2-2: VolksMaschine

Kevin: 32
Sumegh: 28
Atul: 04
Sanjay: 17
Gayatri: 25
Business Strategy
The company-wide business strategy we will be adopting is Product
Differentiation to cater different segment of the market

The contents could cover your stated strategy, the actual

performance, reasons for the outcomes, reasons for shift in strategy,
analysis of competition, what you could have done better or any other
aspect you consider significant. This report could be organized by
period, by product, by market or any other structure you choose.
Business Strategy
The company-wide business strategy we will be adopting is Product
Differentiation to cater different segment of the market

Company Business Objective:

• To remain profitable with YOY 10% growth
Key Summary
Alesa:

Bordo:

Carit:
 Graphs
Lean Management
Throughput Time : Single Shift
1,400,000
45
1,200,000 40
35
1,000,000
30
800,000
Axis Title

25

600,000 20
15
400,000
10
200,000 5

0 0
P0 P1 P2 P3 P4 P0 P1 P2 P3 P4

Axis Title
 Market Share (% Sales)

Graphs
40.00

35.00

30.00

25.00

20.00

15.00

10.00

5.00

0.00
Period 1 Period 2 Period 3 Period 4
Period-1 Decisions
• Decisions based on learnings from trial phase
Period-2 Decisions
• Decided for Bought in for Alesa: VC more than Bought in cost
• Sold machine : 10 nos. to reduce idle capacity
• Single shift
Period-3 decisions
• Urgent order of raw material for Alesa: Missed to place order for Bought in
• For P3, Bought in price of Alesa increased
• Bought in decided for Bordo as volumes were more and bought in price was less than VC
• Sold 25 machines: To reduce idle capacity
• Double shift to improve Throughput

Period-3 decisions impact

• Unfilled orders for Alesa
Period-4 Decisions
• High production of Alesa to meet unfilled orders
• Continue bought in of Bordo as Variable cost was more.
• Focus more on Carti
• Increase marketing investments in China & India for Bordo & Carti
• Price reduction of Bordo in China & India to increase sales
How did we live up to our goals/
objectives/ expectations?
Who were our strongest competitors
(by product)- Why?
• Alesa : Avacado had higher market share than Volksmaschine in two periods.
Quality
 Low price
• Bordo: Phoenix had higher market share than Volksmaschine in all four periods.
Low price
Product policy
Training of sales personnel
• Carti: Phoenix had higher market share than Volksmaschine in all three periods.
Low price
Communication policy
Training of sales personnel
If given some more periods to
manage, what changes, if any,
would we make?
• We will keep the trend of investment in product policy,
communication, TQM & training for all three products.
• We will focus on incremental increase in price depending upon the
market situation.
• Since we have significant market share in all three products, we will
follow flexible policy for Bought in Vs Make depending on market
price of Bought in Vs VC.
• Hence, we will not increase our capacity to keep fixed price low.
What Is That We Should Not Have
Done And Should Have Done?
• Share profit with stock holder
• Repayment of Long term debt
• Incremental increase in price
• To recruit new personnel to utilize machine hours
• More investment in training of personnel
• Could have explored in India & China market
Describe methods by which we
arrived at consensus
How differently did you react to the challenges that
were similar to your real life business
situation? Example?
What are some key experiences of working in a
diverse group? What can be done, going
forward, to make such a process more effective?
At the end of this seminar module, what are some of the learnings that you have? Reflect
on things like leadership style, managing teams and diversity… and how they panned out
during the business simulation.
What might be takeaways from the seminar that you
could immediately apply at your work
place?