PROFESS

1
PROFESS

• Professional Service Simulation
• an exploration of commerce

2
Introduction

• You will be responsible for the commercial
  development of a sales region.
• This will involve determining and anticipating
  customer needs, promoting and deploying a skilled
  sales force.
• The business modelled is a professional service
  company (such as a logistics or computer services
  company).
• Your purpose is to make the business a success

3
The Simulation

• This activity consists of three stages
• Preparation
• familiarisation organisation
• deciding strategies objectives
• Decision-making
• submit decisions
• effect simulated
• get review results
• Review
• discuss compare results

4
Situation

• Autonomous sales region
• Responsible for obtaining new business
• Sells to a range of business customers
• Consists of three sales regions
• Employs advisers (sales people) and technical
  staff
• Run the region on a quarter by quarter basis

5
Services

• You currently sell four services
• Type 1 for the biggest customers
• Type 2 for middle sized customers
• Type 3 for middle sized customers
• Type 4 for the smallest customers
• But some time in the future additional services
  may become available

6
Customers

• Your customer base is divided into
• Very large multinational companies
• Large companies
• Medium sized companies
• Small companies
• Micro businesses

7
Sales Areas

• Area A City Centre
• Mainly micro small businesses but some large
  companies.
• Area B City Edge
• Industrial Area mainly small and large
  companies but with a few multinationals, small
  and micro businesses.
• Area C Rural
• Small and micro but with several large and
  multi-national companies on green field sites.

8
Selling Process

1. Advisers contact prospective customers or
   customers contact the company
2. Advisers meet with prospects to discuss and
   determine needs
3. Advisers provide specification of need to
   technical staff.
4. Technical staff produce detailed proposal and
   return to advisers
5. Advisers meet with the prospect to discuss and
   finalise the proposal.

9
Sales Influences?

• Adviser Availability
• Adviser Skills
• Sales Promotion
• Service Offering
• Proposal Speed
• Brochure
• Market Trends

10
Staff Development

• Adviser Training
• Done by corporate
• Charged on a per adviser day basis
• You decide number of days/adviser each quarter
• Induction Training
• For new hires
• To provide basic knowledge of service company
• Technical Staff Training
• Done on-the-job

11
Decisions

• Required number of Advisers (by area)
• Adviser Salary (whole region)
• Adviser Training (days)
• Induction Training (days)
• Required number of Technicians
• Service to update
• Brochure to update
• Regional Promotion

12
Costs

• All costs and revenue in a universal currency
• Adviser Salary currently 100 AUs/Quarter
• Area Overheads about 250 AUs/Quarter
• Technical Staff costs 40 AUs/Quarter
• Technical Overheads 500 AUs/Quarter plus
  10AUs/staff member
• Service Updating 100 AUs when updated
• Regional Promotion typically up to 200AUs
• Recruitment Cost 10 AUs/adviser 5
  AUs/technician
• Training Course Cost 1 AU/adviser

13
Results

• Returned in three stages
• Preliminary Results
• Area Summary and Business Summary
• Team Results
• Profit Statement, Operational Report, Recruitment
  and comments on operation
• Business Research
• Salaries Advertised, Number of Advisers, Market
  Share and editorials.

14
Observations

• it takes time to understand
• but the business still must be run
• therefore your decisions will not be perfect
• time will be a constraint
• by the end you should (just) be in charge of your
  business
• your business skills will be challenged
• remember the purpose is to learn!
• (rather than just to win!)
• so, take time to reflect review
• and have fun!