Transcript MgtSim-1 - University of Alaska system
University of Alaska-Anchorage * College of Business & Public Policy M A R K E T I N G M G T.
* Marketing Management Simulation * Course Intro & Overview S I M U L A T I O N
M A R K E T I N G M G T.
Professor Ed Forrest S I M U L A T I O N
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Telephone: (cell) 854-8784
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Email: afejf1@ uaa.alaska.edu
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W ebsite: http://faculty.cbpp.uaa.alaska.edu/afef/
Marketing Management Simulation
M A R K E T I N G M G T.
S I M U L A T I O N
Course Format
M A R K E T I N G M G T.
S I M U L A T I O N
Lecture-Learning
M A R K E T I N G M G T.
http://americanradioworks.publicradio.org/features/tomorrows-college/lectures/
S I M U L A T I O N
M A R K E T I N G M G T.
S I M U L A T I O N Ultimately Real Learning Occurs Not from parroting information gleaned from books & lectures! ….But from the consequences of your own actions
M A R K E T I N G M G T.
S I M U L A T I O N
M A R K E T I N G M G T.
S I M U L A T I O N
your “study” of business and in isolation!
… piece-meal
M A R K E T I N G M G T.
S I M U L A T I O N
Marketing R&D Production Finance
HR
YOUR JOB:
• Take on every key
Mgt. position in your Company
• Make 100+
intertwined decisions necessary to create, produce & successfully market your products…
YOU …
• Analyze the market,
consumer, your company & competitive situation
• Discern & implement
your corp. growth & competitive strategies
• Must make & integrate
decisions in & across all functional areas
(Marketing, Research & Development, Production, Human Resources & Finance).
M A R K E T I N G M G T.
•
Simulation proffers you opportunity to experience every key dimension of strategic thinking developed to date:
Strategic Thinking
the ten big ideas
THE CAPSTONE SIMULATION Most widely used Business – Simulation Program in the World • Adopted by major 500 Fortune companies ..General Motors, General Electric, Honeywell, Dell, John Deere, Citibank, Alcoa, BP, Allstate, Samsung, Goldman Sachs, Microsoft…
You Da’ Boss … run a $100M business ….
Your Product Line:
SENSORS:
You will Compete against other members of this class –running 5 other Corp’s ….
• • • • • •
Andrews Baldwin Chester Digby Erie Ferris
Plus…
your decisions & business performance will be compared against 1000+ other teams competing at other universities… around the world
& How
–
to date- have we fared in this World-Wide Competition??
2001 Top Ten Teams, World-Wide , for Round 8
• • •
Top Ten Teams, World-Wide, for Round 8
by success measurement There are currently 940 active teams that have played Round 8. For a team to make this list: Cumulative Profits above 0 Overall Market Share (in dollars) greater then 5.0% Asset Turnover less then 8.0 Profit for Round 8 Round 8 - Mean - $ 25,324,003
Top Ten Active Teams Professor School/Course Simid Team Value
1 93 481 Business Policy & Strategy CAP1742 Digby $ 238,235,245 2 Contemporary Business Seminar CAP1513 Andrews $ 193,853,427 3 Senior Seminar CAP1656 Andrews $ 184,258,599 4 Dr. Minu Afza College of Business - Bloomsburg University Mr. Bill Gardner Penn State University -Fayette Campus Dawn DeTienne University of Colorado at Boulder Prof. Howard Feldman University of Portland Managerial Decisions and Policy-Undergrad B CAP1787 Erie $ 181,422,390 7
