Analytical Skills:
Analytical skills are significantly important in any kind of simulation project. Throughout this project, I was required to make sure that I continuously keep on increasing shareholder worth by increasing the value per share. At the same time, I was also required to make sure that the actual performance of my company should not have significant variance from the projected values. It was also required to make sure that the company does not overstock any item in order to avoid idle inventory or unsold inventory.
Communication Skills:
This simulation project helped me to improve my communication skills. I was required to consult my team members to select between different available decision-making Strategies or different available options. With effective communication skills, team members were able to avoid any kind of dispute and we were able to make appropriate decisions which would better suit the performance of the company. It is important to respect the opinion of other team members. In case of any disagreement with any opinion provided by any team member, it is important to present your countering with appropriate reporting facts and figures. It will help you definitely convince another party more easily and efficiently without any kind of dispute.
Decision Making:
Decision making is another important aspect of this project. At different stages, we were required to make different decisions related to the profitability of the company, the performance of the company, shareholder wealth of the company, stock position of overstock inventory, and other related aspects. In order to have a complete decision-making process, it was decided to make sure that all the team members would take part in the decision-making process.
Capital Structure:
According to the debt-to-equity ratio of the company, most of the financing was contributed by using equity financing as compared to debt financing. It is important to have a mixture of debt financing and equity financing to have a balanced capital structure approach. A similar strategy was adopted during the financing for the capital of the company in which both sources of Financing were utilized. The reason for using equity financing significantly and in higher amount as compared to debt financing is mostly because of the risk factors associated with debt financing. Debt financing increases the interest expenses of the company and also increases risk related to the liquidity of the company. That is why companies looking for less risky financing options adopt equity financing as compared to debt financing to meet the capital requirements.
Key Financials:
One of the most significant objectives of simulation project was to increase the shareholder value of increasing the per-share value for the company. According to the above provided key financial results for the year ending 2027, it was concluded that shareholder value for The Happiness Club was third highest as compared to the other 5 companies in the group. As far as the retail sales of the company is concerned, retail sales were second highest among the other five member companies. Profit after text was fourth highest among the other companies in the group. One of the more significant factors responsible for positively influencing share folder value is the increase in retail sales and profit after tax.
Forecast Vs. Actual:
According to the above forecast results for the company at the end of 2027, management was not able to achieve sales revenue forecast targets, gross margin forecast target, net income forecast target and the net income percentage of the sales forecast target. The highest variance was in net income of 21%, followed by sales revenue of 10% and gross margin of 8%. The sales of the company could have been increased by more focusing on promotional and discount-oriented activities in order to attract customers to the products offered by the company.
Inventory Position:
From the above production planner pie chart, it can be clearly suggested that management needs to focus on reducing invented related to Roadster as the company is already having surplus inventory approximately 4,236 for Roadster at the end of 2027. The extra idle inventory units could be sold or converted into sales revenue by focusing on promotion and discount related activities for this specific item. Two other products manufactured by the company have an acceptable inventory management position.
Marketing Report:
According to the marketing report at the end of 2026, it can be clearly observed that the percentage of the amount of stock with the number of store type is minimum for discount stores which suggest that discount stores are able to convert our inventory into sales revenue much quicker as compared to sports stores and bike shops. This provides direction towards the fact that most of the customers are focused on availing discount in order to purchase our products. It is important for the management to focus on different types of promotional and discount-related activities to further increase the sales revenue of the company in future. Contribution from retail sales in respect of revenue is less because of the fact that these stores provide discounts to customers. Management should also focus on introducing some promotional activities for sports stores looking towards the potential for this category of stores.
Benchmark Report:
According to the above-mentioned industry benchmark report for the year ending 2026, shareholder value for The Happiness Club was third-highest among the other industry companies. Earnings per share were 4th highest which suggests that Earning per share should be definitely in hand in the future as compared to other competitors in the industry in order to formulate positive relationships with shareholders and related stakeholders. As far as retail sales of the company is concerned, the company was able to achieve second-highest retail sales in the industry, which is a positive factor as far as the performance of the company is concerned. The whole sales of the company were also satisfactory as compared to the industry players. The number of shares issued by the company to the general public is second highest as compared to the competitors. The company could have enhanced the use of debt financing in order to reduce the number of shares issued to shareholders to increase the Earning per share.
Financial Statements:
Balance Sheet History
Cashflow Statement
Equity Movements Statement
Income Statement History
