Intopia Report

Table of Contents Strategy. 1
Execution or Implementation. 1
Conclusion. 2
Simulation Learning Lessons. 2
General Management Learning Lessons. 2
Peer Review of Your Team Members. 3

Strategy

Throughout the game, our strategy was to be an integrated producer of the highest quality and sell to the open market; the consumers. By doing so, our company was following a strategy of vertically related diversification. The reason this strategy was chosen was to maximize the value creation of the final product by eventually controlling the entire value chain. Moreover, by following a vertical integration strategy, our company would be able to avoid the problems of potential double-marginalisation. By choosing a related diversification, this increased the potential to maximize value by sharing key competitive capabilities and competitive advantages. In addition, we would realize economies of scope and thus reduce costs by using the same functional capabilities such as research and development, distribution, marketing, as well as sales. Furthermore, by following this corporate strategy in multi-market activities, we would be able to incur corporate advantages such as those of being able to transfer capital to minimize taxation. Another key aspect of choosing this strategy was that our corporation would not be subject to the perils of market exchange and contractual problems with other firms. This was a risk mitigation strategy that was decided upon at the onset of the simulation. Initially, we were going to follow a geographic diversification strategy by producing in all markets, North America, Asia, and Europe in addition to integrating vertically. The cost of production in Europe far exceeded the other regions which would inevitably resulted in lower margins on our