Business Game Simulation

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Question :

Write a topic on "Game Simulation".


A brief statement of the business objectives and a brief summary of the company performance during the game and how far you succeeded in meeting the business objectives; a table showing total sales, total unsold stock, shareholder funds, closing bank balance and outstanding loan at the end of each of the four rounds.  These figures should be in £m, to the nearest £1 million.

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Answer :


The European country is the leading manufacturing areas of automobiles around the world. In this business report, QA Auto manufacturing company has been chosen to make the better performance of automobiles. There are certain business objectives that need to be followed for the better performance. These are listed as follows:-

  • To improve the sales of vehicles there is a requirement to follow the stakeholders both internally and externally. 
  • To implement on the various working engines that would be effective more making the better performance. 
  • To improve the designing of the automobiles that provides the better selling among the internal and external customers

QA Auto is trying to provide the better performance of vehicle by providing two types of engines among the customers that helps to grab the European market.  

Total sales:  The total sales provided are 70.6 billion   Euros in 2015.  

Total unsold   stock: The total unsold   stock includes with 135,797

Shareholder   funds The shareholder   funds includes with mutual funds of 598,110

Closing bank balance:   The total cash and   bank balances includes with INR 11, 877

Outstanding   loan: The company gets a   loan that is increased about 12.8 %. 

Company Performance:

Financial performance

                      2016                           2017

Debt   on outstanding rate (£ million)489.52                                 525.25

Current   Ratio2.11                                     2.24

Return   on assets%                           26.25                                     24.52

Quick ratio3.42                                       4.52                                                                                                                                                     

Liquidity   ratio                                                                                              2.5                                         3.65

Gross   Profit Ratio26.31                                    28.52

Post   tax sales/ profit12.19                                    13.21

Return   on shareholders’ %                                                                         32.14                                    30.13

Employee/   Profit £ million254871.21298912.3

While carrying the better performance of company, there is a requirement to consider the financial performance. In order to carry out the better performance, there is a requirement to makes the key measure performances in Round 1 of forecasting. Moreover, QA Auto has increased their marginal profits on various models of vehicles. The organization has developed the costing of various models based on luxury, medium, city and large. In the round 1, the firm needs to follow the various key performance measures that are based upon certain things. The key performance measures include with certain things that states with the liquidity ratio, quick ratio, current ratio (Jankiewicz, 2014). 

The liquidity ratio of QA Auto includes with 3.65 that is much higher than the normal liquidity ratio. Moreover, QA Auto organization provides various features and designing of the vehicles among the customers. The firm has provided two types of engines that includes with both diesel and petrol starting engine. This helps to reduce the overall cost of vehicles that could be easily affordable among various customers. The organization needs to choose the correct performance indicators or performance measurement that helps in providing success as well as to achieve the goal. 

In order to measure the profit of the company, there is a requirement to follow the gross profit margin that is 28.52% more as compared with in previous year and this is used in the Round 4. The organization has increased sharing of market in the other countries by exporting the new model vehicles. Moreover, the company’s management needs to make effective process to increase the assets. In the year of 2017, organization has received 24.52% return on assets, which is lower as compared with the previous year, which is 26.52%. The reducing amount of assets makes less amount of profit in the company. Moreover, the company is not getting back return on assets in the current year (Wolfe, Flore & Ritchie, 2014). In order to increase the performance of the company, management has to implement various planning that helps to make the better growth of the firm. The QA Auto needs to make proper planning for the cost of various items that includes with costing of labor, costing of marketing, training cost of the employee and machinery costing. 

The key performance measures include the total production that includes with 55,000 vehicles on monthly basis, sales lies with £ 70.6. Moreover there includes with gross margin of about 26.31% , unsold stock of about 135.97  , post-tax profit of about 12.19% , net cash position of about £ 585.565  and market share of about 25%. 

