Individual Reflections 4
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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 $8 for AGM and allocate much of my investment to process improvement for both AGM and SC.
While playing this game, I realized my main goal was to keep my sales charts trending upwards as there were years where I felt I would fail the company. After the simulation, I realized I could’ve started off with lower AGM prices (instead of starting off by keeping it the same) and invested more into the SC process improvement. However, I had wanted to test the waters and didn’t make huge jumps in my numbers. My overall strategy had worked as I was successful in reaching completion but I felt that if the simulation was longer, such as 20 years, my sales would plateau. However, I felt I had a good strategy and followed the News closely to determine the best course of action.
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More Info
Total Cost or Revenue [$] Milions
$6-
$5-
$4-
$3-
FA
$0-
O.
0
10
- Product A Total Cost
- Product B Total Cost
Product A Revenue
Product B Revenue
G1
A
20
30
G
T
40
Time (t) [months]
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Done
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N
...
70
80
Ⓡ
o
X
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