Simulation as a Tool for Strategic Decision Making

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Project 4: Simulation as a Tool for Strategic Decision Making—Part 2
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Scenario

Everyone in the office has been buzzing about your team’s leadership and efforts on the MediCorp project. As a result, the CEO, Jillian Best, brings the team together to discuss the next steps. The decisions you made through Capsim were constructive in understanding MediCorp’s approach to local markets, and Jillian would now like you to examine the client’s potential for business success on a global scale. “MediCorp has been very impressed with our work thus far,” she says. “Let’s keep up that momentum. China and Germany have emerged as excellent options for growing MediCorp’s business internationally. Your teamwork, projections, and analysis will be very useful as we help this client navigate these markets.”

Jillian requests that you continue working on the same team and using Capsim to evaluate MediCorp’s potential international markets. The meeting concludes, and you return to your office feeling rejuvenated with your sights set on global success.

Introduction

In Project 4, you will continue to work on the same team as in Project 3. Again, you will turn in your own analysis at the end of the project for an individual grade. Starting from scratch and choosing a new strategy—a global strategy—you will use the Capsim software to simulate a real-world environment in which you not only make strategic business decisions for MediCorp but see the results year after year. Your team’s simulation results for MediCorp are not graded or assessed. Rather, your project grade will be based on the quality of your individual analysis of the simulation results and your ability to interpret the results as a consequence of the team’s decisions.

To get started, click Step 1: Discuss Entry Strategy.

Competencies

Your work will be evaluated using the competencies listed below.

1.1: Organize document or presentation clearly in a manner that promotes understanding and meets the requirements of the assignment.

1.2: Develop coherent paragraphs or points so that each is internally unified and so that each functions as part of the whole document or presentation.

1.3: Provide sufficient, correctly cited support that substantiates the writer’s ideas.

1.7: Create neat and professional looking documents appropriate for the project or presentation.

2.1: Identify and clearly explain the issue, question, or problem under critical consideration.

2.2: Locate and access sufficient information to investigate the issue or problem.

2.3: Evaluate the information in a logical and organized manner to determine its value and relevance to the problem.

2.4: Consider and analyze information in context to the issue or problem.

2.5: Develop well-reasoned ideas, conclusions or decisions, checking them against relevant criteria and benchmarks.

3.1: Identify numerical or mathematical information that is relevant in a problem or situation.

3.4: Employ software applications and analytic tools to analyze, visualize, and present data to inform decision-making.

4.1: Lead and/or participate in a diverse group to accomplish projects and assignments.

6.1: Identify the general (external) environment in which an organization operates and discuss the implications for enterprise success.

6.2: Evaluate strategic implications for domestic and international markets of an organization’s industry.

6.4: Develop and recommend strategies for an organization’s sustainable competitive advantage.

10.1: Apply relevant microeconomics principles to support strategic decisions for the organization.

10.2: Analyze financial statements to evaluate and optimize organizational performance.

10.3: Determine optimal financial decisions in pursuit of an organization’s goals.

10.4: Make strategic managerial decisions for obtaining capital required for achieving organizational goals.

10.5: Develop operating forecasts and budgets and apply managerial accounting techniques to support strategic decisions.

12.1: Assess market risk and opportunity.

12.2: Analyze marketing information.

12.3: Prepare marketing plan for a new product/service.

13.1: Identify and analyze new opportunities.

Project 4: Simulation as a Tool for Strategic Decision Making—Part 2
Step 1: Discuss Entry Strategy

Discussion

As you prepare to choose a new strategy—a global strategy—to direct your client’s business decisions, it will be useful to think critically about international strategies, modes of entry, and globalizing the management model.

Before you and your teammates settle on a strategy, Jillian Best has asked you to meet and discuss the various factors that influence an entry strategy.

Based on your reading, research, and analysis, respond to the two discussion questions below:

Discussion Topic 1: What are the factors that influence an organization’s choice of entry mode in a country? Discuss how the chosen mode fits with an organization’s goals and objectives.

Discussion Topic 2: What are the country factors that influence an organization’s decision to enter that country? What is the impact of the culture and geography on the organization’s value-chain activities being relocated to the country?

Review the MBA Discussion Guidelines for instructions on participation in discussions. Also, abide by the following guidelines:

The titles of your main postings should indicate the discussion topic number (e.g., #1, #2).

Respond to a minimum of two postings from your classmates before the end of Week 7.

In your discussions, cite examples when you describe theories from your reading and research. You may use examples from your organization or industry, current or recent newsmakers, or other reliable sources.

After the discussion, proceed to the next step, where your team will select a global strategy to guide your business recommendations for your client.

Step 2: Decide on a Global Strategy

Starting from scratch, your team will make decisions about how to run your client’s company, which designs, manufactures, and sells genetic testing devices—this time by following a global strategy. As you pivot to a global strategy, you will examine the elements of target market selection to ensure you choose a strategy that is suitable for MediCorp. Also review the blueprint for international expansion laid out in the article, “Going International.”

