Group 11 - Company: Erie;

Industry: C134781
STOCKHOLDERS' FINAL DEBRIEF

Satvik Chandna PGP/24/052

Karishma Agrawal PGP/24/092
Medha Jha PGP/24/098
Vikalp Sinha PGP/24/310
Sneha Singh PGP/24/472
Agenda
STOCKHOLDERS' FINAL DEBRIEF.

Identify three important strategic decisions that your team made but did not provide the desired results. Defend your
decisions as the executive management team to the

Board of Directors and Stockholders

Please prepare a PPT for tomorrow. Also include a slide on Reflections from the Simulation. We would use it in the
afternoon. I would ask you to present the same.
Our Strategies
And why we chose to do so
Strategic Decision - 1

Increase in level of Automation Product Segment Level

We made significant upgrades to some of the segments in Eat Traditional 6.5

regards to automation, leaving the rest.
Ebb Low-level 7
For the segments we did have upgrades, we did not go all
the way through Echo High-level 4

Edge Performance 3
REASON : Avoiding unnecessary upgrades, which would
have led to high capital expenditures Egg Size 3

RESULT : Higher costs in the later stages, leading to lower Echo2 High-level 3
margins
Ebb2 Low-level 6.5
Strategic Decision - 2

Excess Inventory Costs Product Inv Cost($)

We had a tendency to overestimate our demand forecast in Eat 856 1417

each round.
Ebb 381 445
For each of the segments we were catering to, we ended up
having unsold inventory. Echo - -

REASON : We did not want to end up underselling and Edge - -

losing out on potential demand. It would also help in
keeping some extra stock which can be utilized in case Egg - -
there is a sudden surge in demand
Echo2 - -
RESULT : Higher inventory carrying costs were incurred
over the span of the simulation, affecting our margins. Ebb2 - -

*Numbers after Round 8

Strategic Decision - 3

Focus on single segment Segment Market Share

Our main priority had been just a single segment: Low-cost Low-level 23.6%
segment

We also focused on other segments, but most of our time High-level 14.8%
and resources were spent for low-cost products
Traditional 10.3%
REASON : Focusing on a single segment instead of
diluting ourselves while focusing on multiple segments Performance 0%
RESULT : Although performed well in chosen segment, one
or two more segments could easily have been focused on Size 0%
Reflections
What we learned from the simulation
 Strategy is designing a way to deal with a challenge. A good strategy,
Strategy therefore, must identify the challenge to be overcome, and design a way to
overcome it.

GOOD BAD STRATEGY

Good strategy identifies the key challenge to Bad strategy fails to identify the nature of the
overcome STRATEGY challenge
Good strategy includes actions to take to Bad strategy lacks actions to take. Bad
overcome the challenge strategy mistakes goals, ambition, vision,
values, and effort for strategy

Why it matters?
We need to know this, so we can leverage good strategy to improve our companies while avoiding
bad strategies which may lead to our fall
Learnings from Industries

● One fact that we observed is that all metrics, like Sales, Profits, Contribution
Margins, Market Share etc. are vastly varied for companies within an industry. But
any one industry is quite similar to the others.

● Other thing we noticed is that other competitors influence our own decisions, and
even our thought processes. These include that prices, product specs, and the
segment in focus.

● The next course of action of the competitors can be gauged from the yearly reports.
Their investments can be used to predict their future plans, which can help us plan
accordingly.
Thank You