Develop a virtual reality representation of YOUR business to facilitate real strategic choices; or alternatively develop a tailored, interactive simulation for teams within a competitive environment to obtain real-world business understanding.
Virtual reality simulation and business models
To support our learning events and for operational use in the business, we build models that enable virtual reality representation for those in the business to explore potential outcomes. These models commonly use scroll bar tools that enable key assumptions to be varied and their impact instantly identified.
An example is for branch managers of a retail chain where we built a virtual model of a branch enabling the managers to enter their real branch performance data and build development plans for the next two years. The model supported the training by illustrating the effect of actions that can be taken in the branch as well providing a tool that managers can take away after the training to continue applying their learning in the work place.
For a telecommunications company we have created a model to explore the profitability of their mobile phone packages. The model can evaluate the profit impact of bundling initial and ongoing incentives. The key is to offer services which have high perceived value by the customer yet are low cost to provide.
Examples of these models and many more can be provided.
Tailored, interactive, competitive simulations
We build simulations that are highly relevant and engaging, using real management reports and financial information from your business and its markets including:
- Profit & loss accounts
- Cashflow statements
- Balance sheets
- Key financial performance ratios (inc. EVA, ROCE, etc.)
- Share price data
- Market information (including competitor information)
Managing real world variables
- Economic cycle
- Inflation rates*
- Bank base rates*
- Interest rates*
- GDP changes
- Tax rates
- Up to 20 different markets
- Degree of saturation*
- Responsiveness to types of marketing investment
- Responsiveness to investment in research & development
- Sales take up levels*
- Price elasticity
- Number of competitors
(*Fluctuate in line with prevailing economic conditions)
Making real management decisions
- Take on specific responsibilities
- Plan recruitment & staffing levels
- Agree salary rates & policies
Financing & Strategy
- Determine business strategy
- Raise or redeem equity capital
- Raise or repay debt capital
- Buy or sell fixed assets
- Manage working capital
- Manage cash resources
Sales / Marketing
- Determine selling prices
- Enter new markets
- Investment in different types of marketing
- Contract bidding
- Determine product costs
- Set production levels
- Set operating capacity
- Invest in Research & Development
Other attributes of our business simulations
In a training environment, teams of small groups operate competing businesses, playing out strategies over a number of operating periods. As well as incorporating key performance measures, in designing the simulation we can include a range of business areas including:
- Establishing operations
- Arranging funding
- Managing staff
- Designing products
- Co-ordinating supply chains
- Establishing pricing
- Defining marketing and promotion
Our simulations provide realistic, engaging and dynamic learning scenarios because:
- Decisions of one team impact the market and other teams
- Markets are not exclusively available to the participating teams
- Decisions are calibrated with real market data and expected responses from incumbent businesses
- Participants can actively explore the application of business principles to real management decisions
The simulations also contain a stock market algorithm that calculates theoretical stock prices for the businesses. This aspect reinforces the link between strategy, actions and the creation of shareholder value.
Throughout the simulation principles are illustrated, practiced and explained. Tutor support and facilitation is provided continuously to help groups evaluate business situations and develop actions. A careful debrief consolidates the knowledge learnt and principles illustrated.
Options for practical learning
- Integrated with a three to five day business learning event
- A stand-alone module in a development programme
- Distance-learning before, between or after programme modules to ensure learning sets maintain momentum and key principles are reinforced
- Provide comprehensive management reports that can be designed to meet your requirements (i.e. using a business or industries own terminology or business performance measures)
- Groups (or individuals) experience using reports with terms, currencies and performance measures that they are familiar with (and that they would naturally have access to)
- Marketplace and overall economic environment can be pre-determined to meet client's own requirements
- Results of decisions will reflect attributes of a realistic business and economic environment
- Focuses on financial management but links this to wide range of other business decisions (e.g. marketing spend, recruitment, asset utilisation)
- Results of decisions will reflect attributes of a realistic business and economic environment that can be created to suit their business's market situation
- Can run for up to eight different decision periods and between two and six teams (or individuals) can take part
- Participants focus on the business decisions rather than the operation of the simulation
- Easy to use - participants need no computer knowledge (although can use PCs if required) and input of results is straightforward for the tutor
- Can be easily incorporated into different types of learning events (e.g courses of varying lengths, remote decision making via email, intranet, etc.)
- Doesn't include any random factors (unless required)
- Inspires confidence of participants - they know that their results are only influenced by decisions in the marketplace (and they can see the evidence)
Enable managers from all disciplines to make improved business decisions with a clearer understanding of their financial impact on the business.
Reconcile the needs of your markets to your resources, in a changing world, to determine the direction and scope needed to achieve success for your organisation and meet the needs of your stakeholders.
The key to understanding your business propositions is to construct business models; only by developing assumptions, applying scenarios and testing options can the real value be explored and evaluated.
Equip your people with the skills and techniques to identify and deliver market leading products or services that are fully aligned to changing customer needs.
Enable your people to apply best practice as they plan, source, make and deliver your products and therefore provide your business with greater flexibility, reduced costs and improved availability.
The key to growing sales is to fully understand your customer, enabling you to create value propositions that really meet their needs better than the competition.