News Archives

winning team from the strategic management event at njit

Third Annual Strategic Management Showcase at NJIT

Last December, NJIT’s Martin Tuchman School of Management ran its third annual Strategic Management Showcase.

The top-performing teams from the 2016 Fall Semester Capstone course were selected to compete using MikesBikes Advanced for prizes. The criteria for judging the winning team was 80% on their performance in the simulation (i.e. based on the Shareholder Value) and 20% on their presentation. They must also be able to demonstrate their analytical decision-making skills in multiple areas including product development, marketing, finance and operations.

The competition concluded with The Cycle Path winning first place after having been bankrupted early in the competition! This is certainly quite a feat in itself. The team consisted of Yidi Wu, Michael Teixeira and Amad Ellahi. We decided to get in touch and interview them, they had the following to say:

“This business simulation was exceptionally fun. Our team was fully engaged in this competition for the grade, money and mockery of other teams when we win, and we did. Fierce competition kept this business simulation exceedingly fun, especially since the other teams are putting up a fight. This simulation definitely made me realize things will never as smoothly as you might think. Have a strategy in mind, be prepared when things go south.”

The showcase concluded with an awards ceremony to recognize the winners.

Congratulations to the winning team and participants of the third annual Strategic Management Showcase!

You can watch the full event here.

 

The Cycle Paths team presenting in front of their class

Students go from Bankruptcy to Success

December saw New Jersey Institute of Technology run its third annual strategic management showcase where students competed against each other for various prizes. The criteria for judging the competition was based 80% on their performance in simulation and 20% on their presentation and strategic plan. The Cycle Paths (Yidi Wu, Michael Teixeira, and Amad Ellahi – pictured above) took first place despite a dip into insolvency after the second rollover. 

The Smartsims team reached out and interviewed The Cycle Paths to speak on their achievement, experiences and advice they would give future students. 

How did you effectively work together as a team?
“It was a rough start. The team was not united at the start; one of the members felt left behind. The turning point was when our team went bankrupt after the second rollover. Our team was lost, and that was when we realized that this is getting serious; this competition is worth 25% of individual grade and if we fail, it’s all over. “Go big or go home” that was our motto after the second rollover.

We do not recommend going bankrupt as a way to get your team serious, or rather, a way to encourage your teammates to start contributing.  Instead, the key to success is have a team leader. You should have one of the team members lead and divide up the roles effectively among the team. Each member should focus on one or two decision areas. However, it is the team’s responsibility to check one another’s work before finalizing decisions.

The 3 points for any effective team;

  • Leadership
  • Divide the roles
  • Combine the numbers”

What was your decision making process within the simulation?
“It was a zero-sum competition, where there are winners and losers. We learned that if we want to win and succeed then we have to study what competitor. Each week, we printed out last week’s results and went over the numbers. From there, we looked at what we needed to do to move forward. We had an idea on what we are aiming for, however, we found that you never be sure. Learn your enemies and find their weaknesses.”

What was your strategy going into the simulation?
Before the first week? WIN. After the bankruptcy? Let’s go BIG

We were extremely aggressive, we went for low prices, high volumes. We want monopoly. For our low prices, we were able to profit with our high volumes. As far as marketing goes, we were in second or third, it did not matter to us as much because we were dumping our bikes as such low prices.

The best advice we can give future students is: study your competitors and your market.

If you want to win, you MUST look over each week’s report and find your competitor’s weaknesses and begin developing a strategy.

How did you begin implementing that strategy?
Bankruptcy was something we never want to go through again but it was something that pieced our team together. We used tools like Microsoft excel and the MikesBikes offline rollovers. The offline rollover was a powerful tool that your team must use to piece through a couple of the numbers. I do not think I can get into the details on here, but do not use the offline rollover to compare to other groups, but rather use it as a tool to study your own company. Play around with the numbers.

