the fast and the furious: an experiential approach for introducing strategic management and

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THE FAST AND THE FURIOUS: INTRODUCING STRATEGIC MANAGEMENT

USING AN EXPERIENTIAL APPROACH

Theo Lynn*

Malcolm Brady

Paul Davis

Business School

Dublin City University

Dublin

Ireland

[email protected]

[email protected]

[email protected]

* corresponding author

Paper originally published in

International Journal of Teaching and Case Studies 2(1):92-113, 2009.

The authors hereby assert their moral right to be known as the Authors of this Article.

Biographical Notes:

Dr. Theo Lynn is a lecturer in Management at Dublin City University Business School. He

teaches strategic management and his research interest is in the area of teaching technologies

and also in corporate governance. He has extensive industry experience in the area of

teaching technologies and academic and other publishing.

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Dr. Malcolm Brady is a lecturer in Management at Dublin City University Business School.

He teaches strategic management and his research is in the area of strategic interaction and

competitive advantage. He has extensive industry experience as a consultant in business

process improvement and information systems development.

Paul Davis is a lecturer in Management at Dublin City University Business School. He

teaches procurement and supply chain management and his research is in the area of public

sector procurement. He has extensive industry experience as a consultant in business process

improvement and information systems development.

ABSTRACT

This paper outlines an exercise designed to preview primary strategic elements through a

team-based experiential exercise. Designed for delivery in a traditional classroom setting

during a two-hour session, the exercise uses videogame software and a narrative context to

transfer strategic management concepts into a real-world situation. This paper discusses the

outcomes from implementations in postgraduate pre-experience and post-experience classes;

an organisation structure variant presented to an undergraduate class is also described. The

article illustrates how instructors can use the exercise as presented, can adapt the narrative

context to fit their course design and objectives, or indeed design and develop their own

exercise using similar software. In addition to previewing content in the course, the exercise

served as an effective vehicle to begin structured interactions among students, to open a

dialogue between students and the instructor, and to create a participative and interactive

climate. The exercise, instructions, and material lists are presented.

Keywords: Experiential Learning, Strategic Management, Teamwork, Simulation,

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1. INTRODUCTION

Teaching must strike a balance between delivering ‘state of the art knowledge’ and

motivating students ‘to apply their creative thinking and their imagination’ (Lytras, 2007).

This general sentiment remains valid in the teaching of strategic management, the challenges

of which are well documented (Schneider and Lieb, 2004). Those teaching strategic

management are expected to cover and integrate a growing and broad spectrum of knowledge

as well as imbue students with a skill base to enable them to think both strategically and

creatively, work effectively in teams, and communicate clearly (Thomas, 1998; Liedtka and

Rosenblum, 1998). These challenges are further complicated by an increasingly globalised

and changing business environment. In this complex and often contradictory environment

commentators have suggested that students need to develop an ability to deal with paradox

and ambiguity (Lewis and Dehler, 2000), something which traditional business education

may not necessarily be equipped to deliver in a holistic fashion (November, 1993). These

challenges are further exacerbated when teaching strategic management to students who lack

any meaningful work history (we refer to such students as “pre-experience students”; we

refer to students with significant work experience as “post-experience students”) where class-

time is limited in some cases to two to three hours per week for one semester and where

strategic management is being taught as part of a postgraduate business program with a

functional focus. Faced with these challenges, the importance of maximising the

effectiveness of both contact time with students and the first class session have been

emphasised (Thomas, 1999), and greater use of a variety of learning methods in the

classroom is recommended, including experiential exercises (Joshi et al, 2005), integration

with real-world situations (Shaw et al, 2007) and the interaction of students within a social

setting (Deeb, 2007).

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In this article we describe a team-based experiential exercise designed to introduce multiple

concepts in strategic management. Specifically, the exercise, called “The Fast and the

Furious”, has been designed for delivery in a traditional classroom setting in a two-hour

session using freely available videogame software and a narrative context that could be

customised by individual professors. The exercise was successfully conducted in three Master

of Business Studies (MBS) strategic management classes. As well as introducing key

concepts, the exercise has been useful for learning and developing teamwork skills and

improving the relationship between the instructors and the class at the early stage of a course.

The exercise has also been used as a basis for examining organisational structure issues with

an undergraduate business class.

2. CASE STUDIES, GAMES AND LEARNING THEORY

Case studies are the traditional mechanism used in business schools to connect theory to its

application in the workplace. Benefits of case studies include the simulation of situational

constraints, learner socialisation, multi-domain learning, inductive learning, and the

capability to practice adaptation skills (Saunders, 1997). However, cases have their

drawbacks. Kolb (1984) points out the weaknesses of cases in delivering concrete

experiences and abstract conceptualisation while both Cadotte (1992) and Hartman (1992)

emphasise the general inability of cases to provide students with a means to experience the

consequences of the decisions they make. Other concerns raised include limitations in group

interaction, scope, data, and applicability (Fowler and Scott, 1996; Hitt, Ireland and

Hoskisson, 1997).

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Simulations, unlike cases, allow learners to explore how key variables interact and affect

performance (Saunders, 1997). Cruickshank (1980) defines simulations as “the products that

result when one creates the appearance or effect of something else” (p.75). Laurel (1991)

claims that:

Educational simulations (as opposed to tutorial and drill-and-practice forms) excel in that they

represent experience as opposed to information. Learning through direct experience has, in many

contexts, been demonstrated more effective and enjoyable than learning through ‘information

communicated through facts’. Direct, multi-sensory representations have the capacity to engage people

intellectually as well as emotionally, to enhance the contextual aspects of information, and to

encourage integrated holistic responses.

