Preview
It is lovely Sunday morning in TAPMI, a group of friends (all of
them placed) planned for an outing to enjoy nature, which surrounds
this beautiful campus. At 9:30 am, a mail is received from Prof.
Natarajan, conveying about the Simulation game, which is to be
played from tonight. The manual of the game is to be collected from
library immediately. A file has also been sent where students were
divided into teams of 5. The group of friends was divided into
rival teams. These friends liked healthy competition and were
eagerly waiting for this simulation game to start. They went ahead
with their trip, enjoyed the waterfalls in hanuman kundi, then went
to Malpe beach to relax and sit till the sunset, returned back to
campus by 7PM. They collected their manuals and started reading
about the game.
Background
Pedagogical games are a particular type of simulation for which
the main objective is to learn and to practice concepts,
techniques, and decision-making process. The simulation model used
in a business game represents a business situation in such a way
that the learning of concepts, techniques and decision-making
processes can be transposed onto real business situations.
In a typical business game, several companies are in competition
in a given industry, and each company is managed by a group of
students. Each group makes decisions about various aspects of their
companys management for a given period of simulated time, which may
run from one month to one year. When all groups have independently
made their decisions, they are entered in a computer-based
simulation model. The results of each company are returned to the
corresponding group. Often information may be purchased, including
information on competing companies. The game is, thus, played over
several simulated periods in which each team tries to maximize its
objectives (for instance, sale, market share, or profits).
We are looking at industry containing three teams. One of the
rival team Albatros perspective has been captured in this game. The
Team consists of Marketing, Operations and Finance majors, which is
ideal for a good business strategic decision-making. The first step
is to read the manual and understand the rules of the game. The
manual contains all the information about the products, customers,
supply chain, Research & Development, Advertising &
Marketing Expenditures, and Financials etc.
Once all of the team members are thorough with the manual, they
are asked to experience the simulation, as the decisions needs to
be taken quickly. All the tabs, Ins & Outs of the pages within
the simulation game needs to be seen. Problem Description:
INTRODUCTIONStrategy Simulation is a course in the MBA program
which is a simulation game involving a real life industry with
multiple competitors. To play this game one needs to analyze a lot
of information on market statistics and take decisions on the basis
of the data provided. The objective of this game is to maximize
stock price index (SPI) and be the leaders in their respective
industries. To take informed decision proper understanding of
perceptual maps, features of product, financial statement, company
performance, market share, revenue is very important. Thus it is
important to have proper representation of these data so that the
player finds it convenient to make his decisions.
All the Teams started with Share price index of $1000. The
budget at period 0 was $500 for all the teams. Each team started
off with two products, which was given by default. Currently we are
in the period 3 of the game making decisions for the next period
and thus we can view the details of the previous 3 periods. The
segments that we are targeting in this game include high earners,
shoppers, professionals and explorers. There are three companies
competing in the same market and our company Albatros has two
products currently-Move and Most.In this game there are the
following tabs:
Login: This is the first and the register and login page where
the user is validated.
Team Info/ About Us: This gives us the information about the
team members.
Home page: This page contains links to all report and decision
making pages and shows the array of options where the player can
visit to check details.
Consumer and survey panel: The shopping habits, brand awareness
and purchase intensions of the customers over a period are given
here which shows the buying intention.
Data multidimensional Scaling: This gives the marketer a
positioning of his product in the minds of the customer in
comparison with the ideal values.
Consumer Report: The segment size, the units sold to the
segments and the market shares are presented here.
R and D Report: This contains the status and features of the
product in the development stage.
Financial Report: This gives us details about profit and loss
statement and brand contribution period wise.
Industry Dashboard: This provides Industry Information on SPI,
Retail sales of all the firms in the Industry as well as the Market
share.
Company Dashboard: This gives details about company &
product contribution, production plan and distribution
coverage.
FAQS: This contains a few frequently asked questions with
solutions about the game.
OBJECTIVE To provide real time user experience with seamless
transition between functionalities. Apply the learning from MDSS
into a real time and practical project. Improve the existing
simulation game project by providing features that would provide
better convenience and functionalities.
Blue Print of the ModelCompany DashboardTeam InfoIndustry
Dashboard
Financial ReportConsumer Survey & PanelMultidimensional
scalingConsumer SurveyResearch & Development
Model & Functions Used
FUNCTIONS
Pivot Table Offset Function Match Function Name Manager Data
Validation Macros Indirect Reference Slicers Charts & Graphs
Hyperlinks Linked Images VB scripting Conditional Functions
Algebraic functions (SUM, RANDOM) VLookup Function Index, CHOOSE,
NOW function Grouping Freezing Panes Comment / Inline image
As we go to the model, each function will be mentioned. Where
and how it is being used will be shown for each explained Excel
tab.
