Banka Simulacije (Banking Challenge)

DESCRIPTION
This simulation was developed for the Academy of Banking and Finance of the National Bank of Serbia as part of a project supported by the European Agency for Reconstruction. It provides participants with the opportunity to manage a complete commercial bank making decisions covering funding, marketing, business development, staffing, quality and productivity improvement.

KEY LEARNING
As described later, the simulation covers the following key areas:

•          BANKING APPRECIATION
•          BANKING OBJECTIVES & MEASURES
•          FINANCIAL APPRECIATION
•          CLIENT MANAGEMENT & POLICY
•          PRODUCT MIX & CONTRIBUTION
•          MARKETING - PRICING & PROMOTION
•          FORECASTING & CONTROL
•          BUSINESS IMPROVEMENT POLICY & IMPACT
•          TEAM WORKING
•         (BUSINESS PRESENTATION)

DURATION
Approximately one day. (Although it can be run in an accelerated manner in just over half a day.) Its duration makes it suitable for use at the end of a training course, in stages over the course, as a one-day seminar or as a feature of a conference.

TARGET AUDIENCE
The simulation is designed for use by trainees, junior management, functional specialists and supervisors on banking appreciation courses. (If used in an accelerated manner, it is suitable for more senior management.)

METHOD
After a short briefing, the training group is divided into between two and eight teams of between three and five participants. These teams consider the problem facing them and then make decisions for a trading year. These decisions are fed into a microcomputer that simulates their effect. The results are returned to the teams who analyse them before making the next decision. This decision-making cycle is repeated for six to eight periods before the group recombines to discuss and compare results and justify their performance.

HARDWARE REQUIREMENTS
A single PC and printer for each group of two to eight teams.

SOFTWARE
The simulation uses an advanced simulator that supports tutoring, provides for ease of use and will run on all Windows operating systems from Windows 98 thorough Vista.

KEY LEARNING
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.

MANNER OF USE
The simulation can be used in several ways

         As a one day stand-alone event

         As the finale of a longer course

         Spread over a longer course

         To enliven a business conference

         As part of an assessment/development centre

         As a bank wide management contest

DOCUMENTATION

Documentation is provided in MS Word format and comprises:

A Participants' Manual that provides, for the participants. a description of the simulation, a description of their task and how to use the software.

The Background Notes describe the simulation for the trainer .

The Decision Forms are the forms used to communicate a team's decisions to the trainer.

Briefing is a MS Power Point briefing explaining the simulation to the participants. (You may find it useful if you review this before reading the briefs.)

Participants' Manual
Background Notes
Decision Forms
Briefing

SIMULATOR DOWNLOAD

This is provided to allow you to download an evaluation version of the Banking Challenge simulation. Before you do this you must have two blank formatted floppy discs available (labeled Disc 1 and Disc 2). Also be advised that the Cab files will take some time to down load.

The table below shows the files to download, their description, size and the floppy disc to save to. Once all files are downloaded, place Disc 1 in your floppy drive. Click Start and then Run and enter A:\setup.exe. The program will then install.

Help with downloading - especially  with Windows XP or Vista.

If, instead of installing from the Web, you are installing from the CD-ROM version of this resource you can install directly by clicking setup.exe and opening the file.

Most recent update: 30/04/07
Hall Marketing, Studio 11, Colman's Wharf, 45 Morris Road, London E14 6PA, ENGLAND
Phone & Fax +44 (0)20 7537 2982 E-mail jeremyhall@simulations.co.uk