1. Flowers For The World A Business Game to Support the Teaching of MIS Concepts

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5. 5 Overview What is involved in playing the business game: Management roles Information issues Game rules

6. 6 Flowers for the World Flowers are bought at auction in lots of 100: Approx. 5 mins Three main breeds of flowers: Rose, Iris, Daffodil Sold on demand to customers throughout the world One “week” = approx. 15 mins

7. 7 Flowers for the World, Inc. Managing Director Purchasing Manager Accounts Manager Sales Manager

8. 8 The flower auction Guaranteed quality (no returns) Must match or be more than minimum price bids must be in units of $10s The sale for each single flower should not be more than $8. Must pay before week is out

9. 9 For example: The auction 3 lots of roses Offer $100. Require min. of $50. You win! 4 lots of irises Offer $300. Require min. of $310. You lose!! 5 lots of daffodils Offer $1000. Require min. of $100. You win?

10. 10 Sales to customers Enquiries after the auction for X number of a particular flower quote price and delivery date Must match or be less than maximum price and minimum delivery time Must deliver, otherwise: Order cancelled

11. 11 For example: Customer enquiry Request for 85 roses $0.10 per rose, in 2 weeks max. is $0.10, 2 weeks. You win! Request for 30 irises $0.10 per iris, in 2 weeks max. is $0.05, in 1 week. You lose! Delivery note to referee week 2, customer 1, 85 roses@$0.10

12. 12 Financial report and penalties Required by law at the beginning of each week for the last week Failure to submit a report carries penalties: $200 fine each time you fail to submit a financial report on time One week to pay, or company suspended from the game for one week $200 fine for any financial report error plus double of the error amount

13. 13 Costs Flowers: auction price Storage: $5 ($25 before) per 100 flowers per week (or part thereof) Flowers can be stored for a maximum of 2 (4 before) weeks, then written off (cannot be sold)

14. 14 For example: Financial report Previous balance: $1000.00 In storage: 200 flowers (2 weeks old) $5 per week per 100 flowers $10 storage fee this week Income: $0 Final balance: $990.00 Give copy to referee

15. 15 Current balance Roses: 100 (1 lot), good sales Irises: 50, poor sales Daffodils: 50, average sales Bank balance: $1000.00

16. 16 Marketing Information: Auction Roses: Selling for about $50 at auction Price has been rising Irises: Selling for about $30 at auction Price has been rising Daffodils: Selling for about $40 at auction Price has been fluctuating

17. 17 Marketing Information: Customer Orders Roses: Customers buying at $.60 per flower Price has been rising Irises: Customers buying at $.55 per flower Price has been fluctuating Daffodils: Customers buying at $.50 per flower Price has been steady

18. 18 Week 1 Auction 6 lots of roses 7 lots of irises 9 lots of daffodils

19. 19 Week 1 Customer Enquiry Customer 1: 357 roses 406 irises 448 daffodils Customer 2: 327 roses 325 irises 374 daffodils

20. 20 Week 2 Auction 5 lots of roses 7 lots of irises 9 lots of daffodils

21. 21 Week 2 Customer Enquiry Customer 1: 382 roses 471 irises 483 daffodils Customer 2: 125 roses 213 irises 397 daffodils