Group E:

 Ivette Peralta
 Marco Cajamarca

1. Which one do you believe will be the strategy of your Company during the
simulation? Why?

We will use a differentiation strategy. We believe it is the best option for the type of
market we are going to focus on. However, the Price won’t be much higher than
competitors in the first years. We will need to understand and analyze the market.

In addition, there will be changes in the strategy if necessary. The first years will be
testing and observing the variables that are most relevant when making decisions.

2. What changes do you think you have to make in the simulation to be able to
execute that strategy? Explain changes in at least 4 of the decision screens.

Compensation and training: How we are going to focus on the US and Asian markets.
And Asia is going to be the main producer where the incentive tab will be changed to
improve production.

Branded Production: By having the differentiation strategy, more models of shoes will
be made and of course, the quality will make it superior to the competition.

Celebrity endorsements: It is an important screen for the type of product that is going to
be offered on the market since advertising from very well-known people will be needed.

Finance & Cash Flow: When producing good quality shoes, more financial resources
and the purchase of machinery will be needed, which will require financing. And thus
produce several models for the market with the greatest demand.