The advantages of the experiential learning approach are echoed by Drinkwater et al (2007)

who have used an electronic case study approach, where students collectively and actively

develop a case study using hypertext, to foster what they term ‘jigsaw’ learning.

Business simulations can be a powerful pedagogical tool to teach students about making

business decisions by exposing students to complex decisions in a simulated realistic setting

(Schumann et al, 2006) and requiring students to manage the consequences of decisions

during the ongoing simulation exercise (Schumann et al, 1997). Springer and Borthick

(2004:3) summarise the rationale for business simulations as:

to give students the opportunities to begin practicing the higher-level thinking the profession demands,

where the learner identifies problems, finds relevant information, acknowledges the influence of

uncertainties on potential solutions, then communicates the findings to target audiences.

Notwithstanding this, business simulations can vary from being too simplistic thereby tending

to be unrealistic or too complex thus providing less structure with which to make

observations (Gunz, 1995). Cadotte (1995) emphasises difficulties with simulations and

games that take place outside the classroom and class times. Similarly, difficulties may be

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encountered with moderated computer-mediated simulations, which may require

management, administrative and technical support, and may be difficult to customise.

Although simulations need not be interactive or depend on technology, students today

undergo an unprecedented exposure to complex media whether as a form of educational

technology, entertainment or otherwise; this may shape student perceptions of an ideal

learning environment and approaches to learning (Snyder and Vaughan, 1998; Gioia and

Brass, 1985; Prensky, 2001). This article focuses on the use of games. There is evidence that

games are the most frequently used ‘interactive media’ (Beentjes, 2001; Feierabend and

Klinger, 2001) with over 70% of children playing computer games every week (Facer, 2001).

This is consistent with recent US statistics from Nielsen Wireless and Interactive Services

who estimated that there are over 45.7 million households with video game consoles

providing approximately 148.4 million persons with access to at least one video game

console system in their home. The same report found that 93.8 million persons (33% of the

US population) used an in-home video game console at least once for a minute or more. This

pervasiveness is driven partly because the games are ‘fun’, but also because they are

challenging, an interactive social experience that can be shared (Entertainment Software

Association, 2001). However a simulation is not necessarily a game. Prensky (2001)

suggests that for a simulation to be characterised as a game it must include additional

elements such as rules, goals, competition, interaction, feedback and fun.

Simulation games are not new: Cruickshank (1980:75) defined a simulation game as one in

which “participants are provided with a simulated environment in which to play”. New

gaming technologies and graphics capabilities allow simulation games to become more

realistic in terms of appearance, plausibility and responsiveness. Theses new technologies

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have additional benefits. Multimedia may boost curiosity, creativity and teamwork

(Reinhardt, 1995), increase effectiveness of learning retention and transfer (Fletcher, 1990;

Strother, 1992; Johne, 2003; Springer and Borthick, 2004), provide more consistent course

delivery (Adams, 1992) and improve attitudes towards learning (Malik and Howard, 2003).

It should be noted that concerns have been raised by both academic researchers and the media

about gender images and violence related to the use of specific genres of digital games

although evidence is inconclusive (Ferguson, 2007; Dill and Dill, 1998; Cassell and Jenkins,

1998).

The growing acceptance that people learn differently and the need to ‘bring to life’

organisational context has led to calls for the emphasis and application of experiential

learning theories in management education (McDaniel, Lamb and Jarboe, 1989; Kayes,

2002). These calls may be particularly relevant for traditional-age undergraduate students or

pre-experience postgraduate students (Joshi et al, 2005). The purported benefits of

experiential learning are widely reported and are not the subject of this article (see Gosenpud,

1990). They include changing cognitive structures, altering attitudes and expanding portfolios

of skills (Johnson and Johnson, 1982). This is typically achieved through students making

key decisions and trade-offs so that they can engage in a rich, reflective observation during

the final feedback phase after the exercise is completed (Kolb, 1984; Wheeler and McLeod,

2002).

Experiential learning shares the same ontological root as active learning or those learning

theories that assume the student is both self reflective and engaged as a participant in his or

her interactions with the world. Kolb (1984) describes learning as an experiential learning

cycle involving experiencing, interpreting, generalising, applying and testing. Simulation

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games, and specifically digital simulation games, have the capacity to support a variety of

learning theories including behaviorist, cognitivist, and humanist models. Studies suggest

that digital games can facilitate social interaction and collaboration between players, new

approaches to learning, active and critical learning skills (Kirriemuir and McFarlane, 2004).

It is in relation to critical learning skills that digital simulation games may have the greatest

impact on teaching strategic management. Gee (2003) argues that video games are a family

of semiotic domains defined by the characteristics of specific genres and shared by groups of

people which he terms ‘affinity groups’. Gee postulates:

The learner needs to learn not only how to understand and produce meanings in a particular semiotic

domain that are recognisable to those affiliated with the domain, but, in addition, how to think about

the domain at a ‘meta’ level…[and] how to produce meanings that, while recognisable, are seen as

somehow novel or unpredictable. (p.23)

As such, the student participating in the game benefits from learning by doing and developing

their comprehension of the internal game but also from developing an understanding of how

principles and patterns within the game can be applied externally, a form of systemic thinking

that case studies may not fully accommodate.

