SmartMart Simulation
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1. Set out your overall strategy for SmartMart, explaining why you elected to follow this strategy, and how each decision you made contributed to this strategy.

Scenario 1:
Grow to Compete with Big-Box Mart: 50% of growth in the consumption of organics is driven by the offering of organics at low-cost producers, like Big-Box Mart. Hence, it is essential to compete in this space.The costs of implementing this aggressive growth strategy is significant and there is also a higher payoff. Store revenues are expected to jump from $3M annually to $30M. If SmartMart could retain its distinctive advantage, this strategy would be most profitable because margins would be slightly lower, but volume would increase almost 10 fold. There would a net lower environmental impact as there are efficiencies produced by centralizing the use of trucks and transportation. Moreover, giving the option of a one stop shop to customers would give the benefit of increased sales to SmartMart.
Scenario 2:
Introducing Bio-fuels: SmartMart has worked with leading researchers and scientists to find the optimal blend of bio-fuels and gasoline. This improved blend of fuel increases an average car's miles per gallon (MPG) by as much as 20%. By offering this innovation at select SmartMart stores, the company stands to gain from the increased revenues of fuel sales, as well as the increase in brand perception.
SmartMart should move ahead by creating an alliance with one of the producers of bio-fuels and create standards for the production of the new blend. A partnership is relatively quick to start up and requires a low cost to initiate. It provides a quick access to the market without having to commit to the market for the long term. If the company wishes to exit this business line, it can easily do so.

Scenario 3:
Organics 2.0: SmartMart should launch Organics 2.0 though out its supply chain and give its suppliers the choice to use the new farming practices and sell to anyone. SmartMart should however, constantly remind its customers that Organics 2.0 is an in-house creation. This will create brand loyalty. Moreover, it makes more sense to enforce Organics 2.0 to suppliers rather than to farmers as suppliers traditionally have an upper hand over growers and farmers.

2. How did you take into account the needs and interests of shareholders and the other stakeholders of SmartMart?
Scenario 1:
Grow to Compete with Big-Box Mart-
Customers: Most of the customers are happy about this decision and there is a large segment of the shopping public who are likely to become new customers as a result. By enforcing its existing value system of high quality, safe and environmentally friendly products, SmartMart can reaffirm its unwavering commitment to delivering best in class yet affordable organic products to its customers.
Shareholders: Short term shareholders see the potential to grow substantially and many of them appear willing to place large bets on the company. For long term shareholders, SmartMart can show that the benefits outweigh the costs as the company now has the opportunity to expand and deliver its products to a much larger customer base.
Suppliers: SmartMart’s decision to compete with Big-box Mart will be of great benefit to global suppliers. By giving global suppliers a fair price for their effort, SmartMart will be able to convince suppliers to give their capacity to SmartMart instead of its competitors.
Community: Some members of the community are concerned that getting bigger will mean that SmartMart will lose touch with its roots and commitments. However, by launching Organics 2.0 and having our competitors imitate these superior practices, SmartMart will be even more popular with the local community.
Scenario 2:
Introducing Bio-fuels-
Customers: Most customers like this decision, especially the fact that this move provides most of the capacity that they want. A smaller segment of your customer