Cesim Business Management Simulation Games Overview All Cesim business management simulation games are built on a powerful, stable and highly scalable online platform which enables to run the courses from one centralized interface. The simulation games allows the customers to illuminate easily their Business Concepts with Risk Free Team Exercises. Which product is right for you? a selection of products... 9 International Business and Strategy Simulation 10 International Business and Strategy Simulation PARTICIPANT TASK The task for the teams is to manage a global company through technological and market evolution. Participants will develop and execute strategies for their simulated company operating in the USA, Asia, and Europe. KEY LEARNING AREAS Technology-based product road maps and global market and production strategies. A range of concepts from various management-related disciplines: economic, political, financial, human resources, accounting, procurement, production, logistics, research and innovation, and marketing. KEY SUCCESS FACTORS Success is measured and compared by both operational and financial key indicators, including market share, net profit, return on capital, return on equity, earnings per share, capacity utilization rate and production scrap rate. The ultimate indicator in the simulation is the return to the shareholders, which consolidates all the key success factors into one measurable criterion that can be used to compare the performance of each team. EXPECTED OUTCOME Better understanding of the complexity of global business operations in a dynamic competitive environment. Comprehension of each of the management-related disciplines both individually and collectively. Good sense of the interaction between the different parts of the business and the financial implications of the various strategic and operational decisions. Invaluable experiences in teamwork and problem solving. 11 International Business and Strategy Simulation 360° Company Management GLOBAL CHALLENGE; helps to understand the target group how to manage a company which operates in a worldwide dimension. It offers the opportunity to experience the way that different departments within a company have to work in harmony. MAIN LEARNING OBJECTIVES • Link between strategy and measurement Selected financial indicators and their behavior during strategy implementation • Big picture How do different parts work to make a whole? • Team-work and coordination between departments in virtual environment Virtual collaboration, task & time management • Financial reports and their interpretation Income statement, balance sheet, cash-flow statement 12 Overall Vision LOGISTIC AND PRODUCTION PLANNING Market demand estimation, market share related to competitors. Setting production quantity and production displacement in the different plants). Logistic priority assignment and outsourcing. MARKETING & SALES Marketing mix decisions: pricing, promotion, and product-design for each market. R&D Making or Buying strategy: investing to improve product features and technology in trade-off, with outsourcing. FINANCE Issue debt or equity and/or make share buybacks, determine your dividend policy, manage your capital structure, deal with international finance issues as exchange rate fluctuations, interest rates, taxation. 13 Main Focus Areas TAKING INITIATIVE Thinking Outside the Box: generating innovative ideas and lead the change Taking action: from idea to implementation Making improvements: monitoring developments, analyzing outcomes and planning for future changes Perseverance and Persistence: fighting against the difficulties and continuity DEALING WIH DIFFICULTIES Main steps: evaluation of each situation for the unique situation, collecting the facts before taking action, developing a plan, dealing with the behavior, trying to draw out the reasons behind the behavior. TEAM WORKING Acting together with stakeholders without boundaries. Analytical capabilities, together with the awareness on the importance of integration , communication and cooperation among different disciplines. Understanding and awareness towards one’s own responsibilities, in order to work in team exploiting both individual and team capabilities Developing the attention towards planning and control aspects. 14 General Business Management Simulation 15 General Business Management Simulation PARTICIPANT TASK The task for the teams is to manage the sales and operations of an international pharmaceutical company. Key success factors include accurate forecasting and planning, analytical approach to decision-making and good teamwork. KEY LEARNING AREAS The simulation integrates a range of concepts from various management related disciplines, including marketing, production, logistics, and financial decision-making. In addition, it links the organization to the wider context of business world and stakeholders. KEY SUCCESS FACTORS Success is measured and compared by both operational and financial key indicators, including market share, net profit, return on capital, return on equity, earnings per share, capacity utilization rate and production scrap rate. The ultimate indicator in the simulation is the return to the shareholders, which consolidates all the key success factors into one measurable criterion that can be used to compare the performance of each team. EXPECTED OUTCOME As a result of playing Cesim SimFirm the participants will improve their understanding of operating a company from a general management perspective and develop market - and value-driven approach to decision-making. They will improve their capability to interpret and forecast market situations and financial results and translate them into goal-oriented decisions. 