Foremost for the success of our team, it was felt that the development of a strategic plan was essential—before we started the simulation. It was determined that our team had to focus on three principles for determining a strategic plan: Strategic Position; Strategic Trade-off; and Strategic Fit (Porter, 2006). Our basic strategic plan can be paraphrased as: focusing on production utilization, manufacturing a product that was different than the competitions, focusing on a product with a high margin, creating an organization of specially skilled individuals (which is addressed in the organizational structure section—and possibly our demise), short turnover time in production, and focused on capturing market share through protectionist policies in investments in manufacturing and marketing. Our mission statement and vision for the organization was simple; be the most profitable company in our section and in all sections during the running of the simulation.
Michael Porter stated,
“A company can outperform rivals only if it can establish a difference that it can preserve. It must deliver greater value to customers or create comparable value at a lower cost, or do both. The arithmetic of superior profitability then follows: delivering greater value allows a company to charge higher average unit prices; greater efficiency results in lower average unit costs” (Porter, 2006).
This is the framework for how our team determined our position within the Mueslix market. Our position was to deliver a product that had a large margin, sold to less price sensitive distributers or markets that are inelastic, and created a manufacturing process that delivered a low per unit cost—through heavy investment in th...
... middle of paper ...
...cut the price of the competition to steal temporary market share from them, so it would hurt their sales during the simulation (possibly we should have continued this accident—to achieve a successful organization).
Conclusion on Strategy
In the end, we did achieve what we were hoping to, but did not necessarily fully match our mission. We did miss by a substantial margin, but we were still the second best team for all of the organizations. We will discuss this further when we speak on what we have learned. Our ability to adapt the strategy was only successful because we had established a plan to begin with. We feel that our strategic planning and decision making was very successful.
Johnson, G., Scholes, K., & Whittington, R. (2008). Exploring Corporate Strategy. England: Pearson.
Porter, M. E. (2006). What is Strategy? Cambridge: Harvard Press.