1. Discussion 3: FFTW-Introductions
IS for Managers: II
Discussion 3: FFTW-Introductions
Trevor T. MOORES
CIS 9002
Spring 2016

2. Overview First run of the business game, Flowers For The World:
An attempt to give everyone a common ground for understanding the business processes that are to be supported
Each group must work out the information system that will allow the proper flow of information between each group member
Probably, you will work it out as you play!

3. Experiential Learning
Learning by doing
But, the person must be willing to:
Be actively involved
Be able to reflect on and analyze the experience
Use problem solving skills to make the best use of the new ideas gained
Report01
(now me)
Report03

4. No Electronics Allowed
NOTE: How your group fails tells you what is important in playing the game!

5. Introducing the Company
Part 1
Introducing the Company

6. Flowers For The World
Large horticultural import/export and distribution company:
Founded in 1912, headquarters in New York
Flowers bought at auction each week in Aalsmeer
Sold directly to customers through a string of partnerships (flower shops)
Flowers stored in a refrigerated warehouse in Long Island (max. 3 weeks)
Since 1994, specializes in the sale of Roses, Irises, and Daffodils

7. Roses, Irises, Daffodils

8. Management Structure CEO Financial Manager Sales Manager
Purchasing Manager

9. Aalsmeer Flower Auction

10. The Flower Auction
Auctions are held in Aalsmeer, Holland, at 4am every Monday morning:
Flowers are offered in varying number of lots, where each lot is 100 flowers (2 lots of Roses = 200 Roses)
Bids are made for each set of flowers (2 lots, etc.):
The auctioneer has a minimum sale price
Once bought, the flowers cannot be returned:
Payment is due before the end of the week
Failure to pay means a one-week suspension

11. Sale to Customers Flower shops open at 9am:
Which is after the auction closes
Our customers (partners) send enquiries for N number of flowers
FFTW responds with a quotation giving price per flower:
Customers will haggle over price
Default delivery of “within 2 weeks”

12. Balance Statement
By law, an opening/closing balance statement is required at the beginning of each week, summarizing the trade for the previous week:
Failure to submit the statement to the local tax office will result in a series of fines:
First offence, $250
Second offence, $1000
Third offence, suspension of company activities

13. Part 2
How We Play the Game

14. Timeline of Activities
First
bid
Second/
third bid
First
quote
Second
quote
One “week” = 20 mins
Auction
begins
Customer
orders
Balance
Statement
due

15. Example: The Auction 2 lots of Roses: 2 lots of Irises:
You offer $100 (Min. price $90), you win!
2 lots of Irises:
You offer $90 (Min. price $100), you lose!
3 lots of Daffodils:
You offer $1,000 (Min. price $1oo), you win?
Want to see in this order!
NOTE: It doesn’t matter how many lots there are, matching the minimum
auction price is the key. Will not change more than ±$10 a week.

16. Be Careful!
Winning bids at auction are dependent on competition amongst bidders, not the number of lots available. So don’t divide:
Let’s say 2 lots of Roses sold for $90 at auction last week
If this week there are 4 lots of Roses for sale and the market price hasn’t changed, the price will be:
$90

17. Example: Customer Enquiry
Request 85 Roses:
100 ¢ per Rose (Max. price 100 ¢), you win!
Request 30 Irises:
20 ¢ per Iris (Max. price 10 ¢), you lose!
Request 50 Daffodils:
20 ¢ per Daffodil (Max. price 60 ¢), you win?
Want to see in this order!
NOTE: Max. price will not change more than ±20 ¢ a week.

18. Delivery Note
A delivery note must be submitted (to me) before the end of the agreed week:
Group 1, Delivery in Week 4 from Week 2, for Customer 1, 85
No partial deliveries (e.g., 40 of the 85)
Once the delivery note has been received the money is in your account:
Failure to submit the delivery note (or on-time) means the order is cancelled!

