This week we received very good news from Smartsims: we would get another round of equity injection on top of the one we got 2 rollovers ago. Needing multiple injections is definitely not something to be proud of, yet we felt that we deserved the second one more than the first. If the first time we needed help was mostly because of bad decisions and poor market analysis, the second time was more because of our position in the market. After the first 6 roll-overs, we fell too far behind other teams and the money we got from the firs injection could only help us get through without going completely bankrupt. We had almost no money for investment into advertising or distribution since we used most of the equity injection to get us out of the then current liability. As a result, we struggled for 2 more rounds trying to sell whatever amount of products we had left with as much advertising and distribution as possible, which is still a long way from the amount that other firms can afford. However, we did the best we could with what we had and managed to keep our firm solvent. Our sales prediction for the two rounds were extremely precise. We sold every bike that we had in store with no lost sales. We knew how fragile our firm was since other firms could easily take us over judging from the gigantic size their firms have become. Luckily that did not happen and we were still making our own decisions with some help from Peter and smartsims support team.
As we move towards the last weeks of the semester and also my 3 year degree in Auckland University, I have come to reflect on my individual development. Christensen (2010) stresses the importance of having a purpose in life and working towards it with a long term plan in mind. I Couldn't agree more with the author's perspective. Once the strategy is formed, it becomes so much easier to work towards the outcome with the focus of meeting the goals that you have set up. Anything that goes against your goals should be treated as distraction and too much distraction could steer you into the wrong direction. Allocation of resources is also one of the key points that the author talks about. I could relate this largely to my experience in Mgmt 300. Resources does not necessarily mean money, it could be man power, time, energy. If all of these factors are accounted for and distributed in a suitable manner, efficiency would come naturally. My team dealt with some issues regarding meeting time since most members in the groups are extremely busy. The solution that we came up with is to discuss mostly on facebook and only meet once a week for up to 2 hours to get all decisions confirmed and approved by all members before we put them in the simulation. We have had great connection and every member is happy with the meeting timetable. For the last weeks, we knew what we needed to do for Mike's Bikes, so we succeeded in reducing meeting time to roughly 1 hour and a half a week and still got everything done to the best of our ability and the situation our firm is in. Therefore, we had more time to spend on writing and polishing our journals to get ready for the summative journal which takes up 80% of the course and is obviously the most important component of the course. I believe that such allocation of resources is sensible.
Christensen, C. M. (2010). How will you measure your life? Harvard Business Review, 88(7/8), 46-51.