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 1

&2

Number of words written: 499

Lecturer’s Name: Dr. Mohamed Adil

Due Date: 29.02.2024

Submitted Date: 29.02.2024

 Reflection Writing – Phone Ventures Simulation Year 2024-2025

During the simulation, my role at Kiwi LLC was CFO and my reflections are based on
decisions made on market targeting, stock management and research & development (R&D)
spending.

In 2024, our board decided to sell high quality smartphones and to enter Japan as it had
the biggest targeted segment of 1.5 million potential customers with a risk-taking culture. We
agreed upon selling 5-star quality phones at $575 as we were a new entrant and our phone
reliability was 85%. Based on experience from trial we chose the biggest warehouse and picked
the IDC who delivered directly to avoid zero inventory. For R&D we decided to set a 125%
budget and also invest in a research machine in order to gain competitive advantage.

By the end of 2024 our high quality and reasonable prices allowed us to catch 49.39% of
the target segment. However, we made $3 million as profit after tax (PAT) which barely
managed to reached the target. Our logistic choice allowed us to have no lost sales. The largest
warehouse was unnecessary as our average demand was 19,291 per week. R&D spending
yielded little progress as 1 year is required for the setup to be completed.

I believe that it is vital to increase our profit margins and that I should do a better cost
analysis to get a higher ranking. I pondered on whether we should change logistics company to
reduce cost and to reduce the ware house size in the following year. I was satisfied with the R&D
decisions.

Contrary to 2024, in for 2025 we discussed and decided to enter France to monopolize
the quality segment and take first mover advantage that had with 2 nd biggest quality segment.
France had barely any local competition and we predicted most of our competitors would move
to UK. We raised our price since Europe economies were improving. Calculation of restock level
did not allow switching to a reliable logistics company due to warehouse capacity and we
continued with direct delivery. I predicted our average demand wouldn’t more than double so we
reduced the warehouse size to 50,000. We invested 125% budget on R&D again so that we can
achieve 95% reliability and 6-star quality by 2027.

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 As predicted we had no competitors in France and got 95% market share in 2 segments.
Our PAT increased to $199 million. We had an average demand of 52,278, as a result we lost
more than 399,000 potential sales due to warehouse capacity. We achieved a higher rank thanks
to achieving almost all of our targets and increased profit. Our product reliability also reached
90%.

I believe my inability to predict the increase in demand cost us a big opportunity. After
the close call from 2024, I became too prudent. I should have been more confident about our
strategy and our decisions. I plan to do more in depth analysis and lead my team to take
decisions that will gain us competitive advantage same as France.

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