BUSINESS SIMULATION
Would you like to try to manage your own business?
In today’s world the business acumen is a necessary skill, which is not only the prerogative of successful entrepreneurs – we are sure that it is possible to develop this skill. A person with an entrepreneurial spirit and an overall view of business has a competitive advantage in any profession and on any position. You just need to understand how the business world works and then apply this knowledge to a variety of everyday decisions.
The business simulation is an experiential training that will teach you how to run your own company without the risk of losing real money. The training will provide you a holistic overview on how a manufacturing company operates and will teach you how to make decisions on:
- Strategy of the company,
- Pricing policy,
- Production capacity of machinery,
- Financing investments,
- Expansion into foreign markets.
- Development and quality of new products.
Everyone will take away something else from the training – some people will understand how important it is to prepare a budget, others will find the need to have the right information in order to make proper decisions, and for others the simulation will serve as an eye opener when they discover unexpected links between various business decisions or when they try to be in somebody else’s shoes by having a real experience of work in other professions. Employees of the Finance Department will experiment with the role of the production or sales director, and employees from the department of production, sales and logistics will learn how to prepare and analyse financial statements.
All of them will receive the proper overview about how business operates in a market environment and they will understand the importance of proper alignment of the procurement with production, production with selling, and all functions together with financial capabilities of the company.
Business simulation simulates real situations in managing the company. Participants are divided into groups, each group has its own business and all businesses are competing with each other. The participants make strategic and operational decisions and then see the consequences of their decisions.
The simulation provides in every moment and almost at a glance the overall picture of the company, everything is displayed on the board: factories and production lines, storage of materials and finished products, investments in new markets or products, receivables, payables, loans, money and other financial information.
At the end of each quarter, each team prepare a balance sheet and profit and loss statement and then team results are compared.
The training is suitable for 10 to 20 participants who are divided into five teams of two or three or four team members. This training is beneficial for employees at all levels from new hires to senior management.
Gallery from the training
Training timetable
Day 1
Participants become directors (managing, financial, sales or production) of company that has been in business for some time. Rules of the simulation are explained and all teams go through the steps of the first quarter together.
After the end of the 1st quarter every team gets a chance to develop its own strategy, purchase market researches, make pricing and production capacity decisions or decide to extend the product portfolio. Then real market is simulated, where teams compete in tenders, then they manufacture and supply goods according to contracts they had won, they repay obligations and loans, etc. After the end of the second quarter, the comparison of team results takes place. Then subsequently teams plan the 3rd quarter.
Day 2
Preparation for the third quarter, a possible correction of strategies, evaluation of tenders and the whole cycle of the third quarter. Afterwards results of the teams are compared and they prepare the budget for the fourth quarter. In between the quarters, there is a moderated discussion about various aspects of planning and decision making, which are brought by the simulation as well as real life.
A similar procedure is in Q4, after which teams can see all the consequences of their decisions, and whether the selected strategy was the right one. Towards the end teams present their companies and final evaluation is done through simulation of investing on the stock market. The participants are trying to sell their company to investors and at the same they are creating their own investment portfolio.
Facilitator of the Business Simulation
Mgr. Pavel Hrivnák DiplFR
Pavel studied computer science at the Comenius University in Bratislava and also completed a three-year study programme at the State Academy of Management in Moscow, Russia. He worked in international consulting firms Deloitte and KPMG at the position of senior manager and has over 15 years of experience in consulting and audit in several countries. Since 2011 Pavel has devoted his career to professional education, currently through his own company Educat Service Ltd.
Pavel provides a wide range of courses in the area of management and financial accounting, IFRS and auditing, as well as personal development covering various managerial skills such as team leadership and communication skills. He is the author and co-author of several courses tailored for various companies, including special versions of the business simulation for different departments, for example for credit control or sales department.