This video demonstrates how to modify an existing product in the MikesBikes Advanced Strategic Management Simulation.

You should also watch the MikesBikes Advanced Video 5 – Design & Development video.

Below is the script for this video:

This video will demonstrate how to modify an existing product in MikesBikes Advanced.

This is done by:
1) Creating a new design; and then
2) Applying the new design to an existing product.

Navigate to the Design and Development Menu and click on the New button. Name the project you can identify it, specify Style and Tech specs based on consumer preferences, allocate a prime cost, and allocate an expenditure figure. Once done, Apply your decision.

A project only becomes available to use after one period in the simulation. After a processed rollover, navigate to the Products Screen, click on the Product you wish to modify, and then click on the Modify button. Click on the newly created project, and then Apply. This completes the process of successfully modifying an existing product.

Anthony McCollum (above), a student at Ohio State University, achieved quite an amazing feat with the support of Professor Livengood. Anthony took 15th place in our Top 20 Hall of Fame for MikesBikes-Advanced in only six rollovers with a Shareholder Value of $977.18.

Why is this significant? What does it mean? 

Our Hall of Fame historically compiles the top 20 Shareholder Value results from firms played by students in courses worldwide. This means Anthony beat hundreds of other firms and thousands of other students to take out 15th place and only with 6 rollovers! Most other entrants have achieved their results with 7 or 8 rollovers – who knows what Anthony could have achieved if his course had 2 more rollovers

For those not in the know, Shareholder Value is the main Key Performance Indicator used within MikesBikes. Further, a rollover is the simulations way of showing a progression in time.

How did Anthony achieve this? 

Smartsims sent him an email asking to share his story for others to learn from. Here is his response:

“My strategy for my business, Bykes 4 Sail, was to be very aggressive.

From the very start, I spent a great deal of money advertising and increasing the quality of my bikes. I expanded into new bike groups as fast as I financially could, but not so fast that I was spreading myself too thin. I even took out a loan within the first couple years, so I had more capital with which to expand.

Once I was established in a certain bike group, I would learn from my competitors and use that to my advantage. I would increase the quality of my bikes, increase advertising, or adjust my price, all according to what my competitors had done, and what I expected them to do.

Other little details that I experimented with also seemed to make a large impact on my success. Those include finding the perfect number of employees, buying an appropriate amount of SCU ahead of time, and spending the right amount on preventative maintenance, all of which made my manufacturing process more efficient.

I was able to keep track of all of my decisions by keeping a detailed log, which helped immensely. Overall, I learned that each part of the business is equally important. Without one area running as efficiently as the others, success will be hard to find.”

What advice did Anthony have for future students?

“The best and fastest way to learn is to experiment. Try different strategies, even if you don’t think they will work. After all, I thought I was being irrational with some of my decisions when I found what worked for me.”

Business Simulations are the best environment for you to experiment with strategies and concepts learned in class! They are a safe environment where you can safely fail without any real world consequences so learn by doing. Go, play the simulation and learn!

By Brook McFarlane