1、ASDAN Business SimulationImproving business knowledge and strategy撫AS那ASDANChinaContents1. The Bnef Introduction of Business Simulation32. ASDAN Business Simulation43 Skills64 Strategies 85 Simulation Decision Calculations105. 1 Human Resouixes115. 2 Production 115 o Sales115 4 Market115. 5 Fuiance1

2、25. 6 Consultants135. 7 Loans and Case Studies135 Projects147. VocabulaiyBusuiess Management151. The Brief Introduction of Business SimulationBusiness simulation, originating from tlie United States, is very popular in foreign countries, hi most cases, the tenns business simulation, business game, m

3、anagement game, business game can be used interchangeably and there is no well-established differences among these tenns. Some scholars have defined a business simulation as a sequential decision-making exercise stmctme around a model of a business operation, in wliich participants assume the role o

4、f managing the simulated operation.In fact, what we often play in the market riglit now is data business simulation. A participant in a data business simulation typically fiinctions as a inember of a team of managers or pl aimers. Each company is managing a company allocating economic resources to a

5、ny of several variables in order to acliieve a particular goal. Data business simulation is intended to enhance students' decision-making skills, especially under conditions defined by limited time and iiifonnation. It mainly focuses on how to undertake a corporate takeover or how to expand a co

6、mpany's share of the market. Players in the business simulation receive a description of an imaginary business and an imaginary eiixdronment and make decision- on price, advertising, production targets, etc, about how their company should be nin. Besides, a business simulation may have an indust

7、rial, commercial or financial background. Other types of business simulations are resource allocation games, in wliich the player or players have to allocate resources to areas such as plant, prodiiction5 marketing and human resources, in order to produce and sell productsGenerally speaking, busines

8、s simulations are built around a hypothetical oligopolistic industry （虛擬的求過于供的市場）which consists of several finns, whose decision-makers or the managers are the participants of the game. Each finn or company is allocated a specific amount of resources in the fonn of cash, inventories, raw materials,

9、plant and equipment, and so foilli Before each operating period the players make decisions Tliese decisions can conceni price, advertising, output, marketing, raw material acquisition, changes in plant capacity、and wage rate. Then、all the decision iiifonnation are inputted into tlie computer that ha

10、s been progi ammed on the basis of a set of mathematical models that provide a link between the operating results and operating decisions of the individual firms, as well as the external enviroimient. Oil tlie basis of a set of behavioral equations, such as demand and cost fiinctions, and a set of a

11、ccounting fonnulas that have been programmed into the computer, and the individual decisions of each firms, the operating results are generated by the computer in the fonns of reportsfor example, profit and loss statements, balance sheets, production reports, sales reports, and total industry report

12、s at the end of each period Usually, the director of the business simulation can change the environment by altering the parameters of the operating characteristics of tlie game In each case、tlie finns find it necessaiy to react according to the magnitude and tlie natiu e of the change imposed by the

13、 external environment.Page 3SeedInternational様AS那2. ASDAN Business SimulationHie ASDAN Business Simulation has been aeated in an effort to help the aspiring business leaders and entrepreneurs of tomorrow gi asp a better logistical and strategic understanciing of how to nin a business. During the sim

14、ulation students will be actively involved in creating and deciding on eveiy aspect of tlieir business:from their company culhire to their production needs. Tlie interactive aspect of the simulation is a great way for students to get involved in tliiiiking about the practicalities of nnuiing a busin

15、ess. At ASDAN we believe that “how初 we learn is as important as '"what” we leani. Tlie business simulation programme has been aeated in a way so that students can proactively get involved in nnuiing a business without much G aining in order to maximize effect, efficiency and pleasure from l

16、earning experience.Tlie program involves two main activities of engaging in the business simulation operation and in business projects. Tlirongli the operations shidents will leani how to maximise th&r market share and revenue, wliile making siue their costs are as low as possible. Tlie projects

17、 will have participants actively involved in creating company culture, human resource, production, sales and marketing strategies for tlieir companies. Tlirougliout the competition teams will be competing to a eate the best business by aiming to make the most profit. With tliese activities students

18、will gain a practical undei standing of business that can not be tauglit in the classroom.Opcraiion prontOperationsStudents will need to decide on the level of production and pricing for their company in the operations. Tliey will also be required to assess the staffing needs, salaries ancl marketin

19、g spending for their company Following tliis students compete in a simulated market place to gain the most profit and out do their competitors. Tlie simulation will last several rounds in wliich students will need to use tlieir analytical skills to assess where their companies are sicceedng and what

20、 they need to change. Tlie game requires shidents to use all of th&r strategic and logical thinking to arise as the victors of the simulation ProjectsCompany CultureWlien establisliing a company you need to have clear ideas about the cultin e of your business. Tliis task will help teams be creat

