Introduction
The completed simulation allowed us to determine how business decisions can affect the company long-term using the blue ocean strategy (BOS). The beginning of the family business in the simulation started in September 1972. Harsh, by coincidence, began to sell honey, and he succeeded. As a result, the business began to grow, and a decision to expand had to be made, so Harsh increased the number of hives to 200. Critical business decisions from this point in history changed how the company was transformed over the decades.
Value Creation and Competitive Advantage
For four generations, the company was run by many on the board of directors. They had different power ranges, but outside members were never admitted to the council. The creation of value in the company was obtained by its founder, who devoted much time to the business and tried to follow all processes and operations as accurately as possible. He supervised the signing of each check and personally conducted all negotiations.
The organization achieved further development and created a competitive advantage, beginning to separate the business without focusing only on the honey field. The production of honey-based fillings and other products, such as sweets and organic products, allowed the company to remain competitive and not disappear from the market. Ravi’s decision helped the company develop in several directions, which increased profits.
Thought Process
While making decisions in the simulation, I did not think differently because I needed to provide the best result for the company. Accordingly, I made all the decisions I would in real life. My thinking was adapted to the conditions in which the simulation put me. In addition, I had specific goals in front of me, such as keeping the business in a family form, which is vital for having a consolidated opinion.
It is necessary to make the right decisions to maintain the company’s development. Nevertheless, it was decided to invite a third-party CEO at one stage since transferring the board to any of the daughters or distant relatives was impossible. So, there was a situation since they did not have the proper knowledge and desire to manage.
Discovery
An important discovery during the first round of the simulation was that decisions regarding the choice of business strategy could not be based on anything other than the studied environmental factors. For example, one of my incorrect decisions was that the company should continue focusing on honey. This resulted in significant limitations because the company could not generate enough profits by focusing on honey.
A shift in focus to other products would create a more favorable environment where the organization could enter many international markets. BOS is when a company creates a new product, creating demand that was not there before (Madsen & Slåtten, 2019). The BOS was applied to this case as previously, the sale of honey was not launched in large volumes, and accordingly, Wildlife Honey was the first to create demand for products that did not exist before, such as topping honey products.
Conclusion
In conclusion, simulating business decision-making helps to understand how important it is to correctly and holistically assess risks to develop a company’s growth. Creating a new market sphere requires great responsibility, without which it is impossible to fully understand the future changes that will happen to the organization. The Harsh case example shows how the family business developed and grew over a long period. This was preceded by a competent development strategy that strengthened the company’s position.
Reference
Madsen, D. Ø., & Slåtten, K. (2019). Examining the emergence and evolution of Blue Ocean Strategy through the lens of management fashion theory. Social Sciences, 8(1), 28. Web.