Product Life Cycle:   

There is a requirement to maintain a proper life cycle of particular products. The company needs to progress the product on various stages to make the proper development, growth of product. In product life cycle, the management needs to follow the stages that includes with the introductory stage, growth stage, decline and maturity stage. In the introductory stage, there is an establishment of marketing mix that has been carried out by the organization. The company needs to focus on the promotion, pricing, distribution and product to achieve the better life cycle of product. In the growth, stage there includes with building the organization brand value and increase the sharing of market (Rasmussen, 2015). The sales of products reduce at a high level at the time of passing through maturity stage. In the product life cycle, two model cars has been illustrated that is MPV and SUV (4*4) has become more popularity after passing through four stages of product life cycle. 


In order to calculate the production of QA Auto Company, there are certain things that need to be focused by the management. This thing includes with the sales revenue, sales on costing, overheads expenses, depreciation etc that helps in calculating the production on a yearly basis.  

It is clearly understood that the costing has increased at a huge rate as compared with the revenues. QA Auto has made a profit after selling of the new model vehicles among the customer. QA Auto has made the basic price of city vehicle for £ 8, 050.00, for medium based vehicle the basic price includes with £ 12, 150.00, for large model vehicles includes with £ 15, 500.00 and for the luxury vehicle basic price includes with £42,000.00. 

Various sectors of   Market

Name of model

No. of production

No. of selling of   vehicles

Remaining stock

Set price of car

Sharing of market


SUV   (4*4)




















Competitive advantage:    

In order to gain a high rate of competitive advantage and to grab a proper market, QA Auto needs to focus on the proper planning and exercising an effective leadership. Moreover, company has currently focused on providing the better products as preferred by customers. The organization needs to maintain on the low profit at the time of selling of vehicles among the customers (Ben-Zvi & Gordon, 2014). The management needs to implement new technology that helps company to make high production of vehicles at a less time. Moreover, QA Auto Company implemented two types of engines that includes running in diesel and petrol and that helps the firm to grab the European market. The firm has implemented hybrid or electrical engines on vehicles that would help the customer to save money from the investment of petrol or diesel.  

Comparison with other competitors:

There is various companies that forms a high competition for QA Auto firm. This company includes with Star Car, Eagle Lauda, LIBITA grabs the European market with the QA Auto. In order to reach the hands of various customers, the firm needs to focus on the better design of model and better engines that could be easily affordable among the customers (Hausman & Johnston, 2014).


In the current competitive and volatile business ambience where the automobile industry is teeming to cope with the ambitious legislative objectives (such as BS VI), QA Auto is devoted to adapt with this transition seamlessly through meaningful apprehensions to impart a substantial contribution to financial growth. Throughout the entire career QA Auto and its offerings always, seem committed to conserve the product quality and eco-sustainability of the resources. The enterprise has to offer several innovative yet relevant training programs in order to encourage organizational learning and the consequent effectiveness that these programs are able to exhibit let the policies to earn affiliations among the national bodies and governments (Khmelevskaya, Klyuchnikova, Golovin & Yakushev, 2017).

As per the determination reflected in the chairperson’s statement, QA Auto desires to characterize their innovative services by their technological diversification and prudent industry and domain expertise. Moreover, the strategic solutions recommended by the enterprise have considered every aspect and aligned them with virtual platforms in order to integrate them with the canonic focus of 3S’s (Sensors, Software’s and Services). The adamant business portfolio with a sound competence of software and sensors enables the enterprise to delve into diverse domains of the industry and effectively exercise their competitive advantage across the four of their business interests (Mills & McCarthy, 2014)

If we peep into the mean standard of their sales figures across the Asia-pacific region on which the enterprise have been able to derive a sales growth of 15.5%, we will came across a stable dividend gain of £18.7 billion. It can be outlined as a considerable contribution to the domestic growth (In the financial year 2015-16 QA Auto obtained revenue of over 1.4 billion Euros). QA Auto is the flagship concern among the nine representatives since it holds a majority (around 70.15%) of the stake and eventually able to consolidate a flat revenue of around INR 16,988 crores which can be cited as a significant influence for the domestic stakeholders (Wolfe & McCoy, 2014). 

