Transcript PROFESS - simulations

PROFESS
Professional Service Simulation
an exploration of commerce
Introduction
You will be responsible for the commercial
development of a sales region.
This will involve determining and anticipating
customer needs, promoting and deploying a
skilled sales force.
The business modelled is a professional service
company (such as a logistics or computer
services company).
Your purpose is to make the business a success
The Simulation
This activity consists of three stages:
Preparation
– familiarisation & organisation
– deciding strategies & objectives
Decision-making
– submit decisions
– effect simulated
– get & review results
Review
– discuss & compare results
Situation
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Autonomous sales region
Responsible for obtaining new business
Sells to a range of business customers
Consists of three sales regions
Employs advisers (sales people) and
technical staff
• Run the region on a quarter by quarter
basis
Services
You currently sell four services
Type 1 – for the biggest customers
Type 2 – for middle sized customers
Type 3 – for middle sized customers
Type 4 – for the smallest customers
But some time in the future additional
services may become available
Customers
Your customer base is divided into:
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Very large multinational companies
Large companies
Medium sized companies
Small companies
Micro businesses
Sales Areas
Area A – City Centre
Mainly micro & small businesses but some large
companies.
Area B – City Edge
Industrial Area – mainly small and large companies
but with a few multinationals, small and micro
businesses.
Area C – Rural
Small and micro but with several large and multinational companies on green field sites.
Selling Process
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Advisers contact prospective customers or
customers contact the company
Advisers meet with prospects to discuss and
determine needs
Advisers provide specification of need to
technical staff.
Technical staff produce detailed proposal and
return to advisers
Advisers meet with the prospect to discuss
and finalise the proposal.
Sales Influences?
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Adviser Availability
Adviser Skills
Sales Promotion
Service Offering
Proposal Speed
Brochure
Market Trends
Staff Development
• Adviser Training
– Done by corporate
– Charged on a per adviser day basis
– You decide number of days/adviser each quarter
• Induction Training
– For new hires
– To provide basic knowledge of service & company
• Technical Staff Training
– Done on-the-job
Decisions
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Required number of Advisers (by area)
Adviser Salary (whole region)
Adviser Training (days)
Induction Training (days)
Required number of Technicians
Service to update
Brochure to update
Regional Promotion
Costs
All costs and revenue in a universal currency
Adviser Salary currently 100 AUs/Quarter
Area Overheads about 250 AUs/Quarter
Technical Staff costs 40 AUs/Quarter
Technical Overheads 500 AUs/Quarter plus
10AUs/staff member
Service Updating 100 AUs when updated
Regional Promotion typically up to 200AUs
Recruitment Cost – 10 AUs/adviser 5 AUs/technician
Training Course Cost – 1 AU/adviser
Results
Returned in three stages
Preliminary Results
Area Summary and Business Summary
Team Results
Profit Statement, Operational Report, Recruitment
and comments on operation
Business Research
Salaries Advertised, Number of Advisers, Market
Share and editorials.
Observations
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it takes time to understand
but the business still must be run
therefore your decisions will not be perfect
time will be a constraint
• by the end you should (just) be in charge of your
business
• your business skills will be challenged
• remember the purpose is to learn!
(rather than just to win!)
• so, take time to reflect & review
• and have fun!