Individual Reflections 4

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New York University *

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MISC

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Economics

Date

Feb 20, 2024

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docx

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1

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Summarize your own strategy and experience playing the game. What did you notice and has your strategy worked? My strategy was cost optimization for AGM and value differentiation for SC. I paid particular attention to the News section, as that helped with my decision on my investment. I noticed that for the first two years, overall sales grew for both automobiles and UPS. (This was a given.) Because of this, I decided to leave the AGM and SC unit price the same and spent the $8M investment between energy density, recharge cycles, self discharge, recharge time, and process improvement. It was very important I allocate it based on the News feed I received after every year so I can maximize my sales. However, I noticed that even if sales grew, shipbuilders would demand lower prices. I played with decreasing the unit prices for AGM just to see the results and noticed I had a few years of dips. I also noticed that once I got a dip, my investment funds decreased as well, forcing me to reallocate the money. This eventually forced me to lower the unit price to $8 for AGM and allocate much of my investment to process improvement for both AGM and SC. While playing this game, I realized my main goal was to keep my sales charts trending upwards as there were years where I felt I would fail the company. After the simulation, I realized I could’ve started off with lower AGM prices (instead of starting off by keeping it the same) and invested more into the SC process improvement. However, I had wanted to test the waters and didn’t make huge jumps in my numbers. My overall strategy had worked as I was successful in reaching completion but I felt that if the simulation was longer, such as 20 years, my sales would plateau. However, I felt I had a good strategy and followed the News closely to determine the best course of action.
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