FACULTY:

FACULTY OF BUSINESS AND

SOCIETY

Assessment Cover Sheet and Feedback Form 2022/23

Module Code: Module Title: Module Lecturer:

BS4S37 Global Strategy and Decision- Adeyemi Aromolaran
Making
Assessment Title and Tasks: Assessment No.
Individual Business Simulation Report 2 of 2

No. of pages submitted in total including this Word Count of submission

page: (if applicable): Completed by
Completed by student student
Date Set: Submission Date: Return Date:
September 2023 04/12/2023 20 working days

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Use of previous feedback:

In this assessment, I have taken/took note of the following points in feedback on

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Critical Evaluation

Please indicate which of the following you feel/felt applies/applied to your

submitted work
 A reasonable attempt. I could have developed some of the
sections further.
 A good attempt, displaying my understanding and learning, with
analysis in some parts.

 A very good attempt. The work demonstrates my clear
understanding of the learning supported by relevant literature and scholarly work
with good analysis and evaluation.
  An excellent attempt, with clear application of literature and
scholarly work, demonstrating significant analysis and evaluation.

What I found most

difficult about this Company Performance Analysis
assessment:

The areas where I would

value/would have valued Decision Making Section Evaluation
feedback:
Contents
Introduction............................................................................................................................1
Overview of the Business Environment:...........................................................................1
Competitive Strategy:........................................................................................................2
Critical Evaluation of the Company’s Performance............................................................3
Financial Performance:.....................................................................................................3
Market and Competitive Position:.....................................................................................5
CSR Strategy and Sustainability:......................................................................................6
Recommendation based on strategic changes:................................................................7
Critical Evaluation of and Reflection on Decision-Making.................................................7
Market Entry Decision:......................................................................................................8
Investment in Functions:...................................................................................................8
Competitive Strategy:........................................................................................................8
Market Structure:..............................................................................................................8
CSR Responsibility:..........................................................................................................9
Critical Evaluation of Teamwork in the Business Simulation............................................9
Conclusion............................................................................................................................10
References............................................................................................................................11
Introduction
Overview of the Business Environment:
Innovative electric and solar-powered bicycles are the focus of Cyclaspin's vision for
the future of sustainable transportation. Keeping its impact on the environment to a
minimum, putting the needs of its customers first, and working with local
communities to raise awareness about environmental issues are all priorities for the
firm. Cyclaspin is an innovative and sustainable transportation solution that
combines state-of-the-art technology with a strong emphasis on environmental and
social accountability.

With a goal of having more than 3 billion active users, the firm aspires to become the
biggest maker of solar-powered bicycles globally. Specifically, Cyclaspin aims to
promote emission-free travel, achieve a 10% market share in each targeted country,
establish an established presence in 50 key towns within the next three years, along
with significant annually increase in gross revenue.

According to Porter's Generic Strategies, Cyclaspin's approach is a "Stuck in the

Middle" strategy. This enables the business to satisfy the demands of the mass
market as well as those of its most discerning premium clients. In order to stand out
in the oligopolistic bicycle industry and win over devoted customers, Cyclaspin is
concentrating on new product development and uniqueness while taking use of
advantages of scale.

Using variables such as political stability, economic climate, social issues,

technology developments, sustainability concerns, and legal compliance, the
PESTEL study examines Cyclaspin's company setting in four important markets:
India, Brazil, China, and South Africa. Through its Corporate Social Responsibility
(CSR) policy, Cyclaspin supports sustainable development, social inclusion, and
scholarship programmes. Responsible and sustainable practises are integral to the
company's operations, and it is also heavily involved in fostering education and
lending a hand to local communities. The assets, liabilities, turnover, expenses, and
earnings of a business may be seen in its balance sheet and income statement,
which together reveal the company's fiscal well-being and profitability. Providing a
thorough overview of Cyclaspin's present position and strategic trajectory, the study
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will go deeper into certain elements such the change in competitive strategy, supplier
choices, distribution strategies, HR management, and R&D allocations.

Cyclaspin started the Global plan simulation by implementing a plan that was in line
with Porter's Generic Strategies, more especially the "Stuck in the Middle" approach.
In order to satisfy both the requirements of the mass market and those of its most
discerning premium clients, the firm adopted this approach, which sought to find a
happy medium between cost leadership and product distinction.

