Our first decision to be made was in regards to our presence on the internet and in social media. We were to choose between developing a website and an interactive blog for customers to visit or we could choose to create a Facebook and Twitter account for customers to interact with. First things first, how does Allround not have a website to begin with? I'm not totally certain on the time period this simulation is taking place in but if Facebook and Twitter are around we're at least into the new millennium. Every company should have a website to visit. With that said, our team chose the social media route. While I'm shocked that the company didn't already have a website, it seems to make more sense to use the more popular and interactive feature than to simply create a website. While the blog may have lead to some interaction with customers, I strongly felt and my partners seemed to agree that Facebook and Twitter would be much more highly visited and effective than a blog. Judging by own social media experience, I definitely think blogs are far less frequently visited.
The second decision our group was faced with was much more of a dilemma than simply choosing how to better reach out to our customers. This decision involved how to handle an expiring batch of product. Just like not having a website previously, I cannot fathom how such a large quantity of product can be so close to expiration, especially considering the explicit terms that the retailers have in insisting that they do not receive product that is within one year of expiration. Nonetheless, a decision had to be made as to whether or not we should send the product out and hope that it was not sent back to us, get rid of the product altogether at a cost of $100,000 or to sell the product to another party with less strict expiration rules at less than cost, resulting in a $50,000 loss. In my eyes it was a no-brainer. There was no sense in sending out the product to our regular retailers only to have it sent back. This would not only be a hassle but could have a negative effect on relations. Selling at less than cost to a less strict retailer was never an option. The 1 year rule was obviously created with the purpose of not putting expiring products on the shelf. Why would we want to risk having a product that won't be effective on the shelf, hurting our brand image in the eyes of the consumer who did not get the effects they would have by purchasing a batch that was not expired? Additionally, I personally wouldn't trust a company that looks to purchase products on there way out at a cheaper rate so they can profit more. Had I looked past all of that in making my decision and decided the company needed to save money, it still would not have been worth it for a $50,000 savings in the grand scheme of things. Getting rid of the product and taking the hit on the cost was the only viable option that I saw in this scenario.
Based on these two decisions that had to be made, I'm glad that this is only a simulation and not a real company that is faced with these dilemmas. I would be nervous to buy from, let alone be employed by, a company that is so behind the times and apparently careless with their inventory. Thankfully, it is only a simulation. Looking ahead, I wonder what else is in store for our team as we move through the rest of the periods in the simulation. Clearly, it will not be following the same story as the practice mode was telling and I am excited to see how well our team does at handling the new surprises thrown our way.
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