16 General Business Management Simulation Cesim SimFirm is a product based business management simulation that integrates the functional areas of production, marketing, and logistics. It is an entry level online simulation designed to develop understanding on how decisions in different functions of a company attribute to overall success in a competitive, international business environment. It increases the participants awareness of operating a company from a general management perspective. MAIN LEARNING OBJECTIVES • Link between strategy and measurement Selected financial indicators and their behavior during strategy implementation • Big picture How do different parts work to make a whole? • Team-work and coordination between departments in virtual environment Virtual collaboration, task & time management • Financial reports and their interpretation Income statement, balance sheet, cash-flow statement 17 Overall Vision SALES & MARKETING DECISIONS Is the area focused on product pricing, marketing, customer relationship management, quality control and special pricing for bulk customers, in different geographies. PRODUCT DISTRIBUTION The area where the distribution of products are organized in a strategic manner taking into consideration costs and demand in different market areas. PRODUCTION DECISIONS Is the area that consist of the integrity of decisions related to plant and machine capacity depending on the production level, staff and raw material procurement decisions as required and improvement of production efficiency. FINANCE Is the area related to stock repurchases to reduce the cost of borrowing, making dividend payments and ensuring the exchange of long-term debt based on the needs. 18 Small Service Business Management Simulation 19 Small Service Business Management Simulation PARTICIPANT TASK The starting task for the teams is to get familiar with their business through practice round and refine the business idea for their business accordingly. During the rounds the teams manage the future of their companies by decisions on human resources, investments, service quality, pricing, marketing, and revenue management through sales channels. They operate in competitive markets with seasonal variations in demand and economic conditions. They can also be faced with strategic decisions, such as expanding their operations to a new market area. KEY LEARNING AREAS Management of the overall operating, market, and financial performance, with human resources management, capacity management, investments, service quality, pricing, and marketing as the key decision making areas. 20 Small Service Business Management Simulation KEY SUCCESS FACTORS In order to succeed the teams must develop and implement a consistent business plan that addresses the seasonal variations in demand and utilizes the principles of revenue management effectively. In addition, skillful and well-planned human resources management is highly important. Success is measured by both operational and financial key indicators, including capacity utilization rates, customer and employee satisfaction, market shares, profit per employee, net profit, return on capital, and earnings per share. The ultimate indicator in the simulation is the return to shareholders, which consolidates all the key success factors into one measurable criterion that can be used to compare the performance between teams. EXPECTED OUTCOME To help the participants to develop a holistic view of business operations including marketing, sales, human resources, capacity management, investments, and service quality. To develop the understanding and command of business fundamentals, market-driven decision making practices and financial implications of the various operational and marketing decisions. In addition, participants will gain invaluable experience in teamwork and problem solving. 21 Small Service Business Management Simulation Cesim OnService is a service based business simulation that integrates the functional areas of HR management, capacity management, pricing and marketing - and focues on entrepreneurship, services management, business fundamentals, SME management. MAIN LEARNING OBJECTIVES • Link between strategy and measurement Selected financial indicators and their behavior during strategy implementation • Big picture How do different parts work to make a whole? • Team-work and coordination between departments in virtual environment Virtual collaboration, task & time management • Financial reports and their interpretation Income statement, balance sheet, cash-flow statement 22 Overall Vision SALES DECISIONS This area consists of retail sales that occures during the current period and wholesale based on sales realized one or two periods in advance. OPERATIONS Facilities: Decision regarding the facilities that influence the capacity and overall service quality. Personnel: Skillful management of personnel resources that is a prerequisite for success in simulation game. The goal is to achieve efficiency and flexibility at the same time. Cost Efficiency: Both of operating costs and administrative costs that can be influenced by cost saving efforts. PERSONNEL COMPETENCE AND QUALITY Are factors that influence the attractiveness of services. FINANCE Is the area related to the exchange of long-term debt based on the needs, credit terms and divident payments. 