Business simulation - Peach

Résumé du document

Peach was set up by five shareholders that invested $1,000,000 each. During the first year, company's main mission was to develop products to meet our core target's needs and expectations. Our goal was to know customer's satisfaction because that is for us the best way to develop a profitable company in the long-term.
During the first quarter, we invested in a marketing survey in order to obtain a lot of information on the global environment of our customers. After acquiring the necessary knowledge to answer our customers' needs and expectations, we have decided to focus on two segments: Costcutters and Travelers. Two interesting segments in computer's sector because people are always looking to make economies but want to be at the forefront of technology; and those who are traveling (and working) need computers to work, to watch a movie etc..

Then, we had to take a second decision about the production plant and sales offices.
We decided to produce in Brazil, according to figures found in the market survey. It was the cheapest manufactory's place knowing that we wanted to open our first sales office in United States. Concerning the two outlets, we choose to base them in Chicago and Los Angeles because the customer's demand of computers is high and their willing price to pay would permit us to make profit more rapidly. The history will teach us that is not so easy to predict the market.

Extraits

[...] * A well-developed knowledge This exercise results of a multitude of complex decision to make. It was important that all of us bring different knowledge to understand the mission and achieve goals. We were two Marketing students, two Financial students and only one Human Ressources student. Our team was really strong and we all share our ideas and knowledge. Through the development of the fictive company, we understand that it was important to know a lot of concepts to develop the best strategy. [...]

[...] So we ended up with a lot of inventory, creating losses. That is why we stopped quickly to produce Cheapeach for example, to sell stocks at maximum. Our strategy has more or less worked, because the As of quarters, our inventory decreased. In Quarter we can see that we have 367 Cheapeach Cheapeach+ and 153 Peachorse Sales Channel Strategy Our main strategy for sales channel was to implement our company in many countries; As our finances were having some weaknesses with the success of our products in America, we thought wise to open new stores in Europe. [...]

[...] It is a game, a competition, so be sharp and think well throughout this exercise. * Understand and use each team member advantages/skills. Everyone has an important role and, communication is the key between team members. To be at the top, it is obvious that you must highlight the good point of each team members but also to cope with their difficulties * Balance Scorecard has a significant importance. It will appear in the fourth quarter and from the fifth quarter you will be judged on it. [...]

[...] We are two students from Marketing, two from Finance and one human resources. After presenting our future strategies and figures in the previous case, we will now explain: All strategies adopted in different areas of this business game, our results, the goals we set, the relationship between our lectures and this exercice, and finally what we have learned from this experience and some recommandations for future business gamers. STRATEGY OF THE COMPANY Global strategy of the first year business Peach was set up by five shareholders that invested $1,000,000 each. [...]

[...] Moreover, we spent $ 450,000 on advertising to promote our company, our products and continue to show us to the public. Quarter 8 : We decided to target other segment like WorkHorse and Mercedes, and to target again the Travellers. Sales were not good but some people liked our product that is why we came back to them. Moreover, a new brand appeared which is VIPeach but the weakness here is that we did not invest enough in advertising and not at all in R&D. [...]