Comments on: Strategy Game: Nuts and bolts http://enagar.com/2009/07/10/strategy-game-nuts-and-bolts/ A daily doze of random thoughts, jokes and forwards Tue, 14 Feb 2012 18:51:57 +0000 hourly 1 http://wordpress.com/ By: Shortages « ENagar http://enagar.com/2009/07/10/strategy-game-nuts-and-bolts/comment-page-1/#comment-40338 Fri, 24 Jul 2009 18:40:07 +0000 http://enagar.com/?p=1787#comment-40338 [...] @ 12:08 am A lot of people had difficulty in understanding the practical implications of the nut and bolt puzzle I had asked 2 weeks ago. Hence this detailed mail is my attempt to bring some context into the [...]

]]> By: Ankur Aggarwal http://enagar.com/2009/07/10/strategy-game-nuts-and-bolts/comment-page-1/#comment-40334 Fri, 24 Jul 2009 06:45:56 +0000 http://enagar.com/?p=1787#comment-40334 each nut and bolt pair is worth 100/- and there are a maximum of 26 such pairs possible. However the question is how do you as the sole nut supplier is able to defeat the cartel of bolt supplier and maximize your return.

by destroying nuts, you are destroying value, so the value of the game gets reduced from 2600 to 2300. However by changing the rules of the game, you create a new game where the bolt suppliers have less bargaining power and you maximize your profit.

]]> By: Satish http://enagar.com/2009/07/10/strategy-game-nuts-and-bolts/comment-page-1/#comment-40333 Fri, 24 Jul 2009 06:30:41 +0000 http://enagar.com/?p=1787#comment-40333 Sorry. I read that long time back, but thought it is not complete answer, so was waiting.

I could not understand it clearly.

Are you saying that, the person sells a bolt and nut for more than Rs.100, and gets Rs.2600 in total?

For how much he buys bolts? If I hold a bolt, I will never it give for free, eventhough I don’t get anything. You are saying, he destroys 2-3 bolts. Then, how can he get Rs.2600?

]]> By: Ankur Aggarwal http://enagar.com/2009/07/10/strategy-game-nuts-and-bolts/comment-page-1/#comment-40332 Fri, 24 Jul 2009 06:25:48 +0000 http://enagar.com/?p=1787#comment-40332 @satish…
please read comment no 6

]]> By: Satish http://enagar.com/2009/07/10/strategy-game-nuts-and-bolts/comment-page-1/#comment-40331 Fri, 24 Jul 2009 06:22:21 +0000 http://enagar.com/?p=1787#comment-40331 What is the answer? 2 weeks are over.

]]> By: Ankur Aggarwal http://enagar.com/2009/07/10/strategy-game-nuts-and-bolts/comment-page-1/#comment-40296 Fri, 17 Jul 2009 20:26:20 +0000 http://enagar.com/?p=1787#comment-40296 @Rama
well there is more to acquisitions than this simple game. you have to bring in ethics, goals and office politics also into picture

@kokonad…
thanks

]]> By: Kokonad http://enagar.com/2009/07/10/strategy-game-nuts-and-bolts/comment-page-1/#comment-40295 Fri, 17 Jul 2009 18:51:50 +0000 http://enagar.com/?p=1787#comment-40295 Mentioned you here!

]]> By: T.R.Ramaswami http://enagar.com/2009/07/10/strategy-game-nuts-and-bolts/comment-page-1/#comment-40293 Fri, 17 Jul 2009 10:31:28 +0000 http://enagar.com/?p=1787#comment-40293 That’s why probably all mergers and acquisitions executed for so-called “maximisation of profits” acually end up destroying value.

]]> By: skabeesh http://enagar.com/2009/07/10/strategy-game-nuts-and-bolts/comment-page-1/#comment-40283 Mon, 13 Jul 2009 18:37:02 +0000 http://enagar.com/?p=1787#comment-40283 @ ankur…nice…

]]> By: ankur http://enagar.com/2009/07/10/strategy-game-nuts-and-bolts/comment-page-1/#comment-40281 Mon, 13 Jul 2009 08:15:25 +0000 http://enagar.com/?p=1787#comment-40281 Bolt suppliers: You have nuisance value. i.e. via cartel, or finding alternative customers for your produce you can cut off the supply of the bolts. Then the nut manufacturer would starve to death and would be ready to pay any price you charge.

Nut manufacturer: Well you control the entire market of the nuts. So essentially you would be always in a stronger position. However the fact that the supply of bolts matches the demand of bolts (i.e. supply of nuts) is creating problem of cartel.
So if you could publically destroy 2-3 bolts then you will have an upper hand. No matter now what happens, there will be 2-3 bolt manufacturer who would starve. If you play your cards well, you can convert this into a desperation and increase your bargaining power.

Essentially in strategy in order to maximize ones profit, often one has to destroy value

]]> By: ankur http://enagar.com/2009/07/10/strategy-game-nuts-and-bolts/comment-page-1/#comment-40280 Mon, 13 Jul 2009 08:09:15 +0000 http://enagar.com/?p=1787#comment-40280 @karthi….
this is a typical company supplier bargaining problem.
In order to service the customer (get 100/-) both the supplier and the company has to agree to collaborate. However the question in any collaborative effort is who gets the larger pie of the profits and how to maximize it.

the next comment would be directed towards Answer.. so go to it only after you have understood the problem

]]> By: skabeesh http://enagar.com/2009/07/10/strategy-game-nuts-and-bolts/comment-page-1/#comment-40279 Mon, 13 Jul 2009 06:04:18 +0000 http://enagar.com/?p=1787#comment-40279 Are we in the next week yet??
Am eagerly waiting for the answer(s)…

]]> By: Karthi http://enagar.com/2009/07/10/strategy-game-nuts-and-bolts/comment-page-1/#comment-40278 Mon, 13 Jul 2009 05:19:46 +0000 http://enagar.com/?p=1787#comment-40278 Ankur, can you re-phrase the problem in simple terms, I am lost in jargon.

]]> By: Kokonad http://enagar.com/2009/07/10/strategy-game-nuts-and-bolts/comment-page-1/#comment-40277 Mon, 13 Jul 2009 03:58:09 +0000 http://enagar.com/?p=1787#comment-40277 This is where MBA helps! I am SO looking forward to ‘next week’! :)

]]> By: bachodi http://enagar.com/2009/07/10/strategy-game-nuts-and-bolts/comment-page-1/#comment-40276 Sun, 12 Jul 2009 21:49:38 +0000 http://enagar.com/?p=1787#comment-40276 Is it next week yet ?

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