Start Up Presentation
Single-player Version
Learning Outcomes
• To gain an understanding of core business functions,
including Marketing, Operations, Accounting, Finance
and Strategy
• To visualize a business as an interactive system of
these components
• To learn how to analyze company data in a live case
study
• To make management decisions and experience the
results of those decisions.
The Scenario
• You will be working with the Single player version of
MikesBikes-Intro on CD.
– You play against a computer opponent (Mike).
• You start as a Brand Manager (part of the Marketing
Department) and gradually work your way towards
being promoted to President where you will make a
full set of business decisions.
Single-player Version Environment
2
MANUFACTURERS
3
DISTRIBUTION
CHANNELS
3
MARKET
SEGMENTS
Real Cool
Cycles
(student)
MountainTop
Cycles
(computer)
Compete
through
For
control of
You (and Mike) begin the simulation with a single identical product in the
Mountain Bike segment. Initially you have control over its price, advertising
mix and sales forecast. Then it gets INTERESTING……..
Period
Description
New Decisions Available
Segments
Available
1
Year 2002
Brought into the
family business as a
Brand Manager.
Pricing and Promotion
Production Planner
Control of the Product
Promotion budget
Mountain
2
Year 2003
Promoted to
Marketing Manager.
Distribution
Branding
Control of the Firm Promotion Budget
Mountain
3
Year 2004
Promoted to General
Manager.
Capacity Planner
Bonds (no investor relations)
Control of the Production Budget
Control of Capital Expenditure
Mountain
Promoted to
President.
Expanding the
product mix is now
possible.
Product Slot (new product)
Redevelop (existing product)
Abandon (existing product)
Equity
2nd Product slot made available
Control of the Product Development
Budget and Financial Activities Budget
Road
Mountain
Kids
4,5,6
Years 2005, 2006, &
2007
Getting Started
1.
Install MikesBikes-Intro.
•
If you have any problems installing the software then email SmartSims at
help@smartsims.com
2.
Read and print these five key reports (AT A MINIMUM):
•
The Year Ahead report provides great strategy advice.
•
The Scenario Information report is a market analysis prepared by
consultants.
•
Industry Benchmark Report shows your performance against the
competition.
•
The Income Statement shows your profit and it was prepared by the
Accounting department in your firm.
•
The All Product Details Report shows individual product performance
and it is prepared by the Product Marketing department in your firm.
Developing a Product Strategy
3.
Decide on a product strategy, which is a long term, multi-year plan.
The company President has given you complete freedom to manage your
firm’s single product. However he/she has recommended that you choose to
implement one of three product strategies:
•
High Price, Lower Volume Strategy
To follow this strategy, your decisions this year might increase your price by up to
10% and increase your Product Promotion budget by 50-100% of last year’s profit
(e.g. if your profit was $1m, then this year you would increase your promotion budget
in the range of $500K to $1m).
•
Medium Price, Medium Volume Strategy
To follow this strategy, your decisions this year might change your price by less than
1%, and increase your Product Promotion budget by 25-50% of last year’s profit.
•
Low Price, Higher Volume
To follow this strategy, your decisions this year might decrease your price by up to
5% and increase your Product Promotion budget by 25% of last year’s profit.
Enter your decisions
Mandatory: Change your firm’s name to include your own
name. (This is the only time in the game you may do so.)
4.
•
For example: Michele Fritz’s Winner Co.
5.
Set your Expenditure Budget.
6.
Make your Pricing and Promotion decisions.
7.
Make your Production Planner decision.
8.
Press the Go button to roll over your decisions and see the
results in the following year.
9.
You can “rollback” your decisions until you turn them in to
your instructor with the assignments. After turning the
assignment in, you must live with the decisions you made up
to that point in time.
Hints for Success
•
What is a decent shareholder value in this industry? By 2005,
• A score of $15 is OK
• A score of $20 is Good
• A score of $25 is Great
•
Start off with small changes and use the rollback button to go back and improve
your decisions after you have seen the results
– At certain points you have written assignments to submit to your instructor. Once
these assignments have been turned in, you may no longer roll back to a period prior
to the year of the assignment.
– You may still use the rollback button for the years between assignments, until the
next written assignment is due.
– Your instructor will keep the printed reports with your decisions in order to monitor
this policy.
•
Read the MikesBikes Intro Player’s Manual as it contains lots of useful
information and and tips.
– It can be found at http://www.smartsims.com/simulations/downloads/index.asp
– You’re now ready to take over as a Brand Manager
•
Written Assignment 1: Product Strategy
–
–
–
–
Prepare a one page (maximum) summary report (typed, double spaced in a font of 10 or
11) describing how your product strategy will help your firm succeed over the next 5
years.
What do you want your firm to be known for? What is the one thing that makes your firm
stand out from the competition?
Why did you select this strategy? Refer to any data, analysis, or indicators that justify your
decision.
After you have rolled over to 2003, print out a copy of the “Industry Benchmark Report”
and the “Decisions Made Last Period Report”. Make certain that you have already
changed the name of your firm, or your will not get credit for submitting these
reports!
•
Click on the Industry Reports item on the Decision Tree, then print out the Industry Benchmark
Report. Click on the Firm item on the Decision Tree, then print out the Decisions report which is
available as you scroll through the report choices in the box at the top right hand section of the
screen. (The reports will show they are for period 2002.) Staple them to the rear of your
assignment.