Transcript The Beaver Republic Game Intro.ppt

The Beaver Republic Game
Learning Objectives
• Choose or define a strategy re: how to enter an
industry - type of store, product, product mix
options, price, type customers
• Make choices that define economics of a
business - capital investment, volume of sales,
margins, fixed costs
• Evaluate financial attractiveness of a business
opportunity - financial projections, internal rate of
return, hurdle rates
Learning Objectives continued
• Make operating decisions - order raw materials,
schedule production, price products, offer them
• Respond to external environment challenges –
decide position on various issues with different
effects on business, i.e. taxes
• Work or cooperate with competitors/ community
at large regarding economic issues
Scenario
• You are project managers working for a large
diversified company. Investment limit B$200k
• Your task is evaluate a business opportunity –
make and sell bean bags – in the Beaver
Republic. You need to prepare a Proposal to
Invest or PIN.
• If approved, you start and operate the business.
• At the end of the game, you will have to submit a
Post Audit Report or PAR.
Game Information
• At least 25 companies (over three sections of BA
469 this summer)
• There are two types of bean bag businesses
available. Your choice, you invest, and the
game will provide you the rest – factory, etc.
• The game is accessible through the internet.
The system is not located on campus.
• We will use a survey system located on campus
to collect votes.
• Administrator (plus a couple of programmers
and assists)
Resources
• The Beaver Republic Game describes the
scenario, including information you need to
make an evaluation of the business.
• The Beaver Republic Game: Student Guide
describes the two (case) reports you will have to
submit – the PIN and PAR.
• The Beaver Republic Instructions describes the
different portions of the game site to assist you
in gaining access and navigating it.
Requirements
• Note grading requirements on syllabus.
• The case report due July 19/20 is the PIN
described in student guide.
• The case report due end of the term is the
PAR described in student guide.
• Make and enter decisions per turn (half
year) as shown on schedule.
• Respond to call for votes from the
“Council”
PIN
• The Student Guide describes what
information are required for a PIN.
• The student guide contains a template to
get you started on the financial aspects of
the evaluation.
• Your investment limit is B$200,000.
• Your financial projections become your
targets, assuming you recommend
investment and it is approved.
PAR
• The Student Guide will describe what
information are required for the PAR
• You will need to keep or maintain your
accounting books – record unit sales, price, cost
of materials, taxes due, etc. - the program will
give you (and administrator) totals to provide
verification of your records.
• Be ready to submit key variance figures
• Explain variances with business reasons
Game Schedule
• Refer to Game Schedule
• 5 years, 2 turns per year (wet and dry
season)
• Turns start 5th week, four turns a week
• Decisions for a turn may be entered
anytime before next turn
• The current turn will be reflected on your
home pages.
The Message Box
• Watch for messages – Decisions that ask/request each student to
vote
– News on what is happening externally that
may have a bearing on your business
– The email system works internally. You can
email your competition.
– The administrator may broadcast news or
requirements through this media.
Votes
• The Beaver Republic is a democracy.
• There are a few issues which will require
constituents (business owners, residents, etc.) to
vote.
• Information on these issues are in the Beaver
Republic Game document. A reminder and
more information will be sent out through the
message box.
• Votes may be cast using the survey system.
Info Required to Get Started
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User ID
Password
Investment amount requested
Type of store (defines segment)
Company name
Plan B