Business Game
If the game was to continue, I will try to act in such a way to encounter my competitors’ action in every section. In the marketing sector. There are two main areas to concentrate. First is the advertisement; I will invest more on advertisement because its returns are more and take less period and also because the local competitors have also invested more on the advertisement. The number of sales persons is also very important in the increment of the sales of the firms. I will increase the number of sales persons because advertisement goes hand in hand with the number of sales persons. The competitors’ number of sales persons averages to thirty and therefore I will increase my salespersons to more than thirty. This will increase the advertisement and therefore the number of sales will go up. On the production section on the sixth play of the game, I will not invest more on the purchases of the raw materials in the local markets, but instead I will purchase from the foreign markets because they are much cheaper compared to local markets. I will totally disregard the R&D expenditures at this period and may be consider it on the coming periods such as period seven this is because I want to make maximum profit in this period as possible
For a production to be efficient there has to be the presence of technology investment. I will continue reducing the number of technology 2 and increase technologies 1 and3 respectively so as to boost the level of production. For efficient production variety equipment should be available and just the use of one single equipment. The more the technology in the firm, the more the production of the product. In the finance section, this is the most technical part of the firm. This is because any miss use of the finances can lead to the downfall of the firm. I will discourage any usage of the finances and encourage more security of the finances. Therefore, I will purchase notes and keep them for more or one quarter so that they may earn interest to the firm. I will particularly discourage the loans so as to secure the firm’s liquidity status .In the other decisions; I will not involve market study and contract department creation or extension because they are both very expensive. I will secure the certificates because it is a requirement of the National Certificate Authority (NCA). The certificate of a product testifies the level of quality attained. On the forecast, I will concentrate on the sales forecast and forego cash forecasts. This is practically because it will encourage the firm to look forward to more sales and not to have illusions on the cash, not at hand.
