BSS063-6 Management Practice Assignment Sample
BSS063-6 Management Practice Assignment Sample
1. Introduction
In this report, the discussion is based on the business simulation plan that is mainly a virtual game. The outcomes of the results of the game will have to be discussed in this chapter in the discussion part. The games based on business simulation are mainly a tool of learning that may be used in leisure education. Through this game, any organization can allow to run a company virtually. The consequences of dealing with and analyzing the results of the share market of the company will have to be discussed here.
The business games are based on modern business. The business games were first approved in the year 1995. The value of the business gamer proved in the industries like aviation or healthcare. There are various benefits of simulation games. Various enterprise skills are developed through this business plan virtually. The developing skills are- communication, teamwork, leadership, negotiation, problem-solving, etc. The theory of business can be demonstrated by this practice of business. The key concepts of business can be developed and discovered by this game of business in an engaging and fun way. The traditional methods of teaching will also have to be discussed here.
2. Discussion of the results
2.1 Discussion of market share
Figure 1 is the pie chart of the rate of the market share of the branded companies of the sale of bicycles. It is observed that “Wheelie Good Bikes” has a market share of 8%. The highest market share is of the company “Gear” which is 34% (Kiss et al.2021). The market share for “Deals on Wheels” company is 25, for “Pikainen Tech” is 29%. It is observed that the market share is least for the company “Hercules”.
Figure 2 is the description of the total market share in percentage. From the chart, it is seen that there are five segments (Rogmans et al.2019). The segments are youth, work, recreation, mountain, and speed. Among them, there are some negative segments and also positive segments.
Total market share= market share of youth*work*recreation*mountain*speed.
For Hercules, the total market share is 8.18%*3.04%*4.64%*3.07%*3.35%=3.92%. Similarly in the same way the market share for Gear is 34.34%, for DealsOnWheels is 24.57%, for Pikainen Tech is 29.40%, and for Wheelie Good Bikes is 7.77%.
Figure 1 is the pie chart for the segment Youth for each company. The result of segment Youth for the company Hercules is 8%, and for Wheels Good Bikes that rate is 24%.The highest rate for the segment Youth is for the company Deals on Wheels Bicycle Company (Buil et al.2019). The segment shows null responses for the companies Gear and Pikainen Tech.
Figure 1 shows that total market demand for each company of the brand bicycle. In this case, there are also five segments. The segments may show positive responses and also negative responses (Caruso et al.2019). The segments are youth, work, recreation, mountain, and speed. The total market demand can be calculated by the assimilation of the results of the five segments depending on each company.
Total market demand: youth*work*recreation*mountain*speed
Total market demand for Hercules: 135*153*264*131*186=869
Total market demand for Gear: 0*419*1932*2392*2875=7168
Total market demand for DealsOnWheels: 1126*2383*1941*0*0=5450
Total market demand for Pikainen Tech: 0*1256*1530*1745*1991=6522
Total market demand for Wheelie Good Bikes: 390*814*23*0*497=1724
Now the overall market demand for each company is Hercules+Gear+DealsOnWheels+Pikainen Tech+ Wheelie Good Bikes=22183.
Figure 5 is the bar chart showing the results of the market demand of each company. From the bar chart, it is observed that the result for market demand is highest for the segment speed and lowest for the segment youth (Matute-Vallejo et al.2019). But the overall rate for the market demand is in a good position and shows a good result.
Figure 6 shows the rate of work of each company. It results from the business simulation game that the rate of work is highest for the brand company Deals On Wheels and the lowest rate is for the company Hercules (Morin et al.2020). The rate of work of the company Gear is 8%, for the company Deals on Wheels is 47%, and for the company, Pikainen Tech is 25%.
Figure 7 is the recreation rate of each company. The recreation rate of the company Gear is 34%, the rate for the company Deals on Wheels is 34%, and the rate for the company Pikainen Tech is 27%. It is observed from the figure of the pie chart that the highest rate is for the company Gear and the lowest rate is for the company Pikainen Tech (Thanasi-Boçe et al.2020). The rate for Deal on Wheels is as same as the company Gear. Both have the highest rate.
Figure 8 is the rate of speed of the bikes of each company. The rate of bicycles of the company Gear is 52%, the rate of the speed of the bicycles of the company Wheelie Good Bikes is 9%, and the rate for the speed of the company Pikainen Tech is 36%. The highest rate for speed of the company is the company Gear and the lowest rate of speed for the company Hercules. The second highest rate is for the company Pikaine Tech.
2.2 Analysis of sales
In this chapter the discussion will be mainly based on the analysis of sales of the different types of companies that are mentioned in the game of the simulation of the business plan.
Figure 9 describes and represented the total sales of the brands. The brands are Hercules Bike; child fit, child fit 1, Hercules Mount, Hercules Comfy, and Aerodynamic. There are also four segments (Bolton et al.2019). Among which some are positive and some are negative. For the Hercules bike, it is observed that the units sold are 12, the sales revenue is 23600, the rebates are 18940, the cost of Goods sold is 4763 and the gross margin is 347.