3. EXPERIENCING STRATEGY: A MULTI-EXERCISE PROGRAM

Gove, Clark and Boyd (1999) posit that exercises that combine team initiative and business

metaphors provide an active, common experience in which team members learn about

themselves and others while learning how management principles transfer to real-world

scenarios. In their 2005 article, Gove et al present a multi-exercise program designed to

illustrate a core strategic management process, from mission to competition, through four

experiential exercises. As a set, the exercises preview and integrate several primary strategic

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elements: mission statements (defining your organisation), performance assessment and

maximisation (specifying resources and capabilities), mergers and acquisitions (aligning

resources with extra-organisational entities), and competitive rivalry (market forces, decision-

making, and deployment). This multi-exercise program has been presented as a half-day

introduction to courses and seminars with MBA, undergraduate, and executive audiences,

both in the U.S.A. and abroad, since the mid-1990s. Gove et al (2005) report that feedback

from participants indicates that the nature of the exercises makes them a memorable

experience and aids in the comprehension and retention of strategic management concepts.

Whilst the use of business metaphors is a strong concept as it frees the instructor to use

whatever resources are available to fit the narrative context of the exercise presented, there

are a number of drawbacks of many exercises based on team initiative exercises, particularly

those that include outdoor challenge training (“OCT”) approaches. They require (i) greater

space than a typical classroom provides, (ii) non-standard equipment or materials, (iii) more

time than the average session allows and (iv) suitable weather.

The exercise described in this article, The Fast and the Furious, attempts to marry the benefits

of using multimedia resources and a narrative context to address the drawbacks of case

studies, simulations and team initiative exercises discussed above. Specifically, the exercise

is designed to introduce many of the strategic elements presented in the multi-exercise

program presented by Gove et al (2005) but in a shorter timeframe - two hours - with generic

or easily accessible materials and in a conventional classroom. No specialist equipment other

than a computer is needed and no specialist skills other than pedagogic are required. In

addition, the design approach taken for this exercise reduces cost and support overhead, and

at the same time provides instructors with some capacity to customise the context without

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specialised technical skills. It makes use of freely available software; the intellectual effort

by the instructor is invested in understanding the software and developing the narrative

context around the software. Although primarily aimed at pre-experience students, the

exercise was found to be suitable for post-experience students too.

4. THE FAST AND THE FURIOUS: EXERCISE OVERVIEW

The Fast and the Furious is a narrative written around a racing videogame, Racing Academy,

a software prototype developed by Futurelab and Lateral Visions that is based on an

advanced real-time vehicle dynamics system that accurately models in real-time how cars

behave and react. The exercise largely follows LaForge and Busing’s (1998) phases for

experiential learning activities: planning, introduction, activity and feedback. The exercise

previews and integrates a number of strategic concepts: mission statements, coordination and

leadership; firm analysis (resource analysis and allocation, performance measurement and

maximisation); external analysis (competitive intelligence and environmental assessment)

and competitive dynamics (first, second and late mover advantage and game theory). An

organisation structure variant explores the impact of different organisation structures on

performance. It is recommended that instructors present the exercise in the opening session or

soon thereafter. Recommended pre-readings include introductory chapters on strategy and

strategic management.

The exercise involves small groups designing and testing car prototypes to present to a

prospective customer, F2 Racing. The teams use Racing Academy to develop and test their

prototypes, and through monitoring and analysis of data, refine their prototypes. Performance

is based on the components selected (colour, engine, tires, and gear ratios) and the

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completion of specific levels by defeating a computer-controlled rival car in test sessions.

Participants can test their prototype as many times as they want within the time period.

However, each component and test incurs a cost liability that must be recorded. Participants

enact different roles in the exercise which can be used to explore the impact of staffing

constraints and individual skills on performance maximisation. A sense of urgency is created

by frequent reminders of time remaining and by notifying the class of the achievement of

various levels by the different teams.

The overall output from student teams is a product development proposal which is submitted

to the instructors at the end of the exercise. The proposal contains the specification of their

prototype car and a summary of the telemetry data and costs incurred in development. We

keep the proposals short and standardised, only two to three pages, so that they can be

quickly assessed by the instructor at the end of the exercise and used as part of the de-

briefing.

Teams are allocated points in the tender process based on relative completion times,

competitiveness, performance, R&D cost, test comprehensiveness, and final configuration

cost. Following this scoring element, the instructor debriefs the exercise. Students may be

asked to reflect on what they have learnt in their own time and submit their personal

reflections as an additional assignment.

Please note that instructors may choose to (a) place a cap on spending and/or (b) place a limit

on the number of allowable tests. This may introduce more realism to the exercise and make

scoring easier as teams would need to work within resource constraints. It may also be useful

to publicly display the leading team’s instance of Racing Academy or, if a sufficient number

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of data projectors are available, all the teams’ instances of Racing Academy. This has the

effect of enhancing the competitive dynamics within the class and introducing additional

realism. Teams less advanced in the simulation may choose to learn from competitors and

leading teams may lose a competitive advantage or feel increased pressure from their

leadership position.

Instructors may choose to implement an additional variant on the exercise that emphasises the

impact of different organisation structures on performance. In this variant, each team

represents a different type of organisation structure. This variant requires greater supervision

from the instructor to ensure that participants adhere to the additional environmental

constraints.