LOGIN PAGEThis is the first page that is displayed in the
simulation game. This page contains a brief description about the
functioning of the game and has the option of viewing the details
of the team, registering as a user and logging in and proceeding as
a registered user and thus entering into the home page. This page
also generates the current date and time taking from the system.
This is done using the Now function. For the functioning of the
buttons the Macro function has been used. The buttons present in
this page are:1) About Us2) Register3) Login
About UsUpon selection of this button we get directed to a new
page where we get to see the detail of the team with the names of
every member. When we take the cursor on an individual members name
a comment box pops up with that persons roll number and picture.
This page also has a button to return back to the login page.
RegisterWhen a new user wants to register himself he needs to
click on the register button and enter his details of username and
password in the dialog box. The user needs to enter his name and
password in the text box and click on Register. These details get
stored in the users sheet and thus now the user gets registered. To
further proceed in the game, the registered user needs to just
login with those details.
LoginThe login button is for a user who is already registered
from before and wants to enter the home page to play the game.
However if the user still clicks on login without being registered
and enters his details a pop up box appears with the notification
User Id unavailable, please register. Then it gets directed back to
the login page so that the user can register self and then
login.
If a user is registered and commits an error while entering the
password the system will again pop up a box with the message
Incorrect password. For the convenience of the user when only the
password is wrong the box with the details have user id intact and
the user only needs to rectify the password to proceed.When the
user types the correct user id and password it matches the details
from the user sheet and shows Login Successful. After this the user
is directed to the Home page from where on he can start playing the
simulation game.
Industry Dashboard:
Data representation:The Industry Dashboard shows two types of
data i.e. individual firm results and entire industry results. The
individual firm results show the individual revenues, net
contribution and share price index of each firm. The industry
results show simultaneous data about the SPI, retail sales, market
share and top selling brands of all the firms of the industry.
Thus, this can be used to compare data of different firms and for
data analysis. For individual firm, the user can select the firm
(L, M, N) and period 0,1,2.
Excel Working:The individual chart shows the option to select
the firm and the period for the data is to be selected. This can be
selected using a slicer. The screen shows a table of data of the
firm selected for a given period. This table is then represented
with a chart. Similarly, for the industry results, the period is
selected from a list created by data validation. Once the period is
selected, the data for all the firms for the given period is
showcased. Once the firms and the period are selected, the charts
are created and displayed using Name Manager.
Data Market Report:
Data representation:The Data Market Report shows product wise
data for a given market. The first table shows the market sales,
volume, retail price, cost, etc. for each product of the market.
The second table shows the characteristics and features of each
product of the market. It is also possible to view the collated
data for each product of the market for the purpose of data
analysis.
Excel Working:The Data Market Report has two static tables for
each product of the sonite market. These two tables can be collated
for data analysis using Power View. The Power View will combine the
two tables and a new collated table will be displayed in a new
sheet.
Consumer Survey Report:
Data Representation:The Consumer Survey shows key perceptions by
the consumers like Purchase intentions and Brand awareness of all
the products in the market. This also shows the Shopping habit of
all the consumers location wise. The survey also reveals the market
share of all products in percentage units and total units sold
consumer segment wise. The last graph shows about the relative
consumer segment size. The information is available for all the
past periods.
Excel working:Indirect reference and name manager has been used
to create a link between each period data and main consumer survey
report. A data validation tool is used to create a cell to select
the period. When there is a change in data, the chart automatically
updates the same in main report.
Period 1:
Period 2:
Period 3:
The R & D Report:
Data representation:The R & D Report shows the R & D
result generated for a new product or an already existing product
in terms of its characteristics. i.e. features, design, battery,
display, power, current base cost, minimum base cost. A chart is
generated for every selection made. The user can select the product
and the period.
Excel Working:A slicer is used to select the product and period
based on which the table is generated. The options available are
POMORE and POMOST for periods 0 and 2. The chart is then generated
based on the table. VLOOKUP function is used to generate this table
based on the slicer.
FINANCIAL REPORTThe process of evaluating businesses, projects,
budgets and other finance-related entities to determine their
suitability for investment. Typically, financial analysis is used
to analyze whether an entity is stable, solvent, liquid, or
profitable enough to be invested in. When looking at a specific
company, the financial analyst will often focus on the income
statement, balance sheet, and cash flow statement. In addition, one
key area of financial analysis involves extrapolating the company's
past performance into an estimate of the company's future
performance.
