This document provides an introduction to a business simulation game. The objective is to run a complete business enterprise and maximize profits over multiple trading periods while managing cash flow constraints. Participants will make strategic decisions regarding pricing, marketing, production, consultants, transportation, warehousing, finance, and contracts. Decisions are logged into a secure server on a weekly deadline. The game aims to develop commercial awareness and business skills. This particular scenario involves managing a manufacturing and trading operation. Key elements to focus on include profitability, production capacity, entering new markets, and moderate cash resources.

1. Lion Business
Challenge
Introduction & Briefing
1

2. What is the Business Challenge?
• Simulation of the business world
• Process to run a diverse manufacturing and
trading operation
• Opportunity to develop a variety of business
skills

3. Your Objectives?
• Run a complete business enterprise
• Maximise Profits over trading periods
• but…manage resources within cash flow constraints
• Gain commercial awareness (without the risk)
• Ensure all facets of your business are run well

4. How does it work?
6. AWAIT RESULTS
& REPEAT 2-5
1. FORMULATE TEAMS UNDERSTAND
SCENARIO
FAMILIARISE
PARTICIPANTS
MATERIAL
3. MAKE DECISIONS
Pricing & Marketing
Production
Consultancy
Transport & Warehousing
Contracts
Cash Management
4. LOGIN TO SECURE SERVER
2. MEET TO PLAN STRATEGY
5. LOAD DECISION & SAVE
DECISION FORM

5. What decisions are needed?
• Pricing
• Marketing
• Production
• Consultants
• Transport
• Warehousing
• Finance
• Contracts
• Cashflow

6. What is your strategy?
• The Warehouse/The Reject Shop
• Cheap, Cheap, Cheap
• High Volume Needed for Profit
• Bunnings
• Perceived Value for $
• Mixed Bag Pricing
• BMW
• High Price
• Lower Volume

7. Key Issues
• Pricing
• Marketing
• Production
• Cash Management

8. Secondary Issues
• Contracts
• Transport
• Consultants
• Storage
• Investments/Loans

9. Time Requirements
• Each of your 6 decisions will take approx 1 ½
hours
• Decision deadlines will be weekly on Thursday at
8.00pm(NZT)/6.00pm(Syd Time)
• Late decisions will NOT be accepted
• Processing can take several hours, so results will
be available at 1pm (NZT) on Friday

10. Teams
• Divided into teams of 3
• Teams are generally made up from different divisions
of the organisation
• One game where all 5 teams compete against each
other.

11. Let’s look at your Game
• Scenario
• Management Reports
• Economic Conditions Notice – Pricing/Acquisitions
• Decision Form
• Participant Manual

12. Key Elements
• Profitability
• Reasonably Good profit so far ($242,778). Focus on
raising revenue
• Production
• Capacity OK currently, but watch increased demand
(47,000 vs. 23,497 sold)
• Markets
• New Aus/USA markets to enter, when you get approval
• Transportation
• Capacity OK, but watch increased demand (15,000 units)
• Cash
• Moderate resources available (cash $639,032 debtors
$578,178, loan $763,972)

14. Business Challenge Website
• Player Login: thebusinesschallenge.nz
• Situation Overview
• Decision Form
• Save
• Time Out
• Business News
• Summary Report

15. Where to from here…
• Get your teams together (either remotely or face to face) &
formulate the strategy/direction for your company.
• Start making your decision
• Look at your margins
• Future prospects (supply requirements)
• Pricing/Production… everything will flow from here.
• 1st Decision is the toughest. From here it gets easier & easier.
• 1st Decision due Thursday 23rd before 8.00pm
• Any assistance required… just ask.
• Email: enquiries@businesschallenge.co.nz