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An Introduction toMikes Bikes Advanced
Presented by:
Peter Janciw
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What is a Business Simulation?
A representation of a real world company
Governed by real life business conditionstrying to achieve goals and strategies
You are placed the role of Managementand must make strategic decisions
It is NOT just a game, it is a learningexperience
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Why simulations are used
Application of theoretical businessconcepts (everything you learned in IB1!)
Used in both the academic and businessrealm
Simulations build teamwork skills andprovide an enjoyable way to learn.
Manitoba International MarketingCompetition
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We will now look at
1. What is Mikes Bikes?
2. Simulation interface elements
3. The importance of strategy4. The main functional areas of the
business
5. Things to watch for
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What is Mikes Bikes?
You are the new manager of amanufacturer in the bicycle industry
5 market segments and 3 distributionmethods exist
2 versions: Single-Player and Multi-PlayerWe will be using the Multi-Player version
Rollovers are automated!
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Multi-Player Structure
Course
World
Firm
User
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Simulation Interface Elements
1. Decision Screens Enter the values forall functional areas for the next period
2. Reports View company results andanalyze for next decision
3. The Advisor - The Mikes Bikes helper.Provides tips and assistance
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The Importance of Strategy
Strategy How you will achieve yourorganizational goals
Each Marketing, Production and Financialdecision you make ties into your overallstrategy!
Monitor strategy by constant analysis (viareports) then make the right decisions
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Applying The Strategy
Big Picture > Main Objectives > Low Level
Meeting Main Organizational Objectives Making Profit
Having enough Product
Keeping Customers Happy
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The Main Functional Areas
1. Marketing Advertising, PublicRelations, Branding, Price, etc
2. Production and Operations Ourcapacity to produce
3. Finance Costs, Cash Flows, Profit
4. R and D Developing products theconsumer wants
5. HR Size of our workforce, training, etc
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1. Marketing
1. Promotion Advertising, PublicRelations
2. Distribution (Place) DepartmentsStores, Bikes shops, and Sport Shops
3. Price How much will we/can we chargeour customer?
4. Product Creating what the consumerwants
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2. Production and Operations
Plant capacity measured in SCUs
(Standard Capacity Units)
Control batch size, set up time reduction,preventative maintenance
Forecast sales to determine productionvalues
Factory efficiency of 70% - 80% is verygood
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3. Finance
We want to cover our costs and make aprofit!
We can increase or pay back long termdebt
Shares can be sold to raise capital, or bebought back.
Provide shareholders with dividends fromcash surplus
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4. Research and Development
Modify existing products or create a newone
Choose product attributes: Design/Styleand Technical Specs
Use the product placement and theperceptual map to determine whichattributes our target market wants
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5. Human Resources
We can increase or decrease the size ofour workforce
We need to decide how much to pay ouremployees
We need to decide how much we aregoing to spend on training our employees
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Things to watch for
Plant capacity Too much will be a wasteof resources. Under capacity will result innot being able to meet our customer
demands (opportunity costs).
Marketing decisions - Be sure to spendthe right amount of resources in the proper
areas.
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Things to watch for
Financing decisions - Watch your debt toequity ratio. Too much debt and notenough equity will hurt share price!
Is the price right? Having a price that istoo low results in lower revenues. Havinga price that is too high results in lower
sales. Dont stock out!
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Simulation Schedule
2 practice moves
Fri May 20th, Tues May 24th
6 actual moves
Move 1: Fri May 27th
Presentations to the board
Show how your company has performed overthe past 5 periods
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The Group Experience
Do key tasks AS A TEAM
Listen to everyones ideas and opinions
Deal with situations as the occur
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Downloading and Playing
Download all software and player manualsfrom http://www.smartsims.com
Smartsims e-mail: [email protected]
2 team members can register at a cost of$50 each. This amount is spread over theteam to lower costs
Smartsims will e-mail your registrationinformation to you
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Downloading and Playing
Firewall configuration Access Multi-player software in 3C13
UserID: student-01
Password: NetMike Smartsims access:
Login: stuwinnipeg
Password: canada [email protected]
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Walkthrough
How to make a round of decisions
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Questions