23 Bank Management Simulation 24 Bank Management Simulation PARTICIPANT TASK The task for the participating teams is to manage a bank with several front and back office operations in a single geographical market. In the role of a bank manager, the teams will be responsible for consumer and business clients, lending and borrowing, front office and back office, and customers with deposits, mortgages and other credit products and investments. They’ll have personnel to manage, IT systems to maintain and develop, risk metrics to keep in check, regulators to report to and capital markets to raise financing from, provided that they are pleased with the way the bank is managed. KEY LEARNING AREAS Pricing of credit and deposit products. Balancing risks and the growth of the balance sheet. The division of bank funding sources into core deposits and managed liabilities. Understanding the bank income statement and balance sheet. The interaction between central bank and commercial banks. Bank specific solvency and liquidity measures and regulation according to international standards. Bank specific terminology and results presentation including many unique financial ratios. Uniqueness of money as the bank’s core product. Profitability of different customer segments and products. Understanding basic banking products and services and how they relate to each other. KEY SUCCESS FACTORS Success is measured and benchmarked by both operational and financial key indicators including assets under management, deposit and credit product growth, bank image, risk metrics, credit rating, net interest margin, cost / income ratio, credit impairments, net profit margin, return on assets, return on equity etc. The ultimate indicator in the simulation is the total shareholder return p.a., which consolidates all the key success factors into one measurable criterion that can be used to compare the performance of each team. 25 Overall Vision The goal of the Cesim Bank Simulation is to facilitate understanding of the front and back office operations of a bank, and their interaction in a competitive environment, and to help cultivate holistic and fact-based management culture, develop analytical skills, and create awareness about the current banking operating environment. Benefits: • Complete and holistic view into the operations of a full-scale bank in a dynamic competitive environment • Bank specifics: income statement, balance sheet, ratios, regulations, central bank • Core stakeholder management: customers, personnel, government, shareholders • Value drivers: financial performance, customer appreciation and loyalty, personnel loyalty, compliance to regulations, brand image • Risk management thinking: maturities, collateral, interest rate gaps, risk-weighted assets, classification of risks, controls, reporting, balance between risks and growth • Growth opportunities: identification, utilization of scarce resources, segmentation, upselling and crossselling • Unparalleled teamwork simulation and problem solving exercise • The simulation can be delivered in wide range of content configurations and allows for far reaching lowlevel customization to target optimal learning outcomes • The Cesim Banking Simulation is a robust platform for further development and tailoring for a wide range of training programs and goals 26 Overall Vision CUSTOMER SEGMENTS (Corporate, SME, Retail) • Decision-making areas include: • Retail banking: mortgage and consumer loans, demand and fixed term deposits, service fees • SME banking: deposits, lending terms, competitive positioning • Corporate banking: advisory services INVESTMENT SERVICES & PRODUCTS Investment Services: three customer segments, marketing communications, portfolio management, securities brokerage. Investment products: investment funds, partnerships, structured products PERSONNEL number of personnel, compensation policies, training, HR development SYSTEMS & PROCESSES Maintenance, development of products, services and processes. RISK MANAGEMENT Internal policies, external reporting, interest rate risk. TREASURY credit and equity markets, solvency regulation, central bank, minimum reserves, treasury investments. 27 Telecom Operator Management Simulation 28 Telecom Operator Management Simulation PARTICIPANT TASK Pricing, promotion, channel management, entertainment service strategy, human resources, network infrastructure development, and finance are among the decision areas that the participants must consider. In addition, the teams will make decisions about various different events that influence the success of their companies for the whole duration of the simulation. KEY LEARNING AREAS Cesim Connect helps the participants to comprehend the relationships between the different telecom operator functions and develops their telecom-related business acumen. The simulation improves the participants' decision-making skills familiarizing them with the whole decision-making environment for a telecommunications operator; including mobile, fixed broadband, entertainment, and IT services, channel management, network infrastructure development, and finance. KEY SUCCESS FACTORS The teams success is measured by their ability to generate shareholder returns. The returns are dependent on how the teams are able to run the operations, how well they manage to maneuver the company through changes in the external environment and competitive forces, and how successful they are in their decisions regarding capital structure and profit redistribution. EXPECTED OUTCOME Participants develop capabilities in formulating, implementing, and adapting business strategies in a dynamic competitive environment. In addition, they will enhance their fact-based decision-making skills and improve their financial knowledge through linking operational decisions to cash flows and bottom line performance. The simulation exercise also gives practical experiences in team-work and problem solving and excites competitive spirits in a dynamically evolving marketplace. 