By Kayley Brennan and Redhan Hossain
09 December 2024
For the business simulation module for the foundation year we have been participating in a computer simulation based on establishing a shoe manufacturing business. This blog will outline some of the activities we were involved in.
Reflecting on Our Shoe Business Simulation Experience: Key Takeaways and Insights
As part of our shoe business simulation programme, we had the opportunity to immerse ourselves in the intricacies of running a business, making strategic decisions, and learning how to navigate challenges. Throughout this process, we focused on several key areas that proved to be essential for success: motivating our staff, setting clear KPIs, aligning our marketing efforts, and continuously evaluating our performance.
1. The Importance of Motivating Our Staff
One of the most significant insights we gained during the simulation was the direct correlation between staff motivation and overall business success. Motivating our employees proved to be a driving force behind increased productivity, customer satisfaction, and retention. We recognised that when employees feel valued and motivated, they are more engaged and perform better, directly impacting our bottom line. This led us to implement strategies like increasing education budgets, offering profit-sharing schemes, and raising wages—all of which were prioritised in our budget. In the future, we would focus even more on consistent employee motivation to ensure a more engaged and productive workforce.
2. Choosing “Market Leader in Price Segments” as a KPI
A key performance indicator (KPI) we selected for the simulation was becoming a market leader in specific price segments. This KPI helped us focus on establishing a strong competitive position within our chosen market, whether premium, mid-range, or budget shoes. We realised that by leading in our target price segment, we could attract more customers, increase sales volume, and maximise profitability. Achieving leadership in a price segment not only strengthened our brand recognition but also allowed us to differentiate ourselves from competitors, ensuring long-term success in the marketplace.
3. The Role of Communication and Marketing
Our marketing and communication strategies were pivotal in shaping the public’s perception of our brand. For example, when we opened our outlet store at Rosada Outlet in Sheffield, we made sure our marketing efforts were aligned with this significant event. By advertising the grand opening across various channels, we ensured maximum visibility and engagement. Additionally, we used our marketing campaign to introduce our business, crafting an advert that highlighted our mission and core values. This helped reinforce our brand identity and establish a connection with our customers from the outset.
4. The Weekly Analysis Tool: Strengths and Areas for Improvement
The weekly analysis tool was extremely helpful in guiding our decisions and keeping us on track. However, we struggled to fully understand the implementation of our changes, as they didn’t always show immediate results. It was challenging to see how our adjustments translated into tangible improvements over time. In some instances, we were unsure about the impact of the changes we made, as we didn’t fully grasp their implications. Moving forward, we would dedicate more time to reviewing instructional materials, such as videos and additional resources, to gain a clearer understanding of the simulation. Unfortunately, due to starting the course late, we struggled to allocate enough time to engage with these learning tools. In future simulations, we would prioritise this to ensure a deeper understanding of how to leverage the simulation’s features more effectively.
Conclusion
Overall, the shoe business simulation programme has been an invaluable learning experience. Through it, we’ve gained a better understanding of the complexities of running a business, the importance of staff motivation, and the value of strategic decision-making. We’ve also learned that consistent communication, setting clear KPIs, and actively engaging with the tools provided are crucial to success. While we faced challenges, particularly with time management and understanding certain aspects of the simulation, we now have a clearer vision of how to approach these areas more effectively in the future. As we continue to refine our strategy, we are confident that the lessons learned from this experience will guide us towards greater success in our real-world business endeavours.