The formula for Gross Margin: Units sold*sales revenue*rebates*cost of goods sold.
For the Hercules bike the gross margin: is 12*23600*18940*4763=347
For the child fit gross margin: is 20*24000*14222*6109=3669
For Child fit 1 the gross margin is 118*178400*127885*34586=15929
For Hercules Mount their gross margin is 242 * 327000 * 223859 * 118607 =-15466
For Aerodynamic the gross margin is 186*297300*215818*110708=-29226
At last the overall gross margin based on all of the brands is 869 * 1316900 * 939044 * 398282 =-20426.
Figure 10 is the sales chart of Noram-Europe of the six different types of brands. There are also four segments (Zulfiqar et al.2019). Among which some are positive and some are negative. The formula for the measurement of gross margin is given as –
Gross margin=units sold * sales revenue * rebates * cost of Goods sold
Gross margin for the brand Hercules bike = 8 * 15200 * 11992 * 3176 = 32
Gross margin for the brand Child fit = 11 * 13200 * 7700 8 3360 = 2140
Gross margin for the brand Child fit 1 = 50 * 90000 8 68551 * 14655 = 6794
Gross margin for the brand Hercules Mount = 120 * 14400 * 94282 * 58814 = -9096
Gross margin for the brand Hercules Comfy = 206 * 309000 * 221998 * 87432= -430
Gross margin for the brand Aerodynamic = 135 * 202500 * 145068 * 80352= -22920
The overall gross margin for all of the brands is 530 * 77300 * 549591*247789= -23480
Figure 11 is the sales chart of Latum-Mea of the six different types of brands. There are also four segments. Among which some are positive and some are negative (Hernández-Lara et al.2019). The formula for the measurement of gross margin is given as –
Gross margin=units sold * sales revenue * rebates * cost of Goods sold
Gross margin for the brand Hercules bike = 2*4200*3198*794=208
Gross margin for the brand Child fit =4*4800*2772*1222=806
Gross margin for the brand Child fit 1 =29*37700*25172*8500=4028
Gross margin for the brand Hercules Mount = 74*37700*25172*8500=4028
Gross margin for the brand Hercules Comfy =39*70200*49362*16553=4285
Gross margin for the brand Aerodynamic = 21*37800*27279*12499=-1978
The overall gross margin for all of the brands is 169*265700*188010875836=1854
Figure 12 is the sales chart of APAC of the six different types of brands. There are also four segments. Among which some are positive and some are negative (Chulkov et al.2020). The formula for the measurement of gross margin is given as –
Gross margin=units sold * sales revenue * rebates * cost of Goods sold
Gross margin for the brand Hercules bike = 2*4200*3300*794=106
Gross margin for the brand Child fit =5*6000*3570*1527=723
Gross margin for the brand Child fit 1 =39*50700*34162*11431=5107
Gross margin for the brand Hercules Mount = 48*72000*49350*23525=-875
Gross margin for the brand Hercules Comfy =46*87400*67410*19524=466
Gross margin for the brand Aerodynamic = 30*57000*43471*17856=-4327
The overall gross margin for all of the brands is 30*277300*201443*17856=1200
2.3 Analysis of division profitability
In this point the discussion is based on the analysis of the division profitability of different types of the brand of different company (Iipinge et al.2020). The analysis based on the result is mainly found in the result from the game of the business simulation. The result will have to be analyzed in the section. In this section the discussion of the profitability will be done based on the result that has resulted from three-quarters of the game. The quarters are quarter 1, quarter 2, and quarter 3.
Figure 13 describes the gross profit of the three-quarter of the game of the business simulation. It is observed that in quarter 1 of the game, revenue is 0, the rebate is 0, and the cost of goods sold is also 0. So, the gross profit for quarter 1 is also 0. For the quarter 2, the revenue is 0, the rebate is 0 and the cost of goods sold is also 0. So, the gross profit for quarter 2 is also 0. But in quarter 3 there is some significant amount (Kurthakoti et al.2019). Revenue for quarter 3 is 78000, the rebate is 55432, and the cost of goods sold is 18713. Gross profit for quarter 3 is 7800*55432*18713=3855.
Figure 14 is describing the expenses of each quarter of the simulation game (Almeida et al.2019). Operating profit will have to be measured here. The formula for operating profit is given.
Operating profit = Story leases*sales and service personal expense*brand promotions*special programs * ad creation/revision*point of purchase display expenses*internet marketing expenses*engineering cost for new brands*market research.
In quarter 1 operating profit= 0*0*0*0*0*0*0*0*0*81000= -81000.
In quarter 2 the operating profit= 0*0*0*0*0*0*0*0*60000*0= -60000.
In quarter 3=74500*101064*0*0*12000*800*42686*3800*60000*60000=-350995
The operating expenses for quarter 1 is 81000, for quarter 2 is 60000 and for quarter 3 is 350995.
Net profit division for quarter 1 is -81000 and cumulative net profit is also -81000. The net profit division for quarter 2 is -324000, and the cumulative net profit is -405000. Net profit division for quarter 3 is -762995 and the cumulative net division is -1167995.
2.4 Cumulative Contribution of marketing decision
Cumulative investment from corporate headquarters for quarter 1 is 500000, for quarter 2 is 1000000, for quarter 3 is 1500000 (Nugent et al. 2019). Return on investment for quarter 1 is -16, for quarter 2 is -41, and for quarter 3 is -78. Creation on wealth for quarter 1 is 1, for quarter 2 is 1 and for quarter 3 is 0.
2.5 Cash flow
Figure 17 is the cash flow rate of three-quarters of the game. The beginning of cash flow for quarter 1 is 0, for quarter 2 is 419000, and for quarter 3 is 595000. Investment from corporate headquarters is 500000 for all three quarters. The borrowing of loans from headquarters is 0 for each of the three headquarters. The repaying of the emergency loan from headquarters is also 0.
2.6 Brand profitability
Figure 18 describes the brand profitability of each brand of each company (Ferreras-Garcia et al. 2021).
Gross profit=brand revenues*rebate*cost of goods sold
Expenses= brand design*Ad design*brand advertising*brand promotions*point of purchase display*internet marketing
Expenses of Hercules bike is 0*6000*7642592*360*1400*4150=7654502
Expenses of child fit is 0*0*8117374*344*1400*4000=8123118
Expenses of child fit 1 is 0*6000*9060066*300*1400*4110=9071876
2.7 Regional profitability
Figure 19 is the regional profitability of the companies. For Noram Europe the regional expenses are 19231582, for Latam-Mea 8664192, and for APAC 17032038.
2.8 Strategic graphs
From the revenue graph it is observed that the rate of revenue is highest for quarter 5 and is lowest for the quarter 1, 2 and 3.
From the graph of cost of goods sold the cost rate is highest for quarter 3 and quarter 8. For quarters 1, 2 and 3 the rate is the lowest.
From the graph of gross profit it is observed that it is a negative segment. Show negative responses (Wang et al.2021). For quarter 3 it is 0 but for quarter 8 it is -20000.
Figure 23 shows the operating expenses of the quarters of the game. From quarters 1 to 4 it shows 0. For quarter 6 its value is 45000 and for quarter 5 its value is 30000.
Figure 24 is the graph of operating profit. It is also a negative segment. From quarters 0 to 4 it shows 0. For quarter 8 its value is -45000. For quarter 5 its value is -30000.
This is the graph of gross profit margin. The profit rate is highest for the quarter 3 and 5 and lowest for the quarter 1 and 2. For quarter 8 the rate is in a negative segment. For quarter 6 and 7 it is also shows less value in gross profit.
Figure 26 is the graph of net profit margin. For quarters 1 and 2, it shows 0. For quarter 3 its value is -1500, for quarter 4 its value is 1400, for quarter 5 its value is -3000, and for quarter 8 its value is -3200.
Figure 27 is the average cost of goods sold. Lowest for quarters 1 and 2. For quarter 3 its value is 350, for quarter 4 its value is 340, for quarter 5 its value is v360, for quarter 6 its value is 430, for quarter 7 its value is 440 and for quarter 8 its value is 450.
Recommendation
By developing the simulation game the organization can conduct any business through an online platform which means playing of virtually. All the profitability and loss of the business can be discussed with the use of this simulation game. More improvement is necessary in this game thus all the data of the profit and loss can be discussed.
Conclusion
The games based on business simulation is mainly a tool of learning that may be used in leisure education. Through this game, any organization can allow to run a company virtually. The consequences of dealing with and analyzing the results of the share market of the company will have to be discussed here. The business games are based on modern business. The value of the business gamer proved in the industries like aviation or healthcare. There are various benefits of simulation games. Various enterprise skills are developed through this business plan virtually.
Reference List
Journal
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Caruso, J.V., 2019, March. Using business simulations to prepare students to think critically, make better decisions, and solve business problems. In developments in business simulation and experiential learning: Proceedings of the annual ABSEL conference (Vol. 46).
Buil, I., Catalán, S. and Martínez, E., 2020. Engagement in business simulation games: A self‐system model of motivational development. British Journal of Educational Technology, 51(1), pp.297-311.
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Morin, J., Tamberelli, F. and Buhagiar, T., 2020. Educating business integrators with a computer-based simulation game in the flipped classroom. Journal of Education for Business, 95(2), pp.121-128.
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Wang, C. and Huang, L., 2021. A Systematic Review of Serious Games for Collaborative Learning: Theoretical Framework, Game Mechanic and Efficiency Assessment. International Journal of Emerging Technologies in Learning, 16(6).
