This thesis deals with the necessary of using management tools within a business game. In the first descriptive part, it critically examines the common management tools mentioned in the literature. It is limited to the treatment of three tools: The Ansoff Matrix according to Harry Igor Ansoff, Porters Five Forces (industry structure analysis) and the Business Model Canvas according to Alexander Osterwalder and Yves Pigneur. In the following analysis, the work applies these tools practically to the fantasy company, „Xeltronics 1“.
What does strategic management deal with? In the Anglo-American literature, management is used in two variants of meaning. On the one hand, management in the functional sense aims to describe the processes and functions, such as planning, organization, leadership and control, that are necessary in organizations based on the division of labor. Management in the institutional sense describes the people, who perform management tasks, their activities and their roles. There are the two main components of the strategy term are the time element and the reference object. According to their ethymological origin, the terms strategy and strategic are strongly associated with the term "longer-term".
It is difficult to determine precisely when strategic management was established as an independent field of research. The year 1977 is mentioned as the "year of birth", for example, when a conference was held at the University of Pittsburgh in the USA, whose contributions were presented in 1979 by Schendel and Hofer under the title "Strategie Management. A New View of Business Policy and Planning". Behind the term "strategic management" is a management philosophy that expresses rethinking. Basically, the group is experiencing a similar phenomenon here as in the 1960s, when the term marketing also signalled the need to rethink after the original sellers' markets had turned into buyers' markets. Although there are many different ideas associated with the concept of strategic management, a common goal can be identified: Strategic management is able to control and guide the long-term evolution of the company. The role of the manager is important, but according to a study, almost 85% of the German population think that their salaries are high to high.
Table of Contents
1. Introduction
2. Management Tools
2.1 Ansoff-Matrix
2.2. Porter’s five forces and three generic strategies
2.3. BCG-Matrix
3. Application of management tools to the fantasy company Xeltronics 1
3.1. Description of the business game (TOPSIM)
3.2. Description of the company Xeltronics 1
3.3. Integration of the Ansoff-Matrix into the business game
3.4. Integration of the Porter‘s five forces and three generic strategies into the business game
3.5. Integration of the BCG-Matrix into the business game
4. Summary
Objectives and Research Focus
This paper examines the practical applicability of established strategic management tools within the context of a business simulation game, using the company Xeltronics 1 as a case study to demonstrate how these frameworks inform corporate decision-making and performance.
- Theoretical foundation of Ansoff, Porter’s Five Forces, and BCG matrices.
- Application of strategic management tools in the TOPSIM business simulation.
- Analysis of product lifecycle management and portfolio balance.
- Strategic alignment within the electronics manufacturing services (EMS) industry.
- Practical evaluation of strategy implementation and competitive positioning.
Excerpt from the Book
3.4 Integration of the Porter’s five forces and three generic strategies into the business game
In the following part, the external and internal forces affecting the company are analysed and described competitive rivalry.
Competitive rivalry: So far there are only two competitors on the market. There are many barriers to market entry and a lot of capital is needed to manufacture and develop the product. The new competitor also has to spend a lot of budget on marketing campaigns to establish itself on the market.
Buyer power: The customers can demand a lower price. The customers' product cost management could gain insight into the production and development process. This could pose a threat to the company. Good management of key accounts is very important.
Threat of substitute: There are no substitutes for this product. The technology is required by the customers. The only danger is possible industrial espionage or copying of the products, so that unauthorized clones (e.g. on the Chinese market) appear. However, the company can protect itself against this procedure by means of patents in several countries.
Supplier power: The main material for in-house production is silicon for the wafers and precious metals are required for doping these. Here it makes sense to conclude long-term contracts with suppliers, as the market is subject to fluctuations. The company uses so-called foundries (external production) to serve the market. The danger here is that these dust-free rooms could raise prices. This is a risk for the company.
Summary of Chapters
1. Introduction: Defines the scope of strategic management and outlines the objective of applying management tools within a business simulation.
2. Management Tools: Provides a theoretical overview of the Ansoff-Matrix, Porter’s five forces, and the BCG-Matrix as core strategic instruments.
3. Application of management tools to the fantasy company Xeltronics 1: Analyzes the practical integration of the aforementioned models into the TOPSIM simulation to optimize decision-making processes.
4. Summary: Concludes that strategic management tools are essential for competitive differentiation and long-term success in dynamic market environments.
Keywords
Strategic Management, Business Simulation, TOPSIM, Ansoff-Matrix, Porter's Five Forces, BCG-Matrix, Corporate Strategy, Electronics Manufacturing Services, Market Penetration, Competitive Rivalry, Product Portfolio, Xeltronics, Decision-Making, Economic Value Added, Market Development.
Frequently Asked Questions
What is the core focus of this paper?
The paper explores the practical application of strategic management tools—specifically Ansoff-Matrix, Porter's Five Forces, and BCG-Matrix—within a complex business simulation game environment.
Which business simulation is analyzed in this work?
The paper utilizes the TOPSIM-Global Management simulation as the basis for applying the strategic tools to the company Xeltronics 1.
What is the main objective of the thesis?
The goal is to demonstrate how theoretical management frameworks can be adapted and used to guide corporate decision-making and ensure competitive success during the simulation.
What methodology is applied?
The author employs a descriptive methodology to examine the theoretical background of management tools, followed by an analytical application of these tools to the simulated business scenario of Xeltronics 1.
What are the primary themes discussed?
Key themes include product-market growth strategies, industry structure analysis, competitive advantage, and portfolio management through strategic business unit classification.
Which keywords define this paper?
Key terms include Strategic Management, TOPSIM, Business Simulation, Ansoff-Matrix, Porter's Five Forces, and BCG-Matrix.
Why are the BCG quadrants important for Xeltronics 1?
Classification into BCG quadrants allows management to assess the performance of its six products and decide which should be supported or eliminated to balance the company's portfolio.
What risk does the author identify regarding competitive rivalry?
The author highlights the danger of competitors entering the market and initiating price wars, which could squeeze current products out of the market.
What is the conclusion regarding long-term strategies in the simulation?
The author concludes that participants should choose a strategy early and follow it rigorously, as changing strategies mid-game often proves unsuccessful.
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- Benjamin Wagner (Autor:in), 2020, Suitability and application of selected tools of Strategic Management to Simulation Games (Global Management), München, GRIN Verlag, https://www.grin.com/document/962847