Recall the eight strategies in Capsim. Your team will pick one of the four global strategies and use the same global strategy for the four rounds in this project. No two teams can use the same strategy in the same project.

Reserve your team’s choice of global strategy for Project 4 in the Strategy Selection discussion area by 11:59 ET on Tuesday of Week 6. Strategies will be allocated on a first-come, first-served basis. Then continue to the next step, where you will apply your strategy to make key decisions for MediCorp.

Step 3: Make Your Decisions

Your team is now ready to help MediCorp compete in the genetic testing device industry by making strategic decisions through the Capsim platform. Your decisions will direct four calendar years of your client’s operations. On December 31 of each year in your simulation, Capsim will produce a report that reflects the results of your decisions. Your team will use these reports to make further decisions for the following calendar year.

First, consult your Round 0 Report to understand the starting position of MediCorp’s business. Use How to Find Reports in Capsim to locate the Round 0 Report and reports for all subsequent rounds. Then, begin making decisions for your client, consulting Capsim: A Systematic Approach to Making Strategic Decisions for direction.

Tips

Teams should make their decisions in the following order: (1) R&D, (2) marketing, (3) production, and (4) finance. In this simulation, your team is unlikely to be successful if it makes decisions in a different sequence. However, coordination between the four areas during all decisions is also critical, and you may have to revisit decisions based on input from other departments.

For your own benefit, it is advisable to individually take notes on the decision-making process, which may help you analyze your team’s results later in this project.

Download a fresh Capsim Decision Record and use it to take notes at the conclusion of each round for each of the four functions, R&D, Marketing, Production and Finance.

Proceed to the next step for more information on finalizing your team’s decisions.

Step 4: Save Your Decisions

Classes in Europe and Asia will follow the schedule set by their faculty.

Only one set of decisions needs to be made by each team. All team members will have access to the decision areas for all other members. You only need to make decisions for your assigned area, but you can see what decisions other team members are making, if needed. For example, before making decisions in marketing, where you have a primary role, you can click on the R&D tab to see what decisions have been made.

When you are done, be sure to select File, then Save Decisions from the dropdown menu when you are done, or else your team members will not be able to see your decisions. You must select Save Decisions and exit Capsim before your teammates can view your decisions. If you decide that you need to make a change, you can make the necessary adjustments to your decisions and select File and Save Decisions once again to overwrite the previously saved decisions. Choose Exit to return to the Participant Dashboard.

Once a round is processed, you can then begin to make decisions for the next round. If you miss the deadline, your round will be processed with the decisions from the past round, unchanged, or with any partial decisions your team has made.

After Round 4, your team role ends, and you will begin your individual analysis of the decision-making process spanning the past four rounds and the outcome of those decisions.

Proceed to the next step to begin analyzing your contribution to your team as well as your team’s results.

Step 5: Evaluate Your Contribution to the Team

When you have completed all four rounds, write a post of 200 words or less in your group discussion area explaining the decisions in which you were involved, the logic behind those choices, and how those decisions contributed to the team’s strategy and results.

Step 6: Analyze Your Team’s Decisions and Results

INBOX: 1 New Message

Subject: Report
From: Jillian Best, CEO, MCS
To: You

Hello,

I think we’ve learned a lot about MediCorp’s capacity to compete internationally. Well done.

Let’s take a moment to reflect on what we have learned by employing a global strategy for our client. Again, I have compiled some key questions about how the decisions you made for MediCorp affected the company’s performance.

Please use the attached template and prepare an eight- to ten-page analysis for me by the end of the week. Type your answers directly in the template.

Thanks,

Jillian

Attachments:

Project 4 Analysis Questions

Email signature with MCS corporate logo, Jillian Best, Chief Executive Officer, and contact info

You have now finished working with your team on implementing a global strategy for MediCorp. At this point you will transition into an individual role of an analyst for MCS. Each person on the team will do his or her own analysis of results without any consultation with other team members or with students on other teams.

Submit an analysis of Rounds 1 through 4 of the simulation by answering the questions provided in the Project 4 Analysis Questions template. Link to the Learning Topic from MBA 620 in Question #6 can be found here. Your report should be eight to ten pages (approximately 250 to 300 words per question), double spaced, excluding cover page. Any tables, graphs, and figures should be included in the body of your answers. Your report should have one-inch margins and be double spaced in 12-point Times New Roman font. In-text citations and references should abide by APA format. Do not delete the questions as you complete the template.

Along with your analysis, submit your Team Decision Record. Thus, you will submit two files to the dropbox located in the final step of this project.

Fill out a Capsim Decision Record at the conclusion of each round. This document will serve as a record of your thoughts and decisions in each of the functional areas.

The next step provides recommended delivery dates and file-naming protocols for Project 4 deliverables.

Check Your Evaluation Criteria

Before you submit your assignment, review the competencies below, which your instructor will use to evaluate your work. A good practice would be to use each competency as a self-check to confirm you have incorporated all of them. To view the complete grading rubric, click My Tools, select Assignments from the drop-down menu, and then click the project title.