Competitive Strategy:
From an initial focus on cost leadership, the firm shifted its competitive strategy
towards a "Stuck in the Middle" approach as the simulation went on. The change
was motivated by an effort to sharpen the company's emphasis on high-end clients
and cater to their demands for personalised bicycle models in relation to their social
standing (Tallon, 2008). Cyclaspin was able to concentrate on making
technologically superior bicycles for a niche market after making this strategic
decision.

The planned benefit of this hybrid approach was that it could provide novel and
inventive goods while keeping operations efficient. Cyclaspin succeeded in the
environmentally conscious transportation industry by skillfully combining state-of-the-
art technology with a dedication to doing the right thing by the planet (Krause, 2015).
Targeting high-end consumers allowed the business to tap into a subset of
consumers who place a premium on eco-friendly products. Cyclaspin was also able
to successfully traverse the oligopoly market structure because to the strategy's
emphasis on striking a balance between product uniqueness and affordability.

Customers who place a premium on innovative technology and environmentally

conscious transportation practises were the ones Cyclaspin aimed their marketing
efforts at. This target audience was hand-picked because of the strong profit margins
and dedicated customer base it could inspire (Borowski, 2021). With a focus on
personalization for high-end clients, the firm aims to transform sustainable mobility
and provide a lifestyle option that reflects a commitment to a cleaner environment.
Cyclaspin was able to successfully traverse the intricate competitive market because

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to its "Stuck in the Middle" approach, which allowed it to provide a distinctive value
proposition that struck a chord with its intended consumers.

Critical Evaluation of the Company’s Performance

Financial Performance:
Various positive signs and areas of worry characterise Cyclaspin 's financial
performance.

Figure 1: Income Statement (Edumundo, 2023)

To start, there is some good news: revenue has grown, going from £463,378 to
£497,218, which is a significant improvement. An important metric for stock
valuation, this increase in net turnover shows that the firm is doing well in terms of
revenue generation. Reasons for this expansion include growing demand for
Cyclaspin's goods, a stronger presence in the market, and effective marketing
campaigns (Sintani et al., 2023).

But it's important to look closely at the drop in gross margin from £201,989 to
£175,876. A shrinking gross margin might be an indication of problems controlling
manufacturing costs or possible price pressures. Finding out why this drop is
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happening is of the utmost importance. Rising manufacturing costs, shifting supplier
prices, or competitive pricing tactics prompted by changes in the market might all
have a role. Strategic decision-making and continued profitability depend on a
thorough understanding of these elements (Aghazadeh, 2015).

Worries over the company's general financial stability have been heightened by the
decline in operating profits, which fell from £55,251 to £41,985. When operational
profits go down, it means that major business operations aren't making as much
money for the corporation.

Figure 2: Stock Exchange (Edumundo, 2023)

A number of variables have contributed to the complicated conclusion of Cyclaspin's

stock value falling on the Stock Exchange. Not only does financial performance
matter, but so do market sentiment and larger industry developments. Both internal
and external variables, including as the state of the economy, changes in the sector,
and global politics, may influence how investors respond to a company's financials.
Investor sentiment and, by extension, stock value, has been favourably impacted by
effectively communicating a plan to tackle obstacles and seize opportunities.

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Market and Competitive Position:
As a company with big plans in the electric and solar-powered bicycle sector,
Cyclaspin aspires to capture 10% of the Chinese, Indian, South African, and
Brazilian markets. Thorough market research, including analysis of sales data,
customer preferences, and rivals' performance, is necessary for the firm to evaluate
the existing market share. It is critical for strategic planning to have a good grasp of
the market dynamics as well as Cyclaspin and its rivals' share. Cyclaspin's "Stuck in
the Middle" approach requires them to strike a fine balance between being the
market leader in terms of cost and differentiating their products. In a field where
many rivals concentrate on price or product difference, the firm hopes to distinguish
itself by catering to high-end consumers with personalised offerings (Dedi and
Soegoto, 2018).

Figure 3: BCG Matrix Analysis (Edumundo, 2023)

The plan is to cater to the tastes and status-conscious purchasing habits of the
premium market by providing individualised bicycle models. The goods of Cyclaspin

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are seen as more valuable because of this personalization. Customer satisfaction,
premium segment sales success, and the capacity to stay ahead of the competition
are all indicators of how well this approach is working (Terho et al., 2015). Increasing
market share in the premium class, customer satisfaction ratings, and profit margins
would all be considered key performance indicators. Keeping an eye on high-end
consumers enables Cyclaspin to serve a group that is prepared to shell out more
money for distinctive qualities, prestigious branding, and special features. Both the
bottom line and customer devotion to the brand may benefit from this.

