Running a Business in a Simventure - Coursework Example

BUSINESS CREATION AND GROWTH Table of contents Introduction ………………………………………………………….. 3 2. Simventure …………………………………………………………… 4 3. My first encounter with Simventure ………………………………… 4 4. The management theory ……………………………………………… 6 5. Sales & Marketing …………………………………………………….. 6 6. Finance …………………………………………………………………. 8 7. Operations ……………………………………………………………… 8 8. Organisation …………………………………………………………… 9 9. Conclusion ………………………………………………………………. 10 10. Bibliography ……………………………………………………………… 11 Introduction Business education has become an important subject being taught learners even from the most elementary level of learning. In this modern world, knowing about financial management, savings and many other aspects of effective business management are very key towards economic empowerment, the reason why many learning institutions are giving this subject an important priority for the benefit of their learners (Collins & Porras 2005, p. 45). Different institutions use various approaches in order to create a conducive environment from where their learners can understand effective ways of business management and entrepreneurship. According to Tibergien & Pomering (2005), the economy of many if not all countries of the world are founded on business activities, which means that entrepreneurship is a subject that is at the heart of most policy experts and economists. Governments try to create business environments that are friendly to investors, something that they hope can inspire the growth of enterprises and entrepreneurs (Correia 2003, p. 68). For learning institutions, they are often forced to look for ways in which the knowledge of entrepreneurship can be inculcated in their learners before they can venture into the real world of business and financial management. It has often been said that as far as success in entrepreneurship and business is concerned, one cannot manage to have a perfect substitute for excellence. Further, one cannot manage to have this experience without first having to test, the process which yields success and failure in equal measure, making the experience needed to excel (Gates 2010, p. 18). The apprehension for failing anytime one is beginning a new venture like a business is always instinctive. Carsrud & Nnback (2007) says that during this time, theoretical knowledge has to be effectively integrated with practice in order to get the perfect recipe for success. This paper presents a report of my experience in running a business in a simventure, and the lessons that I got from the experience, which are essential to helping me excel in my future entrepreneurship endeavors. Simventure According to Harrington (2015), a simventure can be described as a very versatile tool that is commonly being applied in a range of various learning environments. The learning resource is credited for enabling people to make their discoveries about their abilities to effectively manage business venture and other aspects of entrepreneurship. The resource provides a way that people can create and manage their businesses without fearing that they can fail and loose on their financial investments. The experience gained in this resource is very imperative especially when it comes to practical application of the knowledge gained. In using the simventure resource, one has the option of reviewing the progress of the system through various walkthrough videos, while examining the game screenshots, listening and watching various entrepreneurship educators about the particular film. Alternatively, one can also download their own copy of the game and simulate it until they are conversant with many of the business aspects being illustrated in the game (Ottewill 2001, p. 67). By running the simulation successfully, it is expected that the knowledge gained can be instrumental in enabling an individual to have an effective management of his own business in the most successful way. My first encounter with Simventure My first encounter with the simventure resource was quite interesting; to begin with I had never thought such there existed such a toll in which a person could easily manage to create and run an enterprise in such an entertaining and fun environment. In the first place, I thought I could not manage it, but when I saw some other people doing it, I gained courage and confidence that I could also manage it. The most interesting bit was the decision making aspect. In any entrepreneurship venture, decision making is very essential since it enables a person to decide on the best business idea that can be run according to the needs realized in the environment. Nikunj (2015) says that one of the important lessons that I remember as far as entrepreneurship is concerned is that one needs to realize a need in the immediate environment and think of a solution that can be given to that particular need. The development and implementation of the particular solution is always expected to consider the financial aspects. This means that in order to fulfill the need identified, people need to pay for the solution developed in order to bring the business aspects of it (Bygrave & Zacharakis 2008, p. 48). Inasmuch as starting an entrepreneurship is said to be the most important aspect of any business venture, management is also very essential since it determines its success and how long it can be successful. In playing the simulation, I first thought of the best approach in which I could execute the plan I had developed in my mind, focusing on the best way