THE CHALLENGE SERIES
The motif showing a light corporate pyramid indicates that these simulations are designed to explore business and general management at an appreciation level.
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THE CHALLENGE SERIESThe motif showing a light corporate pyramid indicates that these simulations are designed to explore business and general management at an appreciation level. |
The Challenge Series consists of basic total enterprise management simulations that can be used:
The Challenge Series consists of simulations that replicate different industries. These are:
MANAGEMENT CHALLENGE (replicates a manufacturing business), RETAIL CHALLENGE and SERVICE CHALLENGE were sponsored by BAT as part of their Benson & Hedges Management Challenge initiative in the Arabian Gulf. CASINO CHALLENGE was sponsored by the GEC Management College. EXECUTIVE CHALLENGE involves product design and was sponsored by Ciba-Geigy. FOUNDATION CHALLENGE was developed for the Wellcome Foundation to replicate the issues facing a not-for-profit organisation. The Banking Challenge was developed for the National Bank of Serbia and funded by the European Agency for Reconstruction. This sponsorship allows these simulations to be offered at a very low cost.
These simulations are ideal for new users of simulation who want a competitive general management simulation to develop business acumen, understand finance, build the team or understand how their function relates to the other functions.
KEY LEARNING: Each simulation covers similar issues:
BUSINESS OBJECTIVES & MEASURES
FINANCE & MANAGEMENT MEASURES
MARKETING - PRICING & PROMOTION
PRODUCT MIX & CONTRIBUTION
OPERATIONAL CONTROL & FORECASTING
TEAM WORKING
However, the scenario and decisions reflect the issues facing the differing industries.
DURATION: Approximately one day (although they can be run, in an accelerated manner, in half a day).
TARGET AUDIENCE: The simulations are designed to be used by trainees, junior management to middle management, functional specialists and supervisors. Or, abbreviated or with additional tasks, with senior management.
METHOD: After a short briefing the training group is divided into several teams of four or five participants. These teams consider the problem facing them and then make a series of decisions that are fed, by the tutor, into a microcomputer that simulates their effect. The results are returned for the team to analyse before making their next decisions. This decision-making cycle is repeated for at least six periods. At the end of the simulation phase the teams reunite to discuss and compare results.
NUMBER OF TEAMS: These simulations may be used with between two and eight teams that compete and interact directly with each other.
AVAILABILITY: These simulations are available off-the-shelf and a comprehensive Trainer's Pack is provided allowing trainers with little or no experience with simulations to run the simulations.
MANAGEMENT CHALLENGE replicates a manufacturing business selling two products and with decisions covering pricing, promotion, production, sales staffing, capacity increases and payment policy.
Originally designed in 1986, Management Challenge has been in use since then and it was completely revised in 1996 (incorporating our latest design paradigms).
BUSINESS APPRECIATION
The simulation involves running a complete business with decisions covering marketing (pricing, promotion and sales force), finance (payment policy) and operations (production and capacity). So, it is especially suited to help participants appreciate the general management of a complete company, its main functions and how they interact.
BUSINESS OBJECTIVES & MEASURES
During the simulation, participants will be concerned with creating a profitable, growing business that survives. They will develop an understanding of business purpose, how this is influenced by their decisions and how the objectives and measures interact.
Participants without management experience may be especially challenged by the need to deal with ambiguity and make decisions without perfect information and, where, some information is provided as qualitative comments about the business.
FINANCE & MANAGEMENT MEASURES
The simulation introduces participants to financial fundamentals (costing, Profit & Loss Account, the Balance Sheet, cash flow and key ratios).
Optionally, using the work sheets provided, participants can test their understanding by preparing the financial reports manually.
For more advanced use, the Progressive and Compleat versions provide information on break-even, profit analysis and economic value added.
MARKETING - PRICING & PROMOTION
Teams decide, for each product, price and promotion and, on a company wide basis, sales force size. Besides considering how customers will respond, they must consider the effect of the competitors' actions and the financial and operational consequences of their decisions.