CSR Strategy and Sustainability:

Inclusion in the community is not limited to the classroom; it also includes supporting
local groups and events via sponsorships and partnerships. In order to develop a
favourable reputation for the business and have a positive social effect in the areas
where it operates, Cyclaspin engages with cycling groups, promotes sustainable
transportation, and hosts educational seminars. Greater brand recognition,
community involvement, and the fruition of local projects funded by Cyclaspin are all
ways to gauge the efficacy of these community-focused endeavours.

Environmental sustainability is an integral part of Cyclaspin 's product lifetime. The

company's goal is to reduce its impact on the environment as much as possible via
the use of sustainable materials and long-lasting product design, as well as efficient
production techniques that minimise waste and maximise energy efficiency
(Mukherjee et al., 2015). In addition to demonstrating the company's commitment,
openness in reporting on environmental indicators like emissions of carbon dioxide,
materials sourcing, and reduced waste can strengthen confidence and responsibility
among stakeholders.

An ongoing system of assessment and feedback is crucial to the success of

Cyclaspin 's CSR projects. The corporation may stay loyal to its vision and principles
by consistently evaluating the effect of scholarship programmes on recipients' lives,
keeping an eye on community participation indicators, and being upfront about its
environmental performance (Segura et al., 2019). Not only does this promise meet
the rising expectations of ethically concerned customers, but it also establishes
Cyclaspin as a good corporate citizen that has a beneficial impact on the world.

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Recommendation based on strategic changes:
From a financial perspective, Cyclaspin's net turnover increased throughout the
simulation rounds, suggesting a favourable trend in revenue. Nevertheless,
difficulties in controlling expenses or pricing tactics are indicated by a fall in
operational profits and gross margin in the last quarter. Investors' sensitivity to the
business's financial results and strategic choices was underscored by the fluctuation
in the stock value on the Stock Exchange (Ciechan-Kujawa et al., 2018).

In order to stay competitive, the company's major emphasis throughout the

simulation was on premium consumers and personalization. Given the oligopolistic
nature of the industry, it is essential to evaluate how well this approach worked to
differentiate the product from the competition and keep market share (Rosenberg
and O’Halloran, 2014). In light of these tendencies, a thorough comprehension of
market dynamics should underpin any choice to alter the competitive approach.
Altering tactics will include reevaluating how to satisfy both high-end clients and the
needs of the general public. Alignment among stakeholders, open communication
inside the organisation, and possible adjustments to operational procedures and
resource allocation would be necessary for this shift.

Overall, Cyclaspin's performance patterns indicate that the company is doing well in
terms of revenue growth and innovation commitment, but that it is struggling with
cost management and staying competitive. Successfully navigating changes,
aligning with market expectations, and guaranteeing sustainable development in the
dynamic sector would call for a strategic and transparent strategy, as would be
necessary to adapt the competitive plan. Investor confidence is strongly correlated
with the stock value of the firm on the Stock Exchange, which highlights the need for
tactical agility and outstanding management.

Critical Evaluation of and Reflection on Decision-Making

A mix of theoretical models, market research, and strategic factors informed the
choices used in the company simulation rounds. Important considerations include
how to break into new markets, how much to spend on departments like marketing
and research and development, and how to approach competition as a whole.

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Market Entry Decision:
A detailed PESTEL study was used to choose which nations to enter the market in,
for example, Country A instead of Country B. Each target country's political climate,
economy, social climate, technology landscape, environmental restrictions, and laws
were taken into account before making the selection. One possible motivation for
venturing into China is the country's large population and high GDP, which together
provide a sizable market. Achieving sales growth and market share objectives in
each country is a clear indication of the impact of these initiatives (Guercini and
Milanesi, 2022).

Investment in Functions:
Brand recognition, consumer involvement, and new product development were all
influenced by decisions about marketing and research and development spending.
Consistent with the innovation plan is the pledge to release a new model of bicycle
that is technologically superior every eighteen months. Sales growth, customer
happiness, and staying ahead of rivals are ways to measure the beneficial effect of
these initiatives (Mousa et al., 2021). Conversely, if these areas are underfunded,
growth may stall, consumer interest will fall, and market share will fall.

