Business Simulation Archives

University of Auckland-Business Masters-MikesBikes Advanced- Presenations

University of Auckland Business Masters’ MikesBikes Presentations

The Business Masters students taught by Professor Darl Kolb from the University of Auckland were suited and booted for their final presentations on the MikesBikes Advanced Strategic Management Simulation

“The MikesBikes simulation combines elements of strategy, marketing, operations, product design and human resource management within a complex competitive environment. Besides the business and management aspects, the simulation provides a place for leadership to emerge as it did in these successful teams. I am always proud of all our simulation teams, but seeing so many of our students do so well on the world stage makes me immensely proud.”

– Professor Darl Kolb

Check out some of the photos from the final presentation:

Photos are taken from The University of Auckland Business School

First Place in NJIT SOM

2018 Strategic Management Showcase at New Jersey Institute of Technology

You can’t look at the competition and say you’re going to do it better. You have to look at the competition and say you’re going to do it differently.

-Steve Jobs

Students from New Jersey Institute of Technology definitely did things differently which led them to succeed in the The Fourth Annual Strategic Management Showcase with MikesBikes Advanced! The Showcase concluded last 30th of November with great success!

The Top 6 teams across the Strategic Management course competed head-to-head to achieve the highest Shareholder Value in MikesBikes Advanced.

The winning team, ALY BikeZ consisted of Aditya Patel, Luke Gregory and Yandy Gonzalez-Acevedo.

In second place we have CycloTherapy with Dikasse Zalla, Rosa Lee Moss and William Penn.

In third place we have CTS Bikes with Christopher Kukla, Spencer Kapp and Thomas Brady.

Congratulations to ALY BIkeZ and to all the participants! Well done and we wish you all the best!

Check out some of the photos from the Showcase:

Photos are provided by Shanthi Gopalakrishnan. 

Product Update in December from Smartsims

SMARTSIMS PRODUCT UPDATES: December 2018

New Animations when Saving Decisions

Previously, clicking the “Apply” button just reloads the screen, but with the new update it is now more evident that the decisions are being saved.

On-Screen Warning on Unsaved Decisions

Some students miss out on saving their decisions when they move onto a different screen or click away. So we have now added a new on-screen warning to notify students if a decision they have entered has been left unsaved.

On-screen warning on unsaved decisions

On-Screen Warnings on Decision Screens (MikesBikes Introduction)

Forecast Sales and Planned Production Warning

Students will now receive a warning when they have entered a high Sales Forecast, but their Production Quantity is lower.

MikesBikes Warning Message 1

MikesBikes Warning message 4

They will also receive a warning when their Planned Production Units is higher than their Sales Forecast.

MikesBikes Warning Message 2

MikesBikes Warning Message 3

Launching a Second Product in the Same Market Segment

This warning message should not discourage students from launching a second product if they wish, but it just informs them of what this decision entails.

Launching a second product warning message

Missed our previous Product Update articles? You can check these out here:

Sunil Abinandan's Smartsims Journey from student to employee

Student Success Stories: Journey from a MikesBikes Business Simulation Student to a Smartsims Employee

Get to know the latest addition to the Smartsims Team, Sunil Abinandan. He shares his experiences doing the MikesBikes Advanced simulation as a student, mentor and how these successfully helped him land the job here at Smartsims!  Continue reading Student Success Stories: Journey from a MikesBikes Business Simulation Student to a Smartsims Employee

AdSim Marketing Plan Budget Report

ADSIM ADVERTISING SIMULATION REPORT GUIDE: Marketing Plan Budget Report

What is the Marketing Plan Budget Report?

The forecast marketing expenditure budget shows you how much money you have available to spend this year as shown in the figure below.

Note: This report can be found in the Marketing Plan menu.

Forecast Project Budget Expenditure AdSim

There are three key parts of this report that you must understand.

Budget Limit

Your budget limit is set as part of your product’s marketing plan. It is up to you to decide whether you spend your entire budget or not.

How much you spend of this year’s budget has no effect on your budget for next year.

Budget Expenditure

The first column shows much money you currently have allocated to evaluation research, Agency fees and product advertising. Changing any of your decisions in these areas will automatically update this report.

Available to Spend

This is how much unallocated budget you have left, i.e. how much money you still have available to spend if you want to. Any money you spend will be deducted from your net marketing contribution, so you should only spend on activities where you think the return will more than cover the cost.

If this number is negative that means that you have exceeded your budget and you need to choose which advertising activities to cut back. If you do not do so yourself, then AdSim will automatically reduce your media advertising expenditure during the rollover to bring you back within budget.

Check out the latest AdSim Report Guide here:

Industry Benchmark Report

Need extra help?
  • You can receive an immediate answer to a number of commonly asked questions through our Support Center.
  • Contact us here.
AdSim Advertising Simulation by Smartsims Industry Benchmark Report

AdSim Advertising Simulation Report Guide: Industry Benchmark Report

What is the Industry Benchmark Report?

The Industry Benchmark Report is a summary of all firms’ Net Marketing Contribution reports so that you can benchmark yourself against your competitors as shown in the figure below.