Optionally, using the tutor's audit, the trainer running the simulation can provide market research to help teams identify the responses of the markets to their decisions.
PRODUCT MIX & CONTRIBUTION
Although only selling two products, participants need to decide how each of these contribute to the business's profitability, growth and cash flow. (For more advanced use, an optional report shows each product on a profit or investment centre basis and the manufacturing facility on a cost centre basis.)
OPERATIONAL CONTROL & FORECASTING
With decisions covering production levels and capacity, participants must forecast sales and plan their capacity and inventory levels. This must take into account the uncertainties of the impact of marketing decisions, competitive actions and the dynamics of the market-place. Also, with capacity increases delayed by a year, teams must take a long term view.
TEAM WORKING
With participants working in small teams, they have the opportunity to share experience and knowledge, present and promote different viewpoints, and develop their people skills.
(BUSINESS PRESENTATION)
Optionally, at the end of the simulation, teams can be asked for make a formal board presentation covering objectives, strategies, process, the future (of the simulated business) and learning.
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RETAIL CHALLENGE replicates a retail business selling three ranges of product (staple, fashion and big ticket) with decisions covering markup, purchasing, advertising, staffing and supplier payment.
Originally designed in 1987, Retail Challenge has been in use since then and it was completely revised in 1997 (incorporating our latest design paradigms).
BUSINESS APPRECIATION
The simulation involves running a complete retail business with decisions covering percent markup, product range purchases, numbers of selling staff, advertising and the time taken to pay suppliers.
BUSINESS OBJECTIVES & MEASURES
During the simulation, participants will be concerned with creating a profitable, growing business that survives. They will develop an understanding of business purpose, how this is influenced by their decisions and how the objectives and measures interact.
Participants without management experience may be especially challenged by the need to deal with ambiguity and make decisions without perfect information and, where, some information is provided as qualitative comments about the business.
FINANCE & MANAGEMENT MEASURES
The simulation introduces participants to financial fundamentals (Profit & Loss Account, the Balance Sheet, cash flow and key ratios).
Optionally, using the work sheets provided, participants can test their understanding by preparing the financial reports manually.
For more advanced use, advanced versions (Progressive and Compleat) provide information on break-even, profit analysis and economic value added.
MARKETING - PRICING, PROMOTION & CUSTOMER NEED
The retail outlet sells three ranges of products (staples, fashion and big ticket) each with different sensitivities to price and needs in terms of variety and selling support. Besides passing trade, teams must decide how much to spend on advertising to promote their business. Finally, teams must consider competitors' actions and the financial and operational consequences of their pricing decisions.
Optionally, using the tutor's audit, the trainer running the simulation can provide market research.
PRODUCT MIX & CONTRIBUTION
Although only selling three ranges, participants need to decide how each of these contribute to the business's profitability, growth and cash flow. (For more advanced use, an optional report shows each product on a profit or investment centre basis.)
PURCHASING, INVENTORY CONTROL & FORECASTING
With decisions covering purchasing and changing sales patterns, participants must forecast sales and plan their purchases and inventory levels. This must take into account the uncertainties of the impact of marketing decisions, competitive actions, the dynamics of the market-place, seasonal sales patterns and the cost of holding inventory.
TEAM WORKING
With participants working in small teams, they have the opportunity to share experience and knowledge, present and promote different viewpoints, develop time management and their people skills.
(BUSINESS PRESENTATION)
Optionally, at the end of the simulation, teams can be asked for make a formal board presentation covering objectives, strategies, process, the future (of the simulated business) and learning.
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SERVICE CHALLENGE replicates a service company providing three levels of service to different types of customer with decisions covering pricing, promotion, resourcing and quality improvement.
Originally designed in 1989, Service Challenge has been in use since then and it was completely revised in 1998 (incorporating our latest design paradigms).