4.1 Exercise Objectives

The objectives of the exercise are:

to begin structured interactions among students and groups of students and to help

students think about teamwork and the importance of group dynamics,

to open a dialogue between students and the instructor to create a participative and

interactive climate that can be enhanced throughout the course,

to preview multiple strategic management concepts and help students to reflect about

these concepts, and

to help students deal with uncertainty, paradox and ambiguity.

In addition, the organisation structure variant enables students to experience and reflect on

the impact of different organisation structures on performance.

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4.2 Class Size

The optimal class size is 20 students with an optimal team size of 4 students. The exercise has

been used for a class of 35 students. One supervisor is required.

4.3 Required Materials

Each team requires access to a personal computer or notebook computer operating on

Windows 98 or better, as well as DirectX 9.0c or better, together with CD-ROM and USB

capabilities. Typically students provide their own notebook computers for use in the

exercise. The Racing Academy software is a prototype that can be downloaded by instructors

from the Futurelab website (http://www.futurelab.org.uk/projects/racing_academy) prior to

the classroom session and stored on a CD-ROM or a USB memory stick. The software can

then easily be made available to students at the beginning of the class without dependence on

network or Internet access. At the time of writing the software was available free of charge

to download (registration is required) and, in line with Futurelab’s organisational remit, it

will remain freely available for academic use for the foreseeable future. The software is

approximately 11Mb in size and should be loaded and installed on to each computer prior to

commencement. The software installation procedure sets up the software and creates a

shortcut on the computer desktop. Clicking on the shortcut icon launches the software

application. Each group should create a profile by entering their team name or number in the

text box displayed. It is unlikely that students will be familiar with the software as it is not

commercially available and therefore instructors should not be concerned about students

having prior experience of the software.

Each team will also need a copy of the student instructions and a proposal template to record

telemetry data and tally costs. This proposal template takes the form of a spreadsheet that can

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be provided in printed form or as an electronic spreadsheet. If provided in paper format,

students will need multiple copies to allow for mistakes or a large number of tests. Please

note that the Racing Academy software only records a limited number of tests and therefore

instructors should monitor that teams are recording all tests. Student instructions, a sample

proposal template, and possible solutions for completing each level are provided as

appendices to this paper.

As discussed, instructors may choose to provide access to data projectors to the leading team

or all teams to enhance the competitive environment.

4.4 Timing

To set up, run, and debrief the game takes approximately 120 minutes:

5 minutes to explain the purpose of the exercise and organise students into small

groups,

5 minutes to distribute the materials and install the software,

10 minutes for teams to read the instructions,

60 minutes for teams to complete the exercise,

10 minutes to score the exercise, and

30 minutes for debriefing.

4.5 Scoring the Exercise

While scoring can be based on a scale of the instructor’s choice, we recommend that the

teams are allocated points for the exercise according to table 1.

[INSERT TABLE 1]

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5. POST-EXERCISE DEBRIEFING

The debriefing starts by collecting the data sheets (proposals) and scoring the exercise. This

activity allows students experience the importance of understanding goals and how different

goals contribute to achievement of the mission. It also visibly demonstrates the advantages of

early mover advantage; the first and second teams to complete all three levels get additional

points. This scoring is followed by a discussion of individual and team experiences and

approaches. The structure, based on Dennehy et al’s approach (1998) combined with specific

strategic concepts as presented by Gove et al (2005), proved useful as a basis for establishing

a clear link between the exercise, future lectures, and the course-learning objectives. We now

consider the main concepts discussed in the debriefings.

5.1 Strategic Coordination and Leadership

Questions typically asked of teams are: What is the team’s mission? What are the goals? Is

there a leader? If so, how was the leader selected? What role did the leader play? Was it

necessary? Few teams consider agreeing the mission and the goals that they need to achieve

to win. The team needs to accomplish a mission: to win the customer contract. Some goals

are more important than others. It is important that the team takes into account and prioritises

the various tasks required and data available. Effective leadership may ensure that resources

are not squandered on distractors, such as colour, and that the appropriate resources are

allocated to each task and that goals are being met.

5.2 Equifinality

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Equifinality suggests that similar results may be achieved in different ways. There is more

than one way for teams to beat the benchmark racer and other teams in the class. Students

often assume that there is only one way to success. The instructor may point out to students

that teams achieved success in a variety of ways and configurations.

5.3 Resource and Capability Assessment

Similar to the multi-exercise program described by Gove at al (2005), a primary metaphor for

this exercise is the designation of performance roles. Depending on whether a leader is

appointed (even by self-appointment), members may be selected or select themselves into

positions without assessment of relative capabilities or skills. Teams may redesign their

approach to identify who is the best driver. However, in some instances teams did so only

after successive failures by the original appointee. In a number of instances the student that

owned the computer on which the software was being run assumed control of the simulation

regardless of aptitude with the software program. The student effectively appointed

themselves driver and leader. This provided a basis for a fruitful discussion on the impact of

resource control on task allocation and leadership. The debriefing often segued into a

discussion of whether or not companies can assess resources prior to attempting a task or if

this is only possible after operations are underway.

5.4 Performance Measurement and Effectiveness

Under this heading the instructor can pose questions such as: What measures predict success

in the exercise? How do the measures relate to one another? Who is responsible for how

measures are taken? Who decides whether the team is operating effectively? Teams have a

clear mission and goals; however their strategy for obtaining these goals may be unknown or

only become clear or evolve during the exercise. The exercise illustrates how goals may

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conflict. For example, a low R&D cost results in a higher score as cost recovery is lower.

