BREEZE (business war game) an interactive didactic system © Michel Muszynski 2018 marketing, finance, strategy, stock exchange By professor Michel Muszynski info@simulations-for-education.com 1

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Interactive didactic system teaching how to manage a multi-product company In addition to “every day” decisions company executives take (as quality of products, their prices, communication budgets, manufacturing), students decide also on diversification, on long term investments, on stock exchange and even on building corporate holdings They use a full set of analytical tools (market, financial, competition, stock exchange and strategic analysis) This system works on line (web or intranet), with transmission of data and communication between computers of students and war game moderator

Products: 4

Market segments: 5

Product x Market analysis 6

Managing a virtual company: Extensive help 7

Send your decisions to moderator Whole company Send your decisions to moderator This product 8

Product break-even: 9

Transfering data from students to moderator and back: Bidirectional 10

Financial analysis: 11

Competition analysis: Competitors 12

Different products Strategic analysis: 13

Sent back by the moderator to his students Web or intranet communication moderator ↔ students: Sent back by the moderator to his students 14

„C” owns more than 25 % of capital of „A” Stock exchange: „C” owns more than 25 % of capital of „A” 15

This part of „B” is owned by “A” in holding Holding's consolidated balance sheet: This part of „B” is owned by “A” in holding

Analysis of capital group (holding) parent company: 17

End finally, on moderator's screen... 18

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„C” is the winner in profit category Comparing achievements of different competitors: „C” is the winner in profit category 20

Analysing profits of different competitors: 21

Marketing & strategy topics covered: Market demand as a decreasing function of selling price Adaptation of product to market segment Influence of product quality on market demand & profit Mass market strategy vs differentiation of products Interdependence of products (cannibalization effect) Importance of advertising and ad budget on sales Time evolution of market demand Difference between volume and money market shares Relationship between market share and variable cost (usually called strategic experience effect) Relationship between relative market share and market growth rate – importance for the company future info@simulations-for-education.com 22

Financial & stock exchange topics covered: Company P & L statement as well as balance sheet Equity and cumulated profits Variable and fixed costs (and operation leverage) Calculation of product break-even point Direct and indirect costs (financial margin vs profit) Liabilities and incurred financial costs Fixed assets degressive depreciation Production capacity and inventory management Financial ratios: relative sales margin, ROI, ROE, assets turnover, financial leverage Buying & selling stocks: investment portfolio (quotation on stock-exchange and values in balance sheet) Exceptional operations when selling stocks or fx. assets Dividends payment and collection Competitor's take-over: purpose of holding, parent company management, consolidated balance sheet info@simulations-for-education.com 23

BREEZE on-line and net… Length of simulation 6 – 8 virtual years Number of competitors (student teams) Up to 8 Number of variables 140 x 8 competitors Working on Windows 10, 8, 7, Vista, XP Space on students' computers required Less than 10 MB Internet connection Required Export of data Possible to (c) MS Excel

BREEZE on-line and net… By professor Michel Muszynski info@simulations-for-education.com 25