29 Telecom Operator Management Simulation The computer-based simulation consists of the management of a complex telecommunication enterprise, different offers for different segments of customers (residential, corporate, major customers) in different geographical areas and its various functions (sales and marketing, operations, network infrastructure development and finance) within a dynamic and constantly evolving context. MAIN LEARNING OBJECTIVES Cesim Connect helps the participants to comprehend the relationships between the different telecom operator functions and develops their telecom-related business acumen. The simulation improves the participants decision-making skills familiarizing them with the whole decisionmaking environment for a telecommunication operator; including mobile, fixed broadband, entertainment and IT services, channel management, network infrastructure development, and finance. During the rounds the participants must plan how they prepare for shifting consumer preferences and new network technologies, they experience how variations in competitive intensity influences their profitability, and how they should nurture shareholder returns even with zero or negative growth. 30 Overall Vision Clients Detailed simulation of various services offered to the different customer segments. There are essentially two types of offers: the first one depends on the type of tariff; such as flat tariff and variable tariff that are based on actual usage. The second one depends on the customer. Furthermore; it is possible another differentiation among new customers or existing ones. Channel management Consists of five different sales channels, where the participants decide through which channels implement new sales/win-backs. Customer Service There are two different lines of personnel. The first one provides customer care for residentials and the second one for companies. Obviously; HR choices impact on the quality of offered service. Network Capabilities of planning and evaluation of ROI (return on investment) on coverage capacity that are related to disconnection rate (defined as acceptable for the company goals). Finance Managing capital structure related to the company strategy, in order to create a structure that better fits not only investment decisions but also commercial offers. 31 Energy Company Business Simulation 32 Energy Company Business Simulation PARTICIPANT TASK The task for the teams is to manage the sales, production, risk management, and finance functions of a power utility. Teams make decisions regarding pricing, marketing, plant investments and divestments, capacity utilization and operational improvements, renewable energy, risk management policy, funding, and profit redistribution. KEY LEARNING AREAS Cesim SimPower familiarizes participants with the whole decision-making environment for a power utility; including electricity sales, procurement, renewable energy investments, sustainable development policies, risk-management, financials, and their relationship with each other. During the rounds the participants experience how variations in the electricity spot price impact their profitability, how they should take those price variations into account when pricing to their own customers, what types of power plants to use under different conditions, what kind of risk-management policies they should apply, how different regulatory aspects influence the company’s operations, and how the changing customer preferences and shifts in demand should be taken into account 33 Energy Company Business Simulation KEY SUCCESS FACTORS The success of the teams is measured by their ability to generate sustainable shareholder returns. The returns are dependent on how the teams are able to incorporate the impact of regulatory policies in their investment decisions, how they address the preferences of different customer segments, and how successful they are in their risk management and financial decisions. EXPECTED OUTCOME Participants develop capabilities in formulating, implementing, and adapting business strategies in a dynamic competitive environment. In addition, they will enhance their fact-based decision-making skills and improve their financial knowledge through linking operational decisions to cash flows and bottom line performance. The simulation exercise also gives practical experiences in team-work and problem solving and excites competitive spirits in a dynamically evolving marketplace. 34 Energy Company Business Simulation Cesim SimPower is a browser-based power utility management simulation game that combines the dynamics of power markets, production, and risk management. It also includes decisions and policies regarding sustainable development. Teams manage a power utility that has its own production with coal-fired, gas-fired, and eolic power plants and a solid customer base consisting of both industrial and residential customers. The company uses forward contracts for hedging against market price fluctuations and it operates in markets where greenhouse gas regulations and carbon emissions trading take place. MAIN FOCUSES Energy industry, strategic management, risk management, regulation, power utilities, commodities. BENEFITS The simulation helps the comprehension of a complex business, surfing on different macro-scenarios and managing the main drivers to build a long-term strategy. 