Best Practices in the Use of Managerial Simulation Games-Based Learning Jindra Peterková

Content 1.The goal of the paper 2.Evaluation of the asset of the managerial simulation game in a teaching process 3.Practical example 4.Model of managerial simulation game „Strategic Corporate Management“ 5.Conclusion 2

1. The goal of the paper  The paper is based on conducted probe of managerial simulation game benefits for students and a practical example of activities in the field of managerial simulation games and teaching experience in the teaching process.  A probe in 2010 and 2011 in form of a questionnaire survey was chosen for the evaluation.  Practical example of Managerial simulation game is based on developed Strategic Corporate Management Model that is derived from teaching best practices and created by using software program Vensim. 3

2. Evaluation of the asset of the managerial simulation game in a teaching process  The Probe into Teaching of Managerial Simulation Game was carried out by filling an anonymous questionnaire survey within groups of students during 2010 (55 participants) and 2011 (50 participants) semesters.  To fulfill the main goal a set of following research tasks were defined: 4 1.How do you assess the asset of this subject for your further study? 2.How do you assess the asset of this subject for your further occupation? 3.How do you assess the helpfulness and interestingness of verification methods of economic dependencies in the world of computer games? 4.Was teamwork beneficial for you while making the decision within the managerial simulation game?

2. Evaluation of the asset of the managerial simulation game in a teaching process Results of the probe Graph 1: How do you assess the asset of this subject for your further study? 5 With no regard to differences in probe results from the year 2010 and 2011 the majority of the interviewed students (63% in 2010; 62% in 2011) were evaluating the subject Managerial simulation game as a popular and beneficial for further studies and practice. They appreciate that it allows them understand the dependencies in the selected economic quantities simulated within managerial simulation games (examples of the answers: the realization allowed to check the way the market behaves, check the way firms work, cooperation in the teams, competing among students´ teams etc.).

2. Evaluation of the asset of the managerial simulation game in a teaching process Results of the probe Graph 2: How do you assess the asset of this subject for your further occupation? 6 The majority of the students consider the subject beneficial not only for further studies, but mostly for the interconnection between theory and practice according to the survey in 2010 they rate as rather beneficial (56% as beneficial, 12% as beneficial in certain aspects and 7% as very beneficial) and in 2011 they tend to assess the subject as more beneficial (36% beneficial, 20% beneficial in certain aspects and 14% as very beneficial). Interestingly several students (14,5% in 2010 and 28% in 2011) have found the subject unbeneficial for further occupation.

2. Evaluation of the asset of the managerial simulation game in a teaching process Results of the probe Graph 3: How do you assess the helpfulness and interestingness of verification methods of economic dependencies in the world of computer games? 7 In 2010 and 2011 majority of the students 89% and 82% respectively, assess the helpfulness and interestingness of verification methods of economic dependencies in the world of computer games beneficial. At the same time the complexity needed to fulfill all the simulations was regarded by the student as average.

2. Evaluation of the asset of the managerial simulation game in a teaching process Results of the probe Graph 4: Was teamwork beneficial for you while making the decision within the managerial simulation game? 8 The managerial simulation game taught some students team communication and put across their decisions. As for an optimal team, I consider an optimal team of 2-3 members. The teamwork was assessed as very beneficial for the subject (more than 90% in both years).

3. Practical example of a created managerial simulation game Strategic Corporate Management Description of managerial simulation game  Strategic Corporate Management managerial simulation game was created for the purposes of strategic managing of a frozen-food firm in food-processing branch.  The created simulation uses the software program called Vensim DSS Version 5.9.  Having regard to the application of strategic managing of a firm, the game is organized for 24 months ( 2 ice cream seasons ), that means one period represents one real month within the firm.  To make the real situation in the frozen-food market easier, this market will be formed only by 8 frozen-food firms. One firm in the simulated market is represented by one students´ team made of 3 students. 9

3. Practical example of a created managerial simulation game Strategic Corporate Management Description of managerial simulation game  Each students´ team will create a frozen-food firm, which will attempt to get the highest IVP rating index.  Rating index of a firm – that means the total display evaluating the performance of the firm aggregates the data from the 3 partial indicators, determines the achieved economic results of the firm – the pace of the growth of sale, equity share and profit.  For particular partial indicators certain value is defined – the pace of the growth of sale (45%), equity share (35%), profit (20%). 10

11 4. Model of managerial simulation game Strategic Corporate Management

5. Conclusion  The use of managerial simulations helps to develop the knowledge and competency of the students. Through the interactive game they can observe the effects of their decisions.  The probe realized within the subject “Managerial simulating games” showed that the main asset of the simulations for the students is in understanding the dependencies in the selected economic quantities.  The example is the illustrated in the created simulation game Corporate Strategic Management, used in the subject “Managerial simulation game”. It shows the students the problems the top management of a food-processing firm has to deal with. 12