Wednesday, June 13, 2007

Business Simulation

We started the business simulation in class today. The six guys on my team are basically running a two billion dollar company based on some of the corporate strategies and directions we've been working through all week as a team. In the simulation we are managing cash flow, resources, head count, costs, the supply chain, pricing and strategic direction over the course of three years. We make all the appropriate investments in each area based on market trends, strategy, strengths and weaknesses in competition against four other teams. In the first year, each team starts off with 20% of the market - and we grow from there as the market matures and our competition makes a run at different market segments and strategies.

The teams are measured based on Compounded Annual Growth Rate, Return on Invested Capital and Net Gross Profit. We've got wagers with all of the other teams, planning on winning this hands down.

No comments: