Cooperative strategies - International Final examples

09.05.2015

Earlier we discussed different types of cooperation strategies, operations and variants of their application. But all of that was just theory, and now we will how cooperative strategies work in close combat in International Final.

 

Recruitment

Recruitment of prospective allies begins at national championship stages Global Management Challenge. In this case, you wil guarantee presence of assistant-teams even before you arrive in International Final itself and increase chances of success. Downside here is spraying your own attention and risk to waste time if you can not win in your own national championship. For this reason, small advantage will have national champions, where national championship ends one of the first. After winning national championship they have enough time to make friends with other teams and help them to win in their own countries. In addition, it also will be possible to recruit allies after arrival in International FInal, just be persistent and persuasive.

 

Communication

Communication with allies must solve two main objectives:

  1. Ability to transfer files with decisions
  2. Ability to chat

 

Sharing files can be done using Dropbox or Google Drive. Share folder for allies and install application on laptop. Firstly - it is very convenient, secondly - quickly, thirdly - unnoticed. You form decision for allies, load in folder for synchronization and after few seconds ally input it in decision form. For chat choose hangouts, skype or similar sofware which has function of collective chat.

 

International Final 2013

First season with new version of GMC simulator. Algorithm of the shortest path to victory:

  1. Arrive in International Final as favorite.
  2. Recruit India in semifinal.
  3. Derive India to final.
  4. Recruit Brazil in final.
  5. Hide behind India and Brazil, win in final.
  6. PROFIT!!!

 

Having 2 allies in group, victory becomes a matter of technique at proper level of skills. Consider realized cooperation strategy for Russia - India - Brazil in final stage of the International Final.

  1. 1 period. Prepare one common decision for all the teams, but for allies decision is worse than for main team (to be sure that they would not win). In this case, allies increases excess production capacity - buy 8 machines instead of 6, a little more assembly workers, less optimal R&D plan, support with market information and some more little things. Overcapacity help allies to control larger market share and influence on general course of the game.
  2. 2 period. It becomes clear that only China and Slovakia (if they very-very-very lucky) can fight for victory. China choses game in 2 shifts and carries high costs for production of products in comparison with teams who playes in 1 shift. To spite the opponent, allies should crush market, than China a) failes to sell all their products, b) sell products with minimum profit, c) destroy strategy with agents swing.

 

4.1 Cooperative dumping/margin - see opponents orientation on margins - reduce prices by all teams. Opponent plays at low prices? Play at a high by all teams. Enemy will be nothing left, joining ineffective for themselves, but most stable market strategy. Intentional cooperation unobtrusive, easy to defend - to follow the market. What you want.

 

  1. 3 period. Somewhere here Slovakia bothered to watch game of allies and they urged to stop mock other teams. From that moment, Brazil began to take strange decisions and step by step took last place. India continued to walk in the footsteps of Russia, but less impressively, reducing its role just to increasing their market share and taking not optimal decisions.
  2. 4 period. China continues to threaten with 880 000 not issued shares that will help to catch Russia by net assets value. In this situation, India continues to dump, pulls on large market share and ready to flash it in final period. Russia buys additional components to produce more products in 5 period to satisfy increased demand.
  3. 5 period. India does not satisfy 20% of its orders, which are distributed among remaining teams in the group. China fails with goodwill and outpaces Slovakia only by bigger net assets value, which once again underlines huge importance of proper management each component of goodwill. Russia controlled the game and won in final.

 

Hints - with advantage of 2 allies raise degree of competition in the group. China production in 2 shifts carries high costs in comparison with Russia and get lower profit. It is standard strategy when playing with different production capacities. In opposite situation allies will flush market and free space for main team so it can realize advantage of excess capacity.

Management reports - International Final 2013 - Scenario 12C3

 

International Final 2014

Second season with new version of GMC simulator. Algorithm of the shortest path to victory:

  1. Recruit russian students in France at national championship stage.
  2. Using old connections, recruit India at national championship stage.
  3. Arrive in International Final as favorite with 2 allies.
  4. Derive India in final with MAXIMUM INVESTMENT PERFOMANCE AMOUNG ALL GROUPS.
  5. Fall in the same group with France and test one more time your strategy.
  6. Hide behind India and Brazil France, win in final.
  7. PROFIT!!!

 

Trio of Russia - India - France reaches final, scenario 1.927 (14C3). Scenario does not imply great opportunities to earn money, and all comes to save money on everything you can.

  1. 1 period. Prepare one common decision for all teams, but decision for allies traditionally worse than for main team. Allies implement strategy - middle formation. France playes little more aggressive than Russia. India playes little less aggressive than Russia - with regard to majority of demand factors (advertising, prices, etc.). As a result, Russia is in the middle and slightly increases number of its sales.

 

4.2 Middle formation - very common, operating features of the demand market formation in simulator. Teams that fall within average values (advertising, prices), get few more orders than any other. The more commands under control - the better. Effect is already noticeable at 3 controlled teams. Noticeably, yes, but at a certain price variability opponent will have to try to prove the cartel. Opponent can try to join middle values, but whole trick is to predict the following middle that is impossible.

 

  1. 2 period. France and India receive 1 week pickers strike that affectes on assembly workers load and reduces profit. Rest of the game allies retains their positions and formation middles for main team.
  2. 3 period. Main opponents in the group - Macao and Ukraine have very large market share, so allies’s market flash is inappropriate, bulk of backlog orders will go to them and would not help Russia to increase the gap, so allies continue to fix status quo.
  3. 4 period. Russia proactively creates stocks for last period. France raises prices and loses market share which goes to other teams. Russia and India contrary lowers prices below average market prices and nearly catch equal market share as Macao and Ukraine.
  4. 5 period. Allies finish strategy of middle formation and generally help to control market movement. Russia win, Macao - 2, Ukraine - 3.

 

Hints - in highly competitive survival group, is very useful to have few allies or allies and set general course of movement throughout market. Those who disagree with general movement will inevitably lose some of their orders.

Management reports - International Final 2014 - Scenario 14C3