How did you familiarize yourself with the simulation?
This is sort of cliché but the quote ‘practice makes perfect’ is practically what you need to do to familiarize yourself with the simulation. Read the manual, you’ll learn more than you think, and just practice over the offline simulation over and over again. Even now, after we won, back to back, if you put us in front of the simulation again, we would still get lost over a couple of things. You just have to practice.

How would you describe the competition?
Fierce, brutal, and intense.

What challenges did you face? How did you overcome these?
Getting up early every weekend to come to school to go over the numbers and strategies so we would not miss anything else; that was rough.

Time management is critical during the showcase, you have a limited time to go over the numbers before the next rollover.

The other major challenge your team is most likely to face will be conflict (in one form or another) between team members. During the showcase competition, our team was placed in a conference room on a floor of facility offices. At the end of the competition, let’s just say, we were most likely not be welcome back. Fierce competition can lead to conflicts, because everyone wants to win. Compromise, this is the best solution.

We went through bankruptcy, we knew exactly what a single mistake can cost. At the end of the competition, yes we could’ve got a higher shareholder value, but we did not want risk it. Trust us when we say, many of the teams went bankrupt because they swing too close to the fences. When conflicts arises, take a step back, look at the numbers and ask yourself: “does your team need to swing for the fences?”

Was there anything in particular you did that you think helped to prepare yourself?
Coffee.

Be prepared when the numbers do not go your way (more often than you think). This is a zero sum game with winners and losers. It has to be balanced and believe it or not, no one wants to be on the loser side. You win by outsmarting the other teams.

How has participating within a course which uses a business simulation to supplement their teaching materials helped you? What do you think of the business simulation?
This business simulation was exceptionally fun. Our team was fully engaged in this competition and course for the grade, money and the bragging rights. Fierce competition kept this business simulation exceedingly fun, especially since the other teams are putting up a fight. This simulation definitely made me realize things will never as smoothly as you might think. Have a strategy in mind and be prepared when things go south.

Picture of Robinson Lu - who placed 15th in Smartsims' MikesBikes Introduction Hall of Fame

Hard work and dedication does pay off!

Robinson Lu is a student at Santa Clara University currently taking a business course taught by Theresa Strickland using MikesBikes Introduction. Having seen the simulation, Robinson’s competitive side took over and he dedicated hours to become the best of the best! As of the 17th of March (2017), Robinson Lu has placed 15th within our Top 20 Global Hall of Fame (Single-Player). This is an incredible feat considering that he splits his time between course work, the simulation, and becoming a founding father of a new ATO chapter in his school.

With all of this in mind we asked Robsinson some questions about what makes him so successful! Check out the interview below: 

What is your decision making process within the simulation?
Business is an extension of practical economics where I think execution and forecasting make up the most important segments of success. My business professor Theresa A Strickland always says that “cash is king” thus my main decision making process is about eliminating the left over inventory so that profit can be maximized and the minimization of waste(as to avoid conflicts of innovation costs). It is more about how decisive you are in the simulation. It is never about fearing the outcome or even trying to make everything perfect. Your team’s opinions do matter but only to an extent where your main stream of thoughts are not impeded by the thoughts of others.

At the end of the day, you have to be very confident about what you are doing regardless of what mistakes you made or what other people are commenting on your results within the simulation.

What was your strategy going into the simulation?
My strategy is to find the right balance of quantity and price. Ironically, it took me 2 hours to figure out my first two rollover and the time exponentially decreased as the rounds proceeded. Balance is the key in single player because in the multi-player, there are way too many variables so that profit maximization would not be achievable unless surplus of Luck was introduced by the elements of nature.

How did you familiarize yourself with the simulation?
Oh, as what any student should do. Practice. Practice makes perfect. It is all about what do you see behind the numbers which sometimes can be confusing but becomes clearer with practice.

What resources did you pull on to develop your winning strategy which led you to the Hall of Fame?
In order to win, you definitely need to be able to sit down in a calm manner and not stress about every time you messed up your shareholder value. You have to adapt the changes and challenges along the way. If you are as nerdy as I am, who loves to collect random data and analyze them, then just get into it.

