There’s no built-in bias that favors any one strategy. The head-to-head competition among companies in each of the two worldwide product segments (wearable video cameras and camera-equipped drones) is based on such factors as: Price Product performance and quality The number of camera/drone models Annual number of weekly sales promotions The size of the discounts offered to retailers during weekly sales promotions Advertising Website improvement and web page displays Number of retailers stocking and merchandising the company’s products Length of warranty period Company image/brand reputationĬompany managers have wide strategic latitude in staking out a market position and striving for good performance. You and your co-managers will make decisions each period relating to R&D, camera/drone components and features, and product performance and quality, number of models (up to 21 decisions) Production operations and worker compensation (up to 8 decisions for each product) Pricing and marketing (7 decisions for cameras and 6 for drones) Corporate social responsibility and citizenship (as many as 6 decisions) Financing of company operations (as many as 8 decisions).ĥ Competition Is Head-to-Head: Company against Company

The first set of decisions you and your co-managers will make is for Year 6. You and your co-managers were hired at the end of Year 5 to take charge of the company’s operations.

Your company is in sound financial condition, is performing well, and its products are well-regarded by users.

Revenues in Year 5 were $327.8 million and net earnings were $15 million, equal to $1.50 per share of common stock. In Year 5, your company had worldwide sales of 840,000 video cameras and 140,000 camera-equipped drones. It entered the market for camera-equipped drones two years ago. The company you will be running began operations as a maker of wearable video cameras 5 years ago.

Each decision period in GLO-BUS represents a year. Both products are made in a Taiwan assembly facility and shipped to buyers in North America, Asia-Pacific, Europe-Africa, and Latin America.Īll companies start out on the same footing-with equal sales volume, global market share, revenues, profits, costs, product quality, and so on. Your company competes head-to-head against rival companies that design, assemble, and market these same two products and that are run by other members of your class. GLO-BUS is an online exercise where you run a company that is racing for global market leadership in two product categories: wearable (and mountable) video cameras and camera-equipped copter drones suitable for a variety of commercial purposes. Presentation on theme: 'GLO-BUS: Developing Winning Competitive Strategies'- Presentation transcript:ġ GLO-BUS: Developing Winning Competitive Strategies

Globus simulation stock price