Using Simulation Games for Management - Essay Example

?Simventure Table of Contents Simventure Table of Contents 2 Introduction 3 Part A 3 Overview of Decisions & Outcomes of the Business Simulation 3 Part B 5 Summary of Personal Capabilities to be successful in SimVenture 5 Personal Capabilities 6 Strengths 6 Weakness 7 Decision Making Reflection 7 References 9 Introduction The simulation game was a part of the academic curriculum that was designed with the aim to correlate practical aspects with the theories learnt in the coursework. The task involved a team work where four team members formed a team. The simulation game involved setting up a new business venture in the marketplace. The teams had to implement a business plan that included creating a business from scratch and ensure its sustainability in the market. The simulation game required framing the marketing, financial as well as human resource strategies for the organization or the new venture. The simulation game involved actual applicability of the business strategies that also involved financial implication for each of the decisions. The simulation game also involved running promotional activities including cost and benefit analysis. The game also showed financial results for each of the strategies that also included profit and loss figures indicating the implications of the strategies on the financial health of the company. The business selected was that of a billboard advertising agency. Part A Overview of Decisions & Outcomes of the Business Simulation The initial decisions in the simulation game involved a market research which formed the basis for forecasting demand and sales targets. The next stage involved initial book keeping activities as well as adoption of the marketing mix that included design of the product and other specifications. This phase also created the strategy with regards to the suppliers. Considering the initial phase and the overall costs of the activities the company suffered a net loss of 696 pounds in Feb 2011. In the nest month marketing and sales activities which included the design of a web page. These activities also led to a loss of 3097 pounds. Realising the importance of the market conditions the next step involved a detailed market analysis as well as training and development activities. Losses amounted to 1793 pounds in this month. The next stage was crucial as it involved setting up a limited liability firm to ensure further expansion. Nine out of the total orders were contracted as manpower seemed to be less as compared to the total task. The next significant step involved an overdraft facility as well as increasing the price of the product. This led to a net profit of 2502 pounds which represented an increased from 2106 pounds profit of the previous month. The nest stage involves increasing discounts on products, salary hike, price hike which resulted in an overall cumulative profit of 12569 pounds. The nest quarter focussed on business enhancement which mainly included participation in exhibitions, and increased focus on marketing especially the online channels. These activities again led to a loss of 3581 pounds which resulted in salary cuts and database management. The next significant phase included an overhaul of the distribution strategy as well as giving advertisements on television. The firm also entered into a strategic tie up with RAD. This coupled with contracting of orders and increasing the upscale selling activities led to a jump in the overall cumulative profit margins to 51799 pounds. The company’s strategies of dealing with the suppliers as well as promotional activities helped in generating good orders for the firm. This was significant as it was largely realised that long term sustainability required generation of large scale profits for the organization. Part B Summary of Personal Capabilities to be successful in SimVenture SimVenture is a popular online business simulation game that helps an individual to test his/her entrepreneurial and decision making skills in real life situations. The game basically creates a situation in which individuals set up an organization which also includes the various aspects associated with setting up a new start up (SimVenture, 2011). The basic ingredient for success in the simulation game requires sound decision making skills on the part of the candidate. It also requires a strong guided vision of the candidate that can help to foresee the business opportunity and identify a correct growth path for the organization and the business. The candidate also requires the ability to display the fact that he/she can take correct decisions at the correct time and also leverage on the market opportunities. The candidate also needs to have a sound ability to manoeuvre the business during turbulent time including handling the competitors in the market. The success in the simulation game also requires a sound knowledge of different concepts of business management which includes a basic understanding of the concepts marketing, finance, logistics as well as human resources. In addition to the outlined skills the candidate also requires the ability to identify and analyse the business risks, ability to continuously develop innovative ideas, consistency and persistent approach towards business and finally a thought process that seeks to induce openness in minds for new ideas as well as ability to work and lead a team while maintaining cohesiveness. The candidate must also have the ability to undertake an analysis of the market and the ability to identify the right opportunities and design an appropriate business plan that would help take advantages of the market while capitalising on the strengths and opportunities. Finally the most important element for success in the simulation game revolves around the ability of the candidate to be confident about his decision making abilities so as to ensure competitive advantage. Personal Capabilities The precious section dealt with the general capabilities of a candidate for ensuring success in the simulation game. However assuming the fact that the personal capabilities of individuals largely show a variable trend it becomes necessary to analyse the personal strengths and weakness pertaining to the simulation game. This section would focus upon the personal capabilities including the strengths and weakness pertaining to the simulation game. Strengths After going through the stages of the simulation game I have been able to identify some of the possible strengths which are stated below. Firstly I identified that I have strong ability to analyse that market with regards to analysing and identifying the opportunities and threats. This was analysed on the basis of my performance in the initial stages of the game as I selected a god market and targeted it with a highly specific and customised product offering. Secondly I also analysed that I have good visionary skills which helped me to frame a growth path for the new start up. Thirdly I also have good number crunching skills which include analysing the financial activities of the firm. I have the ability to formulate and implement various strategies that helped me to properly manage the financial aspects of the company. Fourthly I also have the ability to work in team and also act as a mentor that sets the path for success. Fifthly, I also possess strong interpersonal skills which also include excellent communication skills and the ability to convince other individuals about the relevancy of my ideas. Finally I also have the ability to take risk and effectively handle turbulence while preparing different contingency plans and also ensure their execution in the market. Weakness The simulation game also helped in identifying certain area of weakness which is stated below. Firstly, I found that I lacked the knowledge of marketing analytics which includes market research and framing appropriate market based strategies. Secondly lack of technical knowledge in the area of supply chain and procurement practices also has been identified as one of my potential weakness. However with proper feedback and given my abilities to learn and adapt with the circumstances I would be able to overcome these shortcomings and emerge as a true entrepreneur. Decision Making Reflection The success in the simulation exercise requires considerable team work as well as display of effective leadership skills. The figure below shows the managerial grid that evaluates the different dimensions of leadership skills. Figure 1: The Leadership Grid (Source: Changing Minds, 2011) The analysis of the leadership grid and my entrepreneurial activities in the simulation game shows the leadership approach as that of ‘team management’ which is characterised by a high level of concern towards the people as well as high level of attention towards production and management related activities. The leadership approach adopted was largely based on the traits theory of leadership which states that leaders may not necessarily have in born leadership traits but may inherit certain traits based on behaviours and characteristics. The learning attitude and flexibility largely contribute towards shaping my personality as a true leader (Landy & Conte, 2009, p.550). The simulation exercise also showed that it is not necessary to be an in-born leader but leadership can be developed by having a positive attitude towards learning. This can actually help in imbibing characteristics of a true leader. In a practical context I found that in spite of being a not associated with leadership before I was able to develop leadership skills based on my learning abilities and behavioural skills. The simulation game helped in increasing my analytical abilities as I was able to correlate the theories and concepts learnt in the classroom session with the actual business environment. The highly practical nature of the simulation game helped in improving the different skills that are required to be a true leader and entrepreneur. This would largely help in improving the learning curve as well as develop interpersonal skills that would help in my career development in the long run. References Changing Minds. (2011). The Managerial Grid. Retrieved May 10, 2011 from http://changingminds.org/disciplines/leadership/styles/managerial_grid.htm. Landy, F.J., & Conte, J.M. (2009). Work in the 21st Century: An Introduction to Industrial and Organizational Psychology. John Wiley and Sons. SimVenture. (2011). THE GAME – INTRODUCTION. Retrieved May 10, 2011 from http://www.simventure.co.uk/?q=thegame. Read More