cost-benefit analysis success strategies
TRANSCRIPT
Cost-Benefit AnalysisSuccess Strategies
Responsibility
New Editionwww.primaplanspiel.de
Similar to a flight simulator a business simulation is a fasci-
nating way to experience a company as a system and to verify
the results of strategic decisions in safe environment.
Three to five teams with three to 4 participants constitute
competing companies. During the course of the seminar each
participant takes responsibility for the relevant corporate
functions (sales, finance, operations). Thus mutual under-
standing between colleagues in other functions and team
spirit will be promoted.
Each team works with two playing fields covering all relevant
corporate areas. The teams literally take the money in the
form of coins in their hands and observe it moving along the
value chain and into the profit & loss statement and balance
sheet.
Depending on the duration of the seminar three to five fis-
cal years including a phase of rapid market growth and a
crisis scenario will be simulated. Each fiscal year consists of
4 quarters an requires a variety of strategic and operational
decisions. Purchases need to be made at the beginning of each
quarter. Goods need to be produced utilizing the existing plant
and machinery. These means of production need to be financed,
maintained and optimized to increase productivity and speed.
The resulting key performance indicators (KPI), such as operat-
ing margins, ROI, liquidity ratios will be determined and their
relevance for the stake holders experienced. Capital expendi-
ture budgeting plays an important role in determining the best
financing options.
The sales department generates orders required for plant
utilisation. New markets need to be entered and this requires
investment and additional liquidity. Cash flow calculations and
cost-benefit analysis are necessary. The participants learn to
lead negotiations with customers, suppliers and providers of
capital. They experience the criticalness of good preparation,
striking arguments and right timing to achieve their goals. The
trained planning and decision methods will be applied to their
own situation and thus best possible transfer of seminar con-
tent to the participants reality is guaranteed. In summary this
seminar provides an outstanding method to learn, experience
and transfer business administration skills.
Methodology The Simulation
“If I had experienced this
seminar at the start of my
new firm, the negotiations
with my banker would have
been much smoother”
Customer References
“This intensive seminar
trains economic thinking
and behaviour, not book
keeping routines”
“Taking decisions and bearing their results is what we do
all day. At the same time analysis of the results and cost
of decisions not taken is what never happens. But this can
be extremely revealing and useful.”
The understanding of economic interdependencies in the
company enables participants to take considerate decisions
in the fields of cost and investment, as well as sales. The
consultant view on the own company is fostered and decision
making will be less dependent on emotions and the “right”
consultants.
The participants experience their contribution to the overall
goals of the company and the results of their decisions. And
this will affect their daily behaviour. Priorities will be set
better and friction losses reduced.
The right behaviour, arguments and timing are key quali-
ties to promote good ideas and to realize the full poten-
tial of the company.
Primaplan® Benefits
Critical Economic Analysis
Entrepreneurial Responsibility
Experience Success Strategies
Develop and Strengthen Team Spirit
Learning EfficiencyLearning targets
Understanding economic interdependencies
Know and apply basic business administration methods
such as cost-benefit analysis
Identify critical success factors, develop and execute suc-
cess strategies
Develop ideas and focus for own profit center
Improve understanding of individual contribution to
achievement of the goals of the company
100%
60%
80%
40%
20%
Exec
utin
g =
Busi
ness
Sim
ulat
ion
Spea
king
Obse
rvin
g
List
enin
g
List
enin
g+Ob
serv
ing
The experience of various functions in the company and
the joint struggle for market leadership promotes the un-
derstanding for colleagues in other divisions. Team work
as basis for success is fostered.
Primaplan® Institut Köln/CologneUlrike Aull
Vorgebirgstr. 15, D-50677 Köln/Cologne
+49-2 21-3 10 49 16
Primaplan® Institut WetzlarLudmila Zimmer
Eduard-Kaiser-Str. 36, D-35576 Wetzlar
+49-64 41-2 00 12 97
www.primaplanspiel.de
Contact
Primaplan® Basic Primaplan® Advanced Primaplan® Strategy Primaplan® Mini MBA
Duration 2 – 3 days 4 – 5 days 2 x 3 days 3 x 3 days
Content Experience the company as
a complex system
Interdependencies between
the functions of a company
Balance Sheet and Profit &
Loss Statement
Most relevant KPI
Liquidity and Profitability
Strategic goals
In addition to Primaplan® Basic:Entrepreneurial thinking
and behaviour
KPIs as the basis for stake-
holder negotiations
Marketing
Price calculation basics
Crisis management
Negotiation with the
relevant stakeholders
(customers, providers of
capital, suppliers)
Cash flow calculations and
liquidity planning
Reality transfer
In addition to Primaplan® Advanced:Strategic thinking and
behaviour
Long term planning
Formation of an enterprise
and business plan
Entrepreneurial
Responsibility
Corporate Social
Responsibility (CSR)
Basics organisational
Psychology
Portfolio Analysis
Pricing policy
Product life cycle
Market and customer
oriented thinking and
behaviour
Individual reality transfer
In addition to Primaplan® Strategy:Apply acquired Know-How
to the own company and
to the most important
competitors
Own market positioning
USP definition
Apply concepts and meth-
ods to the own company
Strategic planning
Innovation management
Consultant view on the
own company
Case studies
Target
Groups
Engineers, technical
personnel
Advanced technical
apprentices
Engineers, technical
personnel with commercial
responsibilities
(e.g. internal or external
sales, marketing, sales
controlling, customer
service)
Advanced commercial
apprentices
Employees with budget
responsibility in strategi-
cally important functions
(e.g. Sales, R&D, product
management, marketing,
controlling, operations,
logistics)
Middle Management
Leadership and trainee
program participants
Applications
Available in 4 languages!
English, German, Russian, French