In real life, this information would be difficult to obtain, but this report has been made available to you so that you can learn from your competitor(s).

There are several key parts of this report that you need to understand.

Sales & Gross Margin

Sales and Gross Margin in AdSim Advertising simulation

The Sales Revenue listed for each is the total wholesale sales revenue of all the firm’s products. The Cost of Goods Sold is the total cost of goods sold of all of the firm’s products that were sold, which is the number of units of a particular product sold multiplied by its manufacturing cost.

Gross Margin is the amount of profit that each firm made after the manufacturing costs were deducted.

You have no control over either the wholesale price or the manufacturing cost of your product, so your aim to maximize sales revenue by running the most cost effective advertising campaign that you can.

Product Marketing

Product Marketing in AdSim Advertising simulation

This section shows the combined Market Research, Agency Fees, Media Advertising, Customer Relationship and Marketing Communications expenditure for each firm.

The Evaluation Research expenditure lets you know how much market research your competitors are purchasing.

The Agency Fees let you know whether your competitors are using an Agency or not and how much it is costing them.

The Media Advertising expenditure allows you to see how much money your competitors are spending on Advertising, but now how they are allocating it to each media type.

Customer Relationship and Marketing Communications expenditure lets you know how much your competitors spent on implementing their selected options.

Net Marketing Contribution

Net Marketing Contribution in AdSim Advertising simulation

Net Marketing Contribution is the amount of profit remaining after manufacturing (cost of goods sold) and marketing expenditures have been deducted. The only costs still to be deducted are other functional overhead costs for your firm, e.g. finance, administration, etc.

Net Marketing Contribution is a measure of how profitable your firm is as a result of its strategic marketing plan. There is only one way that you can improve it, increase your Sales Revenue per dollar of Marketing Expenditure.

Need extra help?
  • You can receive an immediate answer to a number of commonly asked questions through our Support Center.
  • Contact us here.

MikesBikes Introduction Report Guide: Market Summary

What is the Market Summary Report?

The Market Summary Report is a market research report giving a side-by-side comparison of all the products currently being sold in the market.

MikesBikes Introduction Market Summary Report

8 Key Pieces of Information

Sales

Sales is simply how many units the particular product sold last year.

Retail Price

Retail Price is the recommended retail price that each firm set for their product(s). You need to remember that the wholesale price is retail price minus the retailer margin, so it’s possible that a cheaper product than yours might have a higher wholesale price if that firm has lower retail margins.

Awareness

Awareness is a measure of how many consumers in that segment are aware of your product due to your corporate brand advertising and product advertising.

An awareness rating of 0.50 means that 50% of the consumers in that segment are aware of your product. When trying to raise the awareness level of your product(s), you need to pay attention to making sure that you are targeting your budgets to the media types that the particular segment watches the most.

Public Relations (PR)

PR is a measure of how many consumers in that segment have a “good” public relations image of your product due to your PR expenditure. When consumers read bike magazines you want them to see your product being reviewed and talked about and that is what your PR budgets are for. A PR rating of 0.40 means that 40% of the consumers in that segment have heard some good PR about your product.

Distribution

The distribution rating is a measure of how much distribution coverage your product has. A distribution rating of 0.65 means that 65% of consumers in that segment will find your product in a store they regularly shop at.

The only way to improve your distribution rating is to convince more stores to stock
your bikes

Quality

The quality rating is a measure of how many units of your product are returned under warranty. If approximately 2% of your sales are returned under warranty then your rating will be approximately 0.50, but if you can reduce it to approximately 0.3% of your sales being returned under warranty then your quality rating will rise to 0.90. In MikesBikes the only control you have over quality is how much money you allocate to your quality improvement budget each year.

Delivery

Delivery is a measure of how often your retailers run out of stock of your bikes. A delivery performance rating of 1.0 means that your factory never stocks out of bikes, however if your factory stocks out of bikes this year, then next year your delivery performance rating will fall. The lower your delivery performance rating, the less likely that retailers will want to stock your bikes. However be careful, as some segments are more sensitive than others to stocking out.

Product Specs

The “product specs” rating is a measure of how close your product is to the segment’s ideal dimensions for “tech” and “style”. A rating of 1.0 means that your product is 100% what the segments wants, a rating of less than 1.0 means that it is not. As MikesBikes progresses you will be offered numerous product development projects that will improve the product spec ratings of your products, if your product spec ratings are lower than your competitors it means that they are spending more money on product development than you are.

Check out the last MikesBikes Intro Report Guide here:

Industry Benchmark Report

MikesBikes Intro Report Guide - Industry Benchmark Report

MikesBikes Introduction Report Guide: Industry Benchmark Report

What is the Industry Benchmark Report?

This report is a summary of all firms’ Key Financial results, which you can use to benchmark yourself against your competitors.

In MikesBikes Introduction, this report is divided into four sections: Financial Results, Customer Satisfaction, Internal Results and Innovation Learning.

Financial Results

MikesBikes Intro Financial Results

There are two key variables that you need to understand in this section, Share Price and Shareholder Value.

