The Advantages and Disadvantages during the Simulation Essay

The Advantages and Disadvantages during the Simulation - Essay Example Financial Statement represents information exhibiting firms’ performance. The balance sheet shows financial position of the firm at one point in time while income statement shows the profit and loose for the previous year (Curkovic, 2000). The 21st-century car challenge is a simulation that illustrates the various impacts of engineering decisions in an automobile industrial and global environment. Engineering decisions impact the financial performances of each competing company and are assessed by customers. Using a good business strategy is the key to win in this simulation. As I did this simulation as a member of the Red Team, we need to define product by making decisions about engineering and sell it by taking marketing decisions, also manufacture, invest, and decide on quality, human resource and loans in order to optimize profitability and return on capital employed (Mega learning, 2012). This report will be divided to be 4parts: advantages and disadvantages of the strategy we did, alternative options, the optimum strategy, and conclusion. At the first period, the Red Team faced to the problems of the high cost of non-quality, a low competitive advantage in the next period, low EBIT, the low value of share price compared with competitors, high rate of stocks, and low percentages of employee morale. Because we focused on IMAGE cars and Family cars only, so we used the strategy of beyond current expectations by improving their quality through invested much in engineering and marketing and we did not invest in manufacturer facilities and Human Resource and Quality due to the limited budget. We decided to solve problems in the next period by using product development and market development strategies with the focus of IMAGE cars as the main product. The share price and EBIT grew up as a result but other products still had a lot of inventories.