However, greater testing results in a more stable product but at higher cost. As increased

testing tends to drive better performance and greater likelihood of early mover advantage,

teams have to prioritise seemingly conflicting goals to achieve the mission.

5.5 Data Analysis and Management Information Systems

The instructor can pose these questions: Who receives and analyzes the data? Who is

responsible for changing how the team operates based on the data? Information is an

important source of power and how a team deals with information is critical for success. The

simulation makes evident the importance of good management information. A great deal of

management information is provided to students who usually readily appreciate the value of

this graphical information. Initially, the amount of information may overwhelm students but

after a number of runs students focus in on key indicators. The instructor can lead the

students into a discussion of the main characteristics of good information systems using the

TRACE anagram (i.e. timely, relevant, accurate, clear and concise, and highlighting

exceptions). The amount of available information builds up as the student progresses through

the various levels of the exercise. Initially students can absorb all the information and

consider all the available possibilities. However as the game progresses, and the number of

possibilities increases combinatorially, students must resort to heuristics to reduce the number

of options to consider. The debriefing may develop into a discussion on ‘paralysis by

analysis’ if a group spends too long in discussion; success in this exercise often relates to

‘doing’.

5.6 Cost of Rework

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The exercise highlights the cost of rework and reconfiguration, and organisational

performance lost due to rework and organisational learning. Successful teams typically

undertook a relatively high numbers of tests, often over twenty, and tried out various

configurations of components to maximise performance. Although these teams achieved

greater performance, they did suffer some penalty on scoring due to high R&D costs.

5.7 Uncertainty, Ambiguity and Requisite Knowledge

Questions to discuss with students under this heading are: What is the relationship between

different variables? What is torque? What impact do gear ratios have on performance?

Initially, students may feel overwhelmed by the lack of information in the exercise.

Typically, students are uneasy about lack of knowledge and uncertainty and assume that

knowledge of engines and mechanics is needed to succeed. They do not know what will face

them at each subsequent level. This exercise provides an illustration of the notion of requisite

knowledge or capabilities necessary for different markets. It emphasises knowledge

acquisition and problem solving skills. It also emphasises the difference between knowledge

and capabilities. There is no single solution to the exercise. Different configurations can

succeed.

5.8 Invention vs. Innovation

Invention is the creation of a novel product, in this case a new drag racing car. However mere

creation of a product does not satisfy the needs of the customer, the product needs to be

delivered and meet various criteria. Achieving level 3 testing and delivering the presentation

is analogous to innovation or appropriation of value from an invention. Invention alone is

insufficient to capitalise on performance for the organisation; innovation is required. At each

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level, the team is required to modify and refine their prototype. In some instances, this means

a total redesign to ensure competitiveness.

5.9 Competitive Dynamics and First, Second and Late Mover Advantage

Does being first to market guarantee success? What is the relationship to first mover

advantage and other key success criteria in the exercise? First movers can generate superior

financial returns. However, absence of market barriers may negate any first mover

advantage. Some firms may progress through levels 1 and 2 but may stall at level 3 or

continue testing to maximise performance. This is crucial: students often forget that they are

competing against the other teams in the class and not the computer. The computer-

generated rival car used in the Racing Academy test races represents the minimum quality

product the market will accept. Beating competitors requires not only reaching this minimum

standard but also surpassing the competitors – teams with excess time should continue to try

and maximise performance. Please note however that others may appropriate knowledge by

scanning the environment, seeing what the competition is doing and quickly imitate their

configuration to reduce testing and move to the next level more quickly. Such teams may

beat the first mover to the customer. First movers may not succeed in winning the overall

exercise if they do not succeed across a number of criteria. As discussed earlier, learning

related to competitive dynamics can be enhanced through the use of one or more data

projectors which display either the leading team or all teams’ performance. This variant can

be used to emphasise that competitors are not static but also evolve and adapt.

5.10 Competitive Advantage and Game Theory

In the simulation, students may perceive that the rival computer-generated cars also improve

over time. Often students carry on forging their own strategy forgetting that the competitor

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does not stand still. Students are sharply reminded of this when they improve their own

performance and anticipate winning the race only to find that the competitor car has also

improved its performance and continues to win. This is further emphasised by the progress of

other teams in the class. In-class team progress can be emphasised by constant reminders by

the instructor or the use of data projectors. Game theory stresses the interdependency of

decision making: each party must consider the actions of the other party and the overall result

depends on the combination of the two independent decision processes. For example,

selecting and testing out a new engine makes that selection public and therefore imitable.

The choice about when and how to make a decision public is an important consideration for

strategists. The exercise provides a good basis for a discussion on the nature of competition.

Students can review the rival computer-generated car’s performance in races and identify

exactly when and where their car was under-performing.

5.11 Cost of Resources

The exercise highlights the sunk cost of resources purchased and then not used. This is

analogous to failed R&D spending and the scoring reinforces this. High R&D costs are

penalised as the customer has to recover this cost. However, the importance of cost can be

overemphasised by students to the detriment of the achievement of other goals. The exercise

also serves to highlight the impact of fixed and variable costing, the difference between R&D

cost and configuration cost and the relationship between R&D expenditure and performance.