BUSINESS APPRECIATION
The simulation involves running a complete business with decisions covering marketing (pricing and promotion), finance (bank loans) and resourcing (levels and quality). So, it is especially suited to help participants appreciate the general management of a complete company, its main functions and how they interact.
BUSINESS OBJECTIVES & MEASURES
During the simulation, participants will be concerned with creating a profitable, growing business that survives. They will develop an understanding of business purpose, how this is influenced by their decisions and how business objectives and measures interact.
Participants without management experience may be especially challenged by the need to deal with ambiguity and make decisions without perfect information and, where, some information is provided as qualitative comments about the business.
FINANCE & MANAGEMENT MEASURES
The simulation introduces participants to financial fundamentals (costing, Profit & Loss Account, the Balance Sheet, cash flow and key ratios).
Optionally, using the work sheets provided, participants can test their understanding by preparing the financial reports manually.
For more advanced use, the Progressive and Compleat versions provide information on break-even, profit analysis and economic value added.
MARKETING - PRICING & PROMOTION
Besides considering how customers respond to changing prices, promotion and market sizes, participants must consider the effect of the competitors' actions and the financial and operational consequences of their decisions.
Optionally, using the tutor's audit, the trainer running the simulation can provide market research to help teams identify the responses of the markets to their decisions.
CUSTOMER NEEDS, QUALITY & RELATIONSHIPS
For each market served, existing customers must be persuaded to buy regularly and new customers must be persuaded to start buying. To do this, the teams must balance short term profitability needs with maintaining long term relationships and how price, promotion and the quality of the service impact these.
SERVICE MIX & CONTRIBUTION
Participants need to decide how each service contributes to the business's profitability, growth and cash flow. (For more advanced use, an optional report shows each service on a profit or investment centre basis.)
RESOURCING - QUALITY, CONTROL & FORECASTING
With decisions covering changing resourcing levels and quality investment, participants must forecast sales and match demand to resourcing levels. This must take into account the uncertainties of the impact of marketing decisions, competitive actions and the dynamics of changing markets.
TEAM WORKING
With participants working in small teams, they have the opportunity to share experience and knowledge, present and promote different viewpoints, and develop their people skills.
(BUSINESS PRESENTATION)
Optionally, at the end of the simulation, teams can be asked for make a formal board presentation covering objectives, strategies, process, the future (of the simulated business) and learning.
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CASINO CHALLENGE was developed from Service Challenge to replicate the issues facing a casino operator with three types of casino serving three groups of punters.
BUSINESS APPRECIATION
The simulation involves running a complete business consisting of three types of casino - a basic gaming club, a more up market gaming club and a top of the market casino. Decisions cover marketing (customer incentives and promotion), finance (bank loans) and casino operations (resourcing and quality improvement). So, it is especially suited to help participants appreciate the general management of a complete business, its main functions and how they interact.
BUSINESS OBJECTIVES & MEASURES
During the simulation, participants will be concerned with creating a profitable, growing business that survives. They will develop an understanding of business purpose, how this is influenced by the decisions and how the objectives and measures interact.
Participants without management experience may be especially challenged by the need to deal with ambiguity and make decisions without perfect information and, where, some information is provided as qualitative comments about the business.
FINANCE & MANAGEMENT MEASURES
The simulation introduces participants to financial fundamentals (costing, Profit & Loss Account, the Balance Sheet, cash flow and key ratios). Optionally, by using the work sheets provided, participants can test their understanding of finance by (manually) preparing the financial reports. For more advanced use, the Progressive and Compleat versions provide information on break-even, profit analysis and economic value added.
MARKETING - INCENTIVES & PROMOTION
Teams decide, for each casino, the proportion of drinks and meals supplied at no charge and promotion. Besides considering how customers will respond, they must consider the effect of the competitors' actions, the financial and operational consequences of these decisions and servicing both existing and new customers.
Optionally, using the tutor's audit, the trainer running the simulation can provide market research to help teams identify the responses of the markets to their decisions.
