Introduction
To offer goods and services, a business is essentially the coordinated actions of individuals carried out for financial gain. The company faces various risk considerations. Entrepreneurship can be successful for a significant risk-taker. According to Phillip Cotler, a marketing specialist, “Good companies will satisfy needs; excellent companies will create markets” (Dole, 2021, p.177).
For the company to meet the needs of its consumers and employees, it should be viewed as a community. Every activity, encompassing transportation, banking, media coverage, production, and recreation, is commercial in nature. By building the country’s infrastructure, promoting socio-cultural welfare, and upholding law and order, the government also greatly supports industries.
Using simulated resources like SimVenture, you can learn about every aspect of the business. Assist someone in creating a prosperous entrepreneurial venture. In this report, I provide an in-depth account of my entire SimVenture program experience. Without any existing information, we started the application and eventually gained some expertise and insight into the corporate world. Thus, the purpose of the article is to assess and consider the team’s experience managing a technology business using the SimVenture framework.
Marketing
Types and Influences
Traditional and internet marketing are the two main types of branding. These two campaigns employ different marketing tools. Examples of conventional media used in traditional advertising include periodicals and journals. Digital marketing tools include web pages and social networking sites (Qurtubiet al., 2022).
By facilitating customer awareness of and scrutiny of a particular item, branding plays a vital role in business marketing and ultimately boosts prosperity. Marketing can also harm a business; for instance, if the features of the goods are not thoroughly studied, money, time, and other assets are wasted (Qurtubi et al., 2022). The study should focus on developing a well-organized advertising approach for the design and publicization of the product, including its requirements, and on recommendations for effective use.
Four Ps
The four Ps, Product, Price, Promotion, and Place, often known as the marketing mix, are frequently applied in practice. This is where we sell personal computers to our customers. Before releasing a product to consumers, one must first recognize how it differs from rival offerings and understand consumer demands.
The second P is price, which affects marketing strategies, product interest, and the business’s earnings or losses. Therefore, it is a good idea to have an idea of the item’s general cost. As a result, we chose an asking price for our equipment. This price point hindered the sales of our PC.
The third P, promotions, informs customers about commodities and their characteristics. Promotion is a crucial part of advertising because it allows buyers to learn about an offering and assess whether it is a good fit for them. Promotion, outreach, internet branding, email marketing, search engine optimization, promotional videos, and other strategies will be used (Fernandes, 2018). As a new company, we must inform customers about our products, so we participate in numerous promotions to boost computer sales. We would not start receiving many customer requests until then.
The place is the final P in the marketing mix. To educate corporations about our product, we utilize a range of promotional materials, including online marketing, television commercials, and radio advertisements. By selecting the right item at the right time and price, we can increase our order volume and profit (Fernandes, 2018). Any objective may be attained with the right advertising plan.
Finance
The company’s finances are a key factor in its survival, and if they are poor, its market value and product superiority will be weakened. Profit and loss fall under the field of finance, and a reputable financial company may conduct effective advertising and select a trustworthy wholesaler to aid its success. When starting an organization, entrepreneurs must consider how they will finance their activities and cover their expenses. The finance department manages a corporation’s cash flow.
Regardless of size, industry, or other factors, the financing choice is crucial for the finance department of various organizations, as it depends on the optimal capital structure for those firms (Al-Afifi, 2019). Every business seeks to maximize profits and owner wealth. Thus, they must continually hunt for new funding sources. Because the financing process is ongoing, the firm often chooses one or more sources based on the available funding.
One of the most challenging obstacles a business owner must overcome to launch or grow is choosing funding sources. Many new firms require at least a small amount of funding to get started, but this does not mean that their entrepreneurial aspirations must be put on hold due to a lack of resources (Al-Afifi, 2019). There are various external and internal ways to fund small businesses, whether they pick the standard path or attempt something novel. Securing financing as an entrepreneur is essential to a firm’s success. It is one of the most difficult challenges business owners face when starting or expanding a firm. Although many new businesses require some financing to get started, this does not mean they should abandon their dreams of becoming their own boss because of a lack of funding.
When funding their enterprises, entrepreneurs have various choices to consider. The most popular method is to get outside finance. This may involve seeking loans from banks or other financial institutions, or raising funds from investors or crowdfunding websites (Al-Afifi, 2019). Although they require significant time and effort, these solutions can deliver the funds needed to support a company’s expansion. Alternatively, business owners may utilize internal financial sources, such as personal savings or reinvested revenues.
