Successful Decision-making Flow

1. Market Conditions

To make a decision making, firstly we should know the information of the market conditions. We can make a research for the market areas about the the specified product demand (click the underlined words to see the example).

2. Demand

Demand, total market and market share.

Demand for a team is determined in three steps.

• The total market size for each market area is calculated. Market outlooks provide a rather good forecast of what is going to happen inthe future.
• The total market demand is devided into different technologies.
• The market shares for each company are determined. The factors affecting the market shares are product features, price, promotion and previous round market share.

3. Production
Global allocation of production is an important success factor in the simulation. You have two production areas that you can use to supply to three market areas. In the long run it becomes important to have a solid production strategy. There are no finished good inventories in this simulation. If you over-estimate your demand and make too high production decisions, the production will be cut automatically. There is an additional cost if production needs to be adjusted during the round. Note that your production will not be increased if you have decided too low capacity utilization. In that situation you will have lost sales.
Production Costs
The factors affecting the production costs are the following

• Basic cost level in the production area
• Production cost function
• Learning curve effect
• Penalty for having too high production target. This happens if you have over-estimated your demand and your production needs to be reduced during the period. However this penalty is not very important factor. E.g. deciding a production target of 100% and actual production being 1% the penalty is about 5% of the production cost.

4. Investments
When you make a plant investment you are committing a substantial amount of money into a long-term investment. You need to make sure that you can pay for the investment with the revenue that you are making from it.

5. Marketing
Decide your marketing mix, namely, product, price, and promotion. These decisions need to be made for each product and market area. Since you have only one product in each market in the beginning, you need to make these decisions for one product only in each area. As soon as you have more than one product, you will make the decisions for both products separately. It is important to keep in mind that the success of your marketing mix will be determined by the markets. Customers are comparing between different alternatives and making their purchase decisions accordingly.
Implementing different product features cause feature costs. You can implement 1-5 features to your products and each feature carries additional costs. Features can only be implemented if your company has reached the respective technology competence level either by investing to own R&D or by buying licenses from outside. Feature costs can be calculated by multiplying the number of features by the cost per feature.
Marketing affects not only the demand for the product being advertised but also the company's image in the particular market area. Thus advertising has long-term effect.

6. Logistics
When you set the delivery prioriries you should attempt to maximize your total margin from the products. This can be achieved by prioritizing those markets where unit margins are the highest. In other words, if you run out of supply, you want to make sure that it happens in the market where your unit margin is the lowest.

7. Researh and Development
There are two ways of improving your company's technological capabilities: own R&D and technology license purchases. They are both substitutable and complementary ways of building competence, which means that you can first invest to your own R&D then decide to buy a license and then improve the technology further by your own R&D again. Remember that technology decisions affect the competence with one year lag.

8. Finance
Finance decisions are typically the last set of decisions that you are making. All financial market transactions are managed through the parent company. you decide about:

• divident payments
• increases and decreases in long-term loans
• share issues and buy-backs.
• internal loans.

Issues and buybacks are made according to the market valuation in the beginning of the round. However, the namber of shares issued (acquired) also affects the issue (buyback) price.

9. Budgets
Budgets--pages update continuously as you make decisions.
Since your goal in the simulation is to maximize the shareholder value, you should pay attention to the balance sheet as well. Smaller balance sheet you have utilized your assets more effectively and thus better managed the funds that your investors have given for you to manage.

Market Areas of Mobile Phone

USA
USa is the local market for the companies and at the same time their largest market. USA is generally known to be a leader in high-tech industries but in the mobile phone sector it follows behind the rest of the world. Mobile technologies and networks tend to be a couple of years behind Europe and Asia. Also additional features ar less appreciated than in Asia and Europe. Demand is expected to grow steadily about 5% p.a. at least for the next 2-3 years. There seems to be no reason why growth should stop even after that. According to some of the least conservative estimates, in a few years together with the introduction of new technologies, growth in demand may show peaks of up to 10% p.a.

