PDA Slim 5 Essay Example | Topics and Well Written Essays - 750 words

PDA Slim 5 - Essay Example During the early stages of the simulation game I learned that managers need information in other to be well informed prior to implementing any decision or business strategies. The first thing I had to do was study all the data in order to familiarize myself with the company and the marketplace. It was necessary to study the economic behavior of both the company and the marketplace. Market saturation was an interesting economic metric in this simulation. The behavior I observed was that products with higher price tags such as the X6 product take much longer for the market to get saturated because the higher price tag of the item leads to lower volume sales. The opposite behavior occurred in the lower price products such as the X7. When I lowered the price for this from the start I was able to jumpstart this product line, and dramatically increase the X7 which cause a virgin product to achieve full market saturation in a four year span. The simulation taught me that a manager gets better at strategic decisions through acquired business experience which means that business strategies development involves a learning curve. A learning curve is the anticipated improvements that are likely to occur following mistakes which implies that a company gains experience it is able to develop products more efficiently and at lower costs (Learnthat). As an analyst and decision maker for PDA Corporation the historical data accumulated was very instrumental for me, since it provided the ability to review the information to study the behavior of products in the marketplace based on the decision made. One of the major strategic flaws I was able to correct was my erroneous assumption that the profitability of X7 would increase by increasing price. This was not right approach since the sales volume for the product was too low and require a lower price to jumpstart the sales of the X7