Developing Winning Competitive Strategies
You and your co-managers
can access all aspects of GLO-BUS
at any time from any PC
connected to the Internet, provided the PC has a Web browser (such as Internet Explorer orFirefox or Safari) and Flash 9.0 (or later)—in the event your PC does not have the needed version of Flashalready installed, you will be automatically directed to the Flash site where the latest version can bedownloaded and installed free of charge in a few minutes. When you go to your “Corporate Lobby” pageat
and click on the Decisions and Reports link,
automatically links youdirectly to all of the screens for entering decisions and viewing reports. When you are ready to exit asession and want to save any work you have done on the decision entry screens, simply click the Save iconand all your decision entries will be saved in your company’s files on the
The last set of decision entries saved to the GLO-BUS server when the deadline for a decision round arrives will beused to generate the results for all companies and the industry as a whole.
The Corporate Lobby screen where you accessed this Participant’s Guide functions as your “gateway” forall
activities—it has links to the decisions and reports menu, recommended decision procedures,the decision schedule, the two accompanying quizzes, the peer evaluations, and so on. Plus the CorporateLobby screen reports the latest interest rates and exchange rate impacts. Take a couple of minutes tofamiliarize yourself with the features and information on your Corporate Lobby screen, all of which willcome into play during the exercise. The recommended decision procedures link is especially worth a fewminutes of your attention.
Your Company’s Operations
Your company began operations five years ago and maintains its headquarters in Taiwan. It assembles allof its cameras at a modern facility in Taiwan and ships them directly to camera retailers (multi-store chainsthat sell electronics products, local camera shops, and online electronics firms) located in Europe-Africa,Asia-Pacific, Latin America, and North America. The company maintains regional sales offices in Milan,Italy; Singapore; Sao Paulo, Brazil; and Toronto, Canada to handle the company’s sales and promotionefforts in each geographic region and help support the merchandising efforts of area retailers who stock thecompany’s brand. Retailers endeavor to maintain ample inventories of camera models in their own storesand warehouses to satisfy shopper demand.
Seasonal Production and Seasonal Demand.
Camera demand is seasonal, with about 20 percent of consumer demand coming in each of the first three quarters of each calendar year and 40 percent comingduring the fourth-quarter holiday season. Retailers place orders for digital cameras roughly 90 days inadvance of expected sales, so as to have ample numbers on hand to satisfy camera buyer demand in theupcoming quarter. Thus, during Quarter 1 they place orders for the cameras they expect to sell in Quarter2; during Quarter 2 they place orders for the cameras they expect to sell in Quarter 3, during Quarter 3 theyplace orders for the cameras they expect to sell in the peak holiday season fourth quarter; and in Quarter 4the order the number of cameras they expect to sell in Quarter 1 of the following year.The company assembles cameras within 30 days of the receipt of a retailer's order and ships them the daythey are assembled; cameras assembled and shipped in one quarter are available for sales by cameraretailers the following quarter. No camera models are assembled in advance, warehoused in companyfacilities, and then used to fill incoming retailer orders. Because retailer orders are highest in the thirdquarter of each year in preparation for fourth quarter peak sales, the company peak assembly period comesin Quarter 3. The seasonal pattern of camera assembly and retail sales is shown below:
Quarter 1 Quarter 2 Quarter 3 Quarter 4Percentage of annual number of cameras assembled by camera makers,based on incoming retailer orders
~20% ~20% ~40% ~20%
Percentage of annual retail unit sales of cameras at retail
~20% ~20% ~20% ~40%