The Beaver Republic Game

Learning Objectives Choose or define a strategy re: how to enter an industry - type of store, product, product mix options, price, type customers Make choices that define economics of a business - capital investment, volume of sales, margins, fixed costs Evaluate financial attractiveness of a business opportunity - financial projections, internal rate of return, hurdle rates

Learning Objectives continued Make operating decisions - order raw materials, schedule production, price products, offer them Respond to external environment challenges – decide position on various issues with different effects on business, i.e. taxes Work or cooperate with competitors/ community at large regarding economic issues

Scenario You are project managers working for a large diversified company. Investment limit B$200k Your task is evaluate a business opportunity – make and sell bean bags – in the Beaver Republic. You need to prepare a Proposal to Invest or PIN. If approved, you start and operate the business. At the end of the game, you will have to submit a Post Audit Report or PAR.

Game Information At least 25 companies (over three sections of BA 469 this summer) There are two types of bean bag businesses available. Your choice, you invest, and the game will provide you the rest – factory, etc. The game is accessible through the internet. The system is not located on campus. We will use a survey system located on campus to collect votes. Administrator (plus a couple of programmers and assists)

Resources The Beaver Republic Game describes the scenario, including information you need to make an evaluation of the business. The Beaver Republic Game: Student Guide describes the two (case) reports you will have to submit – the PIN and PAR. The Beaver Republic Instructions describes the different portions of the game site to assist you in gaining access and navigating it.

Requirements Note grading requirements on syllabus. The case report due July 19/20 is the PIN described in student guide. The case report due end of the term is the PAR described in student guide. Make and enter decisions per turn (half year) as shown on schedule. Respond to call for votes from the “Council”

PIN The Student Guide describes what information are required for a PIN. The student guide contains a template to get you started on the financial aspects of the evaluation. Your investment limit is B$200,000. Your financial projections become your targets, assuming you recommend investment and it is approved.

PAR The Student Guide will describe what information are required for the PAR You will need to keep or maintain your accounting books – record unit sales, price, cost of materials, taxes due, etc. - the program will give you (and administrator) totals to provide verification of your records. Be ready to submit key variance figures Explain variances with business reasons

Game Schedule Refer to Game Schedule 5 years, 2 turns per year (wet and dry season) Turns start 5th week, four turns a week Decisions for a turn may be entered anytime before next turn The current turn will be reflected on your home pages.

The Message Box Watch for messages - –Decisions that ask/request each student to vote –News on what is happening externally that may have a bearing on your business –The system works internally. You can your competition. –The administrator may broadcast news or requirements through this media.

Votes The Beaver Republic is a democracy. There are a few issues which will require constituents (business owners, residents, etc.) to vote. Information on these issues are in the Beaver Republic Game document. A reminder and more information will be sent out through the message box. Votes may be cast using the survey system.

Info Required to Get Started User ID Password Investment amount requested Type of store (defines segment) Company name

Plan B