This strategy can be beneficial for companies that are just starting and do not yet have a proven track record of profitability. They can maintain control over their company and avoid any hazards associated with seeking outside finance. Entrepreneurs can also take risks and try something new, including applying for government grants or subsidies, trading goods or services with other companies, or even launching a crowdfunding campaign (Al-Afifi, 2019). These solutions can require a more inventive strategy, but often offer an original and economical method to finance a firm.
A company may receive money from various sources, including owner capital investments, retained earnings, asset sales, bank loans, collaborations, and other avenues. Each of the sources above possesses both advantages and disadvantages. Without a sound strategy, the business risks losing money; therefore, it is essential to monitor cash on hand and plan operations accordingly.
While using all of its funds, the company must weigh both benefits and drawbacks. Furthermore, if they suffer a loss, it may result in total financial waste, and they must also continue to build partnerships and opportunities (Al-Afifi, 2019). They can capture the full share of profits, limit their spending, and exert greater control over the businesses (Al-Afifi, 2019).
We spent more money on marketing, advertisements, social media advancements, and displays in the early phases of our computer enterprise, which resulted in a significant loss for our company. However, at that point, we secured a bank loan, took out loans from relatives and friends, and continued with marketing work until we eventually turned a profit. When the company starts to lose money, if we are unable to raise financing at the first stage, we must close. However, in this instance, we have a strong financial basis that enables our organization to turn a significant profit.
Human Resource
One of a company’s most crucial parts is its human resources. Every firm must have competent personnel to succeed. The company will surely fail and encounter problems repeatedly if its staff are unable to work efficiently. To maintain a productive workplace, managers must be skilled in human resources management.
Human resources must play a key role in employee recruitment, hiring, onboarding, training, and termination (Boon, Den Hartog, & Lepak, 2019). Planning, hiring, employee retention, boosting organizational performance, motivating employees, and sustaining employee relationships are crucial actions for improving results (Boon, Den Hartog & Lepak, 2019). To identify the most suitable workers for a specific activity and determine the number of new hires the organization needs, it is essential to be familiar with the job titles and descriptions.
Human resources must establish a recruiting process to hire qualified employees. The Human Resources department is responsible for ensuring that workers have access to benefits, compensation, and facilities, thereby fostering a long-term connection with the organization (Boon, Den Hartog, & Lepak, 2019). They must keep track of resource allocation and ensure that resources are utilized to their fullest potential with the least waste, to establish a successful organization. They must efficiently manage employee conflicts and inquiries and motivate the workforce by gauging performance and providing excellent rewards based on levels and overall productivity (Boon, Den Hartog, & Lepak, 2019). Human resource management maintains a positive relationship between management and laborers by considering employees’ thoughts and suggestions.
Therefore, controlling employee stress and boosting productivity falls under the purview of human resources. Human resources must successfully manage a growth strategy that involves coaching, organizing work-related activities, and training to achieve the required results. Installing new personnel inside the company would be a considerable loss otherwise. The company requires organizational and personnel support to operate at its best (Boon, Den Hartog, & Lepak, 2019). Since a lack of information can affect the effectiveness of human resources, the company must maintain a database containing employees’ information to retrieve and store relevant data.
Operations
In many ways, technology has radically changed how we live and conduct business. Not so long ago, we could not have imagined obtaining, storing, and analyzing such massive amounts of data. Businesses often base their decisions on data from their routine activities and interactions, or on their established reputation in the sectors in which they operate and interact. Such information is now accessible on a much broader and deeper scale. Additionally, a wealth of data and information from secondary sources is now available.
The company’s operations are its decisions and actions that impact the management of products, production, distribution, and services. Operations management is crucial in a company’s organization, as it typically plans and manages production. Because it helps manage, regulate, and oversee goods, services, and people, operations management ought to be managed effectively (Feng & Shanthikumar, 2018).
To ensure that any resource reaches its maximum potential, it must be appropriately managed. The execution of operational management requires the collaboration of numerous organizational elements. As a result, if a sound approach is not implemented, the software will fail to function correctly. From business to sales, human error is possible, and hence, corrective measures should be put in place (Feng & Shanthikumar, 2018). To function effectively, operations management must manage various areas, including operations, finance, marketing, human resources, engineering, and information technology. We compare our offering with that of other PC manufacturers. Then we built a computer superior to our rivals’.
Additionally, we decided to redesign the market we were targeting. This enabled us to receive numerous orders and generate a substantial profit. While developing the product, it was essential to thoroughly understand the consumer’s needs and assess competitors’ products. Operations management encompasses crucial components, including supply chain management and logistics. The supply chain is a system that a company and its vendors use to produce and deliver goods and services to customers.
All resources, including ingredients, ongoing work, and finished commodities, are transferred and stored. Goods are part of supply chain management. We looked into and contacted Rad and Harton Brothers, two independent wholesalers, to promote our products. The sales immediately increased as a result of this. Logistics regulates the transfer of commodities or information between locations. Transportation, inventory management, packaging, supplies, and even security are all part of logistics.
Technology
Technology is the most essential element of every company. It offers both advantages and challenges. With the aid of contemporary hardware and software, the business is experiencing rapid growth in all areas. Phone communication enables prompt client reactions. This enhances customer satisfaction and supports successful business promotion (Bamgbade et al., 2022). To provide a rapid response to customer inquiries, a phone has become an essential piece of equipment.
Email, text messaging, and social networking are all forms of interaction that help maintain client and customer connections. A company moved swiftly to support customer relationship management. Compared with conventional face-to-face conferences, web conferencing saves time and reduces travel expenses (Bamgbade et al., 2022). All one needs is a digital camera and an active internet connection.
An organization’s use of technology could also be detrimental to it. Clients may disclose information by sending client emails to third parties, and data can be intercepted or compromised. When a network connection issue occurs, the internet becomes unusable, and the task is interrupted.
The most recent technology requires the purchase of expensive devices and offers online socializing that may help promote a company’s products. The industry now uses both augmented and virtual reality (Bamgbade et al., 2022). Customers using augmented reality technology cannot distinguish between a virtual upgrade and an actual one. It is against business policy to use augmented reality for teaching, entertainment, or any other purpose.
We can use this technology to promote our product by giving buyers an online glimpse of our offerings. Automation is the process of producing and distributing goods and services with minimal use of human labor. Robots will handle the production and delivery of the goods. Using barcodes also speeds up stock control and sales record-keeping. Modern mobile barcode-scanning applications accelerate stock control and purchasing operations. We utilize technology to enhance production, minimize waste, and ensure our business operates efficiently.
Conclusions
Using the SimVenture program, which offered a simulated experience of starting and operating a firm, I collaborated with a group to manage a business. In the first quarter, we faced challenges such as high costs and poor earnings, but through strategic planning and effective marketing, we turned the company around and achieved profitability. Through this experience, I gained knowledge of the various positions and duties within an organization, established a strong reputation in the industry, and received favorable customer feedback.
Initially, I felt overburdened and uncertain about my ability to manage a firm. However, I grew more confident in my knowledge of the various facets of business management as we worked through the difficulties and developed our strategy. By the time the simulation was through, I was pleased with what we had accomplished and the information I had learned.
I believe our team worked well together to overcome the challenges we faced throughout the simulation. Our ability to recognize our weaknesses and develop plans to strengthen our company ultimately contributed to our success. There were instances when communication could have been improved, and some members may have felt excluded from the decision-making process. Nevertheless, I learned important lessons about business management and the value of successful planning and marketing.
Overall, I believe this experience helped me understand the various aspects of managing a firm. I have more faith in my ability to launch and run a firm. I am also aware of the importance of teamwork and effective communication. I aim to gain a deeper understanding of company management through further studies and practical experience. I will also enhance my communication and teamwork abilities to be a productive team member and leader.
Reference List
Al-Afifi, A. A. (2019) ‘Factors affecting decision makers’ preference of MSMEs in financing sources choice’, International Journal of Business Ethics and Governance, 2(2), pp. 16-29.
Bamgbade, J. A. et al. (2022) ‘Building sustainability in the construction industry through firm capabilities, technology, and business innovativeness: empirical evidence from Malaysia‘, International Journal of construction management, 22(3), pp. 473-488.
Boon, C., Den Hartog, D. N., & Lepak, D. P. (2019) ‘A systematic review of human resource management systems and their measurement’, Journal of Management, 45(6), pp. 2498-2537.
Dole, V. S.(2021) ‘Review of select contributions of Philip Kotler to marketing theory and practice’, Vidyabharati International Interdisciplinary Research Journal, 10(1), pp. 175-179.
Feng, Q., & Shanthikumar, J. G. (2018) ‘How research in production and operations management may evolve in the era of big data‘, Production and Operations Management, 27(9), pp.1670-1684.
Fernandes, A. A. R. (2018) ‘The mediation effect of customer satisfaction in the relationship between service quality, service orientation, and marketing mix strategy to customer loyalty’, Journal of Management Development, 37(1), pp.76-87.
Qurtubi, M. A. F. et al. (2022) ‘The Impact of Digital Marketing: A Systematic’, iJIM, 16(13).