Europe
the companies have been exporting products to Europe for a couple of years. Production facilities will not be established in Europe because of the high labor costs
the market growth is expected at about 10%.p.a and demand is expected to grow steadily for several years to come. There is no fear that the market will mature, as new technologies guarantee constant change and the customers' will to purchase new phones remains.

Asia
Asia has been an export market for the companies for a couple of years. It is predicted that the highest growth potential is in fact in Asia. Currently the market grows at 15%.p.a., but long-term growth prospects are hard to make.
In Asia, consumers went their mobile phones to be of the latest technology together with all the possible additional features.

Socioeconomic Dimensions

A complete definition of market potential must also include detailed information about the population's physical attributes as measured by the socioeconomic dimensions. They are such as:

1. Total Population
Total population, the most general indicator of potential market size, in the first characteristic of the population that analytsts examine. Population sizes vary immenensely, from more than a billion inhabitants in China and India to 2,756 for Svalbard and the uninhabitted Bassas da India. The fact that many developed nations have fewer than 10 million inhabitants makes it apparent that population sizealone is a poor indicator of economic strength and market potential. Only for a few low priced products, such as soft drinks, cigarettes, and soap, might population size alone provide a basis for estimating consumption.

2. Age Distribution
Because few products are purchased by everyone, marketers must identify the segments of the population that are more apt to buy their goods. For some firms, age is a salient determinant of market size, but the distribution of age groups within populations varies widely. Generally, because of higher birth rates, developing countries have more youthful populations than do industrial countries.

3. Concern in Developed Nations.
the decrease in famili size is welcomed by some countries in Africa and the Middle East, where vertility rates are as high as seven shildren per woman. But declining birthrates are causing concern in industrialized nations.

4. Population destiny and Distribution
population destiny is a measure of the number of inhabitants per area unit (inhabitants per square mile), While the population distribution means a measure of how the inhabitants are distributed over a nation's area.

Seven Global Dimensions

There are at least seven dimensions along which management can globalize (standardize):

1. Product
2. Markets
3. promotion
4. where value is added to the product
5. competitive streategy
6. use of none-home-country personnel, and
7. extent of global ownership in the firm.

The posibilities range from zero standardization (multidomestic) to standardization along all seven dimensions (completely global). The challenge for company managers is to determine how far the firm should go with each one. Usually the amount of globalization will vary among the dimensions. For example, the promotion for washing machines might be standardized to a great extent: People use them to get their clothes clean, but for economic reasons, in poorer countries the machines must be simpler and less costly. Therefore, the product is not standardized worldwide.

Competitor Analytic

In starting internet business, we will find many competitors. Even the competitors are not only came from the domestic environment, but its are coming from the whole world.  As the customers/internet users, they should compare one to another site. For example, when someone wants to buy a shoes, he or she would compare one product to another product. Of course the customers will choose the best one if compared based on the product's price. they will not directly buy a product while they see the product they want. as the producers, we can not force somone to buy our product. But inverse of it precisely the buyer will acquittedly to make a decision  to buy the product offered. There is as aphorism from Indonesia said that "The buyer is the king for the seller". It means that the buyer has a freedom in making decision to decide whether they buy the product or not.
So, what we will see here is before making a internet business, let we make an analysis, that is said competitor analytic. Competitor analytic means that the principal competitors are identified, and their objectives, strengths, weaknesses, and product lines are assessed. To make our product is unique for the customers is creating the strength of our product is different from the other same product. It would be unique because the customer will see that our product can be made as alternative to be choosen. then, we have to analyze the competitor's product weakenesses, and we should know and try to make our product better than competitors'  weak specificated of the product . We should know to create the objective of our product more special compared with the competitor's product. Tese things will help us to compete in business, and we can create our product has it's own strenght compared to the other products.