Your Share Price is the current market price of one share in your firm; the main drivers of share price are your average earnings per share (EPS) and your D/E ratio. If you want to improve your Share Price then you need to keep improving your EPS and to keep your D/E ratio below 1.0.

Shareholder Value is a measure of how much value a shareholder has received from owning one share of your company from the moment you took over running your firm. So Shareholder value is the current Share Price, plus the accumulated dividends that you have paid with 10% compound interest.

Customer Satisfaction

Customer Satisfaction in MikesBikes Intro Most of the fields here should be self-explanatory. However, you need to be aware that the Distribution Channel support figures include both your Extra Support (sales promotion support) spending and the annual support cost of supporting all the retailers that currently stock your products. Distribution Information (Distribution and Branding > Reports tab) report details what those annual costs are.

So every firm that has at least one store stocking its products will be spending at least a couple of hundred dollars. To see what their sales promotion budgets are, view the Multi-Firm Retailer Margins and Extra Support report under “Firm Marketing”.

Internal Results

Internal Results in Mikesbikes intro

The main purpose of this section of the report is so that you can compare your production efficiency strategy with your competitors. Make sure to compare your wastage results and number of products. The lower the production efficiency budget and the higher the number of products (more setup time), then the worse a firm’s wastage value will be.

Innovation and Learning

Innovation and Learning in Mikesbikes intro

Monitor how much your competitor(s) are spending on product development, it means that they are either making their products cheaper to produce, more attractive to the market or both. If you let a competitor get a significant production cost advantage over you then they will easily win any price wars involving that product.

Need extra help?

Check out the Smartsims Support Center or contact us here.

Music2Go Marketing Factory

Question of the Week: Why did I receive a different number of units from what I ordered? | Music2Go Marketing Business Simulation

In Music2Go you make decisions for an entire year, but your factory has a limited ability to adjust the number of units produced to try to meet actual demand during the year. This is called Demand Responsiveness.

Demand Responsiveness allows the actual number of units ordered to increase or decrease by up to 20% to meet the actual demand for your product.

For instance, if you ordered 1 million units of a product, then the actual number of units delivered could vary between 800,000 units and 1.2 million units depending on actual demand.

Product Contribution Report in Music2Go Marketing

In our example above, we ordered 1.9 million units of our Sonic product, but the Actual Units ordered was less than this at 1.5 million because the demand for our products was less than what we anticipated to sell.

Note: Most worlds have 20% Demand Responsiveness enabled, although your instructor may request this to be modified or disabled for your Multi-Player. 

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Music2Go Sales Promotion Screen

Question of the Week: What is Sales Promotion? | Music2Go Marketing Simulation

Sales Promotion

Sales Promotion in Music2Go works by boosting your distribution coverage and distribution index. You should buy the Distribution Coverage and Sales Promotion Market Research report for detailed information on the Sales Promotion Rating and stage of Product Life Cycle for all firms in the Industry.

There are 6 types of sales promotion activities available to you to promote your
products and support your distributors:

  • Trade Shows
  • Salesforce Training
  • Premiums (Gifts)
  • Website / Social Media
  • Point of Purchase displays
  • Rebates

Each promotional activity has particular relevance to certain stages of the Product Life Cycle as outlined below. Note that the Distribution Coverage and Sales Promotion Market Research report will show the age and stage of product life cycle for every product on the market, as well as the Sales Promotion Rating and the Promotion Mix effectiveness.

Choosing a Sales Promotion Mix

Sales Promotion Mix in Music2Go Marketing

Remember that each of your products will progress through the Product Life Cycle starting in the Growth phase for new products, then gradually progressing through to the Decline stage over the next six rollovers.

Say we launch a new Sports product this period. This new product will start in the Growth phase of the Product Life Cycle. Then from looking at the Sales Promotion table (this can be found in the Player’s Manual and Market Information Report), we can see that our ideal Sales Promotion Mix for a new Sports product is:

  • Trade Shows: 20%
  • Sales Force Training: 30%
  • Premiums (Gifts): 20%
  • Website and Social Media: 15%
  • Point of Purchase Displays: 15%
  • Rebates: 0%

Total =100%

That was a simple example, but what happens in the second year that we sell this Sports product? The product will have moved from the “Growth” phase to “Growth – Starting to Mature.” So the optimal Sales Promotion mix will be 1/3 of the way between the ideal Growth and Mature in the Sales Promotion table. That would give us an optimal Sales Promotion mix something like:

  • Trade Shows: 15%

(Ideal Growth = 20%, Ideal Mature = 5%)

  • Sales Force Training: 27%

(Ideal Growth = 30%, Ideal Mature = 20%)

  • Premiums (Gifts): 26%

(Ideal Growth = 20%, Ideal Mature = 40%)

  • Website and Social Media: 13%

(Ideal Growth = 15%, Ideal Mature = 10%)

  • Point of Purchase Displays: 17%

(Ideal Growth =15%, Ideal Mature =20%)

  • Rebates: 2%

(Ideal Growth = 0%, Ideal Mature = 5%)

Total =100%

Tip: You should buy the Distribution Coverage and Sales Promotion Market Research
report for detailed information on the Sales Promotion Rating and stage of Product
Life Cycle for all firms in the Industry.

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