What challenges did you face? How did you overcome these?
You have to understand that life is a game of trade-offs and opportunity costs. If today I decided to work on MikesBikes for 2 hours, I would give up the time I spent with that intelligent girl I met in the dining hall. However, in order to be successful, you have to be very determined about what you want. If you want to be successful in business (and in the simulation) you have to work for it.

Was there anything in particular you did that you think helped to prepare yourself
You have to go into the simulation with an open mind. Yes, like the old cliche, be yourself in the dating world. You have to be open to the situation set in front of you so that you will adapt to the problem rather than wanting the problem to change. Eventually, you have to love the things you do no matter what.

How has participating within a course which uses a business simulation to supplement their teaching materials helped you?
It will definitely help with future career building. Business simulation gave me a very clear hypothetical scenario where I am able to solve a real life situation without dealing with the bad results. I wish that it will worth more points in my grade because to some extend, Mike’s Bike tests my ability to problem solve in the business world. It certainly boosted my confidence. I now have a new vision for my book sales in China and for my new book that will probably come out in 3 years. I could use lots of what I see in the simulation to enlarge my profit building in my online shop in China and even use some techniques I developed in trading stocks.

Do you have any parting comments?
It is my honor to be a part of the simulation. I believe that it is a learning process for me. One of the most intriguing things about Smartsims is that their staff are phenomenal! You guys are really patient about all my tedious questions about basically anything. You guys responded very efficiently and quickly considered the fact that you are all the way in New Zealand! I would love to work again with the staff and please give them some bonus. They deserve it.

 

Photo with bike and article title, top 3 questions student asked

Top 3 MikesBikes Questions Students Ask

 “Don’t be afraid to ask questions. Don’t be afraid to ask for help when you need it. I do that everyday. Asking for help isn’t a sign of weakness, it’s a sign of strength. It shows you have the courage to admit when you don’t know something, and then allows you to learn something new.”

– Barack Obama

Here are the top three questions that students asked from the last two MikesBikes Introduction Q&A sessions we held recently. If you have missed the sessions or would like to review the questions asked, you can view the posts through our Facebook page here.

Question #1

What would you say is the biggest challenge that we will face and how should we deal with it?

The “biggest challenge” differs with each firm, but there are a few common challenges students will face:

  1. Excessive Inventory or Lost Sales

Both of these scenarios are caused by inaccurately forecasting your firm’s sales for the year ahead. Ideally a firm would want to minimize this by correctly forecasting sales and adjusting your production based on this forecast (while also taking into account existing inventory levels).

There is a very helpful video available that demonstrates how to Forecast Sales within MikesBikes Introduction for new and existing products. Click here to view the video.

  1. Not paying attention to consumer preferences.

It is crucial that your Product Strategy follow the preferences of your consumers. Valuable Market Research has been conducted to investigate what your customers are looking for in the products they buy. This information is available to you under the Market Information Report (under the Key Reports menu).

Market Information Report with information on Product Dimension Sensitivities and Preferences in MikesBikes Intro

The table above (taken from the Market Information Report) will tell you important areas that you should be focusing on. For example, the Mountain Segment has High sensitivity to Advertising. What this means is you should be focusing your Marketing Budget on Advertising and not PR (as the Mountain segment has low sensitivity in this area). If a market segment is highly sensitive to one area this means: “if you increase this figure, then proportionately more people are going to buy your bike.” This would then result in a higher return on your investment than if you invest in areas where your target market segment has a low sensitivity in.

  1. Incorrect Pricing Strategy

Students make a mistake on pricing their products too high without the increasing demand and their Sales Revenue starts to suffer. Contrary to that, some may also enter into a pricing war and priced their products too low resulting in difficulty covering costs.

When a situation like this arises, you will need to assess where your products are situated in relation to consumer preferences and your competitors. The best report to look at would be the “Market Summary Report” and identify if your product has low Awareness, low Quality or low Delivery (or all of the above) in comparison to your competitors. If they do, you should price your product at the lower end of the market. If not and demand for your product is still average to high, then you can price your products at the higher end of the market. Keep in mind that extreme prices, high or low, will have a negative effect on Gross Margins.