35 Overall Vision SALES Offering different market segment (pricing, marketing and distribution investment). Profitability analysis on different market segments. The area consists of Large Scale Industry, Other Segments (households, electric heating, new segment and small-scale industry) and District Heat. PROCUREMENT Making or Buying strategies management in a changing macroeconomic environment. Fixed and Variables costs related to production plant investment ,and environmental emissions rights. In this area participants make decisions and estimations related to Own Production, Carbon Emission Trade, Purchased, Electricity Market and Eolic (wind power) FINANCE Managing Capital structure to support production investments. Strategic decisions impact on financial forecast analysis. RISK MANAGEMENT Is the area related to price volatility of the energy stock exchange through the “buy-and-sell” of the derivative contracts and allows the participants to trade electricity forwards. 36 Marketing Management Simulation 37 Overall Vision SALES AND MARKETING (two geographic areas with 4 segments of customers) Develop the analytical skills of purchasing patterns and preferences of different customer segments, for management of various marketing levers (prices, investments in marketing and distribution channels) and the monitoring of product profitability, channel and market segments. PRODUCTS Develop attention to positioning, life cycle and product profitability, optimizing the trade-off cost-effective, decisions (leader / follower) and the management of new strategic product development as a strategic lever. SERVICE MANAGEMENT Develop sensitivity analysis of consumers with regard to the levers of the service, analysis and management of investments in service as a competitive positioning. FINANCE Spread the economic – financial terminology, understand the implications of the various estimates and reports on major decisions have to balance business. 38 Marketing Management Simulation PARTICIPANT TASK A significant part of the decision making challenge is to actively manage the product portfolio by matching both qualitative and quantitative features of products with the selected target segments’ preferences. Moreover, pricing, promotion and channel selection need to be set based on the segments’ preferences. In addition, teams manage the after sales and research and development decisions. KEY LEARNING AREAS The simulation covers marketing topics including product life cycle management, segmentation, positioning, distribution channel investments, advertising budget allocation, after sales services, pricing, sales forecasting, marketing research, competitor analysis, research and development, and profitability. KEY SUCCESS FACTORS The essence of Cesim SimBrand simulation is to mirror a fast developing smartphone market that is driven by short product life cycles and innovation; where constant attention to core competences, timely product development, segmentation, positioning, and marketing communications are the keys to success. EXPECTED OUTCOME As an outcome of the simulation exercise, participants will fully comprehend the different parts of the marketing decision making process, their relationship with each other, and their impact on the company’s overall results. In addition, participants will gain invaluable experience in teamwork and problem solving. 39 Marketing Management Simulation The essence of the Cesim SimBrand simulation is to mirror a fast developing, technology-based product market that is driven by short product life cycles and innovation; where constant attention to product development, good timing and successful positioning are the keys to success . MAIN LEARNING OBJECTIVES The simulation SIMBRAND enables to: • Understanding the whole marketing decision-making process with particular emphasis on profitability • To cover marketing topics including segmentation, positioning, delivery channel investments, marketing budget allocation, customer care services and pricing 40 Hotel and Restaurant Management Simulation 41 Hotel and Restaurant Management Simulation KEY LEARNING AREAS Hotel management related functions; revenue management, sales promotion, menu engineering, housekeeping, staff management and procurement. Big picture understanding of the linkages between different functions and their impact on the bottom line. KEY SUCCESS FACTORS Teams’ success is measured with a number of different financial ratios, including operating profit, net profit, return on assets, and cash flows. Within the hotel operations, revenue management and customer satisfaction are key. Success factors for the Restaurant side include menu engineering, staff management and overall customer experience. In addition, the simulation contains all relevant industry specific ratios including (but not limited to) ADR, GOPPAR, RevPAR, occupancy-%, revenue per customer and customers per restaurant seat. EXPECTED OUTCOME The simulation develops the participants’ capabilities in identifying, analyzing, and acting on the key operational & environmental variables that influence hotel and restaurant operations. Furthermore, the simulation enhances fact-based analytical decision making and illuminates the financial implications of operational decisions by linking the decisions to cash flows and bottom line performance. Finally, this dynamic, evolving hospitality business simulation excites competitive spirits among participants and allows them to gain practical experience in teamwork and problem solving. 