Arguments Supporting Globalization

Expanding trade by collectively reducing barriers is the most powerful tool that countries, working together, can deploy to reduce proverty and raise living standarts.
That three trade is the best strategy for advancing the world's economic development is one of the few propositions on which almost all economists agree, not only  because it is theoritically compelling, but also because it has been demonstrated in practice. On a wide range of measures--proverty,education, health, and life expectancy--more people have become better off at a faster pace in the past 60 years than at any time in history. Evidence is strong regarding the dramatic decline in both the proportion and absolute number of destitute people. The latest World Development Indicators from the World Bank show that the number of people in extreme proverty fell from 1.5 billion in 1981 to 1.1 billion in 2001. measured as proportion of the population in developing countries, the decline was from 39.5 percent in 1981 to 21.3 percent in 2001. Between 1981 and 1999, the proportion of people in the East Asia and Pacific region living on less than $1 a day fell from 56% to 165. In China, it plummeted from 61% to 17%. In south Asia it fell from 52% to 31%. South Korea and other Asian economies had made a full transition to modernity. Within a generation,s time, there has been an enormous improvement success stories was based on export led growth facilitated by the liberalization of trade.
Of course, countries can reject globalization and some have, including Myanmar, the Democratic Republic of Congo, Sierra Leone, rwanda, madagaskar, Guiea-Bissau, Algeria, the Republic of Congo, Burundi, Albania, Syria, and Ukraine. They are among the most impoverished countries in the world. As an article in The Financial Times putsit, "they are victims of their refusal to globalize.'
expanded trade is also linked with the creation of more and better jobs. Over the past two decades--a period of immense technological change and growth in trade--aroung 40 million more jobs were created than were destroyed in the united Sites. It is true that, when a country opens to trade,just as when new technologies are developed, some of its sectors may not be competitive. Companies may go out of business and some jobs will be lost. but trade creates new jobs and these tend to be better than the old ones. The key is not to block change, but instead to manage the costs of trade adjustment and to support the transition of workers to more competitive employment.

A Little Guy Makes Global Business Easies for the Little Guys

DE Technologies, a tiny private company with only six employees, has patented a technology for using the internet/intranet to process sales globally. Intended for small and medium-sized enterprises, development of the technology was stimulated by the frustrations that DE Technologies' founder encountered while attempting to arrange international trade deals in Russia for his own small company. Traditional systems for international trade, involving multiple, inefficient, and time-consuming layers of vertical service industries, can require 20 or more forms and 60 days to complete and cost 5 to 40 percent of the cost of the total transaction.
With this system, which is called the Electronic Commerce backbone System (ECBS), small and medium-sized firms can automatically export and import goods and services without previous international trade experience. The ECBS allows buyers/sellers to buy american products in the currency of the destination country, view product descriptions in the language of the destination country, view digital still or motion video displays of the products for sale, and view the calculations and displays of prices for air, land, and sea transportation; it also ensures direct payment of goods via credit cards or documentary credit.
Procedures such as the preparation and filling of export-import documents, freight, insurance, titles, letters of credit, pro forma invoices, and bills of landing are done by the program. This eliminates the necessity of engaging foreign freight forwarders, export and import agens, and other international channels of distribution members. thus, ECBS reduces the costs of ocean and air freight, banking, and human resources.
Small and medium-sized businesses can become members by paying a small membership fee, which gives them access to the ECBS. A transactional fee of 0.3 percent also is levied. according to the founder of DE Technologies, "the capability of the system will allow thousands of SMEs to compete effectively in the import/Export business with 'the Big Guys' as the barriers to entry will be lowered tremendously."
the ECBS can be supplemented with the Borderless order Entry System (Boes), a patented process to electronically manage international trade transactions in an integrated manner. It can allow companies to create and file necessary electronic documents (in any currency or language), monitor and track steps in the transaction, calculate applicable freight costs as well as taxes and duties, and perform financial arrangements of a sophisticated nature. the result is a reduction of a much as 30 percent in the costs of conducting international trade transactions. SMEs can export and import products from any nation, using the internet and intranets, and thereby expand market share in international markets.