Question #2

In the fourth period, we’ll be given the option to launch a new product and modify our existing product. Is it better to remodel an existing product or launch a new product?

This depends on what your team decides to be more valuable to your strategy.

Essentially, when looking at launching a new product you will need to ask yourself the following questions:

  • How big is the market for this product (Check the Market Information Report)?
  • How many existing competitors are in there?
  • Are we expecting any new entrants into this segment in the upcoming rollover? If so, what do we anticipate their market share would be?
  • How many bikes would we anticipate on selling?
  • Taking into account of the above, how much would we spend on marketing to enter the market?
  • Based on our effective number of sales in the segment, what do we anticipate our profit to be?

You can then compare this potential profit against the potential profit gained from modifying your bike.

In remodeling your existing bike, you will look at things like:

  • Are we remodeling to reduce costs or improve Technical Specifications (or both)?
  • If we want to reduce costs, is the $1 million modification cost outweighed by the profit gained in the reduction costs?

You can calculate it as:

Old Production Costs – New Production Costs x Number of bikes you anticipate you will sell

  • If you want to update the Technical Specifications, look at the Market Information report to see how sensitive the market segment is to changes in that? If it is High, then getting closer to the Ultimate Technical Specifications could result in significant increases in demand for your product (depending on how far away your product is from that desired technical specifications).
  • How do anticipate this impacting our sales?

Once your team has looked at those two things (new bike versus modification) then you can decide, “Okay, which is more valuable to us right now? Can we afford that? Could we afford both? Or neither?” You can then evaluate your Cashflow Report for your Ending Cash Balance from the previous year.

Question #3

What is the best strategy to implement to get the best return in Distribution?

The best strategy is to look at the Distribution Summary report (see the table below for what this might look like) and analyze where your customers shop. Once you have identified this, place more emphasis on your Retailer Margin and Extra Support in those Distribution Channels.

Distribution Summary Report in MikesBikes Intro

It is also important to keep in mind here that the more a distributor profits from selling your products, the more likely they are to stock your product in upcoming years.  That means they consider things like your Price, Sales Volume, Retailer Margin and Extra Support. However, be careful not to eat so much into your own products.

If you have any questions, please feel free to click here and fill out a form or email us at help@smartsims.com.

Engaging Millennials in Business Simulations with Gamification

Gamification: Engaging Millennials in Business Courses through Business Simulations

The term gamification is a relatively recent addition to the scholarly vernacular. In fact, the first documented use of the term doesn’t appear until 2008 (Detering, Dixon, Khaled, & Nacke, 2011). While there have been a number of definitions put forward, most publications agree on a general definition being the use of game elements and design in a non-game setting (Seaborn & Fels, 2015). The broad use of games among members of the millennial generation creates an opportunity for increasing student engagement and motivation in traditionally non-game environments, such as a business school. Given this, educators are increasingly using gamification techniques to increase student engagement (Seaborn & Fels, 2015). These include the use of advanced business simulations. Gamification applied to these kinds of simulations can increase engagement, motivation, targeted learning outcomes, critical thinking skills and cognitive reasoning.

Gamification includes a variety of methods, the most basic of which is the use of game elements to create a gamified experience. Game elements include:

  1. immediate feedback on performance through the use of badges and icons,
  2. leaderboards,
  3. awards,
  4. interaction with other players.

Research indicates that the use of these game elements can result in an increase in engagement and motivation (Thom, Millen, & DiMicco, 2012). Other implementations of gamification, such as business simulations, appear to have longer lasting positive effects on not only participation but more so on desired learning outcomes, especially within an educational setting.

The purpose of educational business simulations, at their core, is to create an experiential learning environment to improve the learning outcomes and student success. Through a gamification lens, business simulations do that. Each of Smartsims’ Business Simulations easily tick off those requirements:

1. Immediate Feedback on Performance through Icons

Smartsims MikesBikes Icons Gamification

The above is a picture of MikesBikes Introduction interface.