21、ive in making a company culhire for their business that indentifies them to their customers and shows what their company stands for. Creating things to make your company stand out and be individual in a a owded market place is a key skill in business and tliis task will help students learn how to ac

22、hieve tliis.ProductionConsidering how your company will produce its goods is important in establishing a successful business. Hie production task will help students gain a better appreciation of how vital it is to have good production methods and ideas are for their company By analysing their produc

23、t and how it will be produced students will gain a deeper understanding of what production involvesHuman ResourcesUnderstandiiig the human resource needs of your company is a key element of nimiing a successful business. Tlnougli the human resources task students will be able to have a greater appre

24、ciation of the responsibilities and tasks of managing their staff.SalesSales are an essential part of any company given that without it they would have no profit. During the sales tasks participants of tlie simulation should be able to improve their selling teclmiques and ideas and improve their bus

25、iness knowledge of this area. Wliether it is tln ougli doing sales presentations or one on one selling to customers, students will be able to improve th&r ability to sell goods to the publicMaiketingA vital part of any company is having good marketing strategy to promote your company and brand I

26、n the marketing project students will get hands on experience in managing a company's marketing plans and will have a deeper understanding of tlie work involved in this.Page 5SeedInternational粲AS那3. SkHlsWliy ASDAN? - ASDAN Business Simulation is designed to provide an intensive and engaging lea

27、rning experience based on simulation. Tliere are several key skills that will improve for participants during the simulationAnalytical skillTeams will be evaluating their company operations, markets and competitors Tliey will make assumptions and decisions based on gathered and predicted information

28、. During tliis part, they will use tlieir analytic skills to analyze tliis iiifonnation so that they can make the decisions.Logic, Math and Common business senseTliere is a lot of simple calculation and logical thinking involved in making the optimal decisions for company operations, revenue maximiz

29、ation and cost production. Teams need to luiderstand tlie logical relationsliip between maximizing tlieir market share and calculating tlieir costs and revenues.Commimication and Negotiation skillTeams are involved in making decisions related to several different areas about company operations, as w

30、ell as agreeing on what role each person should have in the projcct presentations. Tliis will all involve debating and negotiating All team members can provide tlieir opinions and tiy to arrive at an optimal decision.Team WorkIll order to finish all decisions and projects on time, teams should decid

31、e intemally who and how many people will make company operations and who and how many people should design the projects. Tliey will work collaboratively to come up with tlie best decisions and liigli quality projects. Each member is responsible for tlieir own work while still cooperating with the re

32、st of tlieir team.Page 6SeedInternational粲AS那Page #SeedInternational粲AS那Page #SeedInternational轉(zhuǎn)AS那Page 7SeedInternational轉(zhuǎn)AS那Pi esentatioii skillPage #SeedInternational轉(zhuǎn)AS那Page #SeedInternational轉(zhuǎn)AS那Simulation, the company presentations are all in director will give an Tlierefore, team membersEach

33、team should provide and present its projects to the judges. Teams will practice tlieir presenting skills, ancl also the judges will give tlie feedback to themBusiness EnglishFor ASDAN Business operati ons and proj ect English Besides, the introduction in English.will use English to communicate and n

34、egotiate with each other, which will contribute to a better understanding of business English.Business conceits and tei insDuring tlie business simulation there are a lot of new business concepts and tenns that teams have never encountered before. Participating in tliis simulation, they will get an

35、understanding of new business concepts and terms, wliich will enlarge their business knowledge.Page #SeedInternational轉(zhuǎn)AS那Page #SeedInternational轉(zhuǎn)AS那Page 8SeedInternational* ASDANChina4. StrategiesWlien playing the operations simulation there is many ways in which companies can succeed Just like in

36、the real business world there is no one definite means to a eating a siiccessfiil business. It all relies on how you nui your business against competitors. Tlierefore when taking part in the business simulation it is equally important to monitor your costs and income as it is to increase your market

37、 share. Tliere are many different strategies you can take to become successful. Consideration of strategy should be given to each aspect of your decisions. You should have a strategic plan for your HR, production, sales, pricing and marketing, hi the following section you can read some (NOT ALL) pos

38、sible strategies for being successful, starting with pricing strategies:Pricing4- Penetztion Pricing: Sell a lot, for a low price to take others market share.I Predatory Pricing: Try to kill the competition. E.g Offer below cost prices. Can be used in particular market to stifle other companies.丄 Pe

39、i ceiv" Value Pricing: Build your quality, l eputation, sales and marketing and sell at a liiglier price because the customer tliinks you are selling a better product4- Value Pricing: Offer good quality at relatively low price, to take market share from tlie perceived value pricing companiesPri