BUSINESS MIX & CONTRIBUTION
Although only selling three through three casinos, participants need to decide how each of these contribute to the business's profitability, growth and cash flow. (For more advanced use, a report shows each casino on a profit or investment centre basis.)
FORECASTING & CONTROL
With decisions covering resourcing, participants must forecast sales and plan their resource needs. This must take into account the uncertainties of the impact of marketing decisions, competitive actions and changing market needs.
CUSTOMER MANAGEMENT & POLICY
Participants need to decide price, promotion, resourcing and quality to ensure that they keep existing customers and, if required, acquire new customers.
QUALITY POLICY & IMPACT
With decisions covering quality improvement, participants must balance the cost of this with the benefits obtained in the market place.
TEAM WORKING
With participants working in small teams, they have the opportunity to share experience and knowledge, present and promote different viewpoints and develop their people skills.
(BUSINESS PRESENTATION)
Optionally, at the end of the simulation, teams can make a formal board presentation covering objectives, strategies, process, the future (of the simulated business) and learning.
DISTRIBUTION CHALLENGE was developed from Retail Challenge to replicate a company distributing three type of product with decisions covering price, sales staff, transportation resources and supplier payment policy.
Originally designed in 1993, Distribution Challenge has been in use since then and it was completely revised in 1997 (incorporating our latest design paradigms)
BUSINESS APPRECIATION
The simulation involves running a complete distribution business with decisions covering percent markup, product range purchases, transportation, sales promotion and the time taken to pay suppliers.
BUSINESS OBJECTIVES & MEASURES
During the simulation, participants will be concerned with creating a profitable, growing business that survives. They will develop an understanding of business purpose, how this is influenced by their decisions and how the objectives and measures interact.
Participants without management experience may be especially challenged by the need to deal with ambiguity and make decisions without perfect information and, where, some information is provided as qualitative comments about the business.
FINANCE & MANAGEMENT MEASURES
The simulation introduces participants to financial fundamentals (Profit & Loss Account, the Balance Sheet, cash flow and key ratios).
Optionally, using the work sheets provided, participants can test their understanding by preparing the financial reports manually.
For more advanced use, advanced versions (Progressive and Compleat) provide information on break-even, profit analysis and economic value added.
MARKETING - PRICING, PROMOTION & CUSTOMER NEED
The retail outlet sells three ranges of products (domestic, fashion and contract) each with different sensitivities to price and needs in terms of variety and selling support. Besides regular customers, teams must decide how much to spend on promoting their business. Finally, teams must consider competitors' actions and the financial and operational consequences of their pricing decisions.
Optionally, using the tutor's audit, the trainer running the simulation can provide market research.
PRODUCT MIX & CONTRIBUTION
Although only selling three ranges, participants need to decide how each of these contribute to the business's profitability, growth and cash flow. (For more advanced use, an optional report shows each product on a profit or investment centre basis.)
PURCHASING, INVENTORY CONTROL & FORECASTING
With decisions covering purchasing and changing sales patterns, participants must forecast sales and plan their purchases and inventory levels. This must take into account the uncertainties of the impact of marketing decisions, competitive actions, the dynamics of the market-place, seasonal sales patterns and the cost of holding inventory.
TEAM WORKING
With participants working in small teams, they have the opportunity to share experience and knowledge, present and promote different viewpoints, develop time management and their people skills.
(BUSINESS PRESENTATION)
Optionally, at the end of the simulation, teams can be asked for make a formal board presentation covering objectives, strategies, process, the future (of the simulated business) and learning.
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EXECUTIVE CHALLENGE was developed from Management Challenge, increasing the number of products sold (from two to three) and adding a new product design decision. Although, originally designed to replicate a basic pharmaceutical company it can be used for a wider range of manufacturing companies (a version exists where the scenario is a company selling a range of sport, power boats).
Executive Challenge was designed in 1996 incorporating our latest design paradigms
BUSINESS APPRECIATION
The simulation involves running a complete business with decisions covering marketing (pricing, promotion, product power and sales force) and operations (production and capacity). So, it is especially suited to help participants appreciate the general management of a complete company, its main functions and how they interact.
