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PRESENTATION

PRESENTATION. VISUAL-STRAT BUSINESS GAME. CAPTURING THE GLOBAL MARKET A unique product manufactured in Europe. The Motorcycle!!. Three Markets. the European market, where your company is already a leader the North American market, where a dealer network has just been set up

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PRESENTATION

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  1. PRESENTATION VISUAL-STRAT BUSINESS GAME

  2. CAPTURING THE GLOBAL MARKET • A unique product manufactured in Europe . . . The Motorcycle!!

  3. Three Markets • the European market, where your company is already a leader • the North American market, where a dealer network has just been set up • the rest of the world, which will be accessible after three periods of prospecting

  4. Winning Market Shares • by being the most aggressive in terms of prices and advertising • by exploring new markets in the Rest of the World • by developing one’s brand image due to sponsoring

  5. Finding New Customers One decision = One year • Prices (short-term): action at N • Advertising budget(mid-term): action at N, N+1,N+2 • Sponsoring (long-term): action at N+4 . . . N+10

  6. Finding New Customers • by entering in the global zone after a minimum of three years of exploring new market or prospecting (at least 6% of the sales budget allocated ) • In period 4, the prospecting budget must be more than the competitors’ average. • The prospecting effort must be continued even after achieving the opening of this market.

  7. Finding New Customers • by making bids if your company is already known • This is an order to satisfy the next period if your offer has been selected. • It is valid only for one period. • Conditions to partaking: be able to prospect in the global market and have allocated a budget equal to at least 5% of the sales. The Police

  8. Finding New Customers • Sign agreements with local partners. • = COMMERCIAL INVESTMENT • using the local know-how • creating local jobs • decreasing the customs fees Only the most efficient and the fastest companies can do it; the purchasing cost is not proportional to the obtained result.

  9. Life Cycle of a Product Maturity Phase 2 Phase 3 Phase 1 Declining Launching and growth Life cycle of a product

  10. Adapting Your Offer to the Demand • All the plants are located in the European Union. • Invest in new plants to satisfy the demand. • Do not produce useless stocks, and close plants if necessary.

  11. Adapting Your Offer to the Demand additional information about market trend, competitors’ strategies, cost prices of the products, etc. Get information about environment trend due to:

  12. Adapting Your Offer to the Demand From period 4, do not hesitate to resort to subcontractors. Subcontracting requires an agreement between two partners about volumes and pricing. You have stocks: Be a SELLER. On the contrary; your production and stocks are not sufficient: Be a BUYER.

  13. Control Your Costs • by producing at full capacity • by improving the design with research and development • by maintaining the production tool

  14. Adapting Your Production Capacity • by proposing flexible working contracts (overtime hours, limited period contracts) • by developing investment or closing existing production lines • by subcontracting to other companies (from period 4)

  15. Managing Financial Resources • loan • overdraft • capital increase • Placements

  16. Preparing your decisions • Update the data of the scenario (in orange on the sheet). www.visual-srat.com or Acces decsions. Download the Excel file. These values must be checked on the main page of www.visual-strat.com.

  17. Preparing Your Decisions 2) Update the Excel sheet with your results (in green). Motorcycle stock inventory Results : production Or directly Production capacity = production tool + Investment of the period. Accumulated productivity = number of motor lost or won.

  18. Preparing Your Decisions 2) Update the Excel sheet with your results (in green). Results : Balance sheet 2328+582=2910 OR directly Loan more than one-year term and less than one year. Valid only before making decision.

  19. Preparing Your Decisions 3) Update the Excel sheet with your decisions (in red). 15170 The financial costs must be the same.

  20. Preparing Your Decisions • Determine your cost price and selling price.

  21. And now . . . Let the competition begin!

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