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Pages:
4 pages/≈1100 words
Sources:
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Level:
APA
Subject:
Accounting, Finance, SPSS
Type:
Reaction Paper
Language:
English (U.S.)
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Topic:

Mobile Inc. Strategic Business Management Simulation (Reaction Paper Sample)

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instructions were given on on the dashboard of a site whose login details were provided source..
Content:
Mobile Inc. Strategic Business Management Simulation Student's Name Professor's Name Course Title Due Date Mobile Inc. Company Strategic Business Management Simulation Mobile Inc is a telecommunications company that started in the year 1981 offering cellular network on mobile telephones. It was during the time Mobile Inc started that mobile communication started and portable gadgets were designed. Towards the end of the 80s, many other companies came up in the telecommunication industry that offered stiff competition. The company recorded profits as it was the first to come into the market. Due to the monopoly kind of business that was being conducted, the directors made a covenant among themselves to stagnate the advancement of technology hence a decline in profits. The board of directors was declared dismissed after it was discovered that the slowdown of advancement in technology was an agreement that was made among the directors. After the dissolution of the board, we were elected to take over on the management of Mobile Inc. Our elected team to the board consists of Abdalla Kaidy Haidar, Mohamed Almaazmi Anbdalla, Kaidy Haidar Mohamed, Mohamed Ibrahim Rashid, Ahmed Mohamed Ibrahim, Rashid Ahmed, Adnan Hassan Mohamed, Shalo Haiderbadi Adnan, Hassan Mohamed Shalo, and Salim Alzarraee. Letter to shareholders We, the board of directors have accepted the appointment to serve in office as Mobile Inc. directors for the term specified in our employment contract. Honesty and transparency will be the key factors in the conduct of or duties. Businesses are operated on a going concern and setting a long-term goal will be the major aim in propelling the company to greater heights in the market. Technology, as time goes but every new idea in the market, will be captured and structured into improving the company's qualitative structure in the market by ensuring that quality and consumer satisfactory is met. Vision Statement Our company vision is delivering the latest technology to the world. Mission Statement Our company mission is maintaining communication in the society through the use of the latest technology in the market. Strategy As a measure of helping the company to grow and make a step in technology and implement change, a strategy to bring change to Mobile Inc. is the biggest challenge. However, we laid down the following strategic measures to attain our objective. Our newly recruited hard of directors had a hard time to lead a hard time to lead change. Directors and other executive members should lead with culture (Russ, 2010). As communities stick to cultural beliefs, companies too have a culture that guides in the operations of duties and performance of work in general. As it is believed, culture is everything in the involved institution. Since the dismissed directors had created the sense in other employees of not taking into consideration the changes that were happening in the technology sector, we had a challenge in making people follow the current trends I technology more in the telecommunication sector. To embrace the culture in Mobile Inc. it required skilled directors (Martínez-López, 2014). Apart from having the required knowledge in the field of management, we arranged and attended to many management seminars and conferences that were adding more value in the governance knowledge. Being skilled directors could guide in creating a culture in the company. A combination of the emotional and rational should be exercised to gain strength in management (Glynn, & Woodside, 2012). A stable management team can set goals that can improve a company's returns. Company Goals Finance When we were elected to the board of directors in Mobile Inc, the company had financial problems due to the reduced sales and loses of customers to competitors who had come into the market. We as directors went for short term loans that financed the operations and after the sales had gone up, we used the revenue to stock on raw materials and other overhead expenses were paid. We also made arrangements with our banks for overdrafts to certain limits that were repaid back after we have collected revenue from our customers. Marketing As much as Mobile Inc products might be known in the market, advertising for new applications and system improvements on the devices will attract more customers. We did a global advert through social media on sites that are dominated by young people who are ready to explore the market of technology. The advert passed word about the improvements and addition of new applications to the devices. Production After we took over on the responsibilities of directorship, much of the stock was in the store that had not been sold. We restructured the production team and ensured that the old stock was cleared. Our sales executive team did a survey and came with statistics on the market figures. We used the figures to produce the devices according to the market to avoid overstocking as it can hold a lot of money that should have circulated in other sectors to generate. Logistics To reduce transportation costs, we set rules on the delivery times to certain regions. Delivering small orders t long distance places can lead to high transportation costs the board decided that an accumulation of more orders can be better idea to be delivered together on one specific time. Mobile Inc can be making sales every day but then if the sales amount is small the logistics cost will overcome the revenue collected hence the company operate at a loss. Orders were combined together and delivered on one specific time to reduce cost. Ratio analysis After implementing the strategies to revive the business, a ratio analysis on the financials is used to determine the progress of the company. The analysis is done on the major financial statements that are the statement of comprehensive incomes, statement of cash flows, and the balance sheet. P/E Ratio The price-earnings ratio is the difference of a share value at the beginning and end of a financial period. A higher price earnings ratio guarantees investors of higher earnings from the money invested in the business. However, in Mobile Inc, the investors are experiencing difficult times because P/E ratio was 46% in year one but reduced to nil in year eight. Operating profit before depreciation (EBITDA) The operating profit before depreciation went up from 25% in round one to 38% in round eight. The increase in the operating profit came as a result of reduced costs of production and increased sales. Return on sales (ROS) The return on sales is a determinant on how a company generates profit from the revenue collected. The company's performance went down because the return on sales was at 6% in year one but by year eight, the return on sales figure was at -6%. The decrease indicated that the cost of sales was hi...
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