Intopia Report

8081 Words Feb 26th, 2014 33 Pages
Intopia Report

Table of Contents Strategy. 1
Execution or Implementation. 1
Conclusion. 2
Simulation Learning Lessons. 2
General Management Learning Lessons. 2
Peer Review of Your Team Members. 3

Strategy

Throughout the game, our strategy was to be an integrated producer of the highest quality and sell to the open market; the consumers. By doing so, our company was following a strategy of vertically related diversification. The reason this strategy was chosen was to maximize the value creation of the final product by eventually controlling the entire value chain. Moreover, by following a vertical integration strategy, our company would be able to avoid
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After further analysis of sales, the decision was rendered not to perform any business in the European market as the consumers’ sensitivity to the origin of their products was an important purchasing factor, preferring local products to imports. In terms of corporate decisions, we first decided to build three X factories in Asia and North America. Once these factories were “on stream”, we started producing X and took on the initiative of vertically integrating downstream in the value chain by building a Y factory in each of the aforementioned regions. Following suit, once our sales volumes reached the optimal amount to open a sales office in each region, we integrated further downstream to reduce costs and increase the value of our products. Throughout the game, we had to make slight adjustments to our production schedules. We produced the maximum amount of product X in each region in period 2, reducing our cash accounts to cover the costs of production. In period 3, we decided to utilize all of our X products to produce Y in the two regions in which we were operating. Since product Y incurs much larger variable costs, virtually all of our liquid capital was tied up in inventory, waiting to be sold in the market to consumers. This was a moment of panic and required decisive action on the part of the team to come up with a solution as we would

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