Simulation of Faboulous Four Company - Paper Example

The main objective of each and every company is to make profits. Substantial benefits will only be realized when all these companies will invest on the ubiquity of simulation and modeling. Thus, all the issues that will be noticed in the process of simulation and modeling should be well care taken off since they affect the present and the future performance. The whole process should revolve around ubiquity of simulation and modeling and not precisely the occurrence of its practice (House, 1977). Thus, simulation is essential to any company since it defines situations that may befall or have a high likelihood to face polity examinations guidance and not the degree of reasonableness, relevance, and robustness simulation. Therefore, simulation represents the reality in a more closely way through the use of some models. Faboulous Four has embraced simulation in its operations, human resource and exports. The company deals with software, hardware, ventures, and system. Thus, this paper examines carefully on the Faboulous Company use of simulation report on human resource, exports, and operation. It will also narrow down to the overall review summary of the company regarding performance and conclude on whether if the simulation was to be restarted, what I will do differently?

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Human resource simulation

For each single company, human resource is the greatest asset to them. Their welfare should be catered to. They should be motivated and well paid. For instance in Faboulous Four Company, it should incorporate the strategies mentioned earlier alongside their chief human resource decisions that will be simulated. This company made decisions of recruiting and hiring. At the same time, it brought on board training and development programs designed for their employees for its last 12 periods. All these decisions are made to appease the employees and minimize the high turnover that has was their initially. Thus, these decisions paid off. Employee turnover is reduced from period one which was 10 to 8.1 in the period 12. Through these decisions, the company has realized high profits and sales increase indicating that the employees feel that their welfare is well taken and that is why they have worked hard to achieve the company's goal.

Operations Simulation

One of the essential features that Faboulous Four Company have been incorporating is; increasing the technology used in operations over time which in return will reduce the costs being incurred and improve the efficiency of operations. Equally, additions to capacity of machines employed in operations due to their depreciation, tear and wore in the long run. Finally, incorporating quality programs that will at some point help in reducing defects when the entire company is in operations. All these main decisions made over operations have led to a reduced cost of transactions over the years, efficiency has been improved and more quality programs induced into the working places thus leading to a fair share of profits being realized which are $5,111 is in the period 12 compared to $199 in time 0.

Exports simulation

Exportation decisions have to be right for a company to achieve high sales of its products. The locality of which all its products are being exported to have to be also to have a ready market for these commodities. Faboulous Four Company exports its products to Ceres and Borealis. For good sales to be achieved, marketing should be done. The total cost to be invested apportioned to marketing should be in line with the potentiality the place hold. Faboulous Four Company's main decisions have been to venture on this locality with a total of $100000. Equally, to coordinate the pricing strategies to be relevant concerning pricing when competing with other companies in search of the markets. These decisions Faboulous Four has been making on exportation are not working well. They have led to the company sales to remain at 70%. Even in period 12, they went down regarding sales as compared to period 12.

Overall Summary of results

Faboulous Four Company is on the right course to achieve its set goal. Its decision made on the main elements such as exports, human resource and operations have led them to gain huge steps to realizing of high profits. But what is worrying now is their sales. It has stagnated at 70% for a long time. They should embrace other decisions regarding exportation to different regions and its marketing or pricing strategies.

Conclusion.

If I were in charge of Faboulous Four Company, I would change some decisions that they are using in the exportation department. To mitigate the ever changing of the value of currency, I will hedge it out by embracing a purchasing forward contract that will cater for the exchange of currency risk. I will also invest heavily in marketing our products in these two countries. I will also seek other potential markets in other regions apart from these two.

Reference

House, W. C. (1977). Business simulation for decision making. New York: PBI Books.

Wolfe, J. A. (1999). The global business game: A strategic management and international business simulation: player's manual. Cincinnati, Oh.