Competitive Strategy:
To find a happy medium between being the lowest-price leader and having a
distinctive offering, the "Stuck in the Middle" approach was chosen in accordance
with Porter's generic strategies (Ali and Anwar, 2021). A narrow target market is
indicated by the concentration on premium clients and customised models.
Profitability, market share, and happy customers are three ways to measure this
strategy's success. Problems in remaining competitive may arise if the plan failed,
particularly if rivals provided same amenities for less money.

Market Structure:
When deciding on prices, knowledge of the oligopolistic structure of the market was
essential. Competitive moves and responses have to be included into the business's
pricing strategy. Alterations to market share, gross margins, and total financial
performance may manifest as a result of incorrectly assessing competition forces.

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CSR Responsibility:
The fact that Cyclaspin is involved in community outreach programmes in some
nations shows that it wants to do more than just make money. In addition to
improving community health, the company's social licence to operate is enhanced
when it backs local programmes that increase access to renewable energy,
encourage cycling, and teach people about the need of protecting the environment.
Environmental sustainability is also in line with modern consumer expectations and
international initiatives to fight climate change (Carrera, 2022). Clean energy, eco-
friendly materials, and cutting down on carbon emissions are just a few ways
Cyclaspin is doing its part to keep the planet habitable. The success of these CSR
and environmental projects may boost Cyclaspin credibility and goodwill among
consumers (Carrera, 2022). Customers are placing a higher emphasis on socially
responsible practises; Cyclaspin will gain their confidence and loyalty by aligning
with these principles. The opposite is true: in a market where customers place a
premium on sustainability and corporate ethics, the brand's long-term survival might
be jeopardised if it fails to deliver on these promises.

Critical Evaluation of Teamwork in the Business Simulation

The Gibbs Reflective Cycle has been used to evaluate the teamwork in the business
simulation section.

Description: The group studied Cyclaspin Global Strategy simulation in depth for this
case study. The corporate social responsibility (CSR) strategy, financial
performance, market structure, goals, objectives, competitive strategy, and SWOT
analysis are all included in the report. My responsibilities on the team included
offering input into the formulation of Cyclaspin strategy, particularly with regard to
matters of market entrance, competitive positioning, and corporate social
responsibility (CSR) programmes.

Feelings: At first, I was thrilled about the chance to help shape the future of
Cyclaspin a sustainable and forward-thinking firm. Problems arose as the study
developed, most notably in trying to reconcile the lofty goals with the realities of the
market. Meeting the needs of a competitive market while staying true to the
company's purpose and principles was an important obligation. Through this

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experience, I gained a deeper appreciation for the practical application of academic
frameworks to actual business problems. My own beliefs were reflected in the
strategic choices' focus on CSR and sustainability, which gave them more meaning.
In sum, I feel that I've honed my analytical and strategic thinking chops in a fast-
paced, cutthroat corporate setting.

Evaluation: The group's ability to work together was its strongest point. The analysis
as a whole benefited from the members' unique viewpoints, knowledge, and
experience. A thorough review necessitated the use of CSR concepts, SWOT and
PESTEL analyses, as well as Porter's Generic Strategies. Controlling the intricacy of
choices, particularly under an oligopolistic market structure, proved to be a difficulty.

Analysis: The study and integration of several business models and frameworks are
the key components of the successful report. To successfully traverse the
competitive environment, we opted for the "Stuck in the Middle" approach, which
was supported by a thorough SWOT analysis. A proactive strategy that follows
current market trends includes CSR activities and environmental responsibilities.

Conclusion: There should have been more of a focus on scenario preparation and
risk analysis in retrospect. The study covers all the bases, however the strategic
suggestions might have benefited from a more in-depth analysis of possible
obstacles and backup plans. The study may have been more thorough if there had
been clearer links between the selected tactics and particular financial results.

Action Plan: I believe that scenario analysis and risk assessments might be more
comprehensive for future projects so that better strategic decisions could be made.
To have a better grasp of how decisions affect finances, it would be helpful to
establish stronger connections between strategic decisions and financial
performance metrics.

