Cesim Global Challenge Guide Book

1
Introduction to
Strategy & International

Business Simulation
Cesim Oy | cesim.com | tel: +358 9 406 660 | Kalevankatu 16 B, 00100 Helsinki, Finland
2
What is Cesim Global Challenge?

Cesim Global Challenge is an online business simulation game that develops participant
understanding of the complexity of global business operations in a dynamic competitive
environment.
It integrates a range of concepts from various management related disciplines, including
economical, political, and financial decision making, as well as accounting, procurement, HR,
production, corporate social responsibility, logistics, research & innovation, and marketing.
The task for the participant teams is to manage a global technology company through technological
evolution in a fast paced 21st century operating environment.
The participants will develop and execute strategies for their simulated company operating in the
USA, Asia, and Europe.
Learning Goals
ü To increase the participants awareness of the complexity of operating
an international company from a strategic and general management
perspective.
ü To develop capabilities in identifying & analyzing key environmental
and organizational variables that may influence an organization’s
performance within and across national markets, and how these variables
may influence the organization.
ü To enhance fact based analytical decision making and crystallize the
financial implications of business decisions by linking the decisions to
cash flows and bottom line performance.
ü To give participants practical experiences in teamwork and problem solving and excite
competitive spirits in a dynamically evolving marketplace.
3
Learning Process
Concrete experience
____________________
Decision making
Applying new ideas Observations & reflections

____________________ ____________________
Analysis & Planning Results & Teamwork
Generalizing from
the experience
____________________
Lectures & Discussion
Web-based Solution
The simulation is completely web based. There is no need to install any separate applications and
the simulation can be accessed from any computer that has an internet connection.
The simulation platform allows team members to work virtually if they wish. Each team member
has her/his own account that enables them to make decisions and scenarios on their own and later
combine the outcomes with the other team members on the [decision checklist] -page.
The platform also includes a communications forum that can be used to communicate within teams
and between all teams in one market.
4
Simulation Platform Structure

The simulation platform includes the following pages:
[Home] - Overview page with deadlines
[Decisions] - All decisions are made under ’Decisions’
[Results] - Results become available in this area after each deadline
[Schedule] - Simulation schedule is available on this page
[Teams] - Teams and team members in your market can be viewed here
[Readings] - Access to the decision making instructions and case description
[Forums] - Access to the discussion forums for team and market
5
Simulation Organization
Each simulation market consists of 2-12 teams, with 1-8 members in each. The number of parallel
simulation markets is not limited, making it possible to utilize the simulation for any number of
participants in the class.
All teams are starting from exactly the same position, with similar market shares and profits. Equally,
teams will face the same market conditions during the simulation.
Note that the teams compete against other teams in their own market, not against a computer.
The decisions of each team influences the other teams’ results and the market development overall.
Course Options
As an instructor you can choose from two different case industries. The default case is placed in the
mobile device industry and the alternative case is placed in the automotive industry.
Both cases have options to include or exclude inventory, HR, and corporate social responsibility
-related decisions for your course.
In the default case HR, inventory, and CSR are disabled by default. If you want to use these modules
they need to be enabled at the beginning of your course. Automotive case has HR and inventory
enabled by default.
If you want to enable inventory, HR, and/or CSR you need to go to [Case management] – page and
click tab ”Your parameter sets”. Then follow these steps:
1. Click ”Create new simulation parameters” and name it. The parameters now appear under ”Your
parameter sets”
2. Click ”Parameters” and click the box Modules.
3. Activate HR, inventory, and/or CSR.
4. Go back to [Case management], choose tab ”Apply parameters to groups]” and click ”Assign”
Note that you can also change all the other parameters with the same steps as presented above.
6
Participant Registration Process

1. Go to www.cesim.com and choose “Register” on the top right.
2. Fill in your email and other details and select the language and the time zone.
Click <next>
3. Enter the course code that is given by your instructor.
Click <next>
4. Enter license code if required. (Note that if the license code is required you must enter a valid
code or proceed to the online payment options. Otherwise the registration will not continue.)
Click <next>
5. Choose your Team. In large courses you may also be asked to select your Universe.
Click <next>
6. Click “Finish” and your registration is almost done.
7. Check your email and click the activation link.
8. Login with your email and password at www.cesim.com.
Flow of operations
After the introduction, the teams familiarize

themselves with the decision making process
via a practice round. The results of the practice
round will not have any influence on the actual
game results.
The instructor decides the number of actual
decision making rounds (5-12) and decision
making follows the cycle on the right.
Note that it is not possible to modify the decisions after
the round deadline. If the team has not saved its decisions
for a round, the system will automatically use the results of
the previous round.
7
Main Objective & Winning Criteria

