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Simulation
TEAM 8
Mahesh Patel
20135033
Mruganda Shah
20135038
Namrata Ramtri
20135039
Palash Acharya
20135045
Suman Rathod
20135055
Submitted to:
Dr Tanushri Banerjee
Associate Professor & Chairperson- MBA(G)
SPM, PDPU
School of Petroleum Management
Pandit Deendayal Petroleum University
Raisan, Gandhinagar- 382007
Product Line
GAME 1
Mini
Mid-Size
Compact H
Small E
GAME 2
GAME 2
Capacity
1. Mini- 1x
1. Mini E- 1x
2. Mid-Size- 1x
2. Compact- 1x
3. Compact H- 3x
3. Sub-Mid Size- 2x
4. Small E- 1x
4. Sub-Mid Size H- 1x
Competitors
Competitors
1. Mini- 3
1. Mini E- 3
2. Mid-Size- 2
2. Compact- 2
3. Compact H- 2
3. Sub-Mid Size- 1
4. Small E- 3
4. Sub-Mid Size H- 1
Overall Strategy
GAME 1
GAME 2
Well-defined Strategy
Financial Analysis
Parameter
Game 1
Game 2
Retained Earnings
1050 million
1175 million
Return on equity
11%
13.09%
Change in cash
231 million
270 million
Debt ratio
44.13%
38.35%
Share prices
Rs. 155
139.26
Strategic Positioning
GAME 1
Efficiency Improvement
Costs: 0
Staff Expenses: 0
Material Cost: 0
Demand: 0
Product Innovation
Costs: 0
Material Cost: 0
Cust. Satisfaction: 0
Demand: 0
Dealer Training
Costs: 0
Staff Expenses: 0
Cust. Satisfaction: 0
Demand: 0
Dealer Credit
Demand: +6.40%
Receivable Days: 42
GAME 2
Efficiency Improvement
Costs: 16,519KRs
Staff Expenses: +1.60%
Material Cost: +1.60%
Demand: +3.60%
Product Innovation
Dealer Training
Dealer Credit
Demand: +6.40%
Receivable Days: 42
Cost Structure
GAME 1
GAME 2
Material
&
Internal Analysis
(Game 2)
Internal Analysis
(Game 2)
Product Related
Strategy &
Performance
Good decisions
Selection of products
Invested in multiple sectors
Lowest marketing cost
Lower Cost per unit as compared to competitors
Good speculation
Upsized at the right time
Reduced Debt-Equity ratio by paying Long-term
dept using Excess Cash.
Prospective Better
Decisions
We could have increased capacity of an existing
high revenue generating product rather than
invest in more number of products in Game 2.
We
Learning
Upsizing is always a better option to increase market share
than new investments