Nanjing University of Posts and Telecommunications
Experiment Report
Course：
Operations Management
Teacher Name：
Ying Peng
Major：
Business Administration
Student Number：
F16110105
Student Name：
Ralcoh Junior
Date：
2018/06/13
School of Management
Experiment Report of Operations Management
The experiment purpose:
1. Start a business team；
2. Make business decision by Cesim Global Challenge；
3. Play Operations Competition in the market.
The experiment results:
1、Start a business team
Name of the team： APU
Members of the team
Student Number F16110118
Student Name
F16110129
Khulan Gantulga DANIIL NASSIBULLIN
Position VP GlobalCommunications VP markets and
Communications
F16110105
Ralcoh Junior
VP International
F16110131
Biletskiy Anatoly
VP General councel
marketing
Duty
2. Make business decision by Cesim Global Challenge
(The process of business operations decision)
Checking Resources
Operational changes must begin with a thorough check of resources. Once a change is suggested, the
operational manager must verify that the needed products, software or tools can be acquired to facilitate
the change.
Scheduling Changes
Operations managers must determine the best time for the proposed transition or change. For example, a
small business that ships products from a central warehouse shouldn't overhaul warehouse equipment
during a peak sales season, like the holidays.
Asking Analytical Questions
Ask probing, analytical questions at the beginning of the decision-making process. The answers to these
questions will either qualify or disqualify a proposed operational change.
Assigning Duties
Operational decisions often involve staffing changes. When operations are altered, some members may
need cross-training to prepare them for work with new equipment or in new roles.
Training and Preparation
It's the employer's job to "sell" proposed changes to the team by preparing them with training and
demonstrations. Involving employees early in the decision-making process can help managers by creating
a sense of ownership in the upcoming changes.
3、Results of the games
(1) Creating our first product
After analyzing both markets, we created our first product APU, added features according to customers
preference. We focused more on Europe market. APU was sold the most for High End Households.
(2) Adding two more products
Due to the success of APU, we decided to create K-PREMIUM avant grade for both markets and KEASY with the classic design for growing Asian market. So we focused on the Asia market, which is the
most sold in Household segment.
(3) The Real Game started
In this round, we determined demand in both markets. We focused on Companies and High-end
companies which is K-Premium was the most sold. Modify products by adding more features.
(4) New game rules
Business strategy:
Until this round our team decisions on products and market place were not decisive. As a result, our
team’s share price had been always at 4th place.
From that round, we started to analyze market research carefully as making market analyze on excel sheet
by ourselves. That analyze gave us more crystal clear look at our products and market condition. Our
business strategy was “Product Differentiation” in that round.
Implementation of STRATEGY
Based on that analyze and business strategy we modified existing products and created brand new
products – k-Modern and K-everyday.
As a result of that strategy, APU was successful in European market and K-easy, K-Premium, KEveryday was successful in Asian market. Our share price reached in 3rddd place. On the market share,
we became STARS in BCG Growth-Share matrix.
(5) Long term investment in operational cost
Business strategy
From 4th round, the market was full of different products. So in order to keep competitive advantage in
following rounds, we tried to focus on increasing market share. Our strategy was to become CASH
COWS in BCG Growth- Share matrixin the following rounds. On the other words, we aimed to increase
market share with advertisement and R&D expenditure. And also we focused on market product gap.
Implementation of strategy
~We recognized we are losing our market share in Europe. And we created Euroman (cheap sport phone)
for keeping that market gap.
~We increased our advertisement expenditure in total sales income from 3% to 5% in this round.
(6) Try harder- Look for more details
Business strategy
In that round , the market competitions became too intense, so we looked for every detail customer needs
of each segments. As considering our market competitive advantage and market condition, our strategy
was try harder.
Implementation of Strategy
We offered at least 3 differnet products in each segment. As a result of that strategy, our share price
reached into the 2nd place in the market. Almost 5 of our products were among the best sold products in
both markets.
(7) Keeping our place
Due to the increasing of the growth of the markets, the games has reached the saturation or what is called
the maturity in the product cycle. So we focused on the largest market at that time which has househols in
both Europe and asia. The most important step was finding the formua for advertisement that goes like
this. Sales forecast *pice of product *7%. The percentage was based on the average of othr competitors. It
urned to be successful and profitable.
(8) Expert’s excel sheet
At this round time saving was important and roles for each product was given to each team member to
individually analyze, the excel sheet was assigned for each member containing the following for each
product :
1) inner formula that calculated the advertisement cost mentioned before
2) proposed price and features
3) sales forecast
4) product cost
Goal was increasing the profit margin by decreasing unnecessary costs, for example: decreasing the R&D,
and warranty period; where we were the leading n the length of it, it was unnecessary.
(9) surviving decline period and witnessing benefits of previous planning
In this round the market has reached the decline phase, and the goal was to maintain our position and
share price, we implemented that by decreasing the prices of products to keep customers interested and to
maintain to our established market share. With high market shares, the market growth was still remaining,
which was leading us to become cash cows which was planned in round 5 as mentioned before. Effects of
high R&D investments in previous rounds showerd great benefit in this round. We implemented full
market coverage strategy to milk all segments by the best.
4、Analysis on ROE(Return on Equity) and describe what you learned from this experiment.
Return on Equity
A publicly-traded company's earnings divided by the amount of money invested in stock, expressed as a
percentage. This is a measure of how well the company is investing the money invested in it. A high
return on equity indicates that the company is spending wisely and is likely profitable; a low return on
equity indicates the opposite. As a result, high returns on equity lead to higher stock prices. Some analysts
believe that return on equity is the single most important indicator of publicly-traded companies' health.
As someone with no marketing background, I found Cesim a very useful tool. Some complained that it
was too numerical but I’m a numbers person so that didn’t bother me. The most important thing for me
was that it gave me some ´experience´ on which to hang the marketing knowledge from the lectures. For
example, when discussing advertising and distribution channels I could think about how the theory
affected Cesim. Being able to apply the material to my new ´experience´ allowed me to understand more
of the subtleties .
Attendance
□High Distinction □Distinction □Credit □Pass
Process
□High Distinction □Distinction □Credit □Pass
Results
□High Distinction □Distinction □Credit □Pass
Report
□High Distinction □Distinction □Credit □Pass
Total Mark
Teacher
Date