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Simulation Game - Coggle Diagram
Simulation Game
Company Overview
Automotive company selected for reorganization
Produces cars, but:
Faces declining performance
Needs re-evaluation of capabilities & competencies
Market context:
Competitive and fast-changing industry
Geographic presence:
USA (strongest)
China
Europe (smaller presence due to stricter regulations & high import taxes)
Automative Industry and Trends
General Industry Characteristics
Large, complex global industry
Key activities:
Design
Development
Manufacturing
Marketing
Sales
After-sales services
Major contributor to employment
Competition & Structure
Strong competition
High specialization
Dominated by large global players
Requires:
Large investments
Advanced technologies
Economies of scale
Key Trends
Shift toward:
Hybrid vehicles
Electric vehicles (EVs)
Governments:
Tightening emissions regulations
Promoting sustainability
Customer expectations evolving:
More eco-friendly cars
Innovation & tech features
Operations
Production
Production facilities:
Located in USA
Expanding into China
Issues:
Underproduction due to:
Capacity constraints
Inventory limitations
Financial impact:
High factory investment costs
Significant share of total costs
Sales, Marketing & Market Areas
Market presence:
USA → Largest & most mature
China → High growth potential
Europe → Smaller due to regulation
Market Characteristics Comparison
USA
Price: Medium
Features: Medium
Promotion: High
China
Price: Highest
Features: Highest
Promotion: Medium
Europe
Price: Lowest
Features: Lowest
Promotion: Lowest
Key Insights
USA:
Mature, stable demand
China:
Fast-growing market
Demand for premium features
Europe:
Price-sensitive
Highly regulated
R&D (Research & Development)
Strong in:
Combustion engine technology
Weaknesses:
Limited hybrid & EV development
Needs:
Investment in sustainable technologies
Innovation to stay competitive
Risk:
Falling behind competitors in EV transition
Logistics & Transportation
Global distribution network
Challenges:
High transportation costs
Regional cost differences
Special issue:
Trade tariffs (especially USA<-> China)
Finances
Industry requires:
High capital investments
Current financial situation:
Declining performance
High production costs
Recent actions:
Investments in China expansion
Key decisions needed:
Allocate investments wisely
Balance:
Production capacity
R&D spending
Market expansion
Key Challenges
Declining company performance
Capacity constraints in production
Lagging in EV & hybrid technology
Strong global competition
Regulatory pressure (especially Europe)
High costs (production + logistics)
Market differences across regions