The main objective for the teams is to deliver sustainable,
profitable growth. Typically this is measured by a ratio called
“cumulative total return to the shareholders”, which combines
share price development and dividends paid to show the total
return to the shareholders.
The instructor may, at his/her discretion, choose to use other
criteria to measure the performance of the teams. For example,
market shares, accumulated profits, and revenue growth can be
used if so decided.
We recommend cumulative total return to shareholders due to
its comprehensiveness. The teams may try to manipulate their
profits, revenues, and market share in the short run, but share
price will punish any short sighted decisions sooner rather than
later.
Decision Making Fundamentals

Decision making is round based. One decision making period is typically regarded as one fiscal year.
In the beginning of the game, so called ‘initial round results’ are available. These can be used as a
starting point for the practice round decisions. After the practice round, the situation is cleared back
to the initial, and decisions will be made for the first round.
The manual and the case description should be read before the practice round. The market outlooks
should be read before starting to make decisions for each round. A new market outlook containing
information about the market development becomes available as soon as the previous round has
passed.
Decisions are entered in the white cells. These will be used in the actual calculation of the results.
Estimations are entered in the blue cells. These will not be used for the calculation of the results,
but they are important because together with the decisions they form the basis for the budgets.
Drop-down menus are used in certain decisions where there are some specific options to choose
from.
As a starting point in the simulation, the teams have only first technology products available. Further
development of technologies can take place by own development or by license purchasing. Time
to market with own development is one period, whereas license purchasing makes the technology
available immediately.
8
Case Industries
The backdrop for both industries is a fast-developing technology market with product life cycles
driven by technological evolution. Strategic approach to decision making, careful analysis,
continuous R&D, good timing, and successful product positioning are the main keys to success.
Mobile devices
Mobilé Inc, is a global mobile handset manufacturer that
operates in three market areas (USA, Asia, Europe) and it
has manufacturing facilities in the USA. The company has
been evaluating the possibility to start manufacturing in
Asia but the final decision has yet not been done.
Technology 1 has been the cash cow for the company
for many years. However, the recent revelation about
the cartel-like behaviors in the industry has led to
the conclusions that the companies have neglected
investments in the future technologies. Board of directors
has given the new management team a mandate to make
sure that the company has prosperous and sustainable
future for many years to come. Firm decisions are
required across all functions.
Automotives
Bull Automotive operates in the traditional combustion
engine vehicle market, but hybrids, electric vehicles (EVs)
and hydrogen vehicles are all quickly gaining momentum.
Bull has already begun some rudimentary R&D focusing
on hybrid technology.
Bull operates in three major market areas: the USA, China
and Europe. Presence is strong in USA and Europe,
whereas China has been a challenge owing to regulations
and high import tariffs.
The main production facilities are located in the USA and
the first two factories have quite recently been opened in
China.
9
Decision Making Overview

Analyze results from
9. Finances & Budgets the previous round
- Treasury management
- Dividend policy 1. Market conditions
- Capital structure - Read the market outlook
- Short and long term debt
- Financial indicators
- Budgets 2. Demand
- Total market demand
- Predicted market growth
8. Tax planning - Product selection
- Transfer prices - Market shares
Strategic
3. Production
intention - Production capacity
- Capacity allocation
7. Logistics
- Delivery priorities - Outsourcing
- Inventories (optional)
- Procurement/CSR (optional)
6. Marketing 4. Investments
- Estimations of future demand
- For each product and market
- Investment in new production plants
- Product feature decisions
- Pricing decisions HR (optional)
- Promotion investments - Recruitings, layoff, remuneration
5. R&D
- Development of technology
- Development of new features
- Purchasing of licenses for technology and features
10
Demand Structure
Starting situation with 4 teams (example)
In the beginning all teams have exactly the same market share (e.g., 25%). Each team is starting
with one technology only and 25% market share consists of sales of one product (Technology 1).
25% 25% Team 1 30% 33% Tech 1

