1. Junior Achievement of Arkansas AT&T Youth Business Challenge December 6, 2014 Chad Kauffman (501) 804-2754 President Tonya Villines (501) 840-1345 Education Program Manager Sponsored By:

2. Teaching Tips:  The Student Notebooks have a lot of important information that will help them develop strategies as they participate in the computer simulation.  Students need to acquaint themselves with the contents of the Guide and prepare themselves for the next session.  Prior to each session print last Industry Report for students to review.  If time allows students may play more than 3 quarters per session.  Encourage the students to play the game at home so that they can get a better understanding of the simulation concepts.  Have Fun!  May the Best Team Win! Saturday, December 6 th

3. Getting Started Introduce yourself and present your background to the students. Explain why you are here, and the concept of the AT&T Youth Business challenge. Using the Halo Generator Poster you will explain to them that they will be “selling” the Halo- Generators (a small CD sized electronic device showing 3-D holographic images of various media. Your sessions with them will involve learning to price, produce, research and develop market, invest capital and distribute to charitable giving. Before you go to the classroom: 1.Create Your Game for 8 Teams 2.Set the Length for 9 Quarters 3.Turn off all decision except Price & Production 4.Set the Simulation to manually close each quarter

4. Session One – Pricing the Product  Key Terms (Volunteer Guide Pages 10-21) Price: The money value of a good or service (Pg. 11) Product: The good or service produced by a company and offered for sale (Pg. 11) Break Even Point: The point at which income from sales equals costs (Pg. 12) Production: The process of changing resources into goods to satisfy customers needs or wants (Pg. 13) Venture Capital: Money invested in a new business (Pg. 13) Fixed Cost: Cost that remain the same no matter how much of a product is produced (Pg. 14) Resource: Something of value that serves a need (Pg. 14) Variable Cost: Cost that change with the amount or speed of production (Pg. 14)

5. Session Two: Research & Development  Key Terms Product Life Cycle: The progression of a product from its introduction into the market through the growth, maturity and decline. (Pg. 23) Research & Development: The investigation into developing new and improved products, processes and services (Pg. 23) Demographics: The characteristics of human population segments, especially when used to identify consumer markets. (Pg. 24) Market Research: Gathering & evaluating data about Consumers preferences for products and services. (Pg. 24) Target market: A specific consumer group a business wants to reach! (Pg. 24) Marketing: The process of planning and executing the conception, pricing, distribution and promotion of a product of service. (P. 25) The Four P’s of Marketing: Product, Price, Place & Promotion (Pg. 25)

6. Session Three: Investing  Key Terms Capital Investment: The money paid to purchase buildings, tools and machines to create goods and services. Cash Flow: The amount of Money going into and out of a business during regular business operations. Charitable Giving: the voluntary effort to improve the well-being of humankind through the gift of money, materials or time. *Students are going to need to understand the idea of getting investors involved into the business and the idea of Capital Investments. **Students are also going to be presented with the scenario of profits are lower and what do they do about charitable giving. They need to be helped to understand the pros/cons of each decision.