BUSINESS SIMULATION

INCEPTION PVT LTD.

Yasmin Rassiwala (51)
Sagar Mehra (54)
Mukesh Kanodia (56)
Dattasen Mishra(66)
Somesh Sharma (76)
 OBJECTIVES
• To take our market share to 27% in
sales for some of the most profitable
product by the 4th quarter.
• To make the Image of our product 105
on indexed value.
• Decrease production time and thus
throughput time by 15%.
• Reduce rejection rate by 5-10% of
current rejection percentage.
• Increase the profitability with respect to
benchmark company and thus show a
profit of about 1.5-2 million Euro.
PERFORMANCE ANALYSIS
 PERIOD 1
• Prices were kept at a constant level
to sustain the demand.
• Prime concern was given to
Communication Policy & training
of Sales Personnel.
• Exchange Rate fixing was done for
China to sustain the volatility in
their market.
• Comprehensively Period 1
concentrated more on developing
the image of the products &
getting a true scenario of the
 PERIOD 2
• Slight increase in Prices in China &
India to offset the losses made in
the previous period.
• Increased purchase of raw materials
so as to keep adequate inventory
for the next two periods and period
3 in particular.
• More investment in TQM and
Production technology were made
to shoot the demand up.
 PERIOD 3
• Huge Investment was made in “Lean
Management” to reduce the
throughput time & also the fixed
costs.
• Prices in all the four regions for all
the four products were raised,
resulting in huge profit.
• To generate more demand higher
investment was made in the
communication policy.
• Instead of producing Alesa, the goods
were bought in.
 PERIOD 4
• With image just being on the mark,
dividend was paid out at a level of
7%.
• Prices were kept on the same level as of
Period 3 but heavy investment was
made in the communication policy to
generate Demand.
• Factoring applied for the Germany &
U.S branch, as a contingency to cope-
up with the liquidity crunch.
• Period 4 had a balanced approach to
keep profits, market share & image at
a decent standpoint.
 RESULTS at the end of the
4th period
• Debt Equity Ratio: 127%
• Profit After Taxes: 24,98,641
• Average Market Share: 27.23 > 22.48
• Average Image: 115.50 > 98.67
• Average Rejection Rate: 7.07 < 7.33
•
• Objectives set out at the beginning:
FULFILLED
•
 LEARNINGS &
TAKEAWAYS
Ø This simulation exercise has been instrumental in
understanding the holistic view of the functioning of
multinational company.
Ø The effect of various global economies on the finances of
the company is studied closely.
Ø The study of products at different stages in PLC is carried
out in detail.
Ø Understanding the influence of each business decision on
various parameters like image, market share, profits, etc.
Ø Theoretical concepts like demand forecasting, inventory
management and their business implications.
Ø Inter-relatedness of the various organizational functions
and their effect on the overall performance.