This week in Mgmt300, I've learnt a lot. Last week was a depressing week but this week were looking good. Despite our really crap SHV I feel like our team worked well.
Because of the poor results in our last turnover, our team were reacting to what we could've prevented from the beginning but with a positive attitude which I enjoyed being a part of. We emailed Smart Sims for some help, and they provided us with some advice on where to go while operating at a loss and in overdraft. These of course was something we should have done from the beginning or at least when we realised our strategy wasn't going according to plan but the effort we put into this weeks decision making was probably the most we've had throughout this entire simulation. We looked into our reports and although we've pretty much been disowned from the market, it was still enjoyable to feel like we were working together and helping each other out. I think our teams performance has been the best one to date. We didn't make enough sales to cover our costs and now our debt to equity ratio is extremely high, but we thought we had to take the loan out in order to finance the things we had planned. We reduced our loss by $2m, we've got some cash in our bank and paid off the overdraft, plus our brand awareness has caught up to other companies in our market. Although our SHV went down, I still feel like our collaborate effort this week on making the decisions was the highlight of my week.
I just walked out of another business class talking about Fletcher Challenge. The whole time I was doing the readings for this paper talking about Corporate Strategy, I realised our company started off as a question mark and became a dog at the end (Hedley, 1977). This obviously is not one of the readings for this course this week, but I just felt like our company began with high growth and low market share. We demanded high cash in order to fund the release of 5 new products at the beginning but we our cash generation wasn't great, hence taking out a massive loan in the third roll over and because still did not generate sufficient cash from sales to finance the growth we became dogs - low growth and low market share. Having read this made me understand more how our company was functioning and how we should have established a strategy from the beginning, however. The understanding myself and the rest of the group have gained from this is probably more valuable.
In terms of this week's readings, I think our team sort of took on a granular approach as discussed by Mehrdad (2009) but did not execute it very well. We didn't have a great understanding of market potential or the relationship between market momentum and market share gains. However, this week, we did look into the markets and well, we've just lost the motivation to even compete. We're basically being eaten up by the leading company in our market, and the motivation to continue has declined. Of course we can't just sit here and not do anything, but we are really focusing in on our summative journals now.
That's pretty much what I have taken away from Mgmt 300 this week.