Global Business Simulation Strategy And The Importance Of Strategic Management

Executive Summary

What is the strategic management? Give a brief review of Global Business Simulation Strategy. 

The study has provided an in-depth understanding on the importance of strategic management for the growth of a business. Global business simulation strategy helps to educate the marketing students for designing an effective strategy and policy to reach the business goal. In this particular report, the importance of three business level strategy has been pointed out. The three overarching terms are inseparably related to each other. Crystal Clear has been selected as the chosen company. This particular company primarily deals with digital camera. In order to expand their brand in the market different business strategies have been decided to follow. The organizational leadership style has also been pointed out here. At the end, some of the necessary recommendations have been provided for the betterment of Crystal Clear.

‘Global business simulation strategy game’ is a business simulation game based on which the management and marketing students can develop their global business skill. Started in the year 2008, this particular game primarily aimed to educate the management student regarding the various pathways of business strategies. Before the initiation of Glo-Bus business strategy game had been started first in the year 1990. The primary objective of business strategy game is to concentrate on the designing of production, marketing strategy, cash flow as well as finance and so many. However, the company that has been chosen is Crystal Clear occupying a predominant place among top global companies. At the very first stage, the main objective of the company was to acquire one of the largest market shares for digital camera. After establishing their brand, the company intended to shift to a new strategy. Providing a high quality product by maintaining competitive price was the second goal. Finally, the foremost and the supreme goal that Crystal Clear wanted to achieve was to become a threat for the competitor. Burst and Co Fantastic Digital is the main competitor of Crystal Clear. Therefore, this particular company intended to surpass the effective market strategy of Burst. The entire journey was not very smooth. We the members of Crystal Clear did numerous mistakes while making effective strategies for the business purpose. After more than six years, the business members of this particular organization came to understand their mistakes one by one. 

Three-strategy level is constituted with three major factors that include corporate, business and finally functional. The primary objective of corporate strategy is to focus on what particular businesses an organization should start in or intends to start in. As per this particular direction, the organization likes to proceed. With the help of corporate strategy business organization likes to choose a selected industry based on which they intend to proceed or develop their business (Eden and Ackermann 2013). While establishing Crystal Clear we the business members wanted to apply corporate strategy in order to make sure what particular industry or sector would be suitable for us to conduct and control the entire process. With the help of business strategy, the business experts can understand the ways for an organization for competing each of its businesses. Finally functional business strategy helps to evaluate how to influence the functional level of various departments. For an example, while maintaining an marketing organization the business experts should concentrate on customer service department and advertising department as well. More specifically, Crystal Clear in order to expand their business in market aims to concentrate for satisfying the needs and demands of the customers primarily (Evans, Stonehouse and Campbell 2012). In addition, the advertising department tried to enhance their promotional activities in order to reach the target customers.

Definition of three-strategy level

Corporate strategy, business strategy and functional strategy are interrelated to each other. In order to make an effective functional strategy, the business organization has to plan a corporate strategy first (Vogel and Güttel 2013). With the help of corporate strategy, the company would be able to understand what particular sector the business exerts should focus to enhance their business. As per the business style and process, the departments have been selected. After the segregating various departments, the businesspersons like to focus on the functional level of various department (Grunig 2013). As per the goal of business strategy, the company would be able to know how a particular organization should compete in its various businesses. The company would fix their business strategy only when the business experts would be very much confirmed about the business goal. Therefore, the three consecutive strategies are inseparably related to each other. Without determining the corporate strategy, the functional strategy means nothing for a business organization. The same process goes for business strategy as well. 

While determining the business strategy of Crystal Clear for spreading the product on market, we primarily concentrated on several factors that include purchases from suppliers, technology, operation, sales market, distribution and finally services (Swayne, Duncan and Ginter 2012). Digital camera was the chosen brand for this company. In order to create a demand in the market, we had concentrated on the business strategy to draw the attention of the customers (Hair et al. 2012). The materials that would be purchased from the suppliers should have a reliability and authenticity. With the amalgamation of quality product and advanced technology, the brand of Crystal Clear would be able to establish a new position in the sales market. If the brand can create a demand on market, it would be easier for the businessperson to distribute the product to the target areas.

