Mikes Bikes Intro Spring

7/27/2019 Mikes Bikes Intro Spring

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An Introduction toMikes Bikes Advanced

Presented by:

Peter Janciw


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What is a Business Simulation?

A representation of a real world company

Governed by real life business conditionstrying to achieve goals and strategies

You are placed the role of Managementand must make strategic decisions

It is NOT just a game, it is a learningexperience


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Why simulations are used

Application of theoretical businessconcepts (everything you learned in IB1!)

Used in both the academic and businessrealm

Simulations build teamwork skills andprovide an enjoyable way to learn.

Manitoba International MarketingCompetition


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We will now look at

1. What is Mikes Bikes?

2. Simulation interface elements

3. The importance of strategy4. The main functional areas of the

business

5. Things to watch for


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What is Mikes Bikes?

You are the new manager of amanufacturer in the bicycle industry

5 market segments and 3 distributionmethods exist

2 versions: Single-Player and Multi-PlayerWe will be using the Multi-Player version

Rollovers are automated!


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Multi-Player Structure

Course

World

Firm

User


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Simulation Interface Elements

1. Decision Screens Enter the values forall functional areas for the next period

2. Reports View company results andanalyze for next decision

3. The Advisor - The Mikes Bikes helper.Provides tips and assistance


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The Importance of Strategy

Strategy How you will achieve yourorganizational goals

Each Marketing, Production and Financialdecision you make ties into your overallstrategy!

Monitor strategy by constant analysis (viareports) then make the right decisions


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Applying The Strategy

Big Picture > Main Objectives > Low Level

Meeting Main Organizational Objectives Making Profit

Having enough Product

Keeping Customers Happy


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The Main Functional Areas

1. Marketing Advertising, PublicRelations, Branding, Price, etc

2. Production and Operations Ourcapacity to produce

3. Finance Costs, Cash Flows, Profit

4. R and D Developing products theconsumer wants

5. HR Size of our workforce, training, etc


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1. Marketing

1. Promotion Advertising, PublicRelations

2. Distribution (Place) DepartmentsStores, Bikes shops, and Sport Shops

3. Price How much will we/can we chargeour customer?

4. Product Creating what the consumerwants


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2. Production and Operations

Plant capacity measured in SCUs

(Standard Capacity Units)

Control batch size, set up time reduction,preventative maintenance

Forecast sales to determine productionvalues

Factory efficiency of 70% - 80% is verygood


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3. Finance

We want to cover our costs and make aprofit!

We can increase or pay back long termdebt

Shares can be sold to raise capital, or bebought back.

Provide shareholders with dividends fromcash surplus


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4. Research and Development

Modify existing products or create a newone

Choose product attributes: Design/Styleand Technical Specs

Use the product placement and theperceptual map to determine whichattributes our target market wants


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5. Human Resources

We can increase or decrease the size ofour workforce

We need to decide how much to pay ouremployees

We need to decide how much we aregoing to spend on training our employees


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Things to watch for

Plant capacity Too much will be a wasteof resources. Under capacity will result innot being able to meet our customer

demands (opportunity costs).

Marketing decisions - Be sure to spendthe right amount of resources in the proper

areas.


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Things to watch for

Financing decisions - Watch your debt toequity ratio. Too much debt and notenough equity will hurt share price!

Is the price right? Having a price that istoo low results in lower revenues. Havinga price that is too high results in lower

sales. Dont stock out!


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Simulation Schedule

2 practice moves

Fri May 20th, Tues May 24th

6 actual moves

Move 1: Fri May 27th

Presentations to the board

Show how your company has performed overthe past 5 periods


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The Group Experience

Do key tasks AS A TEAM

Listen to everyones ideas and opinions

Deal with situations as the occur


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Downloading and Playing

Download all software and player manualsfrom http://www.smartsims.com

Smartsims e-mail: [email protected]

2 team members can register at a cost of$50 each. This amount is spread over theteam to lower costs

Smartsims will e-mail your registrationinformation to you
http://www.smartsims.com/http://www.smartsims.com/


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Downloading and Playing

Firewall configuration Access Multi-player software in 3C13

UserID: student-01

Password: NetMike Smartsims access:

Login: stuwinnipeg

Password: canada [email protected]


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Walkthrough

How to make a round of decisions


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Questions

Mikes Bikes Intro Spring

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Transcript of Mikes Bikes Intro Spring