5.12 Exercise Variant - Organisation Structure

Each team represents a different type of organisation structure and can be analyzed by

configuration, specialisation, hierarchy of authority, and centralisation. Teams can discuss the

differences in their organisations. The exercise can be used to illustrate some of the

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differences between mechanistic and organic organisation forms, and the impact of these

forms on performance. In the exercise, teams organised around more mechanistic forms

tended to perform worse than organic forms. It should be noted that participants in these

teams were unengaged and rated the exercise lower that teams in more organic forms. The

impact of the environmental parameters should not be underestimated.

Instructors may also ask students to conduct a SWOT analysis on their own team and on the

winning team in an effort to illustrate that linking mission, with internal resources and

weaknesses, and external opportunities and threats leads to success.

6. EXERCISE OUTCOMES

The authors have presented this exercise in three discrete MBS strategic management classes.

These three classes represented 35 students from three functional specialisms – accounting,

marketing and human resource management. The marketing class comprised pre-experience

postgraduate students; the accounting and human resource management class comprised post-

experience postgraduate students. Student profiles are given in table 2. While the authors

would have liked to carry the experiment with multifunctional teams the classes available to

the authors during this academic year consisted of functionally homogeneous student groups.

[INSERT TABLE 2 HERE]

In addition to instructor reflections and feedback during the debriefing, students were

provided with an evaluation questionnaire, the results of which were supplemented with data

on student characteristics (i.e. age, gender, nationality, and functional background). The

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questionnaire comprised of six questions that asked students to discuss whether they found

the exercise valuable, what they learnt, whether they would recommend continuing the

exercise and how it might be improved. In addition, students were asked to rate the

effectiveness of the exercise on a 1 to 10 Likert-type scale based on value, amount learned

and contribution to understanding of the topic area. Of 34 valid responses, all students rated

the exercise as valuable. The overall mean was 7.49 with a range of 2 to 10. No evidence on

learning achievement was possible as it would be difficult to isolate specific attributes of the

class exercise versus the ensuing lectures and case study exercises. Although the debriefing

can serve to bias responses, feedback from students indicated that they gained significant

value in the areas of group dynamics, team work, communication and analytical skills.

One concern expressed during one class but subsequently withdrawn was that the exercise

might be gender or age biased towards younger male students or those with knowledge of

driving. This concern was driven primarily by the subject of the simulation, a motor racing

videogame, but was not borne out. Even in this small sample, gender and age were not

statistically significant factors in ratings. Having driving skills or game playing skills did not

provide any advantage.

The only independent factor identified that had a significant impact on performance was

functional discipline. Students with an accounting background were more successful than

students of other functional disciplines in completing the exercise. Students with a human

resource management background made significantly less progress in working their way

through the test levels. Firstly, these students spent significantly longer discussing the

exercise and were slower to make decisions. For example, one group spent 45% of the

available time discussing the exercise before commencing the first test. This provided the

23

basis for a fruitful discussion on the importance of data analysis but also ‘paralysis by

analysis’. Secondly, the HRM students ignored the instructions and did not appoint a leader

or assign people to roles. Thirdly, by their own admission they did not communicate well.

The HRM cohort undertook significantly fewer tests and spent less money on tests than did

other cohorts. This segued into a discussion on the decision-making context of HR managers

and how that may impact on their approach to more general strategic decision-making.

6.1 Exercise Variant: Organisation Structure

The Organisation Structure variant was implemented mid-semester as part of a final year

undergraduate module on Organisation Theory and Practice. The class had 27 international

business students from four colleges – one each from the USA, Spain, Germany and France.

The class was divided into five teams representing 4 companies. Each group comprised

between 4 and 6 students. As per the instructions each team represented a different type of

organisation structure. Student profiles are given in table 3.

[INSERT TABLE 3 HERE]

The experience of company A emphasised the importance of communication and

coordination in multinational projects. The two groups in this company could have

maximised performance by sharing information. For example, if one group achieved a level

before the other, the configuration could be shared with the other group so that both groups

could move through the exercise faster. Although the groups in Company A shared

information in earlier stages, a 15-minute delay in sharing the successful configuration for

obtaining level 3 resulted in sub-optimal performance. Company A did not plan their

communication nor did they use the communication opportunities fully. Company D

24

operated relatively successfully although no leader was appointed. Company D achieved

level 3 but did not beat Company A in any category.

Company B was presented with a mechanistic organisational form. The intention was to

illustrate the limitations of this organisational form and the importance of strong leadership.

Unfortunately, the constraints of the additional instructions served to demotivate or disengage

students. This is worthy of attention. It may be that more mature students would appreciate

this nuance which may be lost on younger students. Alternatively, either rotating

organisational form or introducing variants throughout the exercise may have been more

effective.

Although a more organic structure, Company C was presented with a scenario that brought

consensus and group participation to another extreme. The net result was that as there was no

opportunity for specialisation, appropriate resources could not be allocated to achieve the

goals. Once again, this was demotivating for students.

Again, students were provided with an evaluation questionnaire which was supplemented

with data on student characteristics. Over 85% of students rated the exercise as valuable.

Four students did not rate the exercise as valuable. Students were asked to rate the

effectiveness of the exercise on a 1 to 10 Likert-type scale based on value, amount learned,

and contribution to understanding of the topic area. The overall mean was 6.19 with a range

from 3 to 10. The ratings were skewed by four students who neither considered the exercise

valuable nor effective. These students were all German and could be considered as high

achievers. This poses interesting questions on the impact of specific cultures or pedagogies

of home institutions on pedagogical approaches and learning styles. It is something worth

25

considering before undertaking The Fast and the Furious exercise and/or similar exercises as

it may skew performance and satisfaction with the exercise. It is recommended to present the

exercise at the beginning of the semester rather than mid-semester so that concepts can be

previewed and the benefits associated with group engagement realised.

