Buying Plant Capacity Plant can be purchased or sold each period in multiples of 10 SCUs. Each 10 SCU of plant costs $1,600 to buy and any new plant takes one period to be commissioned and become productive. Selling Plant Capacity Plant is depreciated in the annual accounts using the diminishing value method, at a … Continue reading Buying and Selling Plant Capacity in MikesBikes Advanced
While all industries have best practices, they are especially prevalent in IT given that so much of the business revolves around data and business processes. Best practices formally represent tested and proven techniques in the form of procedural documentation. In contrast, undocumented procedures are often misleading because stated parameters are not necessarily true or accurate. … Continue reading Best Practice in Experiential Learning by Frank Voehl
The Awareness Index is the performance of your Advertising and Branding decisions. To increase it, you should invest in Branding, increase your total Advertising expenditure, and improve your Advertising mix. Branding Investing in promoting your firm’s brand will enhance the awareness of all your products. Brand advertising is a valuable complement to your individual product … Continue reading Question of the Week: What does the Awareness Index mean and how do you influence it?
In MikesBikes, funding large investment options such as purchasing additional plant capacity and development projects may require additional capital. Raising Debt or Equity are ways companies can raise additional funds to finance these large projects or investments. In deciding whether to increase Debt, issue Shares or a combination of both; companies should assess their current … Continue reading External Funding Options in MikesBikes: Debt or Equity?
Here are some reasons why Shareholder Value is the main metric in MikesBikes: There are arguments for and against any metric you might choose. However, if there is a single metric on which students are measured, Shareholder Value is better for grading in most courses. This metric is simple to understand, capture and reward both financial … Continue reading Why is Shareholder Value the Main Metric in MikesBikes?
“Success does not consist in never making mistakes, but in never making the same one a second time.” – George Bernard Three of the most common mistakes we see MikesBikes Advanced users make are: Misunderstanding the Importance of Reaching the Right Customers Failed Development Projects Excessive Stock on Hand Mistake#1: Misunderstanding the Importance of Reaching … Continue reading Don’t Make These Mistakes in the MikesBikes Advanced Business Simulation
An increasingly popular way of measuring the financial performance of a firm is by looking at the Economic Value Created (often called EVA*) over a specified time span. See the Financial Reports section of the All Reports Menu for the firm’s current Economic Value Created report. In essence, this measure views the business as an … Continue reading What is Economic Value Created (EVA)?
If you accidentally launched a product and wish to abandon this in the same period, you can do so before the rollover. To do this: Go to the Products menu. Then click on the Product that you wish to abandon. On the right-hand menu, click on the Abandon button. You can launch this product again … Continue reading Question of the Week: Can we abandon a recently launched product?
In MikesBikes Introduction, effective capacity will prove to be less than your plan capacity because of various Wastage factors such as: Rework Setup Time Raw Materials Stockout Machine Downtime Wastage reduces your factory’s efficiency by using up time that could have been utilized to produce bikes. To improve or decrease Wastage, you will need to … Continue reading Question of the Week: How do we decrease our factory’s Wastage?
The 2017 MikesBikes World Championship winners Siyi Tang , William Setiawan , Jiedong Chen, Jayca Y. Siddayao, Mingchang Liang and Robbi A. Harnass of Exodus from the University of Auckland have joined the MikesBikes Wall of Champions with their impressive performance in the competition! Team Exodus competed against the best teams from around the globe … Continue reading Interview with the 2017 MikesBikes World Champs Winner: Exodus