focus on creating a dividend policy and a stock retirement policy. The company will also need to create a bond issuance policy, in the event that we need to fund the organization via the issuance of bonds. While working with the R&D team is an immediate need, it is also a long-term focus as well. To remain innovative, my team will need to think about creating products that are new and keep pace with the market, while ideally staying ahead of our competitors. Lastly, the company will need to think about working with the Production Team to discuss opportunities for automation that will allow us to still pivot toward market trends and customer wants but increase our productivity.
Answer 3
Looking through the strategies I believe the one that relates the most to what my approach will be is that of the cost leader with product lifecycle focus. I like this approach simply because it keeps cost low but competitive and by introducing a new product every 2-3 years it will keep the company relevant in the market segment.
I believe one of the biggest strengths goes along with what I just mentioned by keeping cost low but effective it is a great approach to create reliable products for the mainstream customer. By offering value I will be able to please customers as well keep shareholders and investors happy. Another strength is that we can switch up our marketing plan depending on what our market share is looking like.
The immediate things that I will be focusing on will be what the competition is spending in the marketing department to make sure I am making sure to not overspend in that area. It will be important to keep R&D scheduling low but competitive and make sure that I am watching all aspects to make sure I am keeping a cost effective approach. Since I will be likely to release a new product in 2-3 year cycles it will be important to have those plans in place the year before release and keeping an eye to make sure I am making a valuable cost effective strategy to create a promising market success. Longer term it will be important focusing on what worked and what did not with the first new product to try and meet the success of the first release or to constantly make improvements to make sure I am building a solid foundation for long term success.
Answer 4
What strategy will you use and why?
I believe to keep a competitive edge and at the same time focusing on customer satisfaction, that I would use the broad cost leader approach for this project. Since this strategy is based on keeping material costs at a minimum, my company can look to operate at a low-cost relative to others within their target market. I believe customer satisfaction is important if we plan to have success with our company.
What are the strengths of your approach?
This strategy would help to keep the price of goods competitive, affordable and improve margins and increase automation levels. The strategy attempts to be the low-cost producer and will allow the company to have higher profit margins on their sales while keeping the price low for their customers.
What immediate things will you need to focus on to actualize this strategy?
With this strategy the company will more than likely retain reliable products than introduce new ones to the market. The company would need to keep those products appropriately priced and up to date. To boost sales, the company would need to focus on marketing the product. With this strategy we will spend modestly on promoting our product to improve awareness. We will need to increase automation but to do so we will be slower moving and prefer overtime.
What will you need to focus on in the longer term?
Though the purpose of this strategy is to keep the goods affordable, we still need to make sure they are competitive in our market. We will need to maintain our market share and focus on an affordable marketing strategy for our product and potentially new ones. We will also need to review in the future increasing our levels of automation. For financing we would base this on long-term bond issues and would need to focus on stock price and profits. Investments would be financed with debt or stock issues.
I appreciate your feedback on my chosen strategy as I am just beginning to learn the importance of these basic strategies. When I was thinking of the important of the success of my company, the customer comes to mind and the broad cost leader approach seemed appropriate. If you had chosen another strategy, I look forward to understanding your approach as well.