As a variant, the exercise was deemed successful. The key learnings emphasised by the

students focussed on organisation structure and practice and specifically the impact of

organisation structure on performance, group dynamics, and communications. To assess the

suitability and effectiveness of both the software and the exercise as a whole in other

generalised subject domains, the narrative context was modified to emphasise the impact of

different organisation structures. These are all directly attributable to minor changes in the

narrative through the use of additional instructions that an instructor can easily undertake

without any technical knowledge and as such acted to validate the design approach of the

exercise.

From the authors’ perspective, the exercise helped to ‘break the ice’ with a new class and

create a positive atmosphere. The exercise was effective in that it helped to open a dialogue

between students and the instructors to create a participative and interactive climate that was

maintained throughout the course which in the view of the authors was enhanced as a result

of the exercise.

7. CONCLUSION

This article presented The Fast and the Furious, an experiential learning activity designed to

introduce strategic management concepts in a conventional classroom session and setting.

26

The exercise introduced primary strategic management concepts to students in an engaging

way and through a shared experience that developed higher levels of learning. The exercise

outcomes were found to be positive when measured by student feedback and instructor

observation. Similar to earlier findings the use of software provided a more consistent

delivery experience across different groups (Adams, 1992).

From a design perspective, the narrative context helped to connect software, developed for an

unrelated purpose, to a real world situation. The organisation structure variant illustrated that

the most important design contribution is the careful development of the narrative context to

exploit the chosen software and to support the learning outcomes through the debriefing. This

is something that most instructors can do easily. By focusing on the narrative context, the

selection of accompanying software becomes less of a barrier. The authors chose a small

piece of software requiring little technical or administrative support and which was freely

available but relatively unknown. Other instructors may choose to base their exercise on more

well known software game titles for popular gaming platforms such as those offered by Sony,

Nintendo or Microsoft. Whilst these games are easily accessible, students may be more

familiar with them giving some students an advantage over others.

The exercise also illustrates that there is still much to be learnt about the impact of functional

disciplines and educational background (including pedagogical experience and learning

styles) on the effectiveness of experiential learning activities. It may be that at postgraduate

level, where a student’s learning style is more defined, these factors have a more significant

impact on how these students approach team exercises. The experience with this exercise

suggests that in some instances functional disciplines (e.g. accounting and human resource

management) and educational backgrounds may impact on team performance, achievement

27

and satisfaction. It may be that the impact of exercises such as The Fast and the Furious

would be enhanced by combining students from multiple functional disciplines but also from

different educational backgrounds.

The wheel does not need to be reinvented. Instructors can experiment and implement

multimedia-rich experiential exercises by adapting existing resources, such as videogames,

and making them relevant by using narrative contexts. Success does not depend on

technology or technical skills but rather on an understanding of the learning outcomes, the

learning process and the learning styles and expectations of the exercise participants.

28

APPENDIX A

THE FAST AND THE FURIOUS EXERCISE

STUDENT INSTRUCTIONS

You represent a high performance motor-sport design and production company. There is a

major opportunity to acquire a new customer, F2 Racing, but only for those companies who

can develop an acceptable prototype in a timely fashion that can outperform F2 Racing’s

existing street drag racing configuration. The final design of the product has not been fully

determined by the customer. Your company has been invited to compete for this lucrative

contract because it is believed that your company can bring together a combination of the

right resources to bring a tested prototype to market including people, process and

technology. Components are valuable and cost of each component is given in table A1. Each

purchase of a component should be recorded only once i.e. once a component has been

purchased, budget does not need to be allocated again if a team decides to switch components

to a previously purchased component.

The combination of these components impacts on performance. A workshop has been made

available to you and the Racing Academy is available for you to test your prototypes. There

are three levels of tests. To be competitive, the performance of your prototype must exceed

F2 Racing’s current product offering in each test. You will have access to telemetry data

which can be used to reconfigure your prototype and calculate your research and

development costs, which will be covered by F2 Racing if your company is successful. As

well as the cost of components, each test at Level 1 costs €10,000, each test at Level 2 costs

€20,000 and each test at Level 3 costs €30,000. The customer must have a demonstrable

29

prototype and proposal within 60 minutes. The customer will want to review telemetry data.

Logging out of the Racing Academy will forfeit the contract.

There are three positions which must be staffed at all times: Engineers, Administrators, and

Test Drivers. Engineers monitor and analyse telemetry data and make recommendations on

configuration to test drivers. Administrators record data and prepare the proposal. Test

Drivers test the prototype. You may staff any position with more than one person.

The initial task is for each company to get to the Racing Academy. Once there, you may

assess your workshop and resources, design the prototype, and deliver the product to the

customer’s test track where, with a proposal, it will be evaluated by the customer. But be

aware, your competition may be watching every move. The proposal should consist of a

summary of key data points including specification, performance, testing, detailed R&D

costing, and configuration cost in the proposal template provided. Proposals grading details

are given on table A2.