Team 2
Team 3 Tech 2
25% 25% Team 4 15%
22%
Total market size is affected by: Demand for different technologies is

a. Economic conditions affected by:
b. Average price level a. Network coverage
c. Aggregate investments in promotion b. Price level relative to the other

technologies
d. Aggregate investments in technology
c. The number of companies offering
products in the technology
d. Total marketing efforts for that
technology
Market shares for each team are

affected by:
a. Product (technology + the number of
features)
b. Price
c. Promotion
d. Past market share for the product and
technology
11
Demand Estimations
Recommended steps for demand estimations
1. Estimate the total market growth for each market area. Market outlooks provide a good forecast
for the expected development
2. Decide which technologies to sell in each area.
3. Estimate the market share for each product (note that the market shares are quoted per market,
not per technology).
Example of how to set market shares for two products in one market:
1. Make your best estimate about the split between the two technologies in a particular market. For
example; US market Tech 1 60% and Tech 2 40%.
2. Estimate your target market share in each technology, for example; 20% for Tech1 and 35% for
Tech2.
3. Calculate your share of the total market for each product:
Tech1: 60% x 20% = 12%,
Tech2: 40% x 35% = 14%.
4. Input 12% and 14% in the market share cells on the demand page accordingly.
Network Coverage
Each market area has its own enabling technology
forecasts (mobile networks in the mobile case and
refueling network in the automotive case). Those
forecasts are indicated in charts on ”Demand” page.
Key issues to consider:
• Network coverage forecast is not the same as demand
forecast.
• Inhabitants outside the network coverage of the given
technology do not purchase devices
• New technology is typically considered more attractive
than old technology, ceteris paribus.
• Networks are usually established in the more
Tech 1 Tech 2 condensed areas in the beginning.
Tech 3 Tech 4
• It is very costly to develop all technologies so choices
must be made between them.
12
Product Decisions
There are two production areas (USA, Asia) that can be used to satisfy demand in three market areas
(USA, Asia, Europe). There are max 2 production lines per area, i.e., four in total. In the beginning,
production facilities are located only in the USA.
Investments can be made to start production in Asia and/or expand production facilities in the USA.
Investments take two decision-making periods from decision to completion.
Contract manufacturing can be used to complement own production. Using contract
manufacturing requires that one own production line is committed to the outsourced product.
This means that at any point during the simulation the maximum amount of different technologies
that can be produced is four.
Note that contract manufacturing amounts are limited. The limits are given for each round and teams
that use contract manufacturing more actively have higher limits.
Production is demand-driven by default, which means that there are no finished goods inventories.
If the demand is overestimated, the production will be reduced automatically to match the demand.
This adjustment causes additional 5-10% cost on top of the production cost. Note that production
will not adjust upwards automatically. This means that if demand is higher than estimated, the
team will encounter a situation where it can not meet the demand.
Factors that influence the production costs are:
a. Basic cost level in the production area
b. Production cost function (see next page)
c. Learning curve effect (see next page)
d. Penalty for having a too high production target as explained above
Inventory
If your Global Challenge course has inventories enabled, you will find detailed information on the
inventory page under the production tab. The beginning and ending inventory figures are also
presented on the production planning page.
USA and Asia production facilities have their own inventories and products are never shipped
between the areas unless there is market demand.
All products in inventory are carried at their original production cost and there is no depreciation of
inventory. Inventories incur management costs that are reported as part of the administration costs
in the P&L and also separately on the production report.
Inventory value is calculated based on first in – first out (FIFO) method.
13
Production Cost Function & Learning Curve

70
65
60
1,2
55
1,15
50
Unit cost, USD

45
Cost multiplier
1,1
40
1,05 USA ASIA

35
1 30
25
0,95
0% 20 % 40 % 60 % 80 % 100 % 120 % 20
5000 10000 15000 20000 25000 30000
Capacity utilisation
Global cumulative production per technology
Production cost function: Learning curve:

