Simulation Reflections - Strategic Management

Simulation Reflections - Strategic Management
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Simulation Reflections - Strategic Management
The simulation involved creating a proper strategy for LegaSoft while acting as the Chief Strategy Officer. Strategy is an essential component in business that determines whether any undertaking done by the entity will succeed or not. LegaSoft is a multinational firm that is a leader in focusing on software retailing. As noted, the firm is a market leader in the Enterprise Resource Planning (ERP) market, offering a core module for ERP and two add-on modules that can be purchased alongside the core module. The two main modules include Customer Relationship Management (CRM) and Supplier Relationship Management (SRM). The company is also intending to develop a new module for Human Capital Management (HCM). The new module is still being designed. Notably, the firm also operates in developed and emerging markets and targets different clients, such as Midmarket clients, enterprise customers, and small business clients. The company also has several competitors in the market, which include NetWare. The enterprise customer segment is facing challenges, and the company expects to outgrow its competitors. NetWare offers similar services using a different strategy, Software as a Service (SaaS), to promote and deliver its software. As a response, the company also developed a SaaS approach. With cloud-based versions of its software, LegaSoft aims to outdo the competitor.
The paper aims to reflect on the strategies and objectives of the simulations, performance, and actions relative to the strategy and evaluate the performance and key actions in line with the adopted business strategy. Further, the paper will also include recommendations based on the outcomes of the simulations. Through the analysis and reflection on the simulation, we will also highlight the dynamic associated with strategic choices, identifying the challenges resulting from market external networks. Moreover, the examination will also be able to understand the nature of competition in multiple-sided markets. The strategic decisions require trade-offs in order to guarantee business success. In this regard, the discussion will also include the investments made across different business segments and new opportunities that have been pursued. It will also show that focusing on a particular customer segment is vital for positive results and business success.
Strategy and Objectives
In order to compete effectively and attain the business goal, the strategy aimed to ensure that there is an overall growth of the company. In this regard, the strategic choices employed intended to grow SaaS sales, mainly through the adoption of cloud-based technology. Moreover, the used approach is intended to maintain the legacy sales and ensure that the firm competes effectively against NetWare. Moreover, in order to suppress the dominance of the competitor, the strategic approach also intended to collude with the segments of NetWare and limit the entry of New Entrants. This was essential in minimizing competition and ensuring that there is consistency in the business performance.
Finally, another strategic approach utilized during the decision-making included a key focus on emerging and developed markets. This was intended to harmonize the business approach and ensure that LegaSoft had the upper hand in the market. As an established multinational firm, the incorporation of SaaS was vital in ensuring consistency in business performance. This also provided the company with an edge to outdo its competitor in the market. As demonstrated through the dashboard information, LegaSoft cash balance grew positively through 2018. Additionally, its market share was mainly dominated by the legacy business, although there was an overall increased awareness of the SaaS products in the market.
As demonstrated by the preceding discussion, I focused on adding new products to reach the new customer segment. The aim was to make the technology offered by competitors less attractive and enhance the customer preference to adopt the cloud-based SaaS product. Moreover, it was the goal of all strategic choices to maintain the legacy sales and ensure that there is a growing awareness of the SaaS offerings from the firm. The success of the strategy would be evaluated through the financial performance or sales generated from the choices. For example, the simulation showed positive business revenue growth from different segments, including the Core Module, SRM Module, and CRM Module.
There was also significant spending on research and development, which intended to understand the customer data's usability, feature richness, and reliability. The legacy modules and add-ons also experienced a significant revenue decline as fewer customers installed the base based on the customer data. On the other hand, there was an increasing value of the installations of the SaaS module. Therefore, it is clear that the SaaS strategy was effective in attaining the results intended. The SaaS-based installations grew significantly between 2018 and 2025. For example, the SaaS Core Installed Based grew from 99,049 to 715,465. This is a demonstration that the strategy was effective in attaining the intended goals.
Therefore, the critical KPIs that will be used to understand the success of the employed strategy will be based on financial outcomes and installed modules or bases. With regard to new adopters of the various software modules and bases, the company also showed significant growth in the SaaS segment compared to the legacy segment. Each year's new adopters of SaaS grew from 7,440 to 379,639 from 2018 to 2025, respectively. The KPIs used to determine the business's success also included compound annual revenue growth rate, total market share (for both SaaS and Legacy), ending cash balance, and the total cumulative operating income. Based on the results, there was significant growth in all aspects.
General Reflections on Performance and Actions Relative to Strategy
When I started the simulation, my chief objective was to ensure that the company attained holistic growth in all business segments. The main segments included a focus on the SaaS aspect and ensuring that customers embraced it. On the other hand, there was an intention of maintaining the legacy business and growing the SaaS segment to curb the competitor's dominance. As seen through the KPIs results, the compound annual revenue growth rate was recorded as 0.0% in 2018, 4.2% in 2019, and 4.5% in 2020. This is shown in Appendix A of the report. The recorded rates clearly de...