BUSINESS GAME: TOP SIM - GOING GLOBAL

Transcription

1 BUSINESS GAME: TOP SIM - GOING GLOBAL

2 A flight simulator for learning business by doing business.

3 What is a TOPSIM Management Simulation? 1 providing a solid base in all skills required to lead a complex organization. Management and Performance skills Strategy development Managing cross-functional /departmental conflicts Understand finance and profitability drivers (EVA, S/H value, etc.) Key success principles in marketing and sales SMART objectives Introduction to the business case. 2 3 Decision making within the teams. Decision delivery to instructor. Teamwork abilities Knowing your strengths and weaknesses Understanding others and active listening Giving positive feedback Leadership skills General business abilities Presentation skills Running effective meetings Time and priority management 3 5 Analysis of the simulation results. 4 Simulation. Flow of a management simulation

4 Manager: Observer and part of system. Where and when do companies incur costs? Own company Tools: Cost Accounting Business News Reporting Where and how is the money earned? How does who react to what? Successful Management Customers & Market How is the competition successful? Competitors Successful Management in the System Tools: Market Research Report Business Reports Annual Reports Regional Fact Sheets What does the customer want today and in the future? 4 Can you recognize any trends or developments? Tools: Market Research Report Business Reports Annual Reports

5 1 Introduction to the Simulation. 2 3 Decision making in Teams. 5 Evaluation of the decisions. Hand in decisions. 4 Simulation by the instructor. Sales Production Expansion FORMS Projects Purchasing & Logistic finance & accounting The seminar process WashTech Ltd. Divisions 5

6 For example... you begin in North America REGION 1 REGION 2 REGION 3 REGION 4 REGION 5 Europe North America South America Asia 1 Asia 2 Competitors (# in Remaining Market) N. America (Domestic Market) S. America Africa Europe Asia 1 Asia 2 Market Volume P0 (EUR) Sales P0 (Unit) Market Volume P0 (EUR) 1,220,000,000 1,030,000, ,000, ,000, ,000, , , , , ,000-17% - 19% - 18% - 25% - 22% Price P0 (EUR) Net Income P0 (EUR) Initial situation (Period 0)

7 Where will you go? You decide on the type, scope and duration of expansion! Market entry process Purchasing & Logistic Market Selection Form of Market Entry Market Development Personnel Which sources of information about market selection are available? Which forms of market entry are available? How can the tools be used to develop the market? Finances The Going Global process 7

8 Market Selection Form of Market Entry Market Development Market Selection Form of Market Entry Market Development What sources of information about market selection are available? What forms of market entry are available? Regional Fact Sheets Business News Market Research Reports EXPANSION Investment in your own Sales department Investment in your own Production COOPERATION Cooperation in Sales Cooperation in Production When, how, and in which region should I invest or cooperate in? 8

9 Competitiveness Index Market Knowledge Company Image Market Barriers Market Research Awareness Local Production Market Research Up to 3 different levels of detail Sales CSR Index Local Suppliers Expansion Form - Sales Investment in own sales department Cooperation with a regional partner Projects Domestic Region Projects Expansion Form - Production Investment in own production facility Cooperation with a regional partner Projects Competitiveness Index 9

10 Accumulated Net Profit Current Overall Sales Current Net Profit Share price CSR Index Equity Ratio Technology Level Ecology Level Logistics and Transport Costs 10 The Share Price (Success Value)

11 Corporate Social Responsibility as an influencing factor Presentation to the Board More gaming dynamics with the new market model Focus on expansion strategies Re-production of market barriers Strategic initiatives: Projects and features Company guidelines Scenarios/ planning Assumptions Preliminary business plans (Regional managers); Developing strategic concepts Examination by the CEO Revised business plans Performance review Global-sourcing strategies Competitiveness-Index reflects the market entry process New logic for manufacturing and logistic processes Regional manager Is responsible for the preparation of his/her region s busi- CEO Is responsible to verify regional business plans; Market research as an information source ness plan; Is responsible for efforts to implement the strategic approach for his/her region. Makes the decisions regarding internationalization and operating areas (market entry vehicle); The Supervisory Board possesses the veto power. The new TOP SIM: Going Global 11 The Strategic Planning Process

12 PEST-Analysis Generic Competitive Strategies STRATEGIC PLANNING Porter s Diamond Industry Structure Analysis: 5 Competitive Forces Prognosis of the Industry s Profitability Models of Internationalization Detailed Analysis of Competitive Advantage SWOT-Analysis Competition Analysis Strategic Groups Strategy Evaluation (e.g. via EVA) Reduction Strategy Integrated operation planning (business plan for individual regions) Period 1 Period 2 Period 3 Period 4 Period 5 Identification of Determining the Competition New Market: Competition in suitable markets expansion strategy analysis Africa several markets for expansion Market Selection + (Market entry + Market development strategy) Management Strategy of the domestic market Marketing-Mix Analyse Market Expansion Decisionsions Expansion Deci- Marketing-Mix Domestic Region Research regarding Africa Production Planninsions Expansion Deci- (Production) Africa Optimising the Global Sourcing Financial Deci- Global Supply Market Research (Sales) Delivery Priorities sions Chain Marketing-Mix for Market Barrier Plan Values new markets Projects CSR Project Integration of Strategic Concepts 12 Learning Goals and Processes

13 Increasing Complexity Online Online, Blended Classroom Instructor Lead Approach Self-paced Indirect competition System generated feedback Integrated learning modules Direct competition Instructor-lead online (Webinar) Focus on multi-functional aspects Direct competition Instructor-lead online / in classroom Multi-functional focus Direct competition Instructor feedback Guided discussion Multi-functional focus Additional strategic tasks Methods of Use 13

14 Strada Carlo Pisacane, Parma (PR) vareschi@vareschipartners.it