1. BA 490C Intro to BPG1 Overview of simulation Briefing on company organization task

2. BA 490C Intro to BPG2 Simulation overview A business competition among teams in your World (section) Each company manufactures and sells a consumer durable product in 4 market areas, e.g., toaster, inside/outside thermometer, etc. Your product directly competes with the products of other companies for consumer $ Each firm makes quarterly decisions on marketing, production, and finance

3. BA 490C Intro to BPG3 Decision form

4. BA 490C Intro to BPG4 Simulation overview--continued The BPG then simulates the competitive results based on the decision input, and Produces quarterly reports for the industry and your company Your access to the BPG program is through Sun Global Desktop on the CBA site

5. BA 490C Intro to BPG5 Tools to know how you are doing Financial statements Summary industry and competitor data Your company’s financial statements Income Balance sheet Cash Flow Operating reports for industry and company ProScore Shows performance relative to other teams Is the basis for team scores at the end

6. BA 490C Intro to BPG6 Quarterly industry report Industry environmental data Financial market data: GDP, CPI, interest rates, RGDP, Real GDP forecast Exchange rate forecast Comparative company data Financial performance & condition Sales, market share, pricing, & product characteristics

7. BA 490C Intro to BPG7 Company operating reports A detailed report of financial, marketing, and production results for your company--available only to you Income statement Cash flow analysis Balance sheet Production cost analysis Output, inventory, & sales analysis Standard cost per unit Sales force analysis Latest decision inputs

8. BA 490C Intro to BPG8 Your challenge Organize your team to be successful Designate functional roles and overall leadership Assign decision responsibilities—operational & strategic Define team expectations of members Develop goals, objectives, strategies, policies for your company Develop supporting functional objectives, strategies, and policies Plan your work flow Coordinate the work to successful completion Manage (control) your performance Estimate results Measure actual results vs. your estimate & act Monitor competitive position & performance Understand why others do things better Identify how you can do better Reassess/confirm strategy

9. BA 490C Intro to BPG9 Performance evaluation Competency tasks—Team tasks for from 10-40 points Sales order forecast Product cost Capacity evaluation Justification for investments in capital Cash planning Operational statement analysis Financial statement analysis Competitive analysis Management tasks—Team tasks for from 40 to 100 points Strategic planning: mission, overall objectives, business strategy Strategic management: hierarchy of objectives, strategies, and policies Control: analysis of financial and operating results, determine need for operational and/or strategic change; then, implement the changes Competitive results Multiple dimensions of financial results, many of which are driven by net income Reported on the ProScore report annually

10. BA 490C Intro to BPG10 ProScore report Click for Sample ProScore report.ProScore Note the factors and their weights may be changed before we start the competition.

11. BA 490C Intro to BPG11 Peer evaluations Individual grades for team assignments may differ greatly from the team’s grade depending on peer inputs. Peer evaluations are confidential; they become the property of the instructor and will not be divulged to team members. Additionally, the following factors may affect individual grades for team work. Non-participating team members, i.e., those whose names are not listed by a team on the submitted copy of an assignment, receive no credit. Teams may terminate their association with members whose contribution is unsatisfactory; however, they must do so professionally and obtain the instructor’s prior approval. Students terminated from a team will be dealt with on an individual basis, with at least a one-letter grade penalty.

12. BA 490C Intro to BPG12 BPG resources—from web site BPG A Player’s Tutorial and a Quick Start reference guide are available from the Help menu in the BPG The printed manual is available in Support Services (Room 229) for $12 View a pdf version of the Players' Manual at the BPG aurthor’s website: http://www.eskimo.com/~bpg/. Select Players Area and login: username = player; password = swb30oss (case is significant)http://www.eskimo.com/~bpg/ BPG simulation Introduction to BPG initial decisions Introduction to BPG Items affected by exchange rate fluctuationsexchange rate fluctuations Key to history report file names Sales forecast blank form blank form

13. BA 490C Intro to BPG13 CEO CFO VP Marketing & SalesVP Production Position CEOCFOVP Marketing & Sales VP Production Name Operational decisions Strategic decisions BPG manual expertise Team organization & decision responsibilities Wednesday: Indicate responsible person in cells on decision form Due Wednesday Team roles Operational decision responsibilities Wednesday: Team roles due by email Next week: Strategic decisions for each role Next week: Specify general and expert manual knowledge expectations by role.

14. BA 490C Intro to BPG14 The BPG simulation: An opportunity To bring together the knowledge & skills from each CBA discipline to Apply strategic management concepts Integrate the decisions of each functional area to achieve organizational effectiveness See how the decisions of one function affect the performance of others and the entire firm Appreciate the importance of each function to successful operation of the business