Tuesday, November 29, 2011

SAP Distribution Game

In the SAP Distribution Game my team (DD) placed third. This was because we did not know how to properly change the 1L clearpures prices and so while we thought we were increasing the price it was selling constantly at $16.99 and at that price we sold a lot of them. Our strategy was to market everything but the clearpures because those sold on their own and rotate where we marketed each, then change the price accordingly if we were selling a lot of a specific product so that we would make more off of that product. I watched the amounts of product we had and our sales and referred that information to my team along with restocking accordingly. When we were picking jobs I had no preference as to which job I wanted and so when my teammates chose marketing and pricing I took overseeing and because watching our stock of each product was needed for restocking I took that job when it became needed.

While in the game the results were based solely off profit that is not the only factor in business. From a financing standpoint return on equity is most important because the higher your return on equity the more people will want to buy your companies stock and the more funding you will have for future endeavors.

What went well was that we messed up the pricing our second round and forgot how to change it so our 1L clearpures sold at a price that a lot were sold. This is what gave us such high profit. What did not go as well was our sales of almost everything else. Without further analysis of the data it is hard to say exactly why we did so poorly selling the other items. Our prices of the other items were just above cost and even though we were marketing them they did not sell. I can only guess that someone was selling them for a loss.

Two things I learned from the assignment are that just because your making a mistake that does not mean your doing it wrong, as long as once you realize you made the mistake, you understand why it did not cause your downfall, and selling a product requires much more work under a highly competitive market especially when you can not see what the other companies are doing.

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