Transcript MgtSim-1 - University of Alaska system

University of Alaska-Anchorage * College of Business & Public Policy
M A RKETING
M G T.
* Marketing Management Simulation *
S I M U LA T I ON
Course Intro & Overview
M A RKETING
M G T.
Professor Ed Forrest
S I M U LA T I ON
• Telephone:
(cell) 854-8784
• Email:
afejf1@ uaa.alaska.edu
• Website:
http://faculty.cbpp.uaa.alaska.edu/afef/
Marketing Management Simulation
M A RKETING
M G T.
Course Format
S I M U LA T I ON
M A RKETING
M G T.
S I M U LA T I ON
Lecture-Learning
M A RKETING
M G T.
http://americanradioworks.publicradio.org/features/tomorrows-college/lectures/
S I M U LA T I ON
M A RKETING
M G T.
S I M U LA T I ON
UltimatelyReal Learning Occurs
Not from parroting
information gleaned
from books &
lectures!
….But from the
consequences of your
own actions
M A RKETING
M G T.
S I M U LA T I ON
M A RKETING
M G T.
S I M U LA T I ON
your
“study” of
business …
piece-meal
and in
isolation!
M A RKETING
M G T.
Marketing
S I M U LA T I ON
R&D
HR
Production
Finance
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 RKETING
M G T.
•Simulation proffers you opportunity
to experience every key dimension
of strategic thinking developed to
date:
S I M U LA T I ON
Strategic
Thinking
the ten big
ideas
THE CAPSTONE SIMULATION
Most widely used Business –
Simulation Program in the World
• Adopted by major Fortune
500 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
Product Place
Target
Market
Price Promotion
& 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 Dr. Minu Afza College of Business - Bloomsburg University
93 481 Business Policy & Strategy CAP1742 Digby $ 238,235,245
2 Mr. Bill Gardner Penn State University -Fayette Campus
Contemporary Business Seminar CAP1513 Andrews $ 193,853,427
3 Dawn DeTienne University of Colorado at Boulder
Senior Seminar CAP1656 Andrews $ 184,258,599
4 Prof. Howard Feldman University of Portland
Managerial Decisions and Policy-Undergrad B CAP1787 Erie $ 181,422,390
Dr. Ed Forrest University of Alaska
5
Marketing Management CAP1611 Baldwin $ 163,281,864
6 Dr. Eric Wiseman University of Colorado at Boulder
Business Senior Seminar CAP1818 Chester $ 157,930,382
7 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 Doug Mayer Hartwick College
Management VII-secA CAP1811 Digby $ 137,339,216
10 Dr. Bruce A. Schooling Point Loma Nazarene University
Strategic Management CAP1794 Digby $ 121,289
th
5
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: http://www.capsim.com/prof/viewtopten.cfm?round=8&simid=C4806&version=K
Date/Time: 04/12/2003 10:07:35
eNote:
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
•
th
9
9 Edward Forrest University of Alaska
Marketing Management C4806 Chester $ 333,620,198
10 Donald Kreps Kutztown University
mba capstone C4797 Digby $ 327,188,363
2005 -
#1
2006-
5
th
and
th
8
2007
rd
3
Fall 2009
#1 in the 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 LA T I O N
M A N A G E M E N T
S I M U LA T I O N
You are now the Captain…
Today- we will
begin analysis
of “your
situation…”
1st-Step back &
take a look at
the “Big Picture”
The Big Picture
Situation/SWOT
Analysis
Strategic
Planning
•Company
•Consumers
•Competitors
•Conditions
• PEST
Growth &
Competitive
Strategies
Functional
Integration
Functional
Integration
Marketing
Performance
Assessment
 Profits
 Mrkt Share
 ROA
R&D
 ROS
Production  ROE
 Asset T/O
 Stock
HR
 Mrkt Cap
Finance
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 asmanager of
every
functional
domain
M A N A G E M E N T
As MARKETING MANAGER
S IM U L A T I O N
You’re will be responsible for:
Planning, implementing & controlling
your marketing strategy
Product
Place
Target
&
Position
Price
Promotion
Marketing Managers
become one-w/
Relationships betw
M A N A G E M E N T
S IM U L A T I O N
• 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
As Production Mgr:
S IM U L A T I O N
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
As R&D
Mgr
S IM U L A T I O N
A
SIZE
B
Performance
Responsible for:
Product Position
Age & Quality
New product
development
High
High
Eight
<
<
<
Low
Quality
Low
Age
One
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 KE T I N G
As Human Resource
Manager--Responsible for:
M A N A G E M E N T
• Recruitment,
Hiring, Training &
Firing of all labor
• 2 groups:
– Assemblers
– Technicians
Wages
Benefits
SIMULATION SPREADSHEET
As FINANCIAL MANAGER
M A N A G E M E N T
Acquire Capital
S IM U L A T I O N
–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 RKETING
M G T.
S I M U LA T I ON
st
1
Reorganize
Companies
M A RKETING
M G T.
Strategic Thinking- the ten big ideas
S I M U LA T I ON
7. Corporate culture- corporate
behavior, and in particular the resistance of the
organization to change, is inevitably a function of
its culture
(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 RKETING
M G T.
Begin Situation-Analysis
S I M U LA T I ON
Company
INTERNAL ENVIRONMENT
Your Company's
Strengths & Weaknesses:
Consumer
Competitors
Conditions
EXTERNAL ENVIRONMENT
Opportunities & Threats
1st 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
Technological
Technological
Regulatory
Economic
Social
Demographic
Psychographic
trends
Strategic Thinking- the ten big ideas
1. Long-range planningconsiders 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 expected.
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 RKETING
M G T.
S I M U LA T I ON
Questions?
M A RKETING
M G T.
S I M U LA T I ON
Can I be
excused my
brain is
full..