30

Table A1 Summary of components

Component Option Cost (€)

Colour Standard Red 0

Colour New Colour 5,000 per colour

Engine 4 Cylinder 1 Litre 10,000 per engine

Engine 4 Cylinder 2 Litre Turbo 15,000 per engine

Engine Rotary 2.6 Litre 20,000 per engine

Engine V6 3 Litre 25,000 per engine

Engine V8 4 Litre 30,000 per engine

Engine 4 Litre Diesel Turbo 35,000 per engine

Engine V8 Twin Turbo* 50,000 per engine

Tires 185/70 R15 Road Tyre 4,000 per set

Tires 205/50R16 Road Tyre 8,000 per set

Tires 205/50R16 Shaved 12,000 per set

Tires 225/40 2R17 x Slick 20,000 per set

Gears Automatic/Manual 5,000 per set

* Only available after Level 2 tests have been passed

31

Table A2: Proposal grading details

Unit Description Points

Early mover advantage Points allocated to first and second teams to

complete all three levels

1st – 50 pts

2nd – 25pts

Competitiveness Points allocated to each team on

completion of each level

Level 1 – 10pts

Level 2 – 15pts

Level 3 – 25pts

Performance Points allocated to the teams with the

fastest race times

1st – 25pts

2nd – 15pts

3rd – 10pts

R&D Cost Points allocated to the teams with lowest

R&D costs

1st – 25pts

2nd – 15pts

3rd – 10pts

Test Comprehensiveness Points allocated to the teams with the

highest number of tests

1st – 25pts

2nd – 15pts

3rd – 10pts

Final Configuration Cost Points allocated to the teams with the

lowest configuration cost

1st – 25pts

2nd- 15pts

3rd – 10pts

32

APPENDIX B

THE FAST AND THE FURIOUS EXERCISE

ORGANISATION STRUCTURE VARIANT

ADDITIONAL STUDENT INSTRUCTIONS

COMPANIES ARE NOT PERMITTED TO COMMUNICATE WITH EACH OTHER

COMPANY A

You are a multinational corporation and comprise of two groups. Although you have greater

resources, half your company is located in a different country. Due to time differences and

schedules, you can only communicate with each other four times during the exercise. Only

two people can communicate at any one point in time. Due to your size advantage, you suffer

a cost penalty of 10%.

COMPANY B

You are the owner of your company. This is an important contract. You are responsible for

all decisions and instructing all employees about what, how and when different activities will

be undertaken. You may not delegate. Once assigned to a role, you may not change an

employee’s role. Employees can only communicate to you through data provided by

Administrators.

COMPANY C

In your company, you do not have specified roles. Every person contributes to each task. As

such, tests will rotate through the team. For example,

33

Test 1 = Employee 1

Test 2 = Employee 2

Test 3 = Employee 3

Test 4 = Employee 4

Test 5 = Employee 1

Test 6 = Employee 2 and so on.

COMPANY D

No additional instructions.

34

APPENDIX C

THE FAST AND THE FURIOUS EXERCISE

SAMPLE PROPOSAL TEMPLATE

Team No.: _______________________

Engineers: Level 1 Completion Time:

Administrators: Level 2 Completion Time:

Test Drivers: Level 3 Completion Time:

Test No. Level Colour Engine Tires Gears Time Win/Lose Configuration Cost Total Cost

1

2

3

4

5

35

APPENDIX D

THE FAST AND THE FURIOUS EXERCISE

POSSIBLE SOLUTION FOR LEVELS 1 to 3 OF RACING ACADEMY

Parameter Level 1 Level 2 Level 3

Target Time 16.094 13.695 13.338

Engine Rotary 2.6 liter Rotary 2.6 liter Rotary 2.6 liter

Tires Default 225/40 ZR17 x

Slick

225/40 ZR17 x Slick

Gears Default Default 3.59:2.30:1.40:1.15:1.03:0.91

OR

4.11:2.34:1.83:1.31:1.03:0.98

Steering

Assistance

On On On

Transmission Auto Auto Auto

Colour Default Default Default

Notes None Seems to perform

better if ease of

accelerator at start

to reduce skid –

pay attention to

audio and visual

cues

None

36

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Table 1 Scoring Unit Description Points

Early mover advantage Points allocated to first and second teams to

complete all three levels

1st – 50 pts

2nd – 25pts

Competitiveness Points allocated to each team on

completion of each level

Level 1 – 10pts

Level 2 – 15pts

Level 3 – 25pts

Performance Points allocated to the teams with the

fastest race times

1st – 25pts

2nd – 15pts

3rd – 10pts

R&D Cost Points allocated to the teams with lowest

R&D costs

1st – 25pts

2nd – 15pts

3rd – 10pts

Test Comprehensiveness Points allocated to the teams with the

highest number of tests

1st – 25pts

2nd – 15pts

3rd – 10pts

Final Configuration Cost Points allocated to the teams with the

lowest configuration cost

1st – 25pts

2nd- 15pts

3rd – 10pts

44

Table 2 Strategic management student characteristics Frequencies Percent

Age

20-25 16 45.7

25+ 19 54.3

Gender

Male 20 57.1

Female 15 42.9

Nationality

Irish 30 85.7

Other 5 14.3

Functional Background

Marketing 16 45.7

Accounting 12 34.3

Human Resource Management 7 20.0

45

Table 3 Organisation theory and practice student characteristics Frequencies Percent

Gender

Male 20 57.1

Female 15 42.9

Nationality

American 8 29.6

French 7 25.9

German 6 22.2

Spanish 5 18.5

Polish 1 3.7