This week, it has been difficult to articulate a challenge or problem of which I can analyse and improve on. However, looking back on my experience with MikesBikes, I have recognised an issue with my mindset towards the simulation. At the beginning of the simulation, we heavily invested in marketing. We overspent and could not meet the needs of the demand, resulting in many lost sales which affected our SHV greatly, as well as being a waste of money and benefited our competitors. This was not a smart decision.
Despite being told by Peter that we were overspending, we remained consistent with our overspending and ignored his advice. It took a while for manufacturing to catch up and be able supply enough bikes consumers demanded. We were reluctant to drop marketing expenditure as we did not want to lose market share, as we were obtaining the most market share compared to our competitors. We thought raising our bike prices could remedy this, along with many other excuses. Looking back now, we could have fixed this issue a lot sooner than we did.
Our stubbornness costed us a lot. We made less profit than we could have as our costs were too high, yet we were reluctant to lower costs too much as we feared we would lose our competitive standing. However, it wasn't until we took the plunge and lowered our expenditure that we saw good results. This gave us confidence, thus we continued with a new plan of attack. My role of marketing manager was also beginning to lose its purpose as we neared the last few decision rounds, as we had reached the plateau of marketing expenditure early on in the simulation, due to overspending in the early phases.
After taking what we believed to be a risk, we were all very happy with the outcome. This taught us to be more vigilant with our spending and gave us a better idea of how to move on and continue increasing our SHV. In the future, I will be more open to risks, as risk will often be involved for big gains to occur. I will also be more frugal on spending money, as although spending a lot of money on quality and marketing looks appealing for consumers, it is not the most profitable method of operating for my company.