a one-day business simulation exploring business strategy and leadership
GLOBAL OPERATIONS is a strategic leadership simulation involving developing a world wide presence and product offering. It is the simplest and shortest of my strategy simulation series (duration one day) and so is usable at company conferences and where time is tight.
Participants launch a new product in direct competition with several other teams and set up a factory to produce it. Liquidity will force the learners to decide between new product development, expanding capacity or build their world coverage.
Unlike many strategy simulations that last several days, Global Operations packs it all into a single day without any loss of learning.
DECISIONS: Global Operation's decisions cover:
- market targeting
- pricing & promotion
- product development & mix
- capacity planning
- marketing research
Originally designed in 1981,Global Operations has been in widespread use since then and recently it has been completely revised incorporating my latest design paradigms.
KEY LEARNING: The simulation covers these issues:
- STRATEGIC DEVELOPMENT
- MARKETING OBJECTIVES
- FINANCIAL PERFORMANCE
- PRODUCT & MARKET PORTFOLIOS
- PRICING & PROMOTION STRATEGY
- PRODUCT DEVELOPMENT STRATEGY
- BUSINESS FUNDING
- MARKET & BUSINESS RESEARCH
- FINANCIAL & MARKET RISK
- TEAM WORKING
- BUSINESS PRESENTATION
DURATION: One day.
TARGET AUDIENCE: The simulation is designed to be used by middle and senior management. For more junior staff, my business acumen simulations are the ideal solution.
METHOD: After a short briefing the training group is divided into several teams of four or five participants. These teams consider the problem facing them and then make a series of decisions that are fed, by the tutor, into a microcomputer that simulates their effect. The results are returned for the team to analyse before making their next decisions. This decision-making cycle is repeated for at least six periods. At the end of the simulation phase the teams reunite to discuss and compare results.
NUMBER OF TEAMS: The simulation may be used with between two and eight teams of four or five learners that compete and interact directly with each other.
AVAILABILITY: This simulation is available off-the-shelf and a comprehensive Trainer's Pack is provided allowing trainers with little or no experience with simulations to run the simulation.
Participants take over a start-up company that has just obtained equity capital and has developed a new product that it must launch in competition with up to seven competitors. During the early stages they must husband cash as the expand into the world's markets, lay down production capacity and develop the range of products.
Reflecting strategic needs, there is no best strategy, rather several strategies can be successful. The success of a team depends on their analysis of opportunities, the development of a strategy that offsets those of the competitors and is implemented in a controlled and proactive manner. Each market is reported as an investment centre and, so allows the business to be treated as a portfolio of Strategic Business Units.
In developing their business, participants must decide which markets to target and, for these the best mix of price, promotion and product. As the portfolio of products and markets develop they must decide which market to grow, which to maintain, which to milk, which to exit etc..
Business performance is measured with a full Profit & Loss Statement, Balance Sheet and key profitability and liquidity ratios. Each market sector is treated as a separate profit centre and the comprehensive reporting package covers break-even, break-up valuation, cash flow, cost of capital and economic value added.
PRODUCT & MARKET PORTFOLIOS
Throughout the simulation teams must manage the markets they serve and their portfolio of products. This simulator produces reports on competitive dominance, competitive position and world penetration.
PRICING & PROMOTION STRATEGY
Besides, deciding the right price and promotion for the customers in each market, participants must take into account competition and whether the market's strategic focus is on growth, profitability, providing cash etc..
PRODUCT DEVELOPMENT STRATEGY
The development of new products not only must take into account market needs and potentials but, also, funding needs, long term cash flow and the competition.
Development of the business involves a period of expenditure on factory capacity, market and market development. This can lead to liquidity and, possibly, solvency problems. So, teams must manage cash flow and balance sources of funds (equity, term loans and overdrafts) against this. (It is not unusual for one or more teams to over expand.)
MARKET & BUSINESS RESEARCH
Besides decisions directing the operation of the business, participants can obtain wide range of market and business research. Standard research covers competitive position, market potentials, economic trends and market tests. But, additionally, special reports for the tutor allows teams to formulate their own information needs.
FINANCIAL & MARKET RISK
Besides bankruptcy risk, teams face economic and political risk in the markets, the risk of not meeting customer needs and the risk that one, or more competitor will become dominant. To help the trainer evaluate risk, the simulator produces a list of strengths & weaknesses.
With participants working in small teams, they have the opportunity to share experience and knowledge, present and promote different viewpoints and develop their people skills.
Optionally, at the end of the simulation, teams can make a formal board presentation covering objectives, strategies, process, the future (of the simulated business) and learning.
This simulation is available for company training on a per course rental basis (rather than on a per participant basis) and for academic (university) and school use on a per course and an annual unlimited use basis. For you convenience you can pay in pounds sterling (£), US Dollars (£) or Euros.
Learn more about the rental process
|Academic (annual use)||
|School (annual license)||
This business simulation can be used:
Documentation is provided separately for the UK and US Versions MS Word format and comprises:
A Participants' Manual that provides, for the participants. a description of the simulation, a description of their task and how to use the software.
The Background Notes describe the simulation for the trainer. (Please contact me to receive a copy of these).
The Decision Forms are the forms used to communicate a team's decisions to the trainer. The Reporting Pack documents the reports produced by all versions of the simulation. (My design approach means that it is very easy to change these reports to reflect those your company/industry uses, training needs and business issues.)
Using the Simulator provides, for the trainer (and computer support staff), information about installing the simulation and the use of the software.
Running the Simulation provides, for the trainer, information about running the simulation.
Briefing is a MS Power Point briefing explaining the simulation to the participants. (You may find it useful if you review this before reading the Participants' Manual.)
|UK Versions||US Versions|
|Using the Simulator|
|Running the Simulation|
This is provided to allow you to download an evaluation version of the simulation.
The table below shows the files to download, their description and size. You should copy them to a folder, a USB Flash Drive or even to floppy discs! Run setup.exe. The program will then install.
If, instead of installing from the Web, you are installing from the CD-ROM version of this resource you can install directly by clicking setup.exe and opening the file.
Note: When downloading the setup.lst file you must right click and then select Save As. (If you left click the file will open - this is a feature of Windows XP, Vista and Windows 7.)
|setup.exe||Installation Program||137 Kbytes|
|Setup.lst||Installation Data||5 Kbytes|
|Global.cab||Simulator Files||2,360 Kbytes|
Most recent update: 10/04/15
Hall Marketing, Studio 11, Colman's Wharf, 45 Morris Road, London E14 6PA, ENGLAND
Phone +44 (0)20 7537 2982 E-mail email@example.com