Business Simulation

Abstract

This course offers an experiential learning environment for the creation and execution of corporate and business-level strategies in a competitive market. Participants adopt the role of executive decision-makers and make strategic and tactical decisions about purchasing, production, marketing & sales, finance, human resources, and R&D, while anticipating and managing stakeholder effects.

Objective

Upon completion of the course, the student will be able to better formulate and implement strategies that drive competitive organizations. This course will provide insight into how to identify and choose a superior competitive position, how to analyze a strategic situation, and how to create the organizational context to make the chosen strategy work. As such, the objectives of this course are to deploy conceptual frameworks and models to analyzing competitive situation and strategic dilemmas and gain insight into strategic management. You will build on insights developed in other course, explore and apply tools to arrive at understandings that are both applicable in the business world and deeply rooted in a thorough academic understanding. The emphasis throughout is on the application of conceptual models which clarify the interactions between industry, competition, firm resources, and the structure and development of firm capabilities.

Content

This course is ideal for students who want to practice strategic thinking about a company as an inter-disciplinary entity rather than from a functional standpoint (e.g., marketing, finance, or operations). This course allows students to collaborate on developing and implementing business and corporate level strategies to effectively and efficiently coordinate activities, functions, people, and processes to achieve goals. As the managers of your simulated electronic sensor manufacturing firm, you will compete in multiple product markets to create and maintain competitive advantage by determining how your company should grow. You will have access to the online simulation about two weeks before the course begins. You must thoroughly read the simulation manual and complete an individual exercise that may take up to two hours to complete. The goal of this preparation is to ensure that all course participants are on the same page and ready to handle the technical aspects of the simulation. Nonetheless, we will have plenty of time to practice and address any outstanding issues/questions. Thus, you must complete the exercise prior to the first-class meeting. The performance of your company, i.e., how well your team "manages" your company, determines your grade in the team-based simulation. You will make a series of business decisions in the simulation that will be evaluated in a simulated competitive market. A total of 100 performance points (Pts) is possible. In general, firm performance will be determined by a firm's achievement on a Balanced Scorecard (as provided by the simulation), which includes a variety of performance measures such as equity position, short-term performance, and organizational and operational aspects. It is important to note that you are expected to be present and actively contribute to your company's effort. Your simulation grade may be adjusted based on feedback from team members. Following each of the seven simulated years, we will review the firms’ financial reports and try to identify strength and weakness and understand the coevolution of the firms within the industry. This will be a collective effort and each team will have the opportunity to take the lead in analysing its competitors and the industry.

Resources