42 Overall Vision Cesim Hospitality is an interactive and fun learning environment that improves the students' business competencies and employability. The participants run their hotel and restaurant operations in competition with other teams. They can try and practice with different scenarios as well as analyze the outcomes of their decisions and projections. For each round, the simulation generates a range of detailed reports that help the teams to analyze and benchmark their performance against their competitors. Financial results are reported according to the Uniform System of Accounts for Restaurants and for the Lodging Industry. 43 Overall Vision DESK This funtion covers managing the reception and the sales office including decisions focused on front desk management, desk staff level, room rates and promotions. RESTAURANT Is operationally divided to the kitchen and the dining room sides. The decisions are related to the restaurant staff level, dish selection by raw material, pricing and sales estimation, beverages and seating set up. HOUSEKEEPING The housekeeping function handles cleaning and tidying of rooms and other facilities such as laundry, garden and plant watering etc. The decisions are related to overall housekeeping target level, type of firm used, priority decisions and head focus. MAINTENANCE The maintenance function keeps the facilities in working order and focused on making repairs of all sorts and directs renovation projects. HR Human Resources area is related to staff training, staff compensation, target staff size and capability level and policy selection decisions. PROCUREMENT Is related to the purchasing decisions of raw-materials and consumables. 44 Project Management Simulation 45 Project Management Simulation PARTICIPANT TASK Each participant in a Cesim Project simulation exercise has an active role as part of a project team. The project team together is tasked with completing a large sub-project and the entire project organization must successfully complete multiple possibly interlocking projects each colored by some unique problem spots. The success of the teams vitally depends on the project members’ ability to communicate appropriate action plans within the newly formed project team. Specifically the project teams and members must decide upon formation of project teams based on unique skill sets and task requirements, determination of appropriate budgets, prioritization of project tasks, use of overtime hours, preparation for unexpected changes, outsourcing of tasks, and potential changes in project team composition. KEY LEARNING AREAS Cesim Project was designed from ground up on the philosophy that communication between the people is the essence of all project management. While project management at large covers a multitude of functional disciplines many of which are part of the simulation, the key learning area is the need to disseminate information appropriately within the project team and the larger organization, taking into full consideration the unique needs of the real project team in place. No two Cesim Project courses will ever be the same as each new session will bring about new people with their unique interpersonal skills and communicative tendencies. 46 Project Management Simulation KEY SUCCESS FACTORS Success is measured in a mixture of collaborative and competitive elements. Project teams in charge of their respective sub-projects within the larger project organization seek to complete their tasks with the best quality, least time and cost and within budgetary constraints. However, the project teams should not neglect the collective goal of the entire organization that on its part can be measured against results from other project courses. EXPECTED OUTCOME Better understanding of the critical element of communication in project work. Increased understanding of the interplay of collaborative and competitive elements in an environment that puts interpersonal skills at test. Insights into systematic measurement of project goals and key metrics like time, cost, budget overruns etc. Newly found appreciation of differences of opinion and variance in teamwork skills, and for people management. 47 Project Management Simulation Cesim Project management simulation game has been designed to capture the essence of project management in an environment of collaborative and competitive elements. MAIN LEARNING OBJECTIVES • Understanding the logics behind the management of a project in line with the Project Management approach • Understanding the Project life cycle, such as the principal steps to follow own other during the project’s life and the its critical path • Improving skills related to the Control and Planning of a project (Time/Costs/Quality) • Understanding the importance of Risk Management • Understanding the financial/economic aspects related to a project MAIN FOCUSES Project management, teamwork and leadership, effective collaboration and communication. 48 Overall Vision Roles There are 3 distinct roles in the game in addition to the team structure: • Project owner • Project managers • Project members. Decision Making Access to decision areas has been restricted based on team roles. A team member sees the Progress, Tasks, Skills, Sub-projects and Parameters pages. The project owner sees an additional Owner page. A project manager sees all pages, except the owner page. Goal of the Simulation The goal of the simulation is to complete the project as economically as possible. The result can be evaluated based on total expenses, hours used to complete the project, the overall project quality or by the number of rounds used to complete the project. In addition to completing the total project, team managers should continuously strive to improve the efficiency with which their own sub-project is progressing, based on the same criteria 49