Executive at …. Staffordshire University

April Training Executive Ltd.April House, Tarvin Road, FrodshamCheshire WA6 6XN 01928 735868

Level 3 Undergraduate Programme

April

TRAINING

Business Simulation 2011

EMC plc

Welcome to Executive

A Real Time Simulation based on the European Automotive Industry

April

TRAINING

To provide practical and relevant experience in the operation of a business team to achieve strategic business challenges and deliver impressive business results in a challenging market and economic environment.

Our Aim is :

PLANNING – Preparing a Strategic Plan, agreeing responsibilities

DECISION MAKING – Making five sets of business decisions as a team and to deadlines

REVIEWING AND REPORTING – Assessing your progress during each year of the simulation and submitting an individual report at the end of the module

PRESENTATION – Some teams MAY be asked to make a presentation on their experience at the end of the module

The Simulation in Overview…

You will be working in a team environment to manage an automotive company trading in the European car market. The module will comprise the following elements :

1. Critical thinking

2. Business review and financial analysis

3. Environmental and business analysis

4. Portfolio and market management and development

5. Stakeholder expectations management

Learning Objectives (1)

Learning during the module will include :

Learning Objectives (2)

6. Managing across the market and business value chains

7. Managing unexpected events

8. Managing financial investment and performance

9. Understanding the impact of business decisions on company performance and results

10. Working in a team environment under strict deadlines and reporting pressure

Learning Objectives (3)

Module Structure

5 leagues

Up to 9 companies trading in each league

You are taking managerial responsibility for EMC plc as it enters FY 2011/2012. The company has been trading for many years already

In a period of significant market turbulence

The marketplace replicates what is happening in the real environment today

External business issues will crop up from time to time

Briefing documents have been provided

Alpha Beta

Delta Gamma

Epsilon

Leagues in the Simulation Module

Share Price Return on Capital Employed Current Ratio Capital Gearing Ratio Market Position & Share (total) Gross Profit % Output per worker per annum

Assessed Performance Measures

Business Plan

Unique company name, logo and strap line The company mission/vision statements Choice of target market Summary of competitor analysis to identify

problems or threats and opportunities Overall target markets and strategic rationale Financial objectives

You will be required to prepare your business strategy and plan in not more than 7 ppt slides (plus a header page)

WE WILL PROVIDE A SET OF TEMPLATES FOR YOUR USE

Management Roles Available…. Chief Executive Officer Strategic Planning Executive Manufacturing Executive Finance Executive Technical and Engineering Executive Sales and Dealer Network Executive Human Resource Executive Marketing Executive

Key Stakeholders

Customers

Employees

Suppliers

Shareholders

Governments

Local Communities

Simulation Module Schedule

A full timetable can be found on page 7of the Handbook

THE SIMULATION

The Marketplace

All your production facilities are situated in the UKand cannot be relocated to other European locations

How the market is segmented

Under 25

25 to 40

41 to 55

Over 55

CITYe.g. Mini

MEDIUMe.g. Astra

LARGEe.g. Jaguar X

LUXURYe.g. BMW 6

1 2 3 4

5 6 7 8

9

13 14

11

15

12

16

Platform

Age Group

10

Your products will be targeted at one of these sector numbers

Market sector share %

of the total market when you takeover EMC plc

Market Forecast for 2011/12 is 12-15m new car sales

Size

Citye.g. Mini

Mediume.g. Astra

Largee.g. Jaguar X

Luxurye.g. BMW 7

% of total market

37.25 38.97 18.72 5.06

What’s it all about?

Marketing and Image Managing Finance

OperationsPeople and Teams

Annual Business DecisionsProducts (Models)

Names, Market Sectors, Specifications, R&D, Price

People Number to be Employed, Pay

Plant No. of Factories, Level of Automation, Output Capacities

Promotion Advertising Customer & Dealer Incentives Sponsorship

Finance Loans, overdrafts, credits terms for customers and

suppliers, financial investments, share trading

Starting PositionFirst year of trading is year 3 of the

simulation Inflation will be 5-6%Company has a debt of £800m – You MUST

begin repaying this immediately at a rate of £100m per annum

Company has invested £425m in a new model – you will be responsible for its launch in your first year of trading

The company has offered 500,000 shares for sale to the General Public

Gilts can be purchased with an interest rate of 14.48% for 5 years

To begin running the Simulation

You will receive an email containing a team number, a password and a link similar to:

http://executive.trainingsimulations.co.uk//PlayerLogin/index.php

Click on the link to run the simulation

Introductory Screen

Enter your serial no. and

game name here and press Next

Then…

Select your team number from the

drop-down menu, enter your

password and press

Enter the Simulation

Click here to go straight to the

decision-making screens

Click here to view Cost &

Data Sheet/Reports

Screen 2

to view and print/save the Cost & Data sheet.

To print or save a

report click on the

relevant icon here

Press the button

Note: This can be accessed at any time via the Results option on the quick navigation panel

on the left-hand side of the page

Decision Screens 1

Enter the name, size, age group target and price for the

model. Press Decisions to move to

further options

For information on individual decisions,

click on the question mark.

General is provided oneach page

Model Designs Decisions

Select a body style and engine sizefor the model by

choosing the appropriate

checkbox

You can select morethan one option permodel, if you wish

Press once you are happy with

your choices

Pick other options that can be made available on your

model

Select as many or as few as required. Prices canbe found on the Cost &Data Sheet

Model Options Screen

Press to continue, or to change your earlierinputs. returns you

to the overview screen

Choose any R&D projects that you

wish to apply to thismodel

Research & Development Projects

Follow this procedure for all subsequent models,

and then press

to enter Company Decisions

Once you’re happy with your decisions for that

model

PRODUCTION

Enter the workforce

to be allocated to each model

Insert any automationexpenditure, the targetfactory output and the

weekly wage to be paid.Select

Marketing, New Model &Market Research

If you wish to launch a new model next year, invest here

Purchase market research/data on competition

Invest in advertisingto raise the profile of yourcompany &products

Notification of the number of factories needed to house the workforce employed

FINANCE

Enter :

The amount you wish to borrow

The dividend to pay

Shares to be issued

Number of credit & debit days

Decide if the company will investin gilts

Invest in your competitors’ companies by purchasingand trading shares (fromyear 2)

Once all Model and Company Decisions are entered, press

to view a forecast of your results.

Note: All Model and Company Decisions must show a green light before proceeding

Next…

Changing DecisionsThis reportgives a predictionof the results that MAYbe achieved withthis set of decisions

To return to the decisionscreens and makeamendments select

Finally

Once the team is happywith the decisions made, select to submit them to the simulation for processing.

IMPORTANT

ONCE THIS BUTTON HAS BEEN SELECTED YOU WILL NO LONGER BE ABLE TO CHANGE OR ACCESS THE DECISIONS FOR THE YEAR/ROUND

In summary…. The business simulation activity lasts for 2

months

It covers a wide range of business and project management skills

It is a competitive activity – you need to make good business decisions

The deadlines are critical events and MUST be met

Your group tasks are detailed in the briefing notes

If you have any questions….

Please post all queries on the Blackboard facility

Please refrain from posting several individual questions - collate them for your team

We will respond quickly to your questions

Please direct ONLY simulation-related queries to Julio Faria

April Training Executive LtdApril HouseTarvin RoadFrodsham

Cheshire WA6 6XN

Tel : 01928 735868Email : jjf@trainingsimulations.com