We are approaching to the end of the simulation, firms are standing very strong onto their positions and working towards a clearer goal. For our team, we definitely working towards a clearer direction compared to the beginning of semester. In this stage, every firms are trying hard to grow their business internally and externally. Internally, firms are trying to make as much profit as they can. Externally, takeover actions start happening within the country.
Internally, according to Baghai, Smit and Viguerie (2009), “sizing up revenues by division or region can be downright misleading.” In MikesBikes simulation, our firms are divided into three different regions. I personally agree with the authors because firms in different country have different level of competitiveness. The top firm in different country may not stay at the top if they were in another country. Therefore, I think the revenues raking cannot represent the company’s performance. For my team, we have been staying in the top in terms of revenue for a few weeks but we are not the best company overall. I have no idea how exactly the SHV is make up from, but it is indeed a better indication of the performance of a company. Davenport (2006) brings an important idea that sources of strength come mainly from acquiring the right focus; creating the right culture, and hiring the appropriate candidates. The first element is what I always believe in, working towards a same goal and direction. I think our team is doing great on this area as we all having a very clear goal and everyone is working exactly on the same track. However, I think the other two elements are not very clear in our company and even for this course. These two elements however play a very important role in the reality. A right cultural helps employees to work in a same environment, enhance the strong goals.
There is another quote that I agree of which is “the most proficient analytics practitioners don't just measure their own navels–they also help customers and vendors measure theirs” (Baghai, et al, 2009). I think this is how a firm grows externally. We don't just analysis the internal reports but the market demand and other firms' performance are also taking into account.