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Business Policy
Weekly Topics

Click here for the Demo of the Simulation (best viewed with High Speed Connection)

Sequence of Simulation Activities

 

 

Quarter 1: Organize team to do the job                              

 

Focus on process of working as a team to achieve goals

            assess team members' skills, personalities, & work styles                                                       

            set organizational and personal goals                                      

            organize the work

            determine how to manage the organization

            establish leadership

 

Quarter 2: Evaluate market opportunities, setup operations

                                                & prepare for test market

 

Analyze market opportunities -- evaluate segments, geographic markets & potential competition

Select target segments

Create customer value -- design initial brands for test market

            match components to benefits desired (quality function deployment (QFD))

            evaluate impact of different components on changeover costs & scale economies

Setup manufacturing operations -- evaluate financial tradeoffs

            compare regional cost differences of labor and distribution on plant location

            evaluate economy & liquidity of different capacity investments

Select test markets -- setup sales offices

 

Quarter 3: Go to market to test strategy and market assumptions

 

Marketing strategy -- evaluate tactical options and choose marketing mix

            pricing & price promotions

            sales force management - number employed, training, incentives

            advertising -- ad copy design, media selection, ad frequency

Manufacturing -- plan production and inventory levels

            forecast demand by brand

            set 65-day production schedule

Market research -- budget collection of information                           

 

Quarter 4: Evaluate test market performance and revise strategy,

                                                become a learning organization

 

Evaluate performance                                                                         

            financial performance -- financial statements, ratios, industry norms

            market performance -- customer opinion of brand designs, prices, advertising, sales force

            competitor tactics -- segments targeted, selection of marketing tactics

Revise marketing and manufacturing tactics as needed and continue test marketing              

 

Quarter 5: Seek external funding -- prepare business plan, negotiate

                                                equity investment

 

Evaluate performance - financial, marketing, & competitive

Develop two year business plan

            goals - marketing, financial and ownership                                         

            marketing strategy

            manufacturing strategy                                                           

            financial strategy

            tactical pert chart (show tactics over time)

            pro forma cash flows and financial statements

            size of equity request, number of shares offered and share price

Present business plan to venture capitalists and negotiate equity investment  

Begin roll out of business plan

 

Quarter 6: Monitor, improve and execute               

 

Evaluate team - self assessment of roles played, contributions made, & adjustments needed

Evaluate performance - financial, marketing, & competitive              

Skillfully adjust strategy 

            marketing -- make incremental changes in tactics

                        use activity based costing (ABC) to evaluate profitability of brands, sales offices

                        conduct demand analysis to estimate brand, price, advertising, sales force elasticities

                        invest in R&D for new technology

            manufacturing -- work on

                        quality improvements with statistical process control (SPC)

                        demand-- driven production scheduling                     

                        capacity utilization by reducing changeover time and costs

                        reducing pipeline whiplash by managing market stimulation activities           

            project cash flows & adjust strategy within financial capability

 

Quarters 7 - 8: Monitor, improve and execute (continue)                           

 

Manage strategy

            skillfully adjust strategy to unanticipated competitive moves             

            continuously improve brand features (R&D), pricing, promotions, sales force,

                        product quality, production efficiency, & asset management

            project cash flows & adjust strategy within financial capability

W.J. Patterson Ph.D. Candidate- Organization & Management   Copyright © 2009. All rights reserved.   Last Updated: .