2. Newman University Course Strategy Management Objective Within a risk free environment students are able to view alternative strategies and demonstrate business acumen. Students responsible Coordinate strategy Forecasting Implement tactics for Research & Development Marketing Production Finance TQM
3. Objective of Simulation Demonstrate effectiveness of multi-disciplines Various business units working together as a team Strategic thinking to accomplish advantage Acquire Business acumen Recognize interaction and impact various parts of business units Achieve an awareness Competition Stakeholders Practical exhibit improve the effectiveness of the business
4. Teams (Sample) Brandon University Embry-Riddle Aeronautical University Rhode Island College University of the Pacific Stonehill College Penn State Behrend Curtin University of Technology University of Alabama University of Manitoba Newman University
5. Facts of Simulation The break up a monolithic corporation into 5 Companies $100 Million in Sales 5 Product Lines Closed Marketplace Each Team facilitated their own competition within their own group.
7. Business Objectives Sustain Positive Cash Flow Leveraging ROA & ROE Increase Contribution Margin Achieve margin of 30% at the end of Year 5 Achieve margin of 35% at the end of Year 8 Maintain Market Share Achieve 25% of the over all market at the end of Year 5 Achieve 30% of the over all market at the end of Year 8 Growth Stock Value Increase stock price of 10% each Year for the 1st 5 years Sustain 5% growth for stock price in Years 6-8.
8. Strategic Plan Broad Differentiation Strategy Develop and sustain a presence in every segment Leveraging competitive advantage by forecasting customer’s future requirements and demand Investing in promotions that maintain a high awareness, availability and accessibility of products Utilizing capacity to generate of a contribution margin of 30% or greater Support TQM incentives to improve operational processes to increase efficiency Sustain TQM improvements: Reduce Cycle Time Reduce Labor Costs Reduce Material Costs Increase demand
9. Business ANALYSIS Opportunities Expand capacity to meet supply and demands New business opportunities globally Leveraging Technology Research Promotion and training employees Strengths Market Leader in R & D Contribution margin Brand Highly skilled workforce Positive Cash Flow Core competencies Threats Labor disputes Legal disputes Rapid shift in the market supply and demand New Competition Competition restructure Management Products Weaknesses Low Asset Turnovers Aging products that no longer meet the requirement of customers Lack of experienced workforce New Global markets Middle automation rates
11. Conclusion Strong business acumen creates success for all the stakeholders Active listening to external and internal customers is vital Communication between business units creates a team environment