EXTENDED CHALLENGESThe motif showing a light corporate pyramid overlaying a darker pyramid indicates that these simulations are designed to explore business and general management at an appreciation level but at a greater depth than the Challenge Series. |
The Extended Challenges consist of extensions to the Challenge Series that can be used:
The series consists of three simulations each addressing different business issues
These are:
EXSTRA was developed as an introduction to strategy. QUAD was developed to explore the impact of quality on business success. RESERVE was sponsored by Ashridge Management College to explore how research and development effort interrelates with and influences commercial success. SYCOPS was developed for GPT to replicate the issues facing the management of a high technology, systems type company.
DURATION: Approximately one and a half days (although some can be run, in an accelerated manner, in about a day). The complexity means that these simulations can also be used as a "spare-time" activity spread over several weeks or through a course.
TARGET AUDIENCE: The simulations are designed to be used by high flying junior management up to middle management.
METHOD: After a short briefing the training group is divided into several teams of four to six participants. These teams consider the problem facing them and then make decisions for a trading period. These decisions are fed, by the tutor, into a microcomputer that simulates their effect. The results are returned to the teams for their consideration before making the next decision. This decision-making cycle should be repeated for at least six periods. At the end of the simulation phase the teams reunite to discuss and compare results.
The simulations may be used with between two and eight teams and the teams' decisions interact in the simulated marketplace.
AVAILABILITY: Because of the complexity of these simulations we normally provide them on a fully tutored basis.
DISTRAIN was developed from the Distribution Challenge simulation to provide an depth exploration of distributionl management - especially the interactions of marketing, inventory and staff.
The Classic Version involves managing a distribution that sells three ranges of products each with differing price and inventory sensitivities. The simulation expands on the original Distribution Challenge decisions of markup, purchases, staffing levels and advertising to include decisions that include improving customer payment, inventory systems, special promotions, product range, security and staff training.
EXSTRA was developed from the Executive Challenge simulation to provide an entry level strategy simulation for high flying junior management or middle management. Thus it is designed to challenge leadership, team-working skills and business acumen. It addresses the strategic issues of a focused and balancec product portfolio, sustainable growth, business process improvement and market focus.
Divided into three markets (fishing, family cruising and sport-skiing) customers buy power boats and are influenced by price, advertising, a boat's power and various promotional activities. During the strategic development of this business teams must decide if and where to focus their business, extend the range of boats and redesign existing boats, increase capacity, set up hull manufacturing, improve scheduling etc. All the while they must ensure financial success and liquidity utilising the appropriate funding mix (short-term, long-term and through increased equity).
QUAD was designed to replicate a company manufacturing a range of products that are manufactured by two production centres. Where one production centre can manufacture all the products and the other can only manufacture the simplest product and contribute to the manufacture of the middle product. Sales are repeat orders from existing customers and orders from new customers.
Customers are influenced by price, promotion, quality, the ability to deliver when required and long term market demand trends.
Decisions cover prices and promotion for each product, capacity and quality improvement for each production centre and long term loans. These decisions are processed by the simulation model producing operating results and a full set of financial accounts (Profit & Loss, Balance Sheet and Cash Flow Statement).
RESERVE was especially designed to show engineers and scientists the link between their work and commercial success. Each team manages a company selling two products (LOTS & HITS). For each product they decide price, promotion and production. Overall they decide capacity, long term loans and the research staff development plus a series of decisions affecting research and development.
The research and development decisions involve deciding how much effort to put into five areas - performance, quality, materials, process development and basic research. Performance development, relative to other teams and customer needs affects sales. Quality development, again relative to other teams and customer needs affects sales but it also affects manufacturing costs. Materials development affects the short term cost of manufacturing and process development the long term cost of production machinery. Basic Research can lead to a "break-through" in any one of the development areas.
Coupled with these decisions, reports identify cost trends and research shows how customers feel about the company.
SYCOPS was designed to replicate a company that was selling a range of high technology systems incorporating electronic hardware and software. Participants take over a subsidiary company selling three classes of system ranging from basic (obsolescent) systems to those using the latest, advanced technology. Systems that are produced using two engineering resources. Sales are repeat orders from existing customers and orders from new customers.
Customers are influenced by price, support effort, quality, the ability to deliver when required and long term market demand trends.
Decisions cover prices and support effort for each type of system, capacity and quality improvement for each engineering resource and long term loans. These decisions are processed by the simulation model producing operating results and a full set of financial accounts (Profit & Loss, Balance Sheet and Cash Flow Statement).
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