19. Opening Position Roses: Irises: Daffodils: Bank balance:
100 (1 lot), good sales, selling at 100 ¢ per flower
Irises:
50, poor sales, selling at 10 ¢ per flower
Daffodils:
100, average sales, selling at 60 ¢ per flower
Bank balance:
$1000

20. Costs Flowers: Storage: Advertising: Auction price
$25 per 100 flowers (or part thereof) per week
Flowers can only be stored up to 3 weeks, and must be discarded once 4 weeks old
Flowers bought and sold in the same week do not incur any storage costs
Advertising:
$25 per week

21. Example: Balance Statement
Opening balance: $1000
Auction: $0
Stock: 250
Income: $0
Storage cost: ($75)
Advertising: ($25)
Loss of $100
Closing balance: $900

22. Important!
Auction bids and customer enquiries must list the flowers in order:
Roses, Irises, Daffodils (create forms?)
Put your group number on everything you submit:
Anything that is not readable will be discarded!
You cannot exceed an overdraft of $500:
Must declare bankruptcy and withdraw from the game

24. Part 3
Let’s Play!!

25. Week 1 Auction
9 lots of Roses
3 lots of Irises
6 lots of Daffodils

26. Week 1 Customer Enquiry Customer 1: Customer 2: 606 Roses 102 Irises
358 Daffodils
Customer 2:
893 Roses
323 Irises
295 Daffodils

27. Week 2 Auction
9 lots of Roses
1 lots of Irises
5 lots of Daffodils

28. Week 2 Customer Enquiry Customer 1: Customer 2: 643 Roses 497 Irises
277 Daffodils
Customer 2:
743 Roses
458 Irises
320 Daffodils

29. Week 3 Auction
7 lots of Roses
2 lots of Irises
2 lots of Daffodils

30. Week 3 Customer Enquiry Customer 1: Customer 2: 836 Roses 246 Irises
333 Daffodils
Customer 2:
429 Roses
484 Irises
398 Daffodils

31. Week 4 Auction
4 lots of Roses
4 lots of Irises
5 lots of Daffodils

32. Week 4 Customer Enquiry Customer 1: Customer 2: 460 Roses 241 Irises
39 Daffodils
Customer 2:
203 Roses
189 Irises
237 Daffodils

33. Week 5 Auction
9 lots of Roses
3 lots of Irises
4 lots of Daffodils

34. Week 5 Customer Enquiry Customer 1: Customer 2: 493 Roses 456 Irises
161 Daffodils
Customer 2:
255 Roses
478 Irises
118 Daffodils

35. Week 6 Auction
5 lots of Roses
10 lots of Irises
6 lots of Daffodils

36. Week 6 Customer Enquiry Customer 1: Customer 2: 57 Roses 218 Irises
244 Daffodils
Customer 2:
564 Roses
428 Irises
343 Daffodils

37. Week 7 Auction
7 lots of Roses
1 lots of Irises
2 lots of Daffodils

38. Week 7 Customer Enquiry Customer 1: Customer 2: 75 Roses 315 Irises
107 Daffodils
Customer 2:
502 Roses
149 Irises
342 Daffodils

39. Week 8 Auction
10 lots of Roses
4 lots of Irises
2 lots of Daffodils

40. Week 8 Customer Enquiry Customer 1: Customer 2: 50 Roses 139 Irises
229 Daffodils
Customer 2:
85 Roses
343 Irises
122 Daffodils

41. Week 9 Auction
4 lots of Roses
9 lots of Irises
5 lots of Daffodils

42. Week 9 Customer Enquiry Customer 1: Customer 2: 688 Roses 429 Irises
167 Daffodils
Customer 2:
541 Roses
129 Irises
209 Daffodils

43. Week 10 Auction
4 lots of Roses
8 lots of Irises
4 lots of Daffodils

44. Week 10 Customer Enquiry Customer 1: Customer 2: 263 Roses 483 Irises
178 Daffodils
Customer 2:
19 Roses
556 Irises
317 Daffodils