Fizzy is a beverage company that was founded on January 1st, 2020 and specializes in probiotic soda. There are 3 more companies competing in the same field and established on the same date. At the end of the first year of competition, the market shares of the 4 companies in the sector are more or less the same.

You have been hired as the new Chief Strategy Officer in line with the company's new growth targets. You have 3 goals that you are expected to achieve by the end of 2023. The first of these is to make Fizzy the industry leader in terms of market share, revenue and profits. Your second goal is to double total assets, production capacity and equity. Your third and final goal is to triple the share price.

You are expected to make 6 strategic decisions every 3 months in order to achieve your goals. The first of these is the product price. The price of the product should be determined in a way that both preserves our competitive power in the market and enables us to make sustainable profit.

The second strategic decision you will make is the amount of production. As the production decision is expected to be in line with anticipated demand, it must support targeted cost and quality levels. Moving away from 80% of the production capacity and constantly changing the production amount will increase production costs, and continuously producing above 90% of the capacity will negatively affect the product quality. On the other hand, the increase in production with the production capacity over time may decrease unit costs in the long run with the effect of scale economy.

The third decision expected from you is the investment decision. While investment decisions are expected to be made in order to ensure the supply-demand balance, it is expected that the financial capabilities of the company are taken into consideration. In case of high indebtedness, capacity investments may be postponed if necessary. However, it should not be forgotten that if no investments are made for a long time, fixed assets will be out of use and production capacity will decrease due to depreciation.

The fourth decision expected from you is the borrowing decision. Borrowing is made from contracted banks in the form of a 3-year loan. The principal of the debt is repaid in equal monthly installments within 3 years. Interest on the debt is also collected monthly. The interest rate of the bank loan is 4.5% for each quarter. If the company is in a shortage of cash when the bank loan is not used, emergency borrowing from other sources is resorted to. In this case, the periodic interest of the borrowings is 9%. Therefore, bank loan is more attractive as an interest rate, but unlimited borrowing cannot be made. The maximum loan amount that the bank can give you is determined by the company's credit rating.

The fifth decision expected from you is the budget for quality improvement expenditures. This budget is determined for 3-month periods and used completely. If a product positioning for the high income group is made, it will be beneficial to set the quality improvement budget higher. In addition, increasing and decreasing this budget frequently will reduce the efficiency of quality improvement activities.

The last strategic decision expected from you is the system development budget. This budget is determined for 3-month periods and used completely. The expenditures made within the budget are used to increase the automation level and production efficiency of the company. These improvements will enable us to reduce product unit costs in the medium to long term. If price competition in the sector becomes important to us, it will be useful to set this budget higher.

In the admin panel you will be given tables and graphs about the status of the company and comparisons with the competitors. You will also be given information in the header and on the corners of the windows. You can see the comments of your co-workers on the bottom-left of each window.

Finally, Fizzy is a dynamic management simulation designed to use and develop strategic thinking, proactive approach and effective decision-making skills. It is developed by Smart Models. You can use this simulation in MBA courses or in corporate training. If you want to play this game and many others in groups, please contact info@smartmodels.net.

Good luck!