LD0474 Strategic Management for Competitive Advantage.

Introduction

You will participate in a business simulation exercise ("Business Game") based on the European Car Industry. The purpose of the exercise is to give you the opportunity to use the learning from the four functional areas (marketing, finance, human resources and operations management) to simulate the setting up and running of a business which is competing for market share.

In Week 5, you will attend an introductory lecture which will explain the objectives of the simulation and the process for making decisions. In the seminars, which begin in Week 6, you will be divided into teams of 5-6 students. Each team has to set up a car manufacturing company, design two cars and sell these to the market. The teams within each seminar group will compete with one another for market share. The objective for each team is to maximise the shareholder value of their company at the end of four decision rounds - Week 11.

Information on the market together with cost data will be posted on Bb in Week 5. Each team should read this information carefully and use it to establish a business strategy. In Weeks 7 to11 the teams will make a set of decisions each week to be submitted online. The results, in the form of computer-generated reports, will be available online later in the week.

The Business Game seminars in Weeks 7-10 will take the form of shareholder meetings. Each team will make a short presentation reviewing the performance of their company in the previous round and identifying key areas where the performance and management of the business can be improved.

In order to complete the assessment detailed below, it is essential that each student keeps a detailed record of the team meetings, the decisions made, the rationale for these decisions and their own role as a member of the team. Non-attendance at seminars will be penalised.

Assignment A

Each team will submit a group report on the Round 1 decisions with the following sections:
1. Peer assessment form with the names and signatures of all team members (see final page of this brief).

2. The team`s business plan for Round 1 (word limit 1,500 words) as follows:
a. Mission statement - what is the purpose of your company?
b. Business Objectives - measurable targets for the end of Round 4 (e.g. market share)
c. Chosen market segments with brief descriptions of target customers and your marketing strategy

d. Your competitive strategy - why will people buy your cars rather than those from other companies?

e. The rationale underlying the choices of designs, options and R&D

f. The rationale for the prices charged for each car

g. The rationale for production/HRM decisions such as investment in automation.