Cranfield Business Simulations
EuroNet:
Cross functional issues … competitive market … working together under
pressure
This highly complex and challenging business simulation carries the general management challenge
far into cross-functional dependencies and into gaining competitive advantage in the market-place. It
is a rich and rewarding simulation, encouraging participants to explore not only sophisticated
business challenges, but also the nature of relationships which must be forged under stress and
must remain firm as the stress builds.
Structure
As the Management Team, participants manage a
vertically integrated company, operating in a
European environment, competing in both Retail
and Wholesale markets. Each has an established
and flexible manufacturing facility capable of
producing all products – fabrics, fittings and
furniture, which can be supplemented or replaced
by purchases of finished products from overseas
suppliers. All companies start from a position of
equality in terms of past performance and
resources.
The Management Team takes a series of
decisions
against
a
changing
business
environment to improve the performance of their
company. All decisions are interactive: the
decision of any one team will impact on the whole
market place and on the performance of
competitors.
Decisions will have both short term operational
and long term strategic dimensions. Decisions will
also of course affect the nature of the interpersonal relationships within the team.
The ultimate success of the company will be a
reflection of the quality of the management of the
different functions of the business, judgement of
the competitive market place and ability to
manage relationships successfully in the crucible
of competition. Tutor input around the hard,
business issues and the softer behavioural
challenges can be arranged before, during and
after the simulation.
+44 (0)1234 754427 | k.l.valverde@cranfield.ac.uk | www.cranfield.ac.uk/som/cced
Cranfield Business Simulations
Benefits
EuroNeT is an exposure to many of the
challenges facing business managers, in both
commercial and behavioural terms.
The
simulation can extend over 2 or 3 days or as a
series of inter-modular decisions over a longer
period via the internet, depending on objectives,
with a pre-read advisable. Decision periods vary
between 1 and 2 hours. The simulation is
facilitated both face to face, on and offline.
“At the top, it really is important to be thinking
about strategy, competitive advantage and
differentiation”.
Creating a Vision; Delivering Strategy
The simulation also allows for the exploration of
team and individual behaviours. Observers of the
teams can see and feed back on behaviours
within the teams. This can be done within the
context of models that the organisation may
already use, such as MBTI, or by introducing
models and concepts of behaviour before the
simulation begins.
“How did we set price? Just like we always do,
cost plus or what we think we can get away with!”
The Marketing Mix; Brand and Positioning
Strengths of EuroNeT
The very complexity of the simulation means that
it also fully explores the nature of interpersonal
relationships within the team environment.
“It wasn’t only about defining quality in everything
we did, but about keeping an eye on changing
buyer behaviours.”
Delivering to customer needs; TQM
“It was really important to understand the bigger
picture, not just the view from my function. It
really opened my eyes to issues faced by other
departments and the business as a whole.”
Cross
functionality
awareness
and
interdependency; Mindset
“It forces us to look at the other business issues
e.g. Competitor analysis and customer perception
of value”
Application of Strategic and other theoretical
frameworks
“We just managed to procure the right quantities
and then we had a problem with distribution!”
Systems thinking; Operations management;
Supply Chain
Both
Buy-In
Outsource
Make
Using production
Internally source
Raw materials
FINANCE
¾ Cost & Quality
(supplier determined)
Import
Local
Supplier determines:
Cost/quality/delivery
¾ Quantity
Quantity
Process/quality
“I spoke to so many different people, realized we
had similar issues, it was good to talk.”
Networking
Marketing
Price € / Quality
¾ Perceived Price
(Price + promotion)
¾ Quality
¾ Attraction
Retail
(consumers)
Product Ranges:
Fabrics
Fittings
Furniture
“Finance, never understood it, until now…!”
Cash Management/Risk and Return;
Cash vs Profit
Wholesale
(customers)
¾ Price €
¾ Quality
¾ Terms of payment
Two types of customer
It’s our simulation. But it’s your business.
+44 (0)1234 754427 | k.l.valverde@cranfield.ac.uk | www.cranfield.ac.uk/som/cced