What is wrong with MIKESBIKES? I'm my mind this simulation is hard to understand and perform. For the past four weeks, our firm was falling and falling. What was the problem? I think we didn’t have enough understanding how MikesBikes actually worked; in terms that every aspect of the market, distribution and financial information is interconnected. Specifically, understanding the market was the most important part and unfortunately we did not see this at the beginning. We had hopes of becoming the first in the market for all four products to get ahead and building a competitive advantage over other firms. Yet, extracting huge loan and low sales (I think it was due to marketing advertising as we did not spend any for our four products in the second rollover) that lead to our firm being insolvent. Although with getting a cash injection, after yesterdays rollover, our firm is now insolvent again. Our hopes increasing the sales of our product is dramatically deteriorating and the reason for it I think is because the market is too big for us to get up on our feets. Other firms have ultimately gained relative stable position in other markets and reducing our sales and quality for our products. Simply the market now do not care about our products at all.
For the past four weeks, I’ve learn't that our group compared to other groups were just cruising our way through MikesBike. We didn’t have effective decision at the start and we made minor decisions; decreasing our employee and plant capacity, retail prices, and production numbers. We have major decision at first and this I think this was the reason why we are now in this situation. This reading specifically relates how to effectively devise a management strategy. Baghai et al. (2009) emphasized that getting better at looking beyond purely financial criteria to growth potential and strategic fit is important for the firms future. Yet I think our financial status was fine (until we had huge debt and becoming insolvent), it was the marketing aspect we poorly performed. Also the members inside a team need to fully understand how their individual goals, relating with the company’s strategic priorities and must also be well versed in the systems and processes the company is creating to bring that strategy to life (Baghai et al., 2009). This I think is most important and is the reason why we were divided into a role/department for this simulation. The major role for each of us is to provide our information from individual departments and figure out what strategy/decisions to implement. But I think our group fail to do is. Meeting just in lectures were insufficient to decide and analyze better decisions.
Our group is definitely poorly performing, and there is a limit to what we can do. With the help of SmartSims, we can now sell our shares or apply for another cash injection. Although, I think this too much and unfortunately I have to admit, we lost in this game. Baghai et al., (2009) stated that businesses revealed as poorly performing, in unattractive market spaces, should be jettisoned.
Baghai, M., Smit, S., & Viguerie, P. (2009). Is your growth strategy flying blind? Harvard Business Review, 87(5), 86---96.