Conclusion
In the simulation, Cyclaspin was able to accomplish some of its goals and surpass
others that it had set for itself using the SMART framework. Impressive
accomplishments include launching a community outreach programme, reaching 50
major cities in target nations within three years, and increasing sales income by

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200% per year for the first three years. But it would be crucial to have plans for
ongoing evaluation and improvement. Improving future simulation results might be
as simple as doing more detailed risk analyses, integrating financial outcomes with
strategic decisions more closely, and taking a proactive approach to scenario
planning in order to properly handle the complexity of today's ever-changing
business climate.

References
Aghazadeh, H. (2015) ‘Strategic Marketing Management: Achieving Superior
Business Performance through Intelligent Marketing Strategy’. Procedia - Social and
Behavioral Sciences 207(207), pp. 125–134. Available at:
https://www.sciencedirect.com/science/article/pii/S1877042815052945.

Ali, B.J. and Anwar, G. (2021) Porter’s Generic Competitive Strategies and its
influence on the Competitive Advantage. Available at:
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3863595.

Borowski, P.F. (2021) ‘Innovation strategy on the example of companies using

bamboo’. Journal of Innovation and Entrepreneurship 10(1). Available at:
https://innovation-entrepreneurship.springeropen.com/articles/10.1186/s13731-020-
00144-2.

Carrera, L. (2022) ‘Corporate social responsibility. A strategy for social and territorial
sustainability’. International Journal of Corporate Social Responsibility 7(1)

Ciechan-Kujawa, M., Buszko, M. and Taranowska, K. (2018) ‘Sensitivity Analysis in

Business Risk Assessment in Practice of Polish Companies’. Ekonomiczne
Problemy Usług 133, pp. 39–50. doi: https://doi.org/10.18276/epu.2018.133/2-04.

Dedi, S. and Soegoto (2018) Analysis of Product Differentiation Strategy and its
Implications toward Position Advantage on Customer Retailer’s Purchase Decision.
Available at: https://www.atlantis-press.com/article/25906825.pdf.

Edumundo (2023) Edumundo: Sign up Businessgame. Available at:

https://game.edumundo.co.uk/.

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Guercini, S. and Milanesi, M. (2022) ‘Foreign market entry decision-making and
heuristics: a mapping of the literature and future avenues’. Management Research
Review 45(9). doi: https://doi.org/10.1108/mrr-11-2021-0806.

Krause, J. (2015) ‘The Potential of an Environmentally Friendly Business Strategy —

Research from the Czech Republic’. International Journal of Engineering Business
Management 7(1), p. 6. doi: https://doi.org/10.5772/60064.

Mousa, M., Nosratabadi, S., Sagi, J. and Mosavi, A. (2021) ‘The Effect of Marketing
Investment on Firm Value and Systematic Risk’. Journal of Open Innovation:
Technology, Market, and Complexity 7(1), p. 64. Available at:
https://www.mdpi.com/2199-8531/7/1/64.

Mukherjee, A., Nunez, R. and Onel, N. (2015) ‘Business Strategies for

Environmental Sustainability’. doi: https://doi.org/10.1002/9781118744406.ch8.

Rosenberg, S. and O’Halloran, P. (2014) ‘Firm Behavior In Oligopolistic Markets:

Evidence From A Business Simulation Game’. Journal of Business Case Studies
(JBCS) 10(3), pp. 239–254. doi: https://doi.org/10.19030/jbcs.v10i3.8714.

Segura, A., García, C. and Ureña, B. (2019) ‘The Sustainable Approach to Corporate
Social Responsibility: A Global Analysis and Future Trends’. Sustainability 11(19), p.
5382. doi: https://doi.org/10.3390/su11195382.

Sintani, L., Ridwan, R., Kadeni, K., Savitri, S. and Ahsan, M. (2023) ‘Understanding
marketing strategy and value creation in the era of business competition’.
International journal of business, economics & management 6(1), pp. 69–77. doi:
https://doi.org/10.21744/ijbem.v6n1.2087.

Tallon, P.P. (2008) ‘Stuck in the Middle: Overcoming Strategic Complexity through IT
Flexibility’. Global Journal of Flexible Systems Management 9(4), pp. 1–9. doi:
https://doi.org/10.1007/bf03396546.

Terho, H., Eggert, A., Haas, A. and Ulaga, W. (2015) ‘How sales strategy translates
into performance: The role of salesperson customer orientation and value-based
selling’. Industrial Marketing Management 45, pp. 12–21. Available at:
https://www.sciencedirect.com/science/article/abs/pii/S0019850115000528.
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