BUSINESS OBJECTIVES & MEASURES
During the simulation, participants will be concerned with creating a profitable, growing business that survives. They will develop an understanding of business purpose, how this is influenced by their decisions and how the objectives and measures interact.
Participants without management experience may be especially challenged by the need to deal with ambiguity and make decisions without perfect information and, where, some information is provided as qualitative comments about the business.
FINANCE & MANAGEMENT MEASURES
The simulation introduces participants to financial fundamentals (costing, Profit & Loss Account, the Balance Sheet, cash flow and key ratios).
Optionally, using the work sheets provided, participants can test their understanding by, manually, preparing the financial reports.
For more advanced use, the Progressive and Compleat versions provide information on break-even, profit analysis and economic value added.
MARKETING - PRICING, PROMOTION & PRODUCT
Teams decide, for each product, price and promotion and, on a company wide basis, sales force size. They can reposition their products in the three markets by changing the product.
Besides considering customer needs and their responses, participants must consider the effect of the competitors' actions and the financial and operational consequences of their decisions.
Optionally, using the tutor's audit, the trainer running the simulation can provide market research to help teams identify the responses of the markets to their decisions.
PRODUCT MIX & CONTRIBUTION
Although only selling three products, participants need to decide how each of these contribute to the business's profitability, growth and cash flow. (For more advanced use, an optional report shows each product on a profit or investment centre basis and the manufacturing facility on a cost centre basis.)
OPERATIONAL CONTROL & FORECASTING
With decisions covering production levels and capacity, participants must forecast sales and plan their capacity and inventory levels. This must take into account the uncertainties of the impact of marketing decisions, competitive actions and the dynamics of the market-place. Also, with capacity increases delayed by a year, teams must take a long term view.
TEAM WORKING
With participants working in small teams, they have the opportunity to share experience and knowledge, present and promote different viewpoints, and develop their people skills.
(BUSINESS PRESENTATION)
Optionally, at the end of the simulation, teams can be asked for make a formal board presentation covering objectives, strategies, process, the future (of the simulated business) and learning.
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FOUNDATION CHALLENGE is unlike most computerised simulations, as it addresses the issues facing the management of non-profit organisations such as charities, universities, schools & colleges etc. Participants are faced with having to obtain and distribute funds so as to provide the greatest benefit. This will involve them funding and resourcing several initiatives that benefit several groups of people. The foundation's purpose is to support and encourage the entrepreneurial, wealth creation sections of the economy through supporting and managing several initiatives. These are encouraging pupils to take up a career in industry, encouraging minorities to start their own business, providing training and consultancy support for small businesses and, possibly, providing incubator units for business start-ups.
BUSINESS APPRECIATION
The simulation involves running a complete not-for-profit organisation with decisions covering marketing the foundation to its beneficiaries and to sources of funds (corporate sponsorship and government), resourcing the initiatives (in terms of advisers and administration) and considering the implications of extending the range of initiatives to include constructing incubator units for business start-ups.
ORGANISATION OBJECTIVES & MEASURES
During the simulation, participants will be concerned with creating an organisation that supports and encourages entrepreneurial activity (the foundation's aims) and must decide how this can be measured. They will develop an understanding of purpose, how this is influenced by the decisions and how the objectives and measures interact.
Participants without management experience may be especially challenged by the need to deal with ambiguity and make decisions without perfect information and, where, some information is provided as qualitative comments about the business.
FINANCIAL CONCEPTS
The simulation introduces participants to financial fundamentals (costing, income statement, cash flow and financial measures of effectiveness and efficiency) and the management of financial resources (the foundation's endowment and the flows of funds from the corporate sector, the government and, possibly, from the beneficiaries. (The Classic version of the simulation allows for teams to decide to construct incubator units and receive rental income from these. The Progressive and Compleat version of the simulation allows the participants to make a charge for the other initiatives.