5 Marketing Management CAP1611 Baldwin $ 163,281,864
6
Dr. Ed Forrest University of Alaska
Dr. Eric Wiseman University of Colorado at Boulder Business Senior Seminar CAP1818 Chester $ 157,930,382 Dr. Murrow Drury College Strategy and Policy Formulation CAP1838 Erie $ 149,235,238 8 Dr. Pettus Millikin University Business Policy CAP1748 Baldwin $ 147,967,873 9 Management VII-secA CAP1811 Digby $ 137,339,216 10 Doug Mayer Hartwick College Dr. Bruce A. Schooling Point Loma Nazarene University Strategic Management CAP1794 Digby $ 121,289
5 th
2003 Top Ten Teams, World-Wide , for Round 8
• • • For a team to make this list: Cumulative Profits above 0 Overall Market Share (in dollars) greater than 6% Asset Turnover less then 8.0 Your class was ranked: with 711 Capstone ® teams completing round 8 by Apr 12, 2003. teams per game of 6 Category: All URL: eNote: http://www.capsim.com/prof/viewtopten.cfm?round=8&simid=C4806&version=K Date/Time: 04/12/2003 10:07:35 Text: Cumulative Profit for Round 8 - Mean - $ 125,355,000 Top Ten Active Teams Professor School/Course Simid Team Value 1 natalie marsh Strayer University Business Policy & Strategic Planning C4779 Baldwin $ 459,411,986 2 John Hall University of Florida Global Strategic Management I2MBA 2002 C4923 Baldwin $ 386,472,583 3 natalie marsh Strayer University Senior Seminar - Business Administration C4778 Erie $ 382,697,422 4 Peter Stanwick Auburn University Strategic Management C5095 Chester $ 353,185,127 5 John Pearce Villanova University Policy Administration C5033 Ferris $ 348,535,130 6 Gavin Fox Georgia Southern University BUSINESS SIMULATION C5041 Digby $ 343,761,703 7 Shirley Schooley Birmingham-Southern College Strategic Management Senior Project Course Sec B C5356 Digby $ 341,865,002 8 natalie marsh Strayer University Senior Seminar - Business Administration C4778 Ferris $ 339,568,171
9 Edward Forrest University of Alaska 10 Donald Kreps Kutztown University mba capstone C4797 Digby $ 327,188,363 9 Marketing Management C4806 Chester $ 333,620,198 th
2005 -
#
1
2006-
5 th
and
8
th
2007
3 rd
Fall 2009
#1
in th
e world!
Fall- 2009 #1 in the world…
v
SHAKE UP IN SENSOR INDUSTRY Management Teams Fired
“After poor results, lackluster sales and angry customer reports……….. New dynamic leadership teams needed to take industry into the future!”
M A N A G E M E N T S I M U L A T I O N
M A N A G E M E N T You are now the C aptain… S I M U L A T I O N
Today- we will begin analysis of “your situation…”
1 st -Step back & take a look at the “Big Picture”
Situation/SWOT Analysis The Big Picture Strategic Planning Functional Integration Performance Assessment
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C
ompany •
C
onsumers •
C
ompetitors •
C
onditions •
PEST
Growth & Competitive Strategies
Functional Integration
Marketing R&D Production HR Finance
Profits Mrkt Share ROA ROS ROE Asset T/O Stock Mrkt Cap
BUSINESS PLAN GUIDELINE
1.Where are we now?
= Situation Analysis
2.Where do we want to go 3.How do we get there?
The Capstone Courier
Org. goals & objectives encapsulated in Mission & Vision Statements: Answers Question # 2:
2. Where do we want to go?
– – – –
What business(es) should be in Market positions to stake out?
Consumer needs & segments serve?
Outcomes to achieve ?
Final Question answered by Strategic Planning:
1.Where are we now? 2.Where do we want to go?
3.How do we get there?
