Business Strategy Game: A Global Industry Simulation

1
Business Strategy GameA Global Industry
Simulation

• Realistic simulation of the athletic footwear
  industry.
• 4 markets
• Branded U.S., Europe, Asia
• Private Label
• 4 Plant Locations
• U.S. Ohio, Texas
• International Europe, Asia

2
Environment

• Adjustments (Wall Street Journal on Monday
  Wednesday)
• SP 500
• following years sales forecast modified up to
  10
• Exchange Rates Dollar, Euro, Yen
• Costs of shipping between markets adjusted by
  difference in exchange rate multiplied by 10

3
Scoring

• Revenues (5)
• Earnings per Share (20)
• Return on Equity (20)
• Market Capitalization (20)
• Bond Rating (20)
• Strategy Rating (15)

4
Procedures

• Six teams in industry 01
• Decision (data disk) due in Dr Calvasinas office
  by 1200 Noon on the assigned dates.
• Exit through system and before removing disk
• Save backups or printouts of decision
• Decisions processed by 1215 PM (if all goes well)

5
Computer Aids

• On-screen calculations to see impact of decisions
  (sensitivity analysis)
• Demand Forecasting (based on what you think
  rivals will do)
• Five-year strategic planning feature

6
Other Features

• Inventory Liquidation
• Celebrity Endorsements
• Executive Compensation (turned off at beginning)
• Benchmarking Reports (industry cost info)
• Altmans Bankruptcy index
• If team falls into bankruptcy zone bankruptcy
  hearing and five year plan

7
Results

• Footwear Industry Report
• Industry Scoreboard
• Industry information (e.g., 5-year forecast)
• News Bulletin
• Benchmarking Report
• Competitor Analysis Reports

8
Business Strategy Yearly Scoreboard
9
Business Strategy Game to Date Scoreboard
10
First Session

• Company Letter (assigned) and name (you choose)
• Password (you choose)
• Names and Ids of managers (Id not important)
• Exit before removing disk