Transcript Mike`s Bikes Introduction Lecture.pps

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What is Mike’s Bikes?
• Single-player version (SoloMike)
– Stand alone single player simulation
– Ideal for teaching students the Mike’s Bikes interface quickly
• Multi-player version (NetMike)
– Multi-player online simulation
– Students able to connect from anywhere
– Used predominantly in Marketing, Strategy, Management
Accounting, Organizational Behavior, Intro to Business &
Capstone classes
– Has also been used in Engineering Management, Business
Communication, Entrepreneurship, Managerial Economics &
Operations Management.
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It works for ..Team competition
..Leadership development
..Undergrads
..MBAs
..Management Development
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Why Mike’s Bikes?
• Fun to teach.
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Interactive learning environment.
Complete environmental control.
24 hour customer service.
• Fun to learn.
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Learning by doing.
Competitive worlds.
Cross-functional management experience.
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Overall
Strategy
Shareholder Value
ECONOMIC
CONDITIONS
Current Profit
COMPETITORS’
ACTIONS
Demand
operating
decisions
Future Profit
Supply
Accounting
investment
decisions
BUSINESS STRATEGY
Marketing
Strategy
Operations
Strategy
Finance
Strategy
Product
Development
Strategy
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MARKETING DECISIONS
Marketing Strategy
• Decide on a Marketing strategy (target segments, niche marketing,
price/differentiation strategy, etc)
Pricing Strategy
• Develop a pricing strategy (eg, high price/low volume, low price/high
volume)
• Decide on the price of your bikes based on an evaluation of your
manufacturing costs and industry standards.
Advertising/PR expenditure
• Recognise which advertising media your market segments respond to
(all these data can be found in the Help manuals).
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MARKETING DECISION SCREENS
Marketing Strategy
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MARKETING DECISION SCREENS
Advertising/PR Expenditure
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OPERATIONS DECISIONS
Managing Plant Capacity
• Balance demand with supply and ensure that you have sufficient
capacity (note: capacity purchase takes two rollovers to complete)
Quality Systems
• Invest sufficiently in Quality systems to complement your marketing
strategy
Labour
• Try to ensure that your workers receive salaries and get sufficient
training.
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OPERATIONS DECISION SCREEN
Managing Plant Capacity
Quality Systems
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FINANCE DECISIONS
Financing your Firm
• Decide on how you wish to finance your firm’s operations, what
percentage of debt/equity
Investor Relations
• Investing in Investor Relations will ensure that your investors are in the
know and do not sell your shares hastily, thus causing fluctuations in
your share price.
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FINANCE DECISION SCREEN
Equity Financing
Debt Financing
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PRODUCT DEVELOPMENT DECISIONS
Developing New Products
• Identify potential synergies (eg, distribution channels) and plan the
expansion of your product lines carefully
Investing in R&D
• Be sure to invest sufficiently in Development Projects
• Consult the Perceptual Map for data on segments
• Any projects that have less than 90% success rates will be scrapped
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PRODUCT DEVELOPMENT DECISION
SCREEN
Developing New Products
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REPORTS
Financial Reports
After each rollover, flick through all the reports to find
out how your firm performed.
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• If you require further information, the Help files are the
best source.
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Overview of Single-player version
Two manufacturers
Two market segments
Two distribution channels
Real Cool
Cycles
Bike Stores
Adventurers
For
control of
Competing
through
MountainTop
Cycles
Department
Stores
Leisure
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EXAMPLE OF REPORTS
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Single-player version Perceptual Map
100
Tech Specs
80
60
Adventurers
40
20
Leisure
0
0
20
40
60
80
100
Style/Design
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Multi-player version Course Overview
Course
World
Firm
Users
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Overview of a Multi-player version World
Five manufacturers
Five market segments
Three distribution channels
Competing
through
For
control of
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Multi-player version Perceptual Map
100
Racer
Tech Specs
80
60
Adventurers
40
20
Commuter
Kids
Leisure
0
0
20
40
60
80
100
Style/Design
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The Multi-player version Scenario
(Richer than SoloMike)
• Same decisions and model as SoloMike.
• NetMike has two distinct phases over a period of 6-12 years
– A growth phase (new products & strategy implementation)
– A mature market phase (product life cycle management)
• All companies start out identically.
• No randomness in the model.
• Offline mode allows forecasting.
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