In order to support the business level strategy, this particular organization has made an effective functional plan in order to influence the functional level of every department of Crystal Clear. As per the functional strategy, the marketing managers of this particular organization are allowed to make an effective market survey for acquiring knowledge about the competitor’s market strategy (Hill, Jones and Schilling 2014). As per the market survey report, it has been observed that brand value strategy has been maintained as an effective strategy of Burst and Co and Fantastic digital. In order to throw a challenge towards burst, Crystal Clear has decided to follow Cost leadership strategy. Reducing the product cost, the company has decided to draw the attention of customers. Therefore, this particular strategy can render a competitive advantage for the organization like crystal Clear by making a threat or its competitor. In addition, in order to get a satisfactory response from the superior customers, the organization has concentrated on their promotional activities more effectively (Hitt, Ireland and Hoskisson 2012). By utilizing the popularity of media, the company would be able to draw the attention of a huge number of customers from different geographical boundaries.

How the three strategies are interrelated to each other

As per the organizational culture, ethics, values and beliefs the management intends to follows participative leadership style at the workplace (Stead, and Stead 2013). The team members of each team have been treated with equal respect and dignity. Leaders or employers never tend to impose their decision on the employees. The workers get immense opportunities to share their point of views regarding the business goal (Kapferer 2012). As a result, the internal communication among the team members is very co-operative. CEO provides enough scope to share any point of view to the employees. As a result, before making an effective strategy, Crystal Clear likes to conduct a group discussion with the team members that helps the employers to take an effective decision at the right time (Lasserre 2012). The team members like to make an effective communication with each other. Employers allow the employees to share any personal problem at the workplace. By conducting an effective meeting at the weekend, the CEO of this organization like to conduct an effective interpersonal communication with every employee. As a result, workers do not have to face any difficulties to adjust with the work environment of Crystal Clear.  

In order to increase the business level as well as the strategy some of the recommendation can be provided for the better of the company like Crystal Clear. Before planning any market strategy, the organization should conduct an effective situational as well as environmental analysis. The situation analysis would help the organization to have an in-depth knowledge about the competitor’s rhythm of business (Rahm and Riha 2012). Moreover, Crystal Clear should emphasize on promotion more strongly in order to expand their business in the internal field. Currently, new media is one of the major pathways to reach the brand to the doorstep of international consumers. Therefore, with the help of social media, public forum, official websites the business experts would be able to collect a direct feedback from the target consumers. As per the response of the target consumers, the organization should plan an effective strategy for market. 

Conclusion:

Instead of choosing three level strategies for the development of a business like Crystal Clear, organization should be specific regarding a particular business level strategy. For the company like crystal Clear, the business experts may follow functional strategy as their major pathway for business expansion. With the help of functional strategy, business organization would like to focus on every specific department. As a result, Crystal Clear would be able to spread their product widely. While maintaining the high quality product strategy, the company would have to focus on profit planning method as well. In order to compete the upcoming competitors, the organization should not take an immediate step in such a way that it can ultimately hampers the entire plan and progress of business. This particular study has focused to highlight the importance of strategic market planning for the expansion of a business organization like Crystal clear. 

Reference List:

Eden, C. and Ackermann, F., 2013. Making strategy: The journey of strategic management. Sage.

Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and tourism. Taylor & Francis.

Grunig, J.E., 2013. Excellence in public relations and communication management. Routledge.

Hair, J.F., Sarstedt, M., Pieper, T.M. and Ringle, C.M., 2012. The use of partial least squares structural equation modeling in strategic management research: a review of past practices and recommendations for future applications. Long range planning, 45(5), pp.320-340.

Hill, C., Jones, G. and Schilling, M., 2014. Strategic management: theory: an integrated approach. Cengage Learning.

Hitt, M., Ireland, R.D. and Hoskisson, R., 2012. Strategic management cases: competitiveness and globalization. Cengage Learning.

Kapferer, J.N., 2012. The new strategic brand management: Advanced insights and strategic thinking. Kogan page publishers.

Lasserre, P., 2012. Global strategic management. Palgrave Macmillan.

Rahm, B.G. and Riha, S.J., 2012. Toward strategic management of shale gas development: Regional, collective impacts on water resources. Environmental Science & Policy, 17, pp.12-23.

Stead, J.G. and Stead, W.E., 2013. Sustainable strategic management. ME Sharpe.

Swayne, L.E., Duncan, W.J. and Ginter, P.M., 2012. Strategic management of health care organizations. John Wiley & Sons.

Vogel, R. and Güttel, W.H., 2013. The dynamic capability view in strategic management: a bibliometric review. International Journal of Management Reviews, 15(4), pp.426-446.