Managerial Economics Simulation
(http://asdsim.buz.net/EN_LoginManecSim.html)
In this simulation your group will manage a simulated firm in which the main decisions are
related to pricing and setting of promotional and customer service expenditures for three
products. Each product has different cost structures which allows for the treatment of operating
leverage. In addition to making decisions, your group must forecast sales at the market and firm
levels. Your group will be developing your operations in a competitive environment. The
demand of each product manufactured by the firm is subject to macroeconomics variables,
besides the demand variables under firm control (price, promotion, and customer service). I will
be receiving a summary report of each firm.
This simulation, besides giving you the opportunity to observe the interrelationship between
marketing and production will allow you to experience competition in three different markets
and with three different sets of elasticities (price, income, promotion, etc.). Throughout the
twelve week simulation market conditions may change. For instance, a supply shock may cause
input prices to dramatically rise or conditions that cause a price war may appear. Make sure to
pay close attention to the market as well as your competitors.
You will be grouped in teams of four or five members (twelve teams total). The simulation will
last ten weeks with each week simulating three months of operations.
A manual and weekly instructions are provided in Web site. After each round of decisions
reports and financial statements in Excel format will be made available.
Each week you will choose a firm manager. This manager will be responsible for making the
changes (decided by all) for the team that week. They will also be responsible for writing a
reflective 500 word memo describing:
1. The decisions that were made
2. Why those decisions were made
3. The conditions of the market
4. The outcome of the decisions to the firm.
5. Whether or not a different decision could have been beneficial and why
This memo will be written by one firm member, but will be shared as one grade for the ENTIRE
firm. Thus, all members should contribute to the editing and reviewing of the memos before the
memo is turned in. Reflective memos will be due at the beginning of class on WEDNESDAY
following the decision week. Only hardcopies of the memo will be accepted. For each class
session that the memo is late the final grade of the memo will be reduced by 10%.
At the end of the simulation the group will be responsible for writing an ANNUAL REPORT
for their firm. This report will include all of the information presented in the weekly reflective
essays. Graphs and charts should be used to show the progress that your firm made throughout
the 30 months in business. Information about your competitors can be included to help support
positive or negative events that your firm experienced. This annual report should be presented
in a professional format and written for those both with and without economic knowledge. It
should be written using 12 pt Times New Roman format, 1 inch margins, and MLA paper
formatting. Final papers should not exceed 10 pages in length. Final papers will be due on
Wednesday April 25th at the beginning of class. For each class session that the annual report is
late the final grade of the memo will be reduced by 10%.
Semester assignment of firms:
11:00 Class
1:30 Class
Brundage, Matthew
Kelley, Terrence
Dorflinger, Ariel
Stolle, William
Baumeister, Jordan
Hoffman, Morgan
Scheinfield, Robert
Govern, Matthew
Stratton, Melissa
George, Anthony
Price, Daniel
Hampson, Brian
Gallagher, Katherine
Im, Joo
Yamazaki, Daisuke
Martingano, Francis
Hirose, Nozomu
Park, So Ra
Deegan, Elizabeth
Sakowski, Leah
Montefiore, Paul
Turnbach, Heather
Gilbert, Britiany
Downs, Daryl
Sullivan-Rivera, Steven
D'Arcangelo, Rocco
Manton, Christina
Hanby, Brett
George, John
Rembert, Eric
Merrill, Melissa
Harley, Jacqueline
Pierce, Robin
Young, Dustin
Kargman, David
McShane, Ann
Tyrrell, Gregory
Conant, Brian
Smith, Walter
Suzuki, Issei
Coellner, Danielle
Kabacinski, Adam
Haag, Hillary
Borden, Weston
Jones, Douglas
Shaw, Daniel
Maguire, Robert