Business Management Game

 

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Description

This is a management game simulation to introduce students

to business concepts such as finance, planning, decision making,

budgeting, and team work.

Method

Students make decisions on a minute-by-minute basis

with one minute representing one month of real time.

They start with one factory making mobile phones with a capacity

of 50,000 phones per month.

They make decisions on such things as price, advertising, and production levels,

which are then fed to a central database.

Operation

The program then calculates the total market size for the new month,

who has what share of that market, and how much profit each company is making

The student's objective is to run the company efficiently, maximise profits,

and try to make enough money, or borrow enough money, to increase production

if the market will support the extra sales.

Personal Avatar

Students also have a personal avatar, or identity, separate from the company,

which initially owns 1 million shares in their company, being 10% if the issued stock.

They may buy more shares in their company, or even sell them off.

They may also buy and sell shares in the "companies" of their classmates.

Obviously, if they think one company is being managed well, they may wish

to invest in that company. If it falls on hard times they may wish to divest

themselves of this stock.

Winner

The winner of the game is the player with the highest net worth at the end of the game.

The game starts and finishes at the top of each hour.

Timetable

You class may start at any time, but at the top of the hour the current game

will be ended, and a new game automatically starts.

Students will need to log on again for the new game.

This can be very beneficial because it allows the students to have a "dummy run",

and then have another chance to get it right.
 

DESIRED OUTCOMES :

 

Students will learn about: Students will learn to:
   
The share market Buy and sell shares on a virtual share market
Stock control Manage stock levels to be able to adequately supply demand
The influence of price and advertising on market share Adjust price and advertising to match demand and maximise profit
Tabulated data Compare their performance with their classmates
Graphical data Interpret graphical data to evaluate the performance of other "Companies"
Borrowing money Decide when it is beneficial to borrow, and when it is better to repay loans
Business strategy Co-ordinate decisions to maximise the success of the business
Team work Work as a team
Managing finances Ensure an adequate supply of working capital for the business
Consequences of poor financial management Avoid going broke
Investing money Make choices between competing investments
Investment planning Spread risk. Maintain records. Modify investments as needed.
Risk vs Return on investment Choose between high risk/ high return and low risk/ low return
Fixed costs and variable costs Understand the difference between fixed and variable costs
The business cycle Adjust policies to match a variety of business conditions
Profit and Loss accounts Interpret P & L accounts to monitor progress and budget for the next month
Budgeting Apply limited monetary resources between competing demands

Brief description :

This game enables students to play against each other in a simulated business environment, with new results every 60 seconds.

They will be able to see their new ranking in the game every 60 seconds, and also be able to see what decisions their classmates have made.

This means that they will have fun while they learn, and also be able to learn from the experience of others.

The game is multiplayer, and real-time. Each game starts and finishes on the hour.

If your class starts 20 minutes before the hour, for example, this can be treated as a test run.

The students will have the chance to start again from scratch at the top of the hour.

The administrator will receive an email showing the results for each student at the end of each game.

Requirements :

1/     Internet Connection

2/    At least one PC  , but preferably one for each student. 2 or 3 students can play as a team and share a computer.

3/    A password supplied by the administrators of this site.

4/    There is nothing to download, and no CD to install. Just log on and play !

5/    If required, we will supply a supervisor

Methodology :

Each student  plays as a company director owning shares in their own company.

The system keeps track of each students "Net Worth" as measured by their cash on hand, and the value of their stock portfolios.

Each student also controls their own virtual "Company", making decisions concerning:

Price

Advertising

Production Level

New Factory Purchases

Dividend Payouts

Sale and Purchase of "Shares" on the "Stock Market"

Students are invited to make decisions on a continuous basis during the game, and these decisions are updated on a central database.

Every 60 seconds, a program is run to determine such things as the total market,  each company's sales,

and which "Shares" get bought and sold on the "Stock Market".

From this information, the program calculates sales, stock levels, and a rudimentary Profit and Loss account.

Each individual player's computer is then updated showing the latest reports.

There is also a virtual "Stock Market" on which students may "Trade" in the shares of all "Companies"

Team Play :

If you would like students to learn to act as a team, the class can be divided into 2 or more teams. Students simply log on using the same identity.

Each of their computers will then display the same information, and any student can make any decision.

Obviously these decisions need to be coordinated to avoid disaster, but it means that you can have one student in charge of looking after the finance,

one looking after production, one doing the marketing, and one trading on the stock market.

Cost :

For a site licence to 31st December 2010. Unlimited usage in your school.

$ 395

Price includes your own website and your own database which is only accessible by your school

Check out the game :

This demonstration site will accept a limited number of players:

http://www.businessmanagementgames.com

Book a session for your class:

Please   email  billporter@y7mail.com for a free temporary password