1. Top Management Game: QUARTERLY PROCESS Alev M. Efendioglu, Ph.D. Professor of Management http://www.usfca.edu/alev/alev.htm Instructor

2.  2009 Alev M. Efendioglu Strategic Management: TMG Quarterly Process OBJECTIVE MANAGE A BUSINESS & SUCCESSFULLY COMPETE IN AN INDUSTRY IN WHICH COMPANIES PRODUCE & SELL COMMODITY PRODUCTS

3.  2009 Alev M. Efendioglu Strategic Management: TMG Quarterly Process SIMULATION AT A GLANCE Management Team enters their decisions and receives their results using TMG on the NETWORK. Management Team prepares for a set of new decisions for the upcoming Quarter using SCEN on any PC and the results of the previous quarter from TMG. Administrator receives own results using TMG. SCEN and its associated files are downloaded from the web site using the instructions included in the TMG BOOK. Access to TMG, on the NETWORK, requires official registration to the course.

4.  2009 Alev M. Efendioglu Strategic Management: TMG Quarterly Process THE PROCESS: QUARTERLY CYCLE DEVELOP SCENARIOS USING SCEN ON ANY PC & FINALIZE YOUR DECISION SET ENTER YOUR DECISIONS USING THE TMG PROGRAM ON THE NETWORK PREPARATIONCOMPETITION BEGIN QUARTER n END QUARTER n BEGIN QUARTER n+1

5.  2009 Alev M. Efendioglu Strategic Management: TMG Quarterly Process THE VERY BEGINNING  DOWNLOAD AND INSTALL THE SCENARIO FILES (TMG Book for instructions and follow these instructions explicitly) REQUIRES INTERNET CONNECTION AND A PC. THESE FILES CAN ONLY BE USED WITHIN THE MS WINDOWS OPERATING SYTEM CAN BE DONE ON OR OFF-CAMPUS USE OF A FLASH DRIVE IS HIGHLY RECOMMENDED DO NOT INSTALL ONTO USF NETWORK COMPUTERS

6.  2009 Alev M. Efendioglu Strategic Management: TMG Quarterly Process PREPARATION: SCENARIOS DEVELOP SCENARIOS USING SCEN ON ANY PC & FINALIZE YOUR DECISION SET DEVELOP A SET OF ASSUMPTIONS: Your projection of competitors’ decisions for the upcoming quarter. HOW? DEVELOP & TEST DIFFERENT SETS OF OPERATING DECISIONS THAT WILL SUPPORT YOUR STRATEGIC OBJECTIVES. Make a note of your final preferred set of decisions. You will use this list to enter your decisions on the network.

7.  2009 Alev M. Efendioglu Strategic Management: TMG Quarterly Process PREPARATION: ASSUMPTIONS DEVELOP A SET OF ASSUMPTIONS: Your projection of competitors’ decisions for the upcoming quarter. ASSUMPTIONS are a set of industry related averages (excluding your decisions) that represent your understanding of the competitive behavior in your industry. WHAT ARE THEY? ACCURACY Your business skills and your efforts in monitoring and your evaluation of competitive behavior over time will determine the ACCURACY OF YOUR ASSUMPTIONS. Using the information available on your TMG printouts, you should create tables and graphs to help you in your efforts.

8.  2009 Alev M. Efendioglu Strategic Management: TMG Quarterly Process PREPARATION: DECISIONS Develop & test different SETS OF OPERATING DECISIONS that will support your STRATEGIC OBJECTIVES. STRATEGY DECIDE ON YOUR BUSINESS LEVEL COMPETITIVE STRATEGY. You should develop your strategy (cost leadership or differentiation) at the start of the competition and evaluate it on an ongoing basis. OPERATIONS As you manage your company, you make a set of OPERATING DECISIONS. These decisions should support your business strategy, should take into account your organizational capabilities, and incorporate your evaluation of competitors’ behaviors.

9.  2009 Alev M. Efendioglu Strategic Management: TMG Quarterly Process SCENARIO RESULTS  View the scenario results  Think about any changes you need want to make in your decisions and/or assumptions  Develop additional scenarios to test the impacts and outcomes of your changes  This process can be completed as many times as you want

10.  2009 Alev M. Efendioglu Strategic Management: TMG Quarterly Process COMPETITION: THE MARKETPLACE ENTER YOUR SELECTED (from your scenarios) SET OF DECISIONS & RECEIVE YOUR RESULTS USING THE TMG PROGRAM ON THE NETWORK. QUARTERLY DECISIONS HAVE DEADLINES (with significant penalties for missing a deadline) & RESULTS WILL BE AVAILABLE AFTER EACH QUARTER DECISIONS ARE PROCESSED. Transfer your results (this is your company’s current status) on to your scenario disk. You will need this information to develop scenarios for the upcoming quarter. Your competitors will enter theirs as well. Once all teams in the industry enter their decisions or the decision deadline arrives, which ever is earlier, the decisions for the quarter will be processed.

11.  2009 Alev M. Efendioglu Strategic Management: TMG Quarterly Process SECTIONS ON THE PRINTOUTS  LIST OF COMPANY DECISIONS Manufacturing Marketing Financial  MARKET RESULTS INDUSTRY DEMAND COMPANY SALES INDUSTRY AVERAGES  FACILITIES & PRODUCTION PRODUCTION LEVELS & COSTS AVAILABLE NEXT QUARTER  ENDING BALANCE SHEET  P/L STATEMENT GROSS PROFIT MARGIN ADMINISTRATIVE & GENERAL EXPENSES PROFIT & LOSS  CASH FLOW STATEMENT  SUMMARY INDUSTRY INFORMATION

12.  2009 Alev M. Efendioglu Strategic Management: TMG Quarterly Process COPYRIGHT NOTICE ©2005-2009 Professor Alev M. Efendioglu. All Rights Reserved. No part of these materials may be copied, reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or maintained in any information storage system now known or to be invented, without permission in writing from Professor Alev M. Efendioglu.