• Presents production costs per unit as a • Presents production costs per unit as
function of the capacity utilization. a function of cumulative production per
• Production cost minimum can be technology, i.e., the more you produce
found in the range of 75-85% capacity of each technology, the cheaper the
utilization production per unit
• NOTE: Minimization of costs does not • Steepness of the curve is different
always lead to profit maximization between USA and Asia.
Procurement/CSR
If your Global Challenge course has corporate social responsibility module enabled, you will find
procurement page under the production tab.
On the procurement page you can choose between five different component suppliers. The
suppliers have different ratings for their sustainability and ethics. In addition, they have different
costs for the components. When you choose suppliers that have higher ratings you improve your
company’s image and it will give you additional benefit in your marketing efforts.
There is always a fixed cost for changing a supplier and to prevent your company from switching
from one supplier to another too frequently you can purchase studies from independent evaluators
in order to determine the potential long-term development of the suppliers.
14
Human Resources
Global Challenge can be used with or without human resources decisions. If your course has them
enabled, you are able to hire R&D personnel to handle the research and development function in
addition to buying technology and design licenses. This will alter the in-house development detailed
in the next section.
The human resources function consists of three decisions: number of employees this round, monthly
salary and monthly training budget. The number of employees is definite and you can always have
the amount of workforce you wish provided that your salary level is high enough. You can also lay
off all employees if you so choose. Costs from human resources include salary, training, recruitment,
layoff and other R&D costs. All of these items are included in research and development costs on
the income statement.
Key issues to consider in human resources include employee turnover and efficiency.
Employee turnover is influenced by: Employee efficiency is influenced by:
a. Salary a. Salary through ability to attract talent
b. Training b. Cumulative training expenditures
c. Success of the company c. Low employee turnover
d. Good use of employees’ time (no
redundancy)
Research & Development

Research and development consists of own research & development and license purchases. The
main differences between the two are time-to-market and costs. Own R&D has one period delay
before the technologies and features become available for production. License purchases bring
technologies and features available immediately.
Payment for the license is a one-time fee that gives the rights for the technology and features
indefinitely.
Teams can use any combination of the two to reach the desired level of technologies and handset
features. For example, team can first invest into its own R&D, then decide to speed up the process
and buy a technology license, and then return back to own R&D. The only requirement is that you
have completed the particular R&D cycle (new technology or new product feature) before you switch
between in-house and licensing.
Research & Development with HR

If your course has human resources decisions enabled, the in-house development deals with
mandays instead of cash. The development will work the same way as with cash, but in this case
you have to synchronize your product development decisions with your human resources decisions.
It also means that the required development effort varies based on your efficiency level and the
ultimate costs of development also depend on your salary and other HR decisions.
15
Marketing
In the simulation the marketing mix consists of product (technology and features), price, promotion
(product promotion and brand).
Customers are comparing between the offers of the different vendors and making their purchase
decisions accordingly. This means that each teams’ marketing mix relative to the other teams’
marketing mixes is crucial in the process of dividing market shares between the teams.
It is notable that the demand function is continuous, without discrete steps. This means that the
demand does not explode or collapse at any particular single point, e.g., price above/below certain
level, but it reflects the consumers preferences on a continuous scale.
The actual marketing decisions include product features, pricing, and promotion. Each of these
decisions are made for all products in all markets.
Marketing – Features, Price, Promotion

Features can only be implemented if the company has invested sufficiently to its own R&D or
license purchases. Team can decide to implement between 1 and 10 features to its devices. From
the consumers’ point of view more features is better than less features (in the given scale of 1-10).
Implementation of product features causes additional costs.
Price is the single biggest factor that influences demand and demand’s elasticity to price is always
negative. Price elasticity differs between the markets.
Promotion decision influences the demand at three levels: product, market, and global. Only
the product promotion decision is made explicitly, but the total of the product promotions in one
area are summed up as market promotion, and the total of all product promotions in all areas are
summed up as global promotion.
Product Marketing Strategy

The simulation includes an option to make a qualitative decision about the product marketing
strategy focus. There are five different alternatives: Balanced, Low price, Features, Footprint, Brand
“Balanced” means “no focus” or no extra effort. No additional gain/loss.
“Low price” means that price elasticity has an amplified effect. Consequently, if my price is lower
than the market average I gain more than without the focus. On the other hand, if I say that my focus
is Low price but I don’t deliver, I will lose more than without the focus.
“Features” means that the features elasticity has an amplified effect similarly to price. If I say that
my focus is Features and I deliver more than the market average, I gain. And if I deliver less than
average I lose.
“Footprint” means that the advertising and prior market share have an amplified effect. Logic as
above, if my advertising and market share are higher than average I gain, and in case of lower than
average, I lose.
“Brand” is a generic brand focus, giving a small fixed gain. The gain is smaller than with the low
price/features/footprint but there is no downside.
16
Logistics
As the production is demand driven, the logistics
is demand driven too. This means that the
products are shipped from the manufacturing
sites automatically to the sales sites according to
the production capacity allocations. No separate
decision is needed for the shipping.
A key driver for logistics is that each
manufacturing site is incentivised to minimise the
idle time in production. Consequently, if a team overestimates demand, the excess will be reduced
from both production areas even if it would be cheaper to ship everything from one area and stop
the machines in the other area.
In practice this means that in order to minimize the logistics costs, a team should allocate exactly
the right capacity in the right places at the right time. This can only be achieved by managing the
whole demand-supply network well.
Logistics – Delivery Priorities