to create and implement successful management approaches to achieve goals and objectives I had set for the enterprise I was running on the simventure. My idea of entrepreneurship was creating a supply chain system, which other companies operating large scale business would use in getting their products to the market. This idea simply means establishing a product distribution system which other companies can hire and use them to transport their goods and services to places convenient for their customers (McGee 2010, p. 23). This process would be a good idea for businesses that often wish to reduce their operating expenses but cutting down on transport and other associated expenses in the process of achieving place utility for their products and clients. The management theory Running the simulation offers effective lessons and skills that a person intending to actualize a business idea can utilize in knowing how to manage his business (Bush & Bush 2003, p. 31). Management can be described as a collection of various concepts and ideas that set general rules and regulations for running and managing a business or an organisation. Bedi (2009) is the opinion that the management theory examines the process by which supervisors and business managers relate to their business organisations as far as knowledge and understanding of its goals and objectives is concerned (Havinal 2009, p. 76). It also examines how businesses develop and implement various strategies that help in attaining the set goals and objectives including ways of staff motivation increasing their efforts, commitment and loyalty to the business. Sequoia (2015) explains that effective application of management theories is essential in the process of enabling a business to create and consolidate their market share. It is important to realize that many theories have been developed in the process of understanding the business environment and creating competitive approaches. In the same way, the simventure, inasmuch as it’s a game, offers an opportunity in which the user can decide on the best management theory to be used in the success of the business. Sales & Marketing Apart from the simulator, it is important to realize that the in actual sense, the success of any business depends on so many things including an effective sales and marketing strategy. In the simulator, the user has an opportunity to undertake a market research, which enables him develop the right approach towards marketing of his goods. First, one has to analyze market features and characteristics in order to determine the best approaches in which the marketing and sales strategy can apply. Simventure (2015) posits that this process is not different from the actual process in the management theory context, where it is expected that one knows and understands his market in designing his marketing approaches. For instance, if customers in a certain market are densely populated, then the business can choose on marketing approaches that can easily reach all of them like road shows, billboards among others. Additionally, knowing about the competition is an important thing towards understanding the sales and marketing strategies in the business. In the simulator, an individual has the opportunity to make some research in the business environment in order to identify some of competitors in the business environment and their strategies (Pednekar 2010, p. 74). The difference with this simulator and the management theory is that one may not easily understand the approaches used by the competitor in order to create counter-strategies. Getting customer feedback is an important aspect of the management theory, which is important in devising strategies that help refine the strategies and approaches for improving customer service. In the simulator, it is not very easy to get the feedback from clients in order to improve on the strategies of the business. In the management theory, feedback from customers and even organisation staff are an important aspect of the business management, which should be taken with high esteem. In terms of the marketing strategy, one can easily manipulate the simulation in order to create a target segment for the company. This is similar in real business management, where target customers are the aim of businesses. Finance It has often been said that having the right idea is the first thing towards creating a successful business. The idea often emanates from a successful process of needs analysis in the environment; after which the solutions for that need make up the enterprise. However, having the necessary capital is the engine for the business; it determines how the entrepreneur begins the business and sustains it. Before breaking even, one has to be effectively prepared to make some loses because the customers are not familiar with the business. Later, according to the management and marketing approaches developed, the business can have repeat customers. In the simulator, the game provides an individual with an opportunity to source for capital to start the business and then according to the performance of the business, he can also apply for additional funding from various lending institutions in the business environment. This is an important aspect for the success of any business, which means that proper systems for effective business management must be always in place in order to achieve the financial objectives of the business. In the simventure, one has an opportunity to ensure that he keep proper financial records in order to get the