Financial analysts often assess the following elements of a
firm:
1.Profitability- its ability to earn income and sustain growth
in both the short- and long-term. A company's degree of
profitability is usually based on theincome statement, which
reports on the company's results of operations;2.Solvency- its
ability to pay its obligation to creditors and other third parties
in the long-term.3.Liquidity- its ability to maintain positivecash
flow, while satisfying immediate obligations;Both 2 and 3 are based
on the company'sbalance sheet, which indicates the financial
condition of a business as of a given point in time.4.Stability-
the firm's ability to remain in business in the long run, without
having to sustain significant losses in the conduct of its
business. Assessing a company's stability requires the use of both
the income statement and the balance sheet, as well as other
financial and non-financial indicators. etc.
The financial report of the section can be accessed from the
Home page:
Financial Report is hyperlinked to the Financial Dashboard page,
which further displays the financial data for the periods 1 to
3.The screen looks as follows:
Period 1, 2 and 3 are hyperlinked to their respective pages
where detailed information regarding each of the periods is
shown.Period 1 gives us the details of the Profit & Loss
statement and Brand Contribution of 2 of our products i.e. MOVE
& MOST.Graphical description of EBT via Column Chart and
Revenue contribution of both the products is shown via Pie
chart.Period 1 is depicted as follows:
Also, each page of the period 1, 2 & 3 has a hyperlink Bank
which redirects back to the home of the Financial Report page.
The period 2-sheet illustration makes use of Pivot table to
depict all the financial costs involved along with the revenues and
profits. Also, a second pivot table is inserted to compare the
performance of the 2 products across the periods. By making use of
Pivot table, we can effectively compare the various results across
periods and make the necessary changes required to our strategy.
Pivot table helps us to clearly analyse the data in concise
form.
In the same sheet, we have also made use of Slicers to compare
the individual costing across the periods. The slicers have also
been used to compare the performance of the 2 products across
periods.The Pivot table charts have also been inserted to analyse
the data in graphical form.
Period 2 sheet is depicted as follows:
The period 3 sheet illustration makes use of Pivot table to
depict all the financial costs involved along with the revenues and
profits. Also, a second pivot table is inserted to compare the
performance of the 2 products across the periods. Also, for period
3 we can enter the production decisions in the Decide tab and the
same would be reflected in the results dynamically. Pivot table
helps us to clearly analyse the data in concise form.In the same
sheet, we have also made use of Slicers to compare the individual
costing across the periods. The slicers have also been used to
compare the performance of the 2 products across periods.The Pivot
table charts have also been inserted to analyze the data in
graphical form.Period 3 sheet is depicted as follows:
COMPANY DASHBOARDThis page helps the player to get an overview
about the performance of their products in the market and also
helps the user take informed decision based on the data provided.
The representation of the data is very user friendly for the easy
understanding of the player. Like the rest of the tabs this one
also has a home button, which takes us to the home page. Moreover
the pictorial charts makes the data look attractive and thus makes
this game more interesting. This is done by using the slicer
function, that is by taking data from the table and making relevant
slicers for the respective charts. This page also has a button to
return to the Home Page, which is done by using a Hyperlink. This
dashboard contains:1) Market and Product Contribution2)
Distribution Coverage3) Inventory Statistics
Market and product ContributionHere we can see the period wise
details aligned in the graph which will give us information about
the profit and loss accounts like product contribution, revenue,
earning before tax, contribution before marketing, contribution
after marketing, inventor. We have the option of viewing this data
according to the individual products, which we may want to check.
This is an important function to see how the company is doing
overall and how each product doing in the particular periods, to
know if there is an improvement over the periods in terms of
revenue, margin etc. Apart from that the expenditure on advertising
research, advertising and commercial team can also be checked over
the individual periods depending on what we wish to view. We can
select the detail we want to view and also the product for which we
want to view by clicking on the respective details.
Distribution CoverageThis chart contains the details regarding
the distribution channels and the percentage of stores covered by
the particular product. The types of stores are specialty, online
and mass merchandiser. Thus we can see the percentage of these
stores covered both period wise and product wise. This is an
important decision to decide if we need to increase the commercial
team size or not to have proper reach and distribution of the
products. The period wise details tell us how we have improved on
the coverage after investing on the sales team.
Inventory StatisticsHere we can see the inventory details like
units sold, production plan, actual production, inventory left and
beginning inventory etc. these details can be viewed by selecting
the respective detail and also selecting the product whose details
we want to view. Thus from here we can check the details for
individual periods for every product. This helps us to take
decision regarding the production plan for the next period, which
we do by taking into account the inventory remaining and the units
sold which help us predict the demand for the next period.
