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    Thinking strategically

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    I have been ask my instructor to complete an assignment that involves three simulation, 1.Thinking strategically, 2.Developing Grand Strategies, 3. Creating a Strategic Road Map.

    In a two to three page paper, describe the strategy that you will use and defend why you think that strategy will work. You may append supporting materials, such as data tables and references. Be sure to explicitly draw on concepts and theories from the courses you have taken throughout the MBA program.

    I have been trying to understand and these simulations for the past 2 weeks and have spent all-day the last two days trying to put it together. Do you have any knowledge of the simulation that can give me some assistance?

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    Solution Preview

    The strategy that I will use initially will initially use for the simulation will be based on the assumption of the shape of the PLC and the shape of the learning curve. Three decisions need to be entered first, namely the fraction of the revenue to marketing, the price of the product and target capacity.
    This is a duopoly and I will set the initial price at $80.00 which is the same as that of the competitor. In duopoly, any unilateral reduction in price will lead to matching reduction in price by the competitor but an increase in prices will not lead to a matching increase in prices and the entire demand will go to the competitor.
    Usually there are two approaches that may be taken towards this simulation. If the Cournot model is assumed then we need to assume an output level for the competitor, assume it to remain fixed and produce our own capacity. However, if we decide to use the Betrand model then each firm presupposes that the other will not modify its prices in response to its price reductions. The idea is that a Nash Equilibrium can be reached.
    The main objective of B&B Enterprises is to maximize its cumulative profit. How can this be achieved? By increasing the gap between the revenues and costs for each of the quarters for which the ...

    Solution Summary

    Thinking strategically is discussed very comprehensively in this explanation.