Business Strategy Essay

2087 Words Mar 3rd, 2008 9 Pages
1.0 Introduction

This report is based on a Strategy Simulation Management where you put your decisions and this program interprets it in real life industry. StratSimManagement ties all functions together: Marketing, Operations, Finance, HR. Basically it is a cross functional long term strategy.

StratSimManagement is based on automobile industry,
• two markets: consumer and fleet (B2B),
• consumer market of 150 million people,
• B2B market of numerous fleet contracts
• Currently GDP, inflation growth rates
• Demand sensitivity on GDP, Interest rates and the decisions that the firms makes

The products are cars and trucks and some of their characteristics are vehicle class, size, engine/performance, interior, styling,
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They should also consider society forces such as family, friends media affects our attitude, interest and opinions. These forces shape who people are, the way they behave and what they want and need to purchase. For example many people believe that consumption petrol is affecting environment they live in, people health, many green organisations are making consumer more and more aware of global warning. As society behaviour changes they should be able to aim and offer product and services that benefit people lifestyle and behaviour.

Technology is growing fast and is changing the way the businesses operate. In this field government is also spending on research. In car industry manufactures have already introduced car buyers with technology but there is more to come and some car manufactures should keep up with others as if they fall behind with tech it's difficult to get back. Technology has also cut labour cost as they there more machinery do in the work and few people maintaining them- therefore cheaper car to manufacture.

Operating in a country like United States you have to make considerations of waste disposal, recycling, and conservation as there are strict laws on environment protection and if you are disposed of any such offence you could loose reputations and also go bust. There is an advantage of some car firms in other countries with lesser impact on such issues.

3.2 Porter's Five Forces Model

This model deals with outside factors

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