2. Leaderboards

Music2Go Marketing Leaderboard Gamification

The above is a picture of Music2Go’s class specific leaderboard (note we also have a Hall of Fame tracking the performance of teams throughout the world).

3. Awards

Smartsims Business Simulations are strong believers in rewarding excellence. Every year the Smartsims team holds the MikesBikes World Championships to find the ‘best of the best’ and award the winning team. Further, the students who achieve top of their class or enter into the Hall of Fame are given notoriety within our website through an article/interview as well as the Worldwide Leaderboard.

4. Interaction with Other Players

Interaction among students using Mikesbikes

MikesBikes encourage interaction with other plays both directly and indirectly. Often students can form the ‘management team’ of their firm where they interact directly with each other to enter the important decisions of their team. Students will also be competing directly against other teams within their course to achieve the highest Shareholder Value (one of the main KPIs within MikesBikes).

Gamification and Business Simulations

Gamification can be viewed as an instrument within the toolbox of experiential learning, and as such, can be used to enhance desired learning outcomes. These desired learning outcomes include the development of critical thinking skills, increased motivation, and greater cognitive ability (Lovelace, Eggers, & Dyck, 2016). Rousseau (2012) describes the critical thinking process as “involving questioning assumptions, evaluating evidence, and testing the logic of ideas, proposals and courses of actions” (p. 13). An advanced business simulation such as MikesBikes includes rounds of play in which assumptions are drawn, and data is analyzed before decisions are made. The start of each new round gives the student an opportunity to reflect on the outcomes of previous decisions, and use that knowledge to reanalyze data and make new inferences. Ultimately, through the use of simulation students must go through the various stages of critical thinking. Furthermore, they simulate problems that build over time and become more involved as the simulation advances. This increases student knowledge and cognitive reasoning (Collins & Halverson as cited in D.J., Beedle, & Rouse, 2014).

Gamification is a relatively new and continually evolving application and can range in impact. Educational business simulations, such as MikesBikes, can use a variety of gamification techniques to enhance the learning experience, as well as increasing student engagement and motivation. This is particularly important in the modern educational environment and the challenges of engaging the millennial generation. However, the most attractive outcome in the combination of gamification and simulation is the development of critical thinking skills and cognitive reasoning, both of which are very difficult to achieve in a typical learning environment.

 

 

References

Cadotte, E. (2016). Creating Value in Marketing and Business Simulations: An Author’s Viewpoint. Journal of Marketing Education , 38 (2), 119-129.

Cheong, C., Filippou, J., & Cheon, F. (2014). Towards the Gamification of Learning: Investigating Student Perceptions of Game Elements. Journal of Information Systems Education , 25 (3), 223 – 244.

D.J., F., Beedle, J., & Rouse, S. (2014). Gamification: A Study of Business Teacher Educators’ Knowledge of, Attitudes Towards and Experiences with the Gamification of Activities in the Classroom. The Journal of Research in Business Education , 56.1, 1-16.

Detering, S., Dixon, D., Khaled, R., & Nacke, L. (2011). From Game Design Elements to Gamefulness: Defining “Gamification”. Proceedings of the 15th international academic MindTrek conference: Envisioning future media environments (pp. 9-15). Tampere: ACM.

Lawley, E. (2012, July – August). Games as an Alternative Lens for Design. Interactions , 18 – 19.

Lovelace, K., Eggers, F., & Dyck, L. (2016). I Do and I Understand: Assessing the Utility of Web-Based Management Simulations to Develop Critical Thinking Skills. Academy of Management Learning and Education , 15 (1), 100-121.

Paharia, R. (2012, July – August). Gamification Means Amplifying Intrinsic Value. Interactions , 17.

Rousseau, D. (2012). Envisioning Evidence-Based Management. Oxford Handbook of Evidence Based Management , 3-24.

