STRATEGY SIMULATION:- VALUE SUBMITTED BY:- Group 3

AKHIL,ATHULYA,

CHAMPION KARTHIK G S,RIDHYA,SUGANYA,P J

HARIKRISHNAN,SUMITHRA
ABOUT
Here we will act as a Project Manager for Smart Shoe, a manufacturer of
technology-enabled football shoes. As they work to fulfill a special order from a
large sports retailer, we have to make strategic and operational decisions in an
effort to maximize profit.

The decisions has to be made in 3 different areas: Warehouse, Factory, and

Showroom. We have to carefully consider the impact of each activity—and whether
it is aligned with their overall strategy.
WAREHOUSE —In the Warehouse, we have to choose the quality and quantity of
raw materials to order. Here is where we decides whether to pursue a Premium
strategy or a Basic strategy for their shoes.

FACTORY — In the Factory, we make decisions about the physical manufacturing of

shoes. There are 4 different steps in the shoe-making process, and we decide how to
organize production and which workers to hire. Each worker has a different cost and
defect rate, as well as different completion speeds for each station.

SHOWROOM — In the Showroom, we can decide to add additional features to the

shoes in the hopes that it will increase the buyer’s willingness to pay.
CONSTRAINTS
TIME -9 Weeks including delivery
Cost of Production
Unused Inventory
Workforce Efficiency
STRATEGY
•The strategy that was selected by us was “High Quality and Low Quantity”.

•The main reason to select this strategy was that if we are able to produce the high
quality shoes then we could demand for higher prices.
ROUND 1

Ware House
Quantity produced – 3000 units
Quality rated- 80%
Price – $43.58/ unit
Used single shipment to deliver finished goods.
FACTORY
We recruited employees for all the stations.
We choose employees with maximum speed and less defective rate.
SHOWROOM
In 1 round we chose shoelace protector and technology advancement which provided
an additional benefit to the product.
ROUND 1
LEARNINGS
In first round we incurred loss and was only able to achieve the quality of 60.7 which
was not suitable for a premium differentiating product.
ROUND 2
WAREHOUSE EXPLANATION
Quantity produced – 2500 units
Quality rated- 100%
Price – Rs. 92.4/ unit
FACTORY EXPLANATION
We recruited employees for all the stations.
We choose employees with least defects in their works.
SHOWROOM EXPLANATION
In 2 round we chosed technology improvement which provide an additional benefit to
the product.( cost $ 1.50/ unit).
ROUND 2
 LEARNINGS

For premium product target to the highest quality .

We didn’t choose employees with lowest defects.
The Quantity was reduced further and the quality was made to maximym and hence it
helped in improving the profit.
ROUND 3
WAREHOUSE EXPLANATION
Quantity produced – 3000 units
Quality rated- 100% ( maximum)
Price – $76.98/ unit
Additional option chosed – join a buying group
FACTORY EXPLANATION
Recruited the same employees we chosed for the round 2.
SHOWROOM EXPLANATION
In show room also we selected the same features that we selected in the second
round.
ROUND 3
LEARNINGS
With respect to round 2 we had increase in our profit round 3;
We had Increased our profit by $12,000
In case of units of production we sold 2940 units in round 3.
Thank You