The enterprise proposes a safe and fuel efficient substitute of the prevalent organized chaos of traffic since they have discovered an ocean of possibilities to explore over there. The legislative mandates patronize the reinforcement of digital networking components in order to obtain the interface of connected ride. The notion of fuel efficiency in two-wheelers attracts the demography of potential customers as it addresses inflation with an effective alternative (Anastasio, Chwatko, Burkey & McCutcheon, 2015). The EMS (Engine Management System) of QA Auto enables the enterprise to evolve their coordination with the commuters as they suggests a reliable digital interface to navigate them by prescribing the route with best fuel economy. In addition to that, QA Auto imposes a pivotal participation especially in regards to innovations including the power train of small motorbikes. QA Auto is not just advocating a new generation of production unit but also the products facilitate a smarter and efficient living. 

Fundamentally, the team suffers from the paucity of integral automotive components due to the embedded contradictions in the industry and the discrepancy of expectations that does not reflected in the price levels. In addition to that, the prevalent two-wheeler automotive base grown too intricate that,  it demands immediate replacement. The prudent introspection and passionate management skills have enabled the enterprise to device a simple automotive system that can easily adjust with the two-wheeler ambience at an affordable price. Moreover, their commitment towards eco sustainability can be cited as the driving force of the subsequent enormous mass migration. 

This QA Auto team helps in influencing the external and internal team members both. The external team member includes suppliers, creditors, customers, society, shareholders, and government. On the other hand, the internal shareholders are employees, managers and owners. Influencing the stakeholders will help in keeping them in the business and taking financial help from them. If the stakeholders start leaving then shareholders even start leaving. The marketing department must do a market survey to find out the reason behind the downswing of the company. The operations department must concentrate in producing better quality work so that the customers come back and so the stakeholders must come back. This will definitely help the company to grow. 

The human resource department must roll out for better employees, which will help the company in production process. The financial department must look into the books and files to find out how to save the company if the stakeholders are moving out. Hence, keeping the stakeholders in the company and influencing the stakeholders to stick to the business is very important. Both internal and external stakeholders are important for any company. The marketing department may plan a promotional plan to impress the stakeholders that will hold back the stakeholders in the company. This will not only help the company to expand but it will also help the company to maintain a good relationship with the stakeholders. QA Auto team is trying to keep the stakeholders in the company by evolving variety of new ideas into the business. 

The operations department tries to implement new ways of producing products and services so that the customers can get their products and services delivered on time. When the delivery of products and services are done on time, then the customers are happy, they trust the company and improving the quality and the quantity of the products, and services according to the customers will help the company to gain the trust of the customers. This way the customers as stakeholders can be influenced to stay with the company.  In addition to this, the other stakeholders when they see that the company is having profit and they can also earn profit, they also start to stay with the company. 

At the time of carrying out the proper investigation on the given subject, in order to develop the business in automobile sector it has been found that there is a requirement to follow the better agreement based on services provided by the company towards customers. In the regard of this automobile business, the QA Auto has implemented various models of the vehicles. I have found that new innovation models in vehicles assist to fulfill the demand of customers. This helps to grab the European market by introducing various features and technologies by the organization. Moreover, the company has made two models vehicles that would be effective among the customers of Europe (Cotter & Fritzsche, 2014). This model includes with SUV (4*4) and MPV that forms with the better engine quality and the ability to run in both diesel and petrol. However, I have also found that the QA Auto has introduced safety norms and precautions for the customers. 

