Results of the SAP Distribution Game

My team ranked second to last in both the second and third quarters of the SAP Distribution Game.  I think the main reason we ranked so low is because we spent way more money on marketing then what we should have so our profit was a lot lower than other groups.  We also lowered our prices far below our competitor’s price which hindered us.  In the first two rounds, my team and I just focused on selling as much of our inventory as possible.  In doing this we had to lower and raise prices so our inventory would sell.  When items weren’t selling, we lowered their prices and when they were selling we raised the prices.  In the third round, we focused on replenishing our inventory so we consistently had a large inventory.  We also made sure not to spend any money on marketing in the third round since we spent way too much the first two rounds.

            In business I think it is necessary to consider profit, sales strategy, margin, and return on equity.  It usually takes a combination of all these factors to run a successful business.  When one item receives more focus than the others then you lose a good balance.  If you focus too much on a new sales strategy you can lose sight of meeting your customers needs or making sure your employees are satisfied.

            One of the strengths of our SAP game was that we were making a large amount of sales each quarter.  Another thing that went well was that we always had a stocked inventory.  Some things we could have done differently were spend less on marketing and be more patient.  When we realized our products weren’t selling we would immediately market them more in different areas and lower the prices.

            One thing I learned from this activity is that it takes a large group of people to run a business smoothly and efficiently.  Without the help from my other team members it would have been more difficult to take on all three tasks of marketing, pricing, and inventory.  Another thing I learned is that it is very important to communicate effectively between different departments.  If other people aren’t on the same page a lot could go wrong.  It is crucial that everyone knows what the main goals of the company are and exactly how they should go about reaching these goals.