Faculty of Business Management

UMMDFF

Systems, Structures and Operations

Full Name: Mohamed Ridhfaan Jaufar

Student ID Number: S2301636
Phone Number: +960 7994411
Email address: S2301636@students.villacollege.edu.mv
Campus: QI Campus

Assessment Name: Reflection Writing on Phone Venture Simulation for Round 7

& 8.`\`

Number of words written: 505

Lecturer’s Name: Dr. Mohamed Adhil

Due Date: 28.03.2024

Submitted Date: 28.03.2024

 Reflection Writing – Phone Ventures Simulation Year 2028-2029

In 2028 even though the European crisis had ended, due to European leaders response to
USA’s protectionist measures, future operations in European markets seemed bleak. However,
we decided to enter United Kingdom (UK) and Indonesia. These two markets offered a customer
base of 2.25 million. Our group decided to increase marketing spending in UK and France to
compensate for the negative effects of the trade barriers and as to capitalize on releasing a new
model of phone we decided to increase marketing spending overall in all markets and sell at
$733. We also decided to invest further in R&D to unlock 7-star quality.

The decisions to enter and spend extra on marketing European markets was a success. As
we managed to make $264 million in retained profit. The effects of protectionist measure
minimal in quality sector of France. The raised price was above the ceiling price accepted by
Customer Intimacy (CI) segment, as a result we lost 2 million units in sales. Although the raised
price generated more turnover, the loss of sales in CI market and the elastic demand caused our
turnover to decrease by 9.78% and profit after tax by 7.76%. R&D investments unlocked 7-star
quality which was available for use.

I believe that our inability to appreciate the sales in CI segment, although it wasn’t our
main focus, caused us to lose sales. Going forward I believe we should be more aware of all our
customers not just our focus market.

In 2029, in order not to become stagnant we decided to enter 3 more markets,

Netherlands, India and Brazil. These 3 markets together provided a customer base of 1.05
million. After a lot of discussion, the group decided to price differently based on local
competition level and uncertainty avoidance of countries Prices were either increased to $740 or
remained same at $733. However, I insisted with the group to let me experiment with 1 country
and reduce price to $700. My goal was to see whether we can gain back our sales in CI segment
and whether it would result in increased sales. For this purpose, we chose France. As the cost per
unit at 7-stars were too high we decided to remove our agreement on sustainability with our
manufacturers, which brought our cost per unit down to $465 and invested heavily on R&D to
reduce cost. And to compensate for sustainability we raised our warehouse energy labels to A+.

2|Page
 Our expansion to the 3 countries resulted a net loss as 2 out of 3 (India and Brazil) were
in losses. The lowered price in France increased sales units in CI segment by 528,515 and profits
by $37 million. The investment in cost reduction brought our cost per unit down to $409. And
our sustainability score increased to 85.

During this round I learned that sometimes we need to trust ourselves. And I also learned
the importance of proof of concept. I believe that with the experiment conducted in France will
allow my team members to make different decisions going forward.

3|Page