Mgt6173 Business Strategy

Business Strategy

MGT 5173

Accounting/Finance Environment

1. (6 pts) What was your team’s Business Strategy for the simulation, and briefly give an overview the actions involved in following this strategy? This should explain the strategy, and how it was used to gain competitive advantage.

My team’s business strategy is to provide products in every market from high quality to reliability to cost effective. We tried to position our products so our customer buying criteria’s are met. My team started out trying to move our products immediately to where our customers buying criteria, which was a mistake. My team’s strategy changed to gradually increasing our products until we were in the market segments are customers were looking for. Team Andrew decided to introduce two new products early thinking that would give us an advantage early. My team has increased communication, asked more questions, and made more group decisions.

2. (5 pts) Which market segments meant the most to your company? Explain.

The market segments that meant the most for team Andrew is the low end and high-end segments. The high-end has been the most consistent in all of our rounds. In the first three rounds performance was our second most consistent segment, but once we started improving low end became our second most productive segment since the fourth round. My team started putting more marketing into those products than the other products.

3. (10 pts) List all of your products and give the last round contribution margin for each. Explain why contribution margin is important.

My team has seven products which include: Able, Acre, Adam, Aft, Agape, Ahba, and Air. In round seven my team had a contribution margin of 55.6%. Contribution margin allows a company to determine the profitability of individual products. Contribution margin can also be used to determine if a company should drop a product. Contribution margin is also a measure of leverage. It measures how...