Reflection – Systems Structures and Operations (SSO)

Name: Suma Abdul Rahman

Student Id: S2302111

Date: 14th April 2024

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Seventh Year of Simulation

On the seventh year of phone venture simulation conducted via Edumundo, my team members and I focused on earning more
points by achieving targets. We analyzed and deliberated on the current targets as a team and made the decision to change our Key
Performance Indicators (KPI) to a more achievable target. Hence, this year our KPIs were lowest price, percentage of having to
decline a sale, average age of inventory, employee motivation and sustainability.

In order to achieve the aforementioned KPIs, we increased educational level of staffs to 70 as we believed education of employees
and their motivation has a positive correlation. Simultaneously, percentage of having to decline in sales was reduced to 0 as so far,
our demand has been high and we don’t have any inventory issues, thus we believe we could achieve this goal. Further, we changed
energy levels to A+ and we reduced price in the three markets we were operating currently in, Netherlands, Australia and Surinam.
Also, we set the average age of inventory to 30 as we believe this is achievable.

Additionally, we believed that in order to increase in the ranking we have to expand our markets, therefore, we entered the Brazilian
and Indonesian market. As our main strategy is cost leadership, we kept the prices low and spend reasonably on local promotion
budget.

The results of this year of simulation were similar to other years as we were still at the bottom ranking with a net loss. However, this
year we achieved three KPIs and this was an improvement in comparison to previous years. The main reasons for no improvement in
the scores was due to the 90% penalty of scores in the case of negative Owner’s equity. As a team, we decided to tackle this
challenge in the next year.

Eighth Year of Simulation

In the eighth year of simulation, we mainly focused on decreasing cost and achieving targets. Therefore, we exited from the new two
markets we entered last year, Brazil and Indonesian. This decision was taken as we believed since we have low budget its better to
use all our remaining budget / capital on the markets that we are thriving on in the last year of simulation. Simultaneously, we
increased the local promotion budget in all the three markets, Netherlands, Australia and Surinam. This decision was taken to
increase turnover as a result extensive marketing and to earn a net profit. Furthermore, to achieve the employee motivation target
this year, we further increased our spending on employee education.

The result of the last year of simulation also remained the same as the previous year. We achieved the same three KPIs and we are
still operating under a net loss.

Conclusion

This simulation has taught me the complexity of running a business and importance of knowledge in all aspects of the business
operations to make effective strategic decisions. I faced numerous challenges throughout the simulation due to my limited
knowledge on financial aspects of running a business. Hence, this experience has motivated me to enhance my knowledge on
corporate finance.