Seaborn, K., & Fels, D. (2015). Gamification in Theory and Action: A Survey. International Journal of Human-Computer Studies , 14-31.

Thom, J., Millen, D., & DiMicco, J. (2012). Removing Gamification from an Enterprise SNS. Proceedings of the acm 2012 conference on computer supported cooperative work. , 1067-1070.

MikesBikes World Champs

2016 MikesBikes World Championship Competition Results

The difference between a successful person and others is not a lack of strength, not a lack of will knowledge, but rather a lack of will.”

-Vince Lombardi

Our 2016 MikesBikes World Champions, Helen Wheels from Algonquin College secured the top position, becoming the “Best of the Best” and Bat Wheels from the University of Auckland who came in at a well-deserved second place. These top two teams certainly had the will to succeed and win the competition.

Helen Wheels and Bat Wheels started strong and performed consistently throughout the competition. They consistently adapted to their market, made growth-oriented decisions and remained true to their firm’s mission. Both firms developed and executed excellent business strategies which saw them rise to the top.

Our two winners had the following to say:

 

First Place: Helen Wheels from Algonquin College

“That was a very aggressive first round by everyone. Even though the ending SHVs may not reflect it, the first few rollovers were challenging. It was fun competing with everyone and putting concepts I learned from school into practice.”

-Joshua Kalman

2016 MWC First Place Holder Joshua Kalman

 

Second Place: Bat Wheels from the University of Auckland

“I never knew running my own company could be so much fun.  Smartsims has provided us with a great business simulation and I will miss being a part of this competition.”

Mohammad Sami Siddiq

2016 MWC Second Place Holder M Sami

Congratulations to both teams and thank you to everyone who participated! It was another great year full of intense competition.

Here’s the Final Round’s Rollover Results:

Pos Firm SHV School Team Members
1 Helen Wheels $291.13 Algonquin College Joshua Kalman
2 Bat Wheels $119.88 University of Auckland Mohammad Sami Siddiq
3 Dr Sprocket $106.48 University of Auckland Nicholas Goddard | Meng Zhang | Tingyu Fu | Yanxin Jiang | Philipp Noack
4 2 of the 3 Stooges $1.55 Bethany College Josh Hickok | Tanner Wallace
5 Top Air $1.44 Waikato Institute of Technology Qi Zeng | Li Zhang
6 Bonilla Ice $0.01 Santa Clara University Brian Bonilla
7 Holy Spokes Inc $0.01 University of Idaho Zachary Thomas
8 Tortoise Inc $0.01 Drexel University Alexander Kaloudis

You can view the current and past winners here.

Mason (MikesBikes Student) received award from DMACC President

Hall of Fame Award Presented to DMACC Student

On the 6th of January, Robert Denson (President of Des Moines Area Community College) presented Mason G. Ohnemus with a plaque commemorating his amazing achievement making the MikesBikes Hall of Fame.

Mason G. Ohnemus was able to apply theories he learnt in class to his simulated firm to achieve a Shareholder Value of $391.77. In doing so, he has earned himself a position within our 2016/2017 MikesBikes Introduction Hall of Fame! Smartsims would like to congratulate Mason for striving to be the best he possibly can.

In attendance on this proud day was his Instructor (Russell Holmes) and several other satisfied members of the community and staff.

We extend our appreciation and admiration of Russell Holmes who organized the plaque and the award ceremony for Mason. It is very clear that Russell is truly passionate about education and his students’ success.

What a wonderful start to 2017!

Dan Bielinski Madison Area Technical College

MikesBikes in an Introduction to Business Course

Dan Bielinski Madison Area Technical College
The article below is written by Dan Bielinski, business instructor at Madison Area Technical College.

As a relatively new Business Management Instructor (in my third year) after a nearly 30 year career in industry and consulting, I have found MikesBikes Introduction an extremely helpful tool for teaching real-world business concepts. In the spirit of sharing among educators to benefit students, I am privileged to discuss some of the approaches that have worked for me.

We utilize the MikesBikes Single-Player in our Intro to Business Course. Students work in teams and compete against the computer. There are two practices I have found very effective:

1. I cover course material on Strategy, Marketing (the 4 P’s), Operations and Finance, primarily through case studies and other active learning techniques. I then use MikesBikes and help students “connect the dots” and apply these concepts in the simulation.

Both direct student feedback, and the kinds of questions they start to ask, tell me the simulation is taking student understanding to a deeper level. Much like moving toward case studies and away from lectures deepened learning, the simulation took learning provided by the case studies to a deeper level.

2. I have students work in teams of three. Each Team designates a VP-Sales & Marketing, a VP- Operations, and a VP-Finance. Each of their “bonuses” is based 50% on maximizing a specific departmental metric, and 50% on Shareholder Value growth. All three have to agree on all decisions.

The bonuses take the form of hefty extra credit points. For example, the VP-Sales with the best sales growth rate wins extra credit points; similar for the other positions. However, EACH member of the Team with the highest Shareholder Value wins extra credit points.

This simulates the dynamic that happens in actual businesses between Departmental Managers. It gets pretty real— in one case, a student was still yelling at a teammate 20 minutes after the simulation ended—“You hosed us; all you cared about was your Department.”

Last semester, we started using the MikesBikes Multi-Player in our Capstone Leadership Course. Students still work in teams, but now compete directly against each other to maximize shareholder value. The experience exceeded my high expectations. Key learnings we were able to drive home included:

  • The business mindset of always continually looking for an advantage or edge. Since all Teams start out identically, if they all follow similar strategies, no one will stand out. However, since the reports allow you to figure out- and copy, others’ strategies, you must continually look for a new angle.We connect that to running your Department—for example, if you run a Customer Service Team, how can you give your Sales force “something to sell” that your counterparts are not doing. And since your counterparts can probably copy you if it works, are you thinking about the next improvement? Etc.
  • Since all Teams start out with identical positions and decisions to make, and the end results vary wildly, the core source of differences in results is the members of each Team. This leads to a discussion of team makeup— complementary skill sets, depth of understanding of the “business”, ability to work together, etc. It is the most powerful way I have seen to teach the importance of teamwork.This easily transitions into how you build your department’s team— hiring into your weaknesses, knowing that both deep skill sets and ability to be a team player are vital, etc.
  • The simulation allows us to help students develop a broader business perspective, and to drive home the importance of such a perspective. For example, most companies do not want a marketing expert running Marketing; they want a business person who has deep knowledge of marketing. Same for Operations, Finance, and so on. Being able to “see the big picture” and have “your world” be bigger than just your department is vital.

I looked at other simulation packages, and concluded that MikesBikes had an optimal level of complexity. It is not simplistic-all the lessons above can be taught, yet it is not so complex that it takes students a long time to learn. I was able to do a self-paced tutorial of a five year simulation using a screencast (35 minutes total run time), that enabled students to learn the basics on their own outside of class (using the online version of MikesBikes).

The service and support from Smartsims has been absolutely exceptional- and I say this as a former Customer Service VP. I was comfortable recommending to our Dean that we expand our relationship to the Multi-Player only because of the 18 prior months of phenomenal support.

Product Updates for MikesBikes Introduction and MikesBikes Advanced: December 2016

Over this year, we have made several tweaks and improvements to our simulations:

1. Product Summary / Contribution

The Product Summary – Sales, Margin, Production report has been updated in order for students to identify the contribution of each product:

Product Summary Report Screenshot

2. Fines System

Instructors wanting to penalize firms can do so via the Firms menu of their Administrator features:

Fine Firm Screenshot

For students, this amount shows up after the rollover has been processed in the Income Statement:

Income Statement Screenshot

The fine directly impacts the firm’s profit, which feeds into Shareholder Value.

 

3. Minimum Share Issue Price is now $5 per Share

  • Struggling firms need access to equity.
  • Even bankrupt firms can issue 50% more shares at $5 / share to recapitalize.
  • E.g. A firm with share price of $0.76 and 1 million shares issued could issue 500,000
    shares at $5 / share = $2.5m (making it slightly easier for them to recover).

 4. Up to 20% Share Repurchase

In MikesBikes Introduction

The simulation now allows for students to repurchase shares up to 20% beyond original 1 million share allocation.

Eg. If you have 2 million shares issued, you could repurchase 20%, or 400,000 shares.
When below 1 million, the limit remains at 10%.
Eg. If you have 900,000 shares issued, you could repurchase 90,000 shares.

 

In MikesBikes Advanced

The simulation now allows for students to repurchase shares up to 20% beyond original 2 million share allocation.

Eg. If you have 3 million shares issued, you could repurchase 20%, or 600,000 shares.
Below 2 million the limit remains at 10%.
Eg. If you have 1.8 million shares issued, you could repurchase 180,000 shares.

5. Limit to Projects/ Products

In MikesBikes Introduction

Firms can sell multiple products in a single market segment. This can work if student plans well. But it is often unintended and market share drops due to product cannibalization.
Instructors can now limit students to having at most one product in each segment. At the beginning of your course please let your account manager know if you would like your course set up in this manner.

In MikesBikes Advanced

We can optionally LIMIT:

  • Max Projects per Period
  • Max Products
  • Max Products per Segment

6. Specific MikesBikes Introduction Scenario Improvements include:

  • Sports segment around 40% larger, meaning firms have more room to expand as well a higher chance of generating larger revenue.
  • Branding is cheaper to attain once Distribution and Branding decisions are available.
  • Efficiency is cheaper to attain once Capacity decisions are available.
  • Road segment more sensitive to Quality and Product Specs.
  • Bankrupt Firm Share Price improves faster.

 7. MikesBikes Advanced will contain IFRS Financial Statements:

International Financial Reporting Standards (IFRS) are common outside North America, therefore to ensure relevancy to all schools these have now been included. The reports have different names and layouts for Financial Statements.
The different names for financial statements can be:

  • Statement of Comprehensive Income
  • Statement of Financial Position
  • Statement of Cash Flows
  • Statement of Changes in Equity
Business Simulations Future Proofing

Future Proofing Your Student’s Skills

How do you future proof your student’s skills and knowledge when nobody can be certain what jobs will be available? To give you an idea; we no longer need the bowling alley pinsetter, human alarm clocks (“Knocker-up“), ice cutterslamplighters, or switchboard operators which technology and economic conditions has so readily replaced today.

A recent study by the World Economic Forum predicts that approximately 5 million jobs will be lost before 2020 as technology replaces the need for human workers. Millions of workers today that don’t account for the possible future where their current job is automated (and prepare accordingly) are likely to find their jobs redundant.

What does the future require of us?

It is not all doom and gloom. Researchers like David Deming (Associate Professor of Education and Economies at Harvard University) argue that soft skills such as sharing and negotiating will be crucial alongside a strong technical understanding of theories and practice that are traditionally taught in current courses. As a part of his research, Deming has mapped the changing needs of employers and in doing so identified the key skills that will be required to thrive in the job market in the future.

graph

Source: David Deming, Harvard University

What do we take away from this? 

Specific roles which relied heavily on one type of skill over another (hard vs soft) are not the way of the future. In recent years, jobs which only required mathematical skills have been automated whereas jobs which rely solely on social skills tend to be poorly paid. To ensure students take solid and future-proof skills from their time at an education institution they need to be taught both hard and soft skills.

How? 

Business simulations provide students with the opportunity to engage and expand their skill set. Not just the hard or the soft but encourage students to combine the two. Recent research has shown that business simulations are effective at developing critical thinking and analytical skills as well as improving a students ability to negotiate, communicate and work within a team. Over the past 20 years various researchers have conducted research into the benefits of business simulations.

There are many forms of this; marketing simulations, business simulations, management accounting simulations, and advertising simulations. If you’d like to learn more about future proofing your student’s skills through business simulations then click here.