Optionally, using the work sheets provided, participants can test their understanding by, manually, preparing the financial reports.
MARKETING - TO BENEFICIARIES, FUNDERS AND THE MEDIA
Reflecting the fact that the Foundation must obtain a steam of outside funds and to fulfil its purpose make sure that beneficiaries are aware of the Foundation and it initiatives, the participants must expend effort to market the Foundation.
Optionally, using the tutor's audit, the trainer running the simulation can provide market research to help teams identify the responses of the markets to their decisions.
INITIATIVE MIX & CONTRIBUTION TO PURPOSE
Although only providing four types of initiatives (school conferences, minority events, training courses and business consultancy), each of these differ in terms of type of beneficiary, the numbers who might benefit and costs and resourcing needs. Thus participants must decide and monitor continuously how these contribute to purpose.
RESOURCING - MORALE, CONTROL & FORECASTING
With decisions covering changing hiring and firing staff (marketing, advisers and administration staff) participants must forecast needs and match this to staff levels. This must take into account the uncertainties of the impact of marketing effort, actions of beneficiaries and the dynamics of changing needs. Additionally, participants must handle staff turnover and, in the case of the advisers (the people who deliver the initiatives), morale.
TEAM WORKING
With participants working in small teams, they have the opportunity to share experience and knowledge, present and promote different viewpoints, and develop their people skills.
(BUSINESS PRESENTATION)
Optionally, at the end of the simulation, teams can be asked for make a formal presentation for the Foundation's board covering objectives, strategies, process, the future (of the simulated foundation) and learning.
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The Banking Challenge provides participants with the opportunity to manage a complete commercial bank making decisions covering funding, marketing, business development, staffing, quality and productivity improvement.
BANKING APPRECIATION
The simulation involves running a complete bank with decisions covering marketing (promotion, selling, sector and product focus), finance (funding sources and mix) and operations (operating staff, quality and productivity improvement). It should help participants appreciate the issues associated with a operation of a complete bank.
BANKING OBJECTIVES & MEASURES
During the simulation, participants will be concerned with creating a profitable, growing bank that survives. They will develop an understanding of the bank’s purpose, how their decisions influence this and how their objectives and measures interact.
Participants without business experience may be especially challenged by the need to deal with ambiguity and make decisions without perfect information and, where, some information is provided as qualitative comments about the bank.
FINANCIAL APPRECIATION
The simulation introduces participants to financial fundamentals (Income Statement, Balance Sheet, cash flow and key ratios) and issues (Capital Adequacy and the reserves required by the National Bank).
CLIENT MANAGEMENT & POLICY
The bank serves two markets - retail (private) and corporate (business) - that it sells a range of deposit and loan products. In each market, participants must ensure that they keep existing clients and attract new clients while maintaining good profitability and cash flow.
PRODUCT MIX & CONTRIBUTION
Although only selling into two sectors each of these involve four products: Demand Deposits, Long Term Deposits and Long Term Loans & Overdrafts. Participants must to decide how each of these contributes to the bank's profitability, growth and cash flow.
MARKETING
Participants must consider how clients perceive the bank and how they will respond to interest rates, promotional activities, the competitors' actions and the financial and operational consequences while servicing both existing and new clients.
FORECASTING & CONTROL
With decisions covering staffing and funding, participants must forecast operating needs and plan their staff and funding levels. This must take into account the uncertainties of the impact of marketing decisions, competitive actions and a changing economy.
BUSINESS IMPROVEMENT POLICY & IMPACT
With decisions about quality and productivity improvement, participants must balance the cost of this with the benefits obtained in the marketplace, to staffing capabilities and costs.
TEAM WORKING
With participants working in small teams, they have the opportunity to share experience and knowledge, present and promote different viewpoints and develop their people skills.
(BUSINESS PRESENTATION)
Optionally, at the end of the simulation, teams can make a board presentation covering objectives, strategies, process, the future (of the simulated business) and learning.
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