Teams can choose in which order they satisfy the demand for different technologies in the markets.
For example, delivery order 1,3,2 would mean that first the whole demand is satisfied in the USA,
secondly in Europe, and third in Asia. Delivery priorities are set for both production areas and each
technology separately.
Delivery priority decision is very relevant if the team’s global supply is not enough to satisfy the
global demand. For example, delivery order 1,3,2 means that if the team runs out of supply,
deliveries will first be cut from Asia.
In order to maximize profits, teams must be aware of the profitability for each product and market
and set the priorities accordingly.
Tax
Tax page gives you information about your company’s taxes in each area as well as about the global
effective tax rate. Please note that loss-carry-forward is taken into account.
Transfer pricing can be used to allocate R&D and other fixed costs between the countries and to
benefit from different tax rates. In practice this means adjusting profits between different areas.
Transfer price is set as a multiplier. The multiplier determines how much the manufacturing unit is
adding margin on top of the direct variable cost when it ships the products to the sales unit.
Transfer pricing is a highly regulated discipline in the real life and it is regulated also in the simulation
game. The multipliers must be between 1 and 2, which means that the internal price between the
manufacturing unit and sales unit can not exceed two times the direct variable cost in any situation.
17
Financing
Financing decisions are typically the last set of decisions being made.
The goal of the financing decisions is to minimize the cost of funding to the company and to
return capital to the equity holders. Decisions that are available include:
a. treasury management (transferring funds between group companies)
b. increases (+) and decreases (-) in long-term loans
c. share issues and buy-backs
d. dividend payments
Cash at the end of the year cannot fall below 2 million USD. If the planned financing is not sufficient
to maintain this requirement, the system will fill the gap automatically by taking short-term debt.
Short-term debt is paid automatically when it isn’t needed any more.
Short-term debt in this case includes ‘emergency funding’ premium and it is more expensive than
long-term debt. Therefore it is best to try and avoid short-term debt
The treasury management decision can be used to transfer funds between different countries by
internal loans, for example to repatriate excess cash resources from Asia and/or Europe or to supply
funding for plant investments in Asia.
Long-term loans can be increased/decreased as needed. The company’s leverage influences the
interest rate for loans (higher leverage = higher risk = higher interest rate).
Share issues and buybacks are made according to the market valuation in the beginning of the
round. The number of shares issued or repurchased affect the issue or buyback price. Share
buybacks are only possible if the company has equivalent amount of retained earnings.
Dividend payments can be used to return earnings to the shareholders, assuming the company has
retained its earnings.
Projections
Projections can be launched from the top right of the page and they consist of profit and loss
statements and balance sheets for the whole group and each area separately. In addition,
projections include key financial ratios and parameters.
Current round figures update continuously as decisions are made. Actualized figures for the previous
round are shown on the right.
Note that all R&D and marketing (promotion) costs are expensed on the profit and loss statement
during the period the investments are made. As a consequence, profit for the year may heavily
fluctuate depending on the intensiveness of R&D and marketing investments.
R&D expense is split between USA and Asia relative to the number of production facilities. That is, if
there are production facilities only in the USA, all R&D expenditure will be expensed in the USA.
18
Key Financial Indicators

Operating profit before interest, taxes, depreciation (EBITDA) % = EBITDA / Sales
Gives indication about the company’s current cash generation capability. It is calculated as sales
revenue minus operating expenses, excluding depreciation.
Operating profit before interest and taxes (EBIT) % = EBIT / Sales
Gives indication about the profitability that the company is earning from its operations. Calculated
as sales revenue minus all operating expenses, including depreciation.
Return on sales (ROS) % = Profit for the year / Sales
How much the company earns from every dollar in sales. Also referred to as profit margin.
Equity ratio = Shareholder’s equity / Total assets
Indicates the company’s financial leverage, i.e., what proportion of assets are financed with equity.
Gearing, % = (Long term loans + Short term loans – Cash and cash equivalents) / Total equity
Net debt to equity (gearing) is a ratio of a company’s level of long-term debt in comparison to
its equity capital. Gearing, like equity ratio, indicates financial leverage, but gearing takes the
company’s cash position into account.
Return on capital employed, ROCE % = EBIT / (Total assets – Current liabilities)
Indicates the efficiency and profitability of a company’s capital investments. Here, EBIT (Earnings
before Interest and Taxes) equals turnover minus costs and expenses during year, whereas current
liabilities are comprised of short term debts and payables that are due within a year.
Return on equity, ROE % = Profit for the year / Average shareholders’ equity
Indicates the return that the company earns to its shareholders
EPS (Earnings per share), € = Profit / Number of shares outstanding
Dividend yield-% = Dividend per share / Share price
Indicates the annual percentage of return that the current level of dividend provides to the investor,
as compared to the current share price
P/E = Market value per share / EPS
P/E indicates how many years it takes with the current level of earnings to pay the price of one
share.
Cumulative total shareholder return, % (winning criteria)
The concept of total shareholder return is explained on the next page.
19
Cumulative Total Shareholder Return

Cumulative Total Shareholder Return is the average annualized percentage return that a company
delivers to its shareholders during the whole simulation.
It takes into account the changes in the company’s share price and cumulative dividend payments.
Example:
1. No dividends: Let’s say that the share price in the beginning of the game is 10EUR, and after one
round (=year) the share price is 12EUR. This gives 20% return to shareholders for that given year.
2. With dividends: In addition to the above, the company pays a 1EUR dividend per share during the
round. Total return is (12+1)/10 = 30%
In the previous we assumed that the change happened over one round. The same principle applies
for multiple rounds. In that case we add cumulative dividends to the share price and annualize the
return. For example, 30% cumulative return over three years would be 9% annualized return on
average.
Decision Checklist
On the decision checklist page all team members’ decisions can be seen side by side. By pressing
’copy’ a team member’s decisions are moved to the team decision column. At the deadline, the
system reads the decisions from the team decision column and calculates results for the round.
Team decisions can be accessed and consequently edited directly by pressing ’go’ in the team
column.
Note that previous round decisions will be used if there are no saved decisions for the round.
Also historical decisions for any team member can be accessed by choosing the respective round
from the dropdown menu.
20
Results
After each round the system generates reports that show the results of each team within one
simulation universe.
Results consist of:
a. Summary report with a set of charts
b. Financial statements; including consolidated P&L and balance sheet, and parent company (USA)
cash flow statement
c. Financial ratios; including share price info and key financial indicators
d. Area reports for all areas; including market reports and P&L and balance sheet for each
business area
e. Production report; including information about the production volumes, contract manufacturing,
production facilities
f. Cost report; including information about scrap rates and production and logistics costs
g. HR report and Social responsibility report are optional and visible only if the modules are
activated.
Results provide useful information about a team’s own sales, operations, and finances. In addition,
results can be used to benchmark performance with the competing teams in the same market.
More information
Cesim Technical Support
Arkadiankatu 21 B [email protected]
00100 Helsinki, Finland
Tel: +358 9 406 660
www.cesim.com
[email protected]
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When you would like to increase participant engagement and hands-on business learning in your course.
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complexity of global business operations in a dynamic, competitive environment.
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production, marketing and logistics.
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their interaction in a competitive environment.
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dynamics of power markets, production, and risk management.
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entertainment services for residential customers and communications and IT services for corporate
customers.
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Custom Business Simulations

When you need a Business Simulation tailored specifically to the needs of your course or training.
Examples: Steel, Packaging, Real Estate Management, Public Broadcasting, Contract Manufacturing.

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Strategy & International

What is Cesim Global Challenge?

Applying new ideas Observations & reflections

Analysis & Planning Results & Teamwork

Lectures & Discussion

Simulation Platform Structure

Participant Registration Process

After the introduction, the teams familiarize

Main Objective & Winning Criteria

Decision Making Fundamentals

Decision Making Overview

25% 25% Team 1 30% 33% Tech 1

Total market size is affected by: Demand for different technologies is

b. Average price level a. Network coverage

c. Aggregate investments in promotion b. Price level relative to the other

Market shares for each team are

Production Cost Function & Learning Curve

Unit cost, USD

1,05 USA ASIA

Production cost function: Learning curve:

Research & Development

Research & Development with HR

Marketing – Features, Price, Promotion

Product Marketing Strategy

Logistics – Delivery Priorities

Key Financial Indicators

The concept of total shareholder return is explained on the next page.

Cumulative Total Shareholder Return

Business, Strategy and Management Simulations

Industry Specific Simulations

Custom Business Simulations

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