Subject outline
Subject’s title:
Managerial Financial Decisions Supported with Business
Simulation Software
Subject’s code:
PDSS1V0EPZS
Elective in D Module
Status:
practice, 2 per week
Contact hours:
3
Credits:
Prerequisites to qualify for the same as of the specialisation
subject:
English
Language of education:
Course unit leader:
Tutor(s)/lecturer(s):
Sági Judit PhD, associate professor
teachers invited in their field of lecturing themes
Short description of the subject:
Cesim Global Challenge, that supports the course, is an on-line business simulation game that
develops students’ understanding of the complexity of global business operations in a
dynamic competitive environment. It integrates a range of concepts from various
management-related disciplines, including economic, political, financial, accounting,
procurement, production, logistics, research and innovation, and marketing.
The task for the student teams is to manage a global mobile telecommunications company
through technological evolution in the fast-paced 21st century operating environment.
Students will develop and execute strategies for their simulated company operating in the
USA, Asia, and Europe.
Aims:
The aim of this course is that through involvement in managerial decisions, students gain
insight in professional decision-making and responsibility.
Each team will take over as the new management team of Mobilé Inc, a global mobile handset
manufacturer. The team will be responsible for the company’s strategy, R&D, marketing,
production, logistics, and finance. The essence of Mobilé Inc is a fast-developing mobile
handset market with product life cycles driven by technological evolution. Team will develop
and execute global strategies and its success is measured by its capability to deliver value to
the shareholders. Strategic approach to decision-making, careful analysis, continuous R&D,
good timing, and successful product positioning are the main keys to success.
Learning outcomes:
knowledge
 Increase participants’ awareness of the complexity of operating an international company
from a strategic and general management perspective
 To develop capabilities in analysing key environmental & organizational variables that
may influence an organisation’s performance within & across national markets, and how
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these variables may influence the organisation
 Enhance fact-based analytical decision-making and crystallize the financial implications
of business decisions by linking the decisions to cash flows and bottom line performance
Learning outcomes:
skills
 Gain practical experiences in team-work and problem solving and problem solving, since
the simulation game is to excite competitive spirits in a dynamically evolving marketplace
Teaching strategies and method of delivery:
The teaching method can be summarised as “Learning by Doing”; that practically includes the
following:
- The simulation market consists of about 8 teams, with 3-4 members in each. All teams are
starting from exactly the same position, with similar market shares and profits.
- Equally, teams will be faced with the same market conditions during the simulation. It is
notable that teams compete against other teams in their own market, not against a
computer. Each team’s decisions influence the other teams’ results and the market
development overall.
- Decision making is round-based. One decision-making period is typically regarded as one
fiscal year.
- The main objective for the teams is to deliver sustainable, profitable growth. Typically this
is measured by a ratio called “cumulative total return to the shareholders”, which combines
share price development and dividends paid to show the total return to the shareholders.
Compulsory reading:
Global Challenge Decision Making Guide and also some additional reading materials, as
available and downloadable during the simulation game
http://gc4.cesim.com
http://www.cesim.com/simulations/cesim-global-challenge-international-business-strategysimulation-game/
Recommended reading:
The teaching materials of the previous semesters in Finance, Accounting, Economics and
Management.
Assessment and grading:
Form of assessment: practical exam.
When the final round of the simulation is completed, each team has to make a presentation
about the specific strategy that has been formulated throughout the game, referring to the
changes in the strategy, and also to the interim result. However, most emphasis must be laid
on the final results in the presentation, including the total shareholders’ return and the other
ratios, and the composition of the final financial statements as well.
The final mark will be composed of:
- the team’s ranking in the simulation game, up to 40% (40, 37, 34, 31, 28, 25, 22, 19);
- and the presentations about the team’s strategy and the results achieved, up to 60%.
Topics of the session:
Lectures/weeks:
1. consultation Oct 1st, 9:40-15:25; place: PC9
1.a Introduction and practice round
Manual and case description should be read first, before turning to the decision making
platforms. In the beginning of the game, results called initial round results are available.
These can be used as a starting point for the practice round decisions.
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After introduction, the teams familiarise themselves with decision-making via a practice
round. The practice round results will not have any influence on the actual game results.
1.b Discussions with invited teachers
In relation to CESIM business simulation decision making areas, discussions about
marketing, market demand, production, investment, R&D, marketing, logistics, finances
and budgets will be held with the help of invited teachers
1.c The first decision round to be played
After the practice round, the situation is cleared back to the initial, and decisions will be
made for the first round.
2. consultation Oct 11th, 8:00-15:25; place: A203
2.a Five decision rounds
Market outlooks should be read before starting to make decisions for each round. A new
market outlook containing information about the market development becomes available
as soon as the previous round has passed.
After each round the system generates reports that depict the results of each team in a
particular market. Results provide useful information about a team’s own sales,
operations, and finances. In addition, results can be used to benchmark performance with
the competing teams in the same market.
2.b Additional five rounds at home
3. consultation Nov 8th, 8:00-14:30; place: A203
Presentations
Upon the results of the decisions, each team has to analyse the financial results and to
draw the conclusions. The presentations are to be held (30 minutes per team is required).
Budapest, September, 2013.
dr. Sági Judit