After last week's rollover we ended up with a consistent SHV for the third week in a row. To make matters worse, reading Peter's weekly update on Mikesbike made us realise how big of a problem this was. Is it considered an achievement like what Peter said? Not a very proud achievement I wish to own.
Now that I’ve done a whole lot of learning journals by now, when using Daudelin's four stages of reflection (Daudelin, 1996), I can easily identify the problem I want to reflect my learning on. I WANT TO INCREASE OUR TEAMS SHV. I do not want to be stuck with these digits for the fourth week in a row. After the results of last week's rollover came out, I genuinely was eager to write this week's reflection as it was an opportunity to reflect on this. I wanted to know what was the problem causing our SHV to be stuck. Was it something we are doing wrong? Or we were just simply too unlucky? Doubt it.
Moving forward, I began to look into possibilities that could have caused our consistent SHV digit. One possibility I came across was we were slower than other teams in launching a new bike into the five market segments. Currently, every team had 5 different bikes in the market except us and our subsidiary team... What a coincidence. Another possibility is how we were spending too much on advertising when we were not getting the expected market share. From this, I knew this was an issue I needed to look into my own part since I was the marketing director.
Therefore, I wanted to formulate a theory to fix this problem. We came up with the theory that at this point, we will most likely be stuck with this SHV if we do not do anything about it, especially if we do not take risks. Buchanan & O’Connell (2006) states that there are win-win situations from opportunity costs not risked taken, even more for corporate scale decisions. Thus, we looked at the many alternative risks we could take to give us the optimal result. From my own side, I wanted to test out the advertising area so we were not wasting unnecessary money. With the chance of failing with wrong calculations and unexpected outcomes, I was willing to risk some major advertising chances to save us some spending.
Finally, we put all this into action as our team decided to surprise everyone in the market by launching not one but two new bikes. We hoped this would be the solution to increasing our SHV. This is because we felt that only focusing on a few bikes gave us a disadvantage as there was a diminishing rate for advertising which meant once we were at the peak it would be hard to gain any more market share. For my bit of the team, I decided to go ahead and make these risky changes in the simulation. I knew I wanted to make these new decisions is because I felt that simply launching new bikes would not make things better, it is more about how effectively we can use advertising would impact it all. I hope all goes well for the last few rollovers!
Daudelin, W. M. (1996). Learning from experience through reflection. Organizational
Dynamics, 24(3), 36-48.
Buchanan, Leigh, & O’Connell, A. (2006). A brief history of decision making. Harvard Business Review, 84(1), 32–41. Retrieved from http://ezproxy.auckland.ac.nz/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=19256537&site=ehost-live&scope=site