Simulated Company’s Performance and Development

This vision is partly supported by the resource-based and market-based views, which presuppose that companies could use their internal resources to achieve maximum external leverage (Aghazadeh 2015; Droli et al. 2014; Dassler 2016; Xie, Wang & Luan 2014; Hewett & Krasnikov 2016; Line & Wang 2017). The key figures used for decision-making in P0 were based on the cost structure of the company’s products. Relative to this assertion, Winkler et al. (2017) supports the use of pricing strategies to make strategic decisions.
Lastly, in this first period of the company’s development process, its economic growth was still unknown. Similarly, there were no crises observed during the period.

This view was supported by a study undertaken by Dekimpe, Peers and van Heerde (2016), which suggested that the success of businesses was significantly impacted by the business cycle stage of the source market. Nonetheless, the revenue generated from the market was also a significant consideration in decision-making because it provided the figures used to benchmark the performance of marketing campaigns. In P2, there was no major crisis affecting the company’s operations.

The poor performance in market 2 compared to market 1 was also a cause for concern because it was characterised by price deviations of between -16% and 17%. The evaluation and operational decisions made were contingent on problem identification, especially in market 2 because it was expected that markets 1 and 2 would have standardised performances. The improvement in customer satisfaction standards also influenced decision-making processes because we were satisfied that the causes of the poor performance in market 2 were probably related to the operational dynamics of the company, as opposed to customer satisfaction.

Focusing on customer satisfaction as a key metric for influencing management decisions stems from studies, which have shown that predicting customer behaviour could positively influence key performance indicators, such as sales and revenue (Gilal et al. 2018). For example, the self-determination theory has been touted as a reliable model for predicting customer behaviours. Its proficiency comes from the failure of other marketing theories, such as the theory of reasoned action and the theory of planned behaviour, to influence customer satisfaction (Gilal et al. 2018). Relative to this assertion, Hill and Martin (2014) say that most marketing theories ignore people’s heterogeneity because they only focus on simplistic measures of success.

Although there was a lacklustre performance in P4, it is still plausible to say there were no major crises during the period. It is also important to note that the economic development of the company was generally positive.

Volatility in price deviation and market share, especially in market 2, provided the figures for estimating the effects of strategic decisions on the company’s performance. However, it is still important to point out that there were no major crises reported in P5. In addition, if the performance of market 2 in P5 was compared to that of market 2 in P4, it could be deduced that the economic development of the company was insignificant but promising.

Market expansion through segmentation was one of the biggest influences of management decisions during P6. The decision to expand markets was informed by several issues, which affected organisational factors. Limited resources, staffing considerations and competitive pressures are only a few of these issues that had to be considered when expanding the company’s market profile. These considerations are similar to those identified by Sheth (2018), which suggested that five issues should be considered before creating new market entry strategies. They include unbranded competition, infrastructural issues, socio-political governance competencies and market heterogeneity.

Relative to the above insights, Holstein (2018) says that decisions aimed at promoting growth in business should be made after managers decide whether to operate in specialised or integrated markets. Schmitt (2018) also contributes to the same discussion by saying many small businesses experience growth challenges and can only perform effectively if they consult their internal and external stakeholders.

Focused on highlighting marketing considerations for countries that want to venture into emerging markets viz-a-viz traditional western markets, Schmitt (2018) also suggested that it is important for managers to rethink their marketing perspectives. In addition, Sheth (2018) posited that it was integral to assess differential advantages and market aggregation dynamics when making such decisions.

An overall assessment of the company’s performance also demonstrated a positive economic development. This type of growth is typically associated with companies, which are seeking to innovate because as Brown and Mawson (2016) point out, some companies fail to embrace growth because they recycle initiatives, which could propagate past mistakes. Nonetheless, similar to other periods highlighted in this report, no major crisis affected the company during P6.

The role of technology in reducing operating costs has also been supported in research studies conducted by Vigersky (2015). These advantages are partly supported by the works of Patwardhan, Pandey and Dhume (2014), Rekha, and Chauhan (2017), which demonstrate the positive impact of technology in marketing activities. Generally, it is pertinent to point out that there were no major crises affecting the company during this period of assessment.

The figures indicated that there was traction gained in the market and that the strategies adopted for markets 1 and 2 (pro) were relatively successful. The reliance on these figures to make informed decisions is in line with the recommendations of Stickel and Vandervalk (2014), which suggest the need to use reliable data to make informed business decisions. In fact, a market share of 24% was reported after the launch of market 2 (pro). This was a strong indication that the economic development of the company had increased from period to period (through the analysis).