The ENRON executives would be proud of you, if they weren't imprisoned or dead by now. If anyone has seen how this sort of strategy works out, I’d really appreciate any help! I’m just a little hesitant with wanting to go through with this, considering our performance in the simulation is a huge percentage of our final grade. Considering we don’t have a ton of wiggle room if we don’t hit projected profit, Is this too risky of a strategy for the final year? If we were to completely tank in the final year, would it have a huge impact on our final ranking? We’re currently in second place (out of 12) for the second year in a row, and have hovered around top 5 throughout the whole simulation.
My group has kept our strategy mostly consistent in terms of product design, marketing, etc., but decided to drop all R&D expenditures and take out a huge 10-yr loan to issue a dividend totaling about 98% of projected profit. I had a question regarding strategy: How risky is it to “go down in a blaze of glory”-esque strategy? I’m doing the glo-bus 2019 simulation for my capstone class and our final year decisions are due tonight.
