Strategic Management Simulation
A comprehensive, dynamic strategy simulation designed for MBA, Executive Development, or advanced undergraduate courses in Strategic Management.
Strategic management is at the core of all decisions made in StratSimManagement. Students start by conducting environmental analysis before articulating the vision and mission of the organization. They must manage short- and long-term objectives, making integrated decisions that impact all areas of the business. Teams compete directly against each other with the results being dependent upon how the competitors interact, what new products are introduced, and how these products are supported. StratSimManagement is built on the StratSim methodology used by thousands of students since the mid-1990s. This version of StratSim (StratSimManagement)--with its focus on strategy and international business--is an excellent complement to traditional teaching methods, allowing students to apply strategic planning concepts in a dynamic, integrative environment.
Groups of 3-6 students are put in the role of a management team that takes over one of five companies competing in the domestic automobile industry. Some companies are positioned as high-end niche producers while others are more value and volume driven. Each company begins the simulation with three vehicles and then must decide how best to improve their performance and potentially enter new market segments that offer opportunities for growth. Optionally, students may source from or enter into international regions.
To read the full copy of the case for the simulation, request a Faculty ID here!
Much of the complexity of the automobile industry has been simplified to allow participants to focus their time and energy on strategic issues. However, we've retained as much realism as possible to make it easier to quickly understand the overall environment. StratSimManagement addresses the following issues:
- Developing a business definition and implementing a profitable long-term business strategy
- Identifying market opportunities and creating product/service offerings to satisfy them
- Analyzing competitors and understanding their strategic intent
- Creating the corporate infrastructure necessary to sustain growth
- Allocating scarce resources among products, functions, and other investment alternatives
- Exploring the options of marketing and sourcing internationally (optional)
With StratSimManagement, instructors have a comprehensive set of metrics (45 in total) to judge team performance. For full access to all performance measures, request a Faculty ID. In general, team performance can be judged by the following:
- Net Income and Cumulative Net Income
- Stock Price
- Total Shareholder Return
- Return on Equity, Return on Assets, Return on Marketing
- Earnings Per Share
- Market Share
- Return on Sales
- And more...
Any of the 45 measures areas can be weighted and combined by the instructor to form an overall score to evaluate how their teams perform.
If you are an instructor and would like to review StratSimManagement for your class, please fill out our Faculty ID Request!
At a Glance
Two or more teams of students go head-to-head in direct competition, competing in the same industry as separate companies.
- Business Strategy
- Strategic Management
- Overall Strategy: Students must determine their firms' core competencies and formulate corporate-level, business-level and functional-level strategies
- Product Development: Students create new product concepts and choose whether to develop them and ultimately launch them into the market. Each team also has the ability to improve its development capabilities through investment in vehicle technologies, as well as by expanding the number of product development centers.
- Operations: Teams make operations decisions that consist of building or selling off capacity, entering a sales forecast and production level for each product, and optionally, deciding to source from overseas. Retooling costs and estimated inventory are recalculated when the forecast or production is changed.
- Marketing: Students develop an understanding of the marketing function and strategic management by analyzing consumer/product relationships, choosing target market segments, and designing and implementing a marketing mix strategy.
- Human Resources: Students must decide how team responsibilities are divided. Will they be product managers? Functional managers? How will information be analyzed? Who will negotiate with potential partners? All students on a team make one set of decisions for their firm, so coordination among team members is an essential ingredient for success.
- Finance and Accounting: Financing and management accounting decisions in StratSimManagement involve analyzing projected cash flows and ensuring there are sufficient funds to cover investments and operations. In addition to choosing among many alternative uses for their limited funds, students also make decisions involving dividends, short vs. long-term debt, and raising capital by issuing stocks and bonds. Students are expected to perform financial ratio, breakeven, and net present value analysis.
- International (Optional): Ability to source to and market in two new regions either though a wholly-owned / greenfield approach or by negotiating an alliance with one of the existing companies in the region.