40、ce is a key element in making profit and gaining market share. It is also important to remember tliat regardless of competition, if your price is luu easonably liigh no one will buy your products. Price is a veiy important factor in maintaining market share. Althougli you should also consider the am

41、ount you spend on sales and quality as these too are important.Maiketing strategyllu ough marketing reports you will see wliicli teams are in wliich markets and whether you would want to enter that market. You will also be able to see how many sales agents each team has in the market and what price

42、they are selling their goods at. Tliis can be very valuable in deciding whether to enter a market or not. Wlien entering markets you need to consider your strategy.Do you. ?A. Enter few markets in order to understand the piicing requirement of the market. Only add sales agents to that market in orde

43、r to maintain the most market shareORB Try and enter as many markets as possible. You will have higli sales costs and also reduce tlie impact of your sales agents but it may be work it if you can secure market share in these markets. You market share will likely be lower than if you focused only on

44、one market but possibly througli the combined market shares it may still be profitableHR and Production strategiesIt is important to make sin e that your HR strategy is coirect. Employing too mucli staff can aeate HUGE costs as you will have to pay the workers, pay for their production and also pay

45、for storage of the unsold goods Tlierefore you need to consider some of these strategiesA. Hire exactly the amount of workers you need and pay them a good wage so that none of them leave. DISADVANTAGE 一 costly to spend liigli salaries, ADVANTAGE 一 all workers stay and you can calculate each how much

46、 you will produceB. Hire more workers than you need and pay lower salary ADVANTAGE 一 lower cost for workers DISADVANTGE - unpredictable how many will stayC. Hire lots of workers and create storage ADVANTAGE 一 you can sell your storage in the next roiuids and not hire any workers DISADVANTAGE - very

47、high cost of storageD. Hire exactly the amount of staff you need eveiy round ADVANTAGE - no storage costs and may be cheaper DISADVTANGE 一 difiQcult to estimate how many workers will stayReinembei these are just some suggestions. To be successful you should make your own strategic plan on how you wi

48、ll manage your costs and how you will make money!Page 10SeedInternational粲AS那5. Simulation DecisionsPi ocedui es and RulesTlie business simulation conference will mn for 2 days with 9 rounds of the business operations and 5 business projects for each team to complete.During the operations students w

49、ill need to decide upon:Human ResourcesI Number of staff 4- SalaiyProduction4- Production scaleI Product QualitySnlcsI Product Price4- Sales network expansion* Sales power strength blanketingI Market shareSeed INTBRNATIONAL丄 Market research investmentPage 11轉(zhuǎn)AS醜5.1 Human ResourcesPage 12Page #To be

50、in HR, you need to employ workers and engineers.Tliese are the staff that you require to make your products Wlien paying your staff you will also need to take into consideration what the average salaiy is witliin the market in an effort to keep your employees happy. Employing the riglit amount of st

51、aff is very important for efficiency in tenns of paying wages and prodiiction.Basic In formation10ualb = 3 MonthsA1 Month = 30 Days1 Months = 168 Weeing Hours廿AS眥Page #Page #5. 2 ProductionProduction will likely be your greatest cost. You will need to pay for the production of components and product

52、s during the game along with how much you plan to invest in research. By producing too little you may fail to satisfy your demand and lose out on potential revenue and by producing too much you may face liigli storage costs llierefore it is key that you spend an appropriate amount of time figuring o

53、ut how much you want to produce.5. 3 Saleshi sales you will need to decide the price of your good and how much you will spend on sales support. Choosing a price can be vital in keeping market share as can maintaining sales strengtli. Every team will start off with one sales agent in one market. Thro

54、ughout the game you can add sales agents into different markets. Tlie effect these sales agents will have depend on your sales strength5.4 Ma i ke tWlien you want to know what other companies to do and what kind of decisions they make, you need to pay for reading a market report which will help you

55、to make the decisions. Tliis can be a very lielpfiil aid in deciding what markets may be profitable to enter. Tliis information can act as a guide to what market has the lowest competition and what tlie prices being charged there are like.SeedINTFRNATIONALPage #傑AS那5. 5 FinanceFinanceRevenue$CostFin

56、anceRevenue from sell)ng productsRevenue from projectsRovenue = (player orders X price) + projectsHR cost (wori<er & engineer salaries) Production cost (material storage quabty) Sales cost (add/remove sales agents. sales power)Cost = HR production * sales + marketing + consultantsProfit / los

57、sFrom the figure above, you need to know if you want to win the business simulation, you should try to use the niiiiimal cost to get the maximum revenue.You can get revenue from two parts: Sold products X price ProjectsYou will spend money in several ways: Salary (engineers and workers) Production (materials, components, storage, research costs) Sales (add/remove agents, sales support) Marketing Consultants Interest on loansTlie two ways in which you will want to succeed