1. Business simulation Joakim Tell Henrik Florén Halmstad University

2. Agenda for the 8/9  A short introduction to the simulation  Each group presents during 10 minutes their analysis and their strategy (how to take the company from current state to the desired state).  Guide through SIMBIZ (handout of codes)  Working with decisions to be made year 4  First board meeting

3. Introduction  Introduction video (1 minute)  http://simbiz.tripnet.se/doc/1/6/Introdukti on_LAN.wmv http://simbiz.tripnet.se/doc/1/6/Introdukti on_LAN.wmv  Case study video (5 minutes)  http://simbiz.tripnet.se/doc/1/7/Praktikfall et_LAN.wmv http://simbiz.tripnet.se/doc/1/7/Praktikfall et_LAN.wmv

4. The Simbiz-model

5. Introduction to the SIMBIZ case  You as a new management team takes over an existing company Roos Technology.  The company has been on the market for six years, but the results are not brilliant.  B2B-market, Internally developed printer, technically superior to all competing products.  However, clients are not convinced (3/5), neither is the staff (3/5).

6. Structure of SIMBIZ  Start of the actual simulation today  Five Board meetings (15/9, 22/9, 29/9, 6/10 and 13/10), 30 minutes for each group (6 students), where you present your strategy and decisions to be approved by the board (both orally and written).  One shareholders' (general) meeting 20/10  The ”winner” is the group with best result (according to 8 goals) and the end of the simulation!  You can follow the results of the other groups, but not their strategies.

7. Simbiz board

8. 1, Sales price per machine 2, Publicity, exhibitions, SP (annual outlay) 3, Production equipment order (quantity) 4, Number of salesmen 5, Number of visits 6, Training of salