Presentation Transcript

1. Thinkfinity ProjectsSingle-Class Business Simulations

   Kathy Winsted May 2011
2. MicroSimulations Can play in single class session New teams each time Single main lesson each time New opportunity to win each time Focus on teamwork, negotiation, decision making Feel real Intense involvement by students Involve data analysis – before and during Supported by Excel spreadsheets Completely interactive
3. Thinkfinity Grant Take old-fashioned simulations and modernize Old games out of date Utilized paper forms Data entry by professor on one computer Settings were fixed – no options Manual team selection Numbers were outdated New ones updated and more interactive Professor selects options on instructor screen Uploads class and forms random teams Each student logs into own computer – team assigned Enter decisions and get feedback on computer All Internet based
4. Pricing Series Pricing Strategy Select only price Brand loyalty and shopping behavior Try to make the most profit Price Production Strategy Add a production decision – can’t sell what you don’t make Adds inventory charge Opportunity cost if stock out Price Production Advertising Strategy Adds an advertising decision Comes out of profit but hugely influences sales
5. Related Homework You are selling widgets at a price of $10 each.  The variable cost to produce these widgets is $5.00.  Last year your fixed costs were $10,000 Last year you sold 10,000 units.Calculate the answers to the questions below and explain how you got each answer (for full credit, show formula you used to calculate your answer – partial credit will be given if you have the formula correct, but miscalculated) How much income (revenue) did you get last year? How much was your total cost last year? What was the contribution margin of each widget? What is the overall profit per unit for each widget? At what price would you break even if you sold 10,000 units? How many units would you need to sell to break even at a price of $10.00?
6. Bartenders Decide how many bartenders to hire Uncertain number of guests Similar decision screen – price and bartenders Opportunity cost if can’t make enough drinks Poor customer service has a cost
7. Manufacturers and Retailers Very different game Need to negotiate contracts with other teams Prices are set through negotiation Contracts are submitted to another team via computer Teams accept or reject contracts online
8. Stock Market Buy and sell stocks Price goes up when buy, down when sell Ticker constantly updates prices of each stock True value and dividends shown at end Fast paced – limited time to buy and sell each period Stock prices constantly changing
9. Contract Negotiation Unions negotiate with management Sign written contracts Play using an Excel spreadsheet
10. Other Games Replacement Analysis Accounting, depreciation What machines to buy and when to replace Inventory Management Need to order supplies – don’t arrive for five weeks Ordering costs, carrying costs, stockout costs Very quick – play 52 weeks – 60 seconds each Comparative Advantage Different countries with different strengths trading Sockey Manage a sports team How much talent to hire
11. Still to do Upload all cases and spreadsheets Write instructions for professors Finish last few games Write a text to go with the games Widespread distribution