Business Policy and Implementation

Business Policy and Implementation Name Course Instructor Date Introduction The Foundation fast track takes into account the industry report and key financial information pertaining to Andrews and other competitors. To choose the best policies of the organization, pro formas are relied upon to analyze future projections, awhile annual results give results from earlier years to facilitate analysis. Strategy implementation should ideally make the team more competitive, but the actions of competitors should also be taken into account as they are crucial to the strategy plan (Hendon, 2013). This paper focuses on Capsim simulation of Andrews's team in round 0 to 5, touching on profit, margin, emergency loan, inventory, and stock price. Profit In round 0 of the simulation, all the firms are at a level playing field with each team reporting a cumulative profit of $ 2,485,186 which was the same as the reported profit as there was no previous results. Equally, the six teams reported similar Earning before Interest and Tax (EBIIT). Essentially, all financial results at the time are the same for all the firms in the reports. In round 1, there are differences in the profits reported with Andrews having the worst EBIT at $1,084,499, while Digby has the highest EBIT at $6,213,212. Even though, Andrews has higher sales than both Erie and Ferris, the two firms reported higher EBIT and profits. Andrews had a profit of $ 282,296, the only company which did not cross the 1 million dollar mark, and this resulted to the least reported cumulative profits for the group. Thus, the firm performed poorly than competitors managing costs with variable costs and period costs contributing to a lower profitability, and there is need for improvement in cost handling. In round 2, the group performed better than the previous year and reported the second best level of sales at $ 52,280,466 versus that of Digby being $ 77,844,840. Nonetheless, the EBIT (net margin) was worse as only tw...