INR 500 business game
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A fun game at Era Business School during our foundation course wherein a group of students were instructed to do business with an initial capital of ₹ 500.
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INR 500 business game
- 1. MISSION 500 ( ….A Boys’ Day Out) Navdeep Dahiya Bhumil Rastogi Ajay K Raina Aman Chauhan Ankit Yadav
- 2. BUSINESS CONCEPT Zero Investment Capital. Look Close by. Identify demand first.
- 3. MODUS OPERANDI Café Owner Zeroed Upon. Interaction to Identify Needs. Distribution of responsibilities. Market survey. Identification of the Key Product. Extract Advance as commitment. Procurement. Supply.
- 4. WHY THE DEAL! Eggs per tray (30 eggs) - INR 105-110 per tray. Supplier to Dealer - INR 95 per tray. MRP Our quote to Café - INR 90 per tray Café owner saved INR 5/- per tray and, thus, the deal.
- 5. PL EQUATION CP for Group Total CP for 06 Trays- SP for Group - - Total SP for 06 Trays- INR 80 per tray. INR 480. INR 90 per tray. INR 540. Total Profit = 540 – 480 = INR 60. Less Expenses = Nil/ notionally INR 10/-. Profit = INR 50 on an investment = 0. Mathematically, profit = 10.41%
- 6. LEARNING & CHALLENGES Not easy. Incentive. Quality Issues. Competition. Innovative.
- 7. SCOPE FOR IMPROVEMENT Direct purchase. Long term. Customer base.
Editor's Notes
- Good Morning Ladies and Gentlemen, for the outdoor game yesterday, our group consisted of ………… other modalities are already known to all.
- Our funda was to look for a project that would need no initial investment even though the total budget will be 500;We decided to look at the options that were nearest to us before venturing far;Our concept involved looking for a customer who had some need and then try and do a deal based on the market survey.
- We identified our own cafeteria as a likely business client;We interacted with the owner and identified four groups of items that he was willing to purchase from us IF we got him a better deal. These were..1. Bakery products; 2. Soft drinks; 3. Eggs; 4. Packaged food like biscuits and 5. Disposable cups;The responsibilities were distributed as under….Ankit for Bakery; Ajay for soft drinks; Naveen for eggs; Bhumil for packaged foods and Aman for disposable cups. We took details of individual items, ie rates at which the café owner was getting those items from his suppliers.Market survey was carried out in Sector 7 Market since that falls on our route. It may be noted that all members of our group commute independently for reaching EBS and, Sector 7 market served as a common meeting point for all of us.After we did our survey and exchanged notes, we realised that there was hardly any margin for further discounts in all other products less one, ie eggs.Having finalised the key product as EGGS, two of our members were sent back to café to confirm the deal and take advance. Details of the deal will be shown a bit later. Once the deal was confirmed and owner paid up full amount as advance, a telephonic call was made to members in the market. Eggs, six trays were then procured and brought to EBS.The consignment was delivered within 20 minutes of receiving the cash.
- Self explanatory
- Self explanatory; pl check maths…..notionally because since we did not incur any expenses, we assume that it will cost rs 10 for transportation!
- It is not easy to earn the money. Customer needs some incentive for getting motivated. If the owner was offered the same price as being offered by his supplier, we would not have got the deal.Eggs are more or less easier to handle since quality , unless the size is too small, is naturally controlled. Had it been something else, say loose grains or spices, quality becomes an issue for the customer who may have his/her own doubts. We left out bakery products for this reason.Beating the big players in the market is tough….. We had no chance in packaged food or soft drinks.It may be very rudimentary but some innovative thinking did help us to do this business without investing anything from own resources.
- Direct purchase from producers will increase the margins.Long term contract will pay more.More customers required to make a reasonable profit.