DECISIONS PAGENow we have currently completed the third period
and are supposed to make decisions for the fourth period. Thus
after reading and analyzing data of three periods by observing the
data and charts in the individual departments it is important to be
able to predict the requirements for the next period and decide
what will be suitable to make profits for the company and be a
leader in the industry. Once the decision-making is done we need to
click on the Submit button, which will take us to the Proforma Cash
Flow Sheet. This page also has a button to return to the Home Page,
which is done by using a Hyperlink. The primary decisions that we
need to make are:
1) Production Data2) R and D3) Advertising Budget
Production DataHere two decisions need to be taken regarding the
production. One is the quantity of goods that needs to be produced
in the next period. This is done keeping into account what amount
is sold in the period before, what is the trend in demand by
observing the sales over the periods and the current inventory. The
other is that of the price at which we want to sell the product.
This decision needs to check how the product is doing in the
market, which segment it is targeted to and the competitors
pricing. There are two products currently in the company and thus
we have to enter for both Move and Most. After arriving at the
numbers it needs to be entered in the specified boxes.
R and DThe decision that needs to be taken here involves what
specifications need to be there in the product being developed.
Here we need to enter these attributes viz. design, display, power,
features by deciding which segment we are going to target our new
product. The new product will thus have the mentioned features. The
amount to be invested with the name of the product also needs to be
entered. After arriving at the numbers it needs to be entered in
the specified boxes.
Advertising Budget
Depending upon how much we are producing, the current brand
awareness and purchase intentions of the existing products and
requirements we make this decision. The advertising amount is
dependent upon the awareness of the product, the research amount
depends on the opinion of the product and the commercial team
depends on the coverage we are targeting to achieve. Analyzing
these data from the consumer panel we take a call. After arriving
at the numbers it needs to be entered in the specified boxes.
Application & Conclusion
As concluded, Excel 2013 is a very strong tool to analyze and
make decision in strategy of a business. From top management to
lower management, all uses Excel to strategize. Particularly in our
case, where there are hundreds of parameters, number of
complexities and lots of circularities, Excel 2013 has simplified
the decisions and created a lot simpler picture for
strategizing.
We created one home page, to which all the reports, surveys,
decision-making criteria, FAQ, Manual, and decision-making tab is
connected. It is also easy to toggle from one page to another by
just clicking Home tab in every Excel. Analyzing all the reports, a
person can directly take operations, marketing & finance
decisions in one excel. Immediately the decision can be submitted
and after execution we will be able to see the results of our
decision for that particular period. Automatically all the graphs
in reports and surveys will change according to the latest updates.
The circularity maintained in our case has been very good.
Case1:
Another area where this can be used is other simulation like
blue ocean strategy simulation, which is taught in B-schools like
Harvard & Stanford. Similar to above case, but parameters and
criteria would change. All the functions used above will be used to
maintain the circularity.
Case2:
This Model also can be used for financial strategy planning,
where decision on acquisitions and mergers are taken. There is a
decision to acquire a company or not based on our requirements and
potential gain from the acquisition. There are set parameters and
criteria for the decision. There is various markets informations
and companys information for the decision to be made. For a course
like Mergers & Acquisitions, similar type of model can be used
to come up with the decision to acquire/ merge/ reject.
References & Hyperlinks
VLOOKUP:https://www.youtube.com/watch?v=-hJxIMBbmZY
MATCH:https://www.youtube.com/watch?v=-hJxIMBbmZY
PIVOT TABLE:https://www.youtube.com/watch?v=962r5nH7CHw
SUMIF ():https://www.youtube.com/watch?v=tHMq7xv0-oo
COUNTIF:https://www.youtube.com/watch?v=CiukwcCjP4I
MACROS:https://www.youtube.com/watch?v=43U7dBsmxZI
CONDITIONAL
FORMATTING:https://www.youtube.com/watch?v=LOaezdoyJDE
IF:https://www.youtube.com/watch?v=OMu7LTGHMVc
OFFSET:https://www.youtube.com/watch?v=bxUnOGo3z54
ISNUMBER:https://www.youtube.com/watch?v=_nNt3edFhuQ
DATA VALIDATION:https://www.youtube.com/watch?v=2UDRm-hU0Jw
AVERAGE:https://www.youtube.com/watch?v=BcrBeWjXyzw
MAX/MIN:https://www.youtube.com/watch?v=xTATum0glw4