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Introduction
The name of the company for the purposes of this simulation is SASS. The organization operates in both the U.S.A. and in Asia. There are four members that belong to the management team, all of which whom appear to take different approaches to the management of the company. However, as a whole, these differences in opinions have allowed the team to collaborate to make the best decisions with regards for the profitability of the company.
Product Description
The company sells a total of six technology products, which include t-store, red, blue, zorro-mobiles, ABRG, and ochre. The profitability of these products have been highly variable over the six week period. All products sold were considered to be of high demand in the market according to market data, and these products were created in order to meet this rising demand. The products include “technology 1”, which include mobile handsets that will be made during the first year of our business, “technology 2”, which is a phone with improved in network services with 3G, “technology 3”, which includes a high-speed 4G network, and “technology 4”, which uses tough screen technology with high quality of color display.
Company Mission & Vision statements
Vision Statement
The vison of SASS is to provide consumers with the highest quality products for the lowest cost. After serving the U.S.A. and Asia, one of the major visions of the company is to expand to other locations in order to increase profitability, meeting demand in other locations. Decision emphasis was on marketing the product to ensure that individuals would know that the product exists, thereby contributing to an increase in profitability. Furthermore, goods were only produced in a manner that was consistent with the market demand and market conditions. Logistics were also emphasized to ensure that goods could travel between locations cheaply and efficiently, keeping price down and customer satisfaction high.
Mission Statement
The mission of the company is to outcompete other companies to ensure that customers will be able to continuously access the best possible products in the market.
External environment analysis (PEST / SWOT / Five Forces Model)
PEST Analysis
The political factors that contributed to the ability to sell the product was directly related to the cost of exporting goods to countries with high tariff rates. Furthermore, the instability of economic factors, such as the work force and the wealth of the countries that the product was being sold to was of concern. Social factors primarily included the population growth or decline, although this was negligible due to the short term operations that were highlighted in this scenario. Last, technological factors were all related to the research and development of the products.
SWOT Analysis
The strengths of these products are that these particular designs do not appear to be available in other locations, requiring that individuals who want these specific products do business with SASS. Next, a major weakness is that the company is relatively new and must work hard in order to make itself known. An opportunity is research and development to improve products in addition to marketing tactics that will allow the company to become better known. Last, a major threat is already established competition in the industry.
Five Forces Model
Under the five forces model, it appears that the supplier power is completely dependent on market trends, as it the buyer power, as these trends contribute to the same forces. Competitive rivalry is somewhat of an issue, although larger companies do not see SASS as a threat because it is so small and new. Last, there is little threat of substitution or power due to the small nature of the company compared to others in the industry.
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