1. Developing Technical and Management Abilities. in individuals holding key-decision jobs. Bill Armitage BSc, MSc, FOR, CEng, MIMechE Dr Dan Davidson BSc, PhD Brasov, Romania 3 rd -5 th Oct 2007

2. Emerald-VbeEmerald-Vbe An EDIT 515 Ltd. Virtual Business Environment

3. DECISIONS INPUT Accounts OVERHEADS PROFIT and LOSS BALANCE SHEET CASH FLOW Advertising Sales Revenue Assets Trading Receipts Sales Office Materials Purchased Liabilities Capital Receipts etc etc etc etc Overdraft Limit Next Quarter AVAILABILITY AND USE OF RESOURCES PRODUCT MOVEMENTS The Management Report

4. Last Quarter of History

11. GENERAL BUSINESS INTELLIGENCE MARKET SHARE % Share of markets by Products sold Share Price % Dividend Last Qtr All COMPANY BALANCE SHEETS Free information Prices, Number Employed, and Wage Rate PAID FOR INFORMATION Advertising, Research Spend and Star ratings

15. Simulation Format History Analysis Decision Making Computation Management Reports

16. Quarters NOW Last Quarter Next Quarter QBL QAN Time Latest Report New Decisions NOW

17. Corporate Functions Managing Director H.R.MFinanceProductionMarketing Product Package Promotion Selling R & D Scheduling Purchasing Transport Borrowing Investment Dividends Hire & Fire Wages Conditions

18. Sources Of Finance

19. Markets

20. The Products

21. Distribution Factory South WestNorth Retailer

22. Marketing Functions MARKETING PRODUCT DESIGNPROMOTIONORDER GATHERINGMARKET INTELLIGENCE

23. Product Design Prices Design Competition Availability Quality

24. Competitiveness COMES FROM Low Prices Good Design High Quality High Stock Levels But Market Share doesnt always bring Profit

25. Demography 4 Million Homes 7 Million Homes 13 Million Homes

26. Advertising Trade Press Reaches out to the retailers TV & Press Advertising Influences the buying public Merchandising Builds a long term image

27. Sales Force How Many? Where? Commission? Salary? How Many ? Where? Commission? Salary?

28. Some Economics Underlying Trend Seasonality The Competition The Law of Diminishing Returns

29. Diminishing Returns Effort Result

30. Research & Development

31. Product Improvements Minor ? avoided obsolescenc e

32. Product Improvements Major? Product Stocks?

33. Product Improvements None? Its deteriorated !

34. Production Machine Shop Assembly Shop ?

35. Product Content 1 2 Material Content Machining Time Assembly Time 1 Unit100 mins60 mins 3 Units 120 mins 300 mins

36. The Machine Shop Single Shift needs 4 Unskilled operators per machine

37. 2 Shifts needs 8 Operators per machine

38. 3 Shifts needs 12 men

39. The Assembly Shop Skilled Assembly Workers Work only single shift

40. The Underlying Conflict MarketingProduction The Vision Marketing Plan Resources Production Plan The Forecast Warehouse Stock Order Backlog

41. H.R.M. Take Home Pay Overtime Product Quality Downsizing Recruitment Absenteeism Wastage Strikes

42. The Underlying Conflict Marketing Production H.R.M.

43. Finance PROFIT & LOSS BALANCE SHEET Revenue Cost of Sales Overheads PROFIT Fixed Assets Current Assets Liabilities NET ASSETS Dividends

44. Finance PROFIT & LOSS BALANCE SHEET Revenue Cost of Sales Overheads Fixed Assets Current Assets Liabilities NET ASSETS LOSSES Additional Funding

45. Buying Machines Machines cost £120,000 and take two quarters to come on-line Overdraft Limit Current Overdraft

46. Share Price Some of the factors affecting Share Price Net Asset Value per Share Liquidity R & D Effort Stocks & Backlog Resources (Machines & People) Market Dominance Dividend Performance The Criterion for Success

47. The Underlying Conflict

48. SHAREHOLDERS MEETING

49. DECISION TIME

50. Summary - Virtual Business Environments (VBE) Decision and Choice - Human Resource Management Assessing Employees NeedsAspirationsAttitudesConflicts Recruiting Employees Training Employees - Training HR Staff - Conclusion

51. Virtual Business Environments (VBE) - Business or Management Games Examples:- - Global Management Challenge - Emerald-Vbe - Users - Human Resource Managers - Management Consultants - Universities and Colleges - Banks and Financial Institutions

52. Decision versus Choice - Choice is when a solution to a problem is selected qualitatively typified by entrepreneurial decisions - Decision is when a solution is the result of continuous problem transformations by the action of decision criteria defined to achieve a global objective (or strategy) and often subject to constraints - typified by analytical decisions

53. A rigorous definition of Decision D.J. White rigorously defines decision as Ф {Q, A}---- {q Q} Where Q is the set of possible solutions A is the decision environment including the objective and the set of constraints Фis the decision criterion qis the solution selected by the action of the criterion If q is still a set of alternative solutions then the action of the criterion has transformed the problem into a simpler problem requiring a new criterion. If q is still a set of alternative solutions then the action of the criterion has transformed the problem into a simpler problem requiring a new criterion.

54. Human Resources (HR) use of VBEs - Team Building Participants working together Common objective Appreciation of others problems - Ice Breaking Introducing graduates to company All have similar experience - none Assess team leadership qualities Assess analytical approaches

55. Human Resources use of VBEs (cont) - Behavioural Studies Individual behaviour in various simulated environments - Team player or individual? - Team leadership qualities? - Effective communicator? - Easily dissuaded or forceful? Assess an individuals initiatives, entrepreneurial and qualitative skills

56. Human Resources use of VBEs (cont) - Functional Training Objective is to improve personal technical performance - Focus on the task (for example understanding management accounts) - Focus on the task (for example understanding management accounts) - Working under pressure (complexity or shortage of time) - Working under pressure (complexity or shortage of time) - Improve quantitative skills such as using computers, modelling, mathematical and analytical other relevant quantitative tools - Improve quantitative skills such as using computers, modelling, mathematical and analytical other relevant quantitative tools

57. VBEs in training HR personnel - Learning through Decision Making teaching paradigm A simulated but realistic scenario that requires participants to make decisions that enhance their expertise and experience - Gaining experience by adopting disparate functions in the simulation - Understanding the need for effective sub-optimal, objective driven decision-making.

58. Team Dynamics - Multi-disciplinary teams (including HR personnel) allow the HR professional to observe, interact with and improve the team dynamics. - Need for a single global objective - VBEs are very effective in internal training when business roles are inter-changed

59. Conclusions Virtual Business Environments are much simplified simulations of a business, but essentially, they must be complex enough to pose realistic business problems. Virtual Business Environments are much simplified simulations of a business, but essentially, they must be complex enough to pose realistic business problems. If it is difficult in a VBE to achieve optimal performance, this illustrates the H.R. message that training is essential and necessary if a company is to have any chance of being Fit to Execute the implementation of the companys strategy. the H.R. message that training is essential and necessary if a company is to have any chance of being Fit to Execute the implementation of the companys strategy.