User Manual

Part 1

FOREWORD

This manual explains -

• How to take part
• The organisation of the simulation/competition
• What your team must do
• How your company works, and how it relates to the other companies in your group.

It contains clickable hyperlinks for -

• a contents list (see left) and the decision form
• cross-references to tables and other sections
• additional pages containing guidance and more detail

For example, see more detail on how to use this manual.

INTRODUCTION

Your company can be considered to have four main management functions -

1. Marketing
2. Operations
3. Personnel
4. Finance

One of the main aims of this simulation is to illustrate the interactions between these four functions.

Emphasis is placed on the importance of achieving a good balance in order to achieve your objectives.

This can best be achieved by good organisation, effective communication and teamwork. Therefore, you should organise (see Guidance Note) your team to carry out the duties of senior management.

Control of your company is exercised through two documents:

The Management Report

This shows your company performance in the quarter just completed.

The Decision Form

The printed sheet, or computer screen in which you make decisions for next quarter.

Objective

You are trying to win by maximising your company's prospects for the future so that, at the end of the simulation, your company has the highest share price.

To achieve this target you need to develop a company strategy (see Guidance Note).

Once you have a strategy you can work out the tactics to make that strategy happen.

Company History

You are given a brief history of your company covering the period immediately before the simulation starts, including the decisions which generated these results.

This history consists of the Management Reports for several quarters (usually five). All companies taking part have the same history, so that each starts from an identical position.

The following sample report is taken from history GM05. You may find it helpful to refer to it, occasionally, while reading this manual.

Right clicking the link below will enable you to open it in a new tab or window -

   2006Q3

The contents of the Management Report are described in detail elsewhere (see Index at left)

Procedure

Having assessed the situation and decided what you want to do, complete your first Decision Form and submit it for processing, in accordance with the published timetable. In return you will receive a Management Report which tells you what has happened to your company as a result of the decisions you have taken. Use this information to improve your knowledge of the workings of your company and of the market. Then make the next set of decisions ... and so on to the end of the simulation.

Additional points

Before proceeding to the rest of the Manual, there are several points which need to be explained:

• Some companies have been known to make large losses. Even so, you will never be declared bankrupt. By permitting companies to continue to operate on massive borrowings, which might not be tolerated in real life, all teams taking part are at least able to reach the end.
• The simulation proceeds in steps of one quarter of a calendar year. Once decisions have been taken for the coming quarter they cannot be altered before the next. The simulation consists of a number of quarters (which will be announced before the simulation starts), and you are given a timetable detailing when Decisions must be sent in for processing, and when you should receive the resulting Management Report.
• During the course of the simulation the Controller does not intervene in any way to affect its development. All economic data (market trends, interest rates, etc.) are set before the simulation begins. The simulation Controller never arbitrarily interferes. There is sufficient uncertainty created by the interactions of the competing companies, without adding any more.
• To help you make effective use of this Manual, hyperlinks are provided in the Contents list (see left) to the major sections. Costs and other fixed parameters are included in a series of tables. These may be accessed from relevant links. There are also many cross-references, plus additional guidance and notes on important detail.