B Company

The Business Strategy Game

Dr. Luis Felipe Torres Gmez

A0120376
7

Mara Fernanda Gutirrez Romero

A0120487
5

Mnica Camacho Galvn

A0106341
0

Luis Fernando Herrera M

Companys Performance
Ranked in 3rd place (at Year 20)
The company tried to follow a global best-cost or "more
value for the money" strategy, this help us to keep us in
the top 5 companies ranked in the game.

Annual
Total
Revenues
Annual EPS

Annual
ROE

Annual
Credit
Rating

Year-End
Stock
Price
Annual
Image
Rating

Global
Unit
Sales
Global
Market
Share

Strategic Vision
Best-cost Strategy
Give customer more value for the money spend
Targets value-conscious customers
Risk of getting crished between rival low-cost and
differentiation strategies

Strategy and its Evolution

S/Q Rating - B Company

Cost of Pairs Sold

8
7
North
America
EuropeAfrica
Asia-Pacific
Latin
America

B Company
70%

60%

50%

40%

30%

20%

10%

0%

Avg Industry

Wholesale Price - B Company

$70

$60

$50

$40

$30

$20

$10

$0

Year 10

Year 11

Year 12

Year 13

North America
Latin America

Year 14

Year 15

Europe-Africa
Avg Industry

Year 16

Year 17

Year 18

Asia-Pacific
Avg >= 7 S/Q Rating

Year 19

Year 20

Closest Competitor

Year 17

E Company, became our closest

competitor since the Year 18.

Year 18

Year 20
Year 19

Production
Strategy

Performance Targets

Moves to Make
Cost of Pairs Sold
(Comparison with E-Company, and Avg Industry)
70%

Stock Price
(Comparison with E-Company)
$160
$140
$120
$100
$80
$60
$40
$20
$0

60%
50%
40%
30%
20%
10%
0%

B-Company

E-Company

Avg Industry

B-Company

E-Company

If the game still continuos we will build capacity at the plant in

Asia-Pacific, and the upgrade Option D will also be acquired.

Financial Strategy
Finance part of the new capacity of the plant of Asia-Pacific,
at least 60%.
Repay the 4th loan of $34,000 millions.
Keep paying a dividend fee to the investors of $0.50, with an
increase of 10% each year.
Keep purchasing each year at least 50 stocks.

Lessons
Learned
Always keep in mind that you need to have a minimum cash to operate
in the following year (working capital).

Until year 16 we upgrade our S/Q Rating and price still at the same level
of the industry GOOD CHOICE.

Doesnt matter to have more costs in order to satisfy customers and

cover demand. (always keep in mind to cover those costs).

Purchase the exact amount of stocks of your company, that can

generate a good impact in financial statements (Stock Price).

Lessons
Learned
It is important to get rid of the inventory you have, try to rotate it, so
you dont need to have high storage costs.

Always keep
movements.

in

mind

your

closest

competitor

and

see

their

Know where is your bigger market share and put effort to maintain,
and where you dont have market share fight for having more.

Wait until the correct time to buy capacity or build new plants (you can
spend money and no sufficient demand).