* Growth, Competitive & Functional Strategies
…success contingent on decisions you make as manager of every functional domain
M A N A G E M E N T
As MARKETING MANAGER
S I M U L A T I O N You’re will be responsible for: Planning, implementing & controlling your marketing strategy Product Place Price Target & Position Promotion
Marketing Managers become one S I M U L A T I O N w/ Relationships betw • Price & demand • Price & margin • Promotion budget & awareness • Sales budget & accessibility • A/R policy & demand
MARKETING MANAGER
SIMULATION SPREADSHEET
Set price of your products in the marketplace Set the sales forecast for our products Set Credit Policies AR/AP Build customer awareness through promotion Establish a sales force and distribution channels
•Marketing
also selects media vehicles & message weights
• AND
determines composition of sales/distribution staff ..and allocation of their efforts by segment & Brand
M A N A G E M E N T S I M U L A T I O N
As Production Mgr:
Set automation levels
Buy or sell capacity
Schedule production
Work overtime or automate
PRODUCTION MANAGER
SIMULATION SPREADSHEET
Schedule production for each line Buy or sell capacity of product lines Purchase machinery to automate our facilities Establish your workforce complement
M A N A G E M E N T S I M U L A T I O N
As R&D Mgr
SIZE A B Performance
Responsible for:
Product Position
Age & Quality
New product development
High High Eight
< < <
Low Low One Quality Age Prdt Line
R&D MANAGER
SIMULATION SPREADSHEET
Establish product positioning to meet customer demand Build quality & reliability (MTBF) into products Create new products Ensure age of product meets customer demands
Drift
M A R K E T I N G
As Human Resource
• •
Recruitment, Hiring, Training & Firing of all labor 2 groups:
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Assemblers
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Technicians
Wages Benefits
SIMULATION SPREADSHEET
Acquire Capital
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Issue Stock
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Short Term Debt
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Issue Long Term Bonds
Set Dividend
Retire Long Term Bonds
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Retire Stock Responsible for Emergency Loans Big AL The Loan Shark
FINANCIAL MANAGER
SIMULATION SPREADSHEET
M A R K E T I N G M G T.
S I M U L A T I O N
1 st
Reorganize Companies
M A R K E T I N G M G T.
S I M U L A T I O N
Strategic Thinking - the ten big ideas 7. Corporate culture its culture corporate behavior, and in particular the resistance of the organization to change, is inevitably a function of
(Prof Thomas/ Penn St. able to predict final standings w/in 1 place 90% of time – after observing initial group interaction)
8. Leadership craft Leaders responsible for assuring strategy links values of firm with its vision & that firm can successfully implement strategy thru effective HR mgt.
Now- Register Go to www.capsim.com
M A R K E T I N G M G T.
Begin Situation-Analysis S I M U L A T I O N C ompany
INTERNAL ENVIRONMENT Your Company's Strengths & Weaknesses :
C onsumer C ompetitors
EXTERNAL ENVIRONMENT Opportunities & Threats
C onditions
1 st part Situation Analysis is Environmental Scanning Environmental Scanning= The process of identifying the nature & magnitude of Uncontrollable forces in the external (macro) environment exerting significant influence on your strategies…
EXTERNAL-UNCONTROLLABLE FORCES:
Impacting Strategies
Competitors Consumers Political
Regulatory
Economic
Technological
Technological Social
Demographic Psychographic trends
Strategic Thinking - the ten big ideas
1. Long-range planning-
considers the external factors that affect success & integrates the various functional strategies.
2. Strategic analysis
Market segmentation The lifecycle
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SWOT analysis
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Industry structure
YOUR
1 st
ASSIGNMENT
Opportunities & Threats:
Ascertain how the market is organized, operates, influenced & evolving
The Consumer: How market is segmented….factors that influence consumer demand & purchasing decisions
The Competition
Your competitors situation… strength & weaknesses… and relative market positions…
The Market: Conditions Macro-E considerations especially technological trends
Your sim-environment a bit more benign than real world
Economic environment = moderate growth, low inflation, historically-averaged interest rates
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There no outside competitors or product substitutes.
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No economic downturns or other surprises expect ed.
Sim designed this way for one reason
- whatever happens as market evolves will be driven by your tactical execution of strategies
…
not by external factors.
M A R K E T I N G M G T.
S I M U L A T I O N
Questions
?
M A R K E T I N G M G T.
S I M U L A T I O N Can I be excused my brain is full..