The organization is always concerned with the safety features among the customers. QA Auto has implemented various technologies to reduce the costing of machinery at the time for manufacturing of vehicles. This lowering cost helps the firm to set the vehicle costing at a minimum price (Mayer, 2014). Moreover, this assists the customer to get the vehicles in an affordable price to fulfill the demand of customer. The organization needs to focus on the better quality products keeping in mind about the all the necessary safety features. However, the organization has focused to introduce new models vehicles for meeting the demand of customers in Europe. QA Auto has implemented various workforces that help the better working of the organization. I have found that an effective working of workforce helps to gain the higher production. However, the organization has followed various planning that help to make the effective working. 

The automobile firms need to make proper implementations on the various models that can easily grab the European market (Hishiyama & Nakajima, 2015). The firm has made effective safety norms for the betterment of customers. I have found that the QA Auto has introduced various models vehicles keeping in mind about the reasonable price that assist the consumer to get the vehicles easily. The QA Auto has maintained various features to make the effective running of the company for a long term, aspects. This includes with the cost of labor, manufactory, marketing cost, training cost, various funds of loans. The firms needs to maintain extra costing that requires at the time of proper running of the firm in future and present aspects. The QA Auto has hold a total market size that lies up to 14000000. The sharing of market includes in large firm includes with 6.3 size and 13.75 in medium sharing (Lainema, 2014). 

European market helps the automobile company to reach among the hands of several consumers. Moreover, the company forms better quality products among the consumers and this helps to grab internal and external stakeholders. There is a requirement to fulfill the demand of stakeholders at the time of exporting and importing of luxury models vehicles.

QA Auto have sustainably maintained the precision of the deliverables (For instance, they have installed CRS2-16 system that serves to the commuter car up to the modest duty vehicle sector) and the production of the other components has happened within the regional quarters. Every segment of the hierarchy and value chain have performed in a sequential manner in which they are able to maintain an creative collaborative spirit among the R&D, engineers and several other cross-functional exchanges (Leger et al. 2014). Apart from that what I would like to cite is the installment of CRS1-14 system for the single and multiple cylinder load carriers. Since the enterprise actively endorses the systems engineering, it can be considered that systems integration is the core trait of the enterprise. The deal extracts knowledge from QA Auto’s central feature, such as production network and international development.

The auto industry of europe recently claimed the third position whereby they can focus on a certain moiety if the business ambience. This specific study has managed the evaluation the organizational capabilities of QA Auto. In order to enhance the interest of the stakeholders and to satisfy the financial credit the enterprise allows the expansion of composite tariffs and employs updated approaches for the game simulation. The composite consumption has been diminished employing the mechanization method in order to affirm the importance of business simulation. In order to assemble the eco sustainable autos and aim to dispatch autos with electrical unit the enterprise has offered an cost effective substitute (Rosenberg & O'Halloran, 2014). QA Auto attempts to take the administration at its extreme proportion by engaging themselves into the new age of expensive and modest autos at the datum cost. The administration is able to maintain uniform low-level overall revenue, which has imparted a significant impact on the foreign stakeholders, which is followed by a enormous sales statistics which has been highlighted extensively in their annual report. An increase of 33% in the total financial plan can be well estimated by the QA Auto (Wellington, Hutchinson & Faria, 2014)

The company has proposed to adopt different alternative and conventional measures in order to bring effective increase in their overall financial plan (Petridis, Uren & Harrison, 2015). The company plans to increase the overall competitive power of the company. The company has already made use of various apparatus to carry a elaborate expansion of the overall operation and the area of operation of the company. The company carries out with the operation in a desired manner as per the Poland and principles formulated by the organization. The company carries it with extensive form of diversifying its own activities in order to earn greater profits and have greater sustenance in the market. The company also arrange for different kind of financial resources in order to sustain its own activities each day. The company also takes up many operations in order to maintain proper sustenance of the company (Legeret al. 2014) The Company takes up various principles for making it more competent in the market.  The company takes up every step to make the proper arrangement for all kind of facilities such as monetary, technical and legal, which would help, in the proper expansion and the growth of the company.