2 What is Mike’s Bikes? Single-player version (SoloMike) Stand alone single player simulationIdeal for teaching students the Mike’s Bikes interface quicklyMulti-player version (NetMike)Multi-player online simulationStudents able to connect from anywhereUsed predominantly in Marketing, Strategy, Management Accounting, Organizational Behavior, Intro to Business & Capstone classesHas also been used in Engineering Management, Business Communication, Entrepreneurship, Managerial Economics & Operations Management.
3 It works for ..Team competition ..Leadership development..MBAs..Undergrads..Management Development
4 Why Mike’s Bikes? Fun to teach. Fun to learn. Interactive learning environment.Complete environmental control.24 hour customer service.Fun to learn.Learning by doing.Competitive worlds.Cross-functional management experience.
5 Overall Strategy Shareholder Value BUSINESS STRATEGY Current Profit operatingdecisionsinvestmentCurrent ProfitECONOMICCONDITIONSCOMPETITORS’ACTIONSDemandSupplyBUSINESS STRATEGYMarketingStrategyOperations StrategyFinance StrategyProductDevelopment StrategyFuture ProfitAccountingShareholder ValueOverall Strategy
6 MARKETING DECISIONS Marketing Strategy Pricing Strategy Decide on a Marketing strategy (target segments, niche marketing, price/differentiation strategy, etc)Pricing StrategyDevelop a pricing strategy (eg, high price/low volume, low price/high volume)Decide on the price of your bikes based on an evaluation of your manufacturing costs and industry standards.Advertising/PR expenditureRecognise which advertising media your market segments respond to (all these data can be found in the Help manuals).
9 OPERATIONS DECISIONS Managing Plant Capacity Quality Systems Labour Balance demand with supply and ensure that you have sufficient capacity (note: capacity purchase takes two rollovers to complete)Quality SystemsInvest sufficiently in Quality systems to complement your marketing strategyLabourTry to ensure that your workers receive salaries and get sufficient training.
10 OPERATIONS DECISION SCREEN Managing Plant Capacity Quality Systems
11 FINANCE DECISIONS Financing your Firm Investor Relations Decide on how you wish to finance your firm’s operations, what percentage of debt/equityInvestor RelationsInvesting in Investor Relations will ensure that your investors are in the know and do not sell your shares hastily, thus causing fluctuations in your share price.
13 PRODUCT DEVELOPMENT DECISIONS Developing New ProductsIdentify potential synergies (eg, distribution channels) and plan the expansion of your product lines carefullyInvesting in R&DBe sure to invest sufficiently in Development ProjectsConsult the Perceptual Map for data on segmentsAny projects that have less than 90% success rates will be scrapped
14 PRODUCT DEVELOPMENT DECISION SCREEN Developing New Products
15 REPORTS Financial Reports After each rollover, flick through all the reports to find out how your firm performed.If you require further information, the Help files are the best source.
16 Overview of Single-player version Two manufacturersTwo market segmentsTwo distribution channelsAdventurersBike StoresReal CoolCyclesCompeting throughFor control ofThe SoloMike environment has two manufacturing firms, two distribution channels, and two market segments.Bike manufacturers:Real Cool Cycles - you,MountainTop Cycles - Mike (ie your computer).Distribution channels:Bike StoresDepartment StoresMarket segments:AdventurersLeisureMore details on all of these follow ...LeisureMountainTopCyclesDepartment Stores
20 Single-player version Perceptual Map 1008060AdventurersTech Specs4020LeisureThis “Perceptual Map” shows the “ideal” levels of Style/Design and Technical Specifications required by each segment. (We assume that we can measure the levels of Style and Technical Specifications on a 100 point scale.) There is a region surrounding each point which corresponds to acceptable levels. A bike with levels significantly different (say units) from a segment point will probably not sell.Over time the requirements of each segment can be expected to change, sometimes considerably.20406080100Style/Design
21 Multi-player version Course Overview WorldFirmUsers
22 Overview of a Multi-player version World Five manufacturersFive market segmentsThree distribution channelsCompeting throughFor control ofThe environment is richer than SoloMike but has the same basic features - market segments, distributors, and firms.
23 Multi-player version Perceptual Map 100Racer8060AdventurersTech Specs4020CommuterLeisureKidsThis “Perceptual Map” shows the “ideal” levels of Style/Design and Technical Specifications required by each segment. (We assume that we can measure the levels of Style and Technical Specifications on a 100 point scale.) There is of course a region surrounding each point which corresponds to acceptable levels. A bike with levels significantly different (say units) from a segment point will probably not sell.Over time the requirements of each segment can be expected to change, sometimes considerably.20406080100Style/Design
24 The Multi-player version Scenario (Richer than SoloMike) Same decisions and model as SoloMike.NetMike has two distinct phases over a period of 6-12 yearsA growth phase (new products & strategy implementation)A mature market phase (product life cycle management)All companies start out identically.No randomness in the model.Offline mode allows forecasting.The industry, decisions and model are the same as for SoloMike only richer, with more segments, distributors and firms. The firms start out identically and the goal is to maximize shareholder value creation. This is not the same as market share, profit or even earnings per share.You are constrained to stay within the Erehwon bike industry.