Download StratSimManagement

Introduction
Simulations are one of many different methods for learning business skills. Reading textbooks teaches
the foundations of business theory, and real-world experience often shows the difficulty of putting those
theories into practice. The lessons of experience usually have the greatest impact because we tend to
learn best by doing, not solely by reading or hearing about other people’s experiences. However,
experience has its drawbacks as well. The well-known story about the employee who makes a mistake
costing a company millions of dollars is a classic example of the possible high expense of on-the-job
training. The employee enters the manager's office expecting to be fired and instead hears, "why would
we fire you now, we've just invested $10 million dollars in your training." Simulations represent a
sensible balance between the two. Though clearly not as rich as reality, simulations can capture the
essence of reality and help us practice implementing business theory without the potentially large costs
of errors.
StratSimManagement is an integrated strategy simulation game based on the automobile industry.
Needless to say, much of the complexity of the industry has been simplified to allow participants to
focus their time and energy on strategic issues. However, we've retained as much realism as possible to
make it easier to quickly understand the overall environment.
StratSimManagement addresses the following issues:
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Developing a business definition and implementing a profitable long-term business strategy
Identifying market opportunities and creating product/service offerings to satisfy them
Analyzing competitors and understanding their strategic intent
Developing the corporate infrastructure necessary to sustain growth
Allocating scarce resources among products, functions, and other investment alternatives
Exploring international market and sourcing opportunities (optional module)
In the simulation, you or your group will be competing directly against other teams, either in your class
or possibly at other universities. Decisions are made once each simulated year. Once all competitors
have made these annual decisions, the simulation will be advanced, and the results will be updated.
These results will be dependent upon your decisions, those of your competitors, and the evolution of the
general industry environment. Each industry will develop uniquely based on how the competitors
interact, what new products are introduced, and how these products are supported. As you will soon see,
StratSim provides a very dynamic learning experience. Customers and competitors will change, new
products will be introduced, and the economy will have its ups and downs. The simulation is designed
to be a fun, but challenging, experience.
Competing in the StratSim environment will require complex analysis and decision-making. Therefore,
take some time to familiarize yourself with the program and manual before beginning the exercise.
While working through the simulation, you will find it helpful to refer to the manual for information and
strategy tips. Section 3 of the manual contains helpful reference material.
Introduction—Page 1