business on the right path of effective performance and success. The simulator gives opportunities to ensure preparation of the balance sheet, final accounts as well as calculation of business rations in order to manage the finances of the business in the most effective manner. Operations In terms of business operations, the simulator offers various ways in which an individual can monitor the success of the business sin its different departments. Creating of departments is always important even in actual businesses because it ensures that work is done by people according to their knowledge and skills endowments (Scarborough & Zimmerer 2000, p. 45). Often people are employed in a business in order to help achieve a common goal; however, the training and potential for these people are not the same, which means that by creating departments like in the simulator, people can easily be grouped according to their potential and managed effectively. This aspect is similar with the actual management theory in real businesses, which often emphasize on the aspect of team development and management in order to achieve a lot. When work is done in teams, they achieve far much more than what would have been achieved when done by an individual. Keister (2005) says that business enterprises often face the challenge of getting the right people to work in the business especially at the starting level. However, as they increase, they find themselves in a position of creating and managing economies of scale. This observation is similar in an actual management theory, which has to keep improving and expanding the scope of its business strategies as the business grows and expands. Organisation Organisation is the last aspect of the simventure, here; one has to decide on the most appropriate and effective approaches of organizing work on a daily basis in the business. Effective business organisation entails proper staff management, resources management and creation of strategies that enhance effective performance in the business. One of the things that the simulator does not provide is the approaches towards staff motivation. Wang (2011) explains that in the management theory, staff motivation is an important ingredient towards increasing their performance through increased output. In management, several approaches have been given by different people who studied about business management and success. For instance, staff motivation theory as proposed by Maslow, outlines various ways in which the needs often staff can be met in order to increase their dedication and performance in the business. By meeting these needs, the staff feels motivated and therefore discharges their duties effectively, leading the success of the business (Thierauf 2001, p. 87). However, playing the simulation offers the experience needed to manage staff and other business resources in the most effective way for their success. Conclusion In conclusion, it is important to acknowledge that the simventure has played an essential role towards educating learners on various ways of business management. Thereafter, the knowledge and experience learnt from the simulation can be applied in actual business, whereby they can relate it with actual business management in the real business environment. Bibliography Bedi, K. 2009. Management and entrepreneurship. Oxford University Press, New Delhi. Bush, T., & Bush, T. 2003. Theories of educational leadership and management (3rd ed.). Sage Publications, London. Bygrave, W., & Zacharakis, A. 2008. Entrepreneurship. John Wiley & Sons, Hoboken, NJ. Carsrud, A., & Nnback, M. 2007. Entrepreneurship. Greenwood Press, Westport, Conn. Collins, J., & Porras, J. 2005. Built to last: Succesful habits of visionary companies. Random House, London. Correia, C. 2003. Financial management (5th ed.). Juta, Lansdowne. Gates, C. 2010. From brainwave to business: How to turn your brilliant idea into a succesful start-up. Pearson Education Limited, England. Harrington P. 2015. Simventure: The ultimate business simulation game. Accessed 4 April 2015. < http://simventure.co.uk/the-product/how-does-it-work> Havinal, V. 2009. Management and entrepreneurship. New Age International, New Delhi. Keister, L. 2005. Entrepreneurship. Elsevier JAI, Amsterdam. McGee, M. 2010. Millionaire mumpreneurs how successful mums made a million online and how you can do it too! Harriman House, Petersfield. Nikunj N. 2015. Simulation: an effective teaching tool. Accessed 4 April 2015. < http://www.academia.edu/8086244/SIMULATION_AN_EFFECTIVE_TEACHING_TOOL> Ottewill, R. 2001. Effective learning & teaching in business & management. Kogan Page, London. Pednekar, A. 2010. Entrepreneurship management (2nd ed.). Himalaya Pub. House, Mumbai [India. Scarborough, N., & Zimmerer, T. 2000. Effective small business management: An entrepreneurial approach (6th ed.). Prentice Hall, Upper Saddle River, N.J. Sequoia Y. 2015. A laboratory test for entrepreneurship ideas. Accessed 4 April 2015 < http://www.yellowsequoia.com/category/education-games/simventure/ > Simventure 2015. How the business simulation works. Accessed 4 April 2015. < http://simventure.co.uk/learning-zone/the-simulation-game-engine > Tibergien, M., & Pomering, R. 2005. Practice made perfect the discipline of business management for financial advisers. Bloomberg Press, Princeton. Thierauf, R. 2001. Effective business intelligence systems. Quorum Books, Westport, CT. Wang, Y. 2011. Destination marketing and management theories and applications. CABI, Wallingford, Oxfordshire. Read More