2. Generic Business Strategy You must describe the generic business strategy by which you intend to achieve your vision and mission over the decision quarters and explain why you have chosen that strategy. In particular you should use the data generated from Decision Quarters 1 and 2 for your company and the industry to justify your decisions. You should use data from the simulation to help you understand: Who your customers are and what they value What the key trends in the industry are Who your competitors are and on what basis they compete How your company can compete against other firms in the industry 3. What internal capabilities you have that makes you think you can achieve the strategy you have outlined Performance Objectives This section should contain a set of clear, measurable performance objectives you plan to achieve over Decision Quarters 3-8 along with a discussion of the overall performance you expect to achieve. You should refer to the reading by Kaplan, R.S., & Norton, D. R. (2005). The balanced scorecard: measures that drive performance. Harvard Business Review, 83(7/8), 172-180. Performance objectives should be established to measure the main elements of your balanced scorecard. Be creative in thinking about what measures you can develop from the simulation data that are meaningful for your company. You will include a section on your Balanced Scorecard performance in the presentation slides submission. The Airline Manual suggests measures might be developed for a number of areas, such as employee performance, social responsibility and innovation. However, your team should decide which measures are important for your strategy. Whatever measures you decide to use, (i) be sure they are consistent with your overall business strategy and (ii) state the objectives in such a way that they can be used to measure your progress and goal attainment. 4. Functional Policies Normally a strategic plan would provide detailed polices and plans for its functional area strategies. However, to simplify matters for this simulation, you are only required to set out your key policies. Policies set out the general guidelines in an area, for example, a policy may be "Fly the first 200 pounds of cargo for a new customer, free of charge," or "Pay employees at 3% above the average industry wage." They are useful as they offer you guidance and consistency in making decisions and in responding to change. Please be aware that a strategy is not meant to lock you into pre-determined course of action; it should merely reflect your intended strategy at a given point in time. If your strategy or policies aren't working as well as you would like, by all means change them! Just be sure to keep track in your Decision Log of what you changed, and why, because you'll be addressing these changes in your final PowerPoint slides submission.