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

•

Telephone: (cell) 854-8784

•

Email: afejf1@ uaa.alaska.edu

•

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

•

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:

–

Assemblers

–

Technicians

 Wages  Benefits

SIMULATION SPREADSHEET



Acquire Capital

–

Issue Stock

–

Short Term Debt

–

Issue Long Term Bonds



Set Dividend



Retire Long Term Bonds

• 

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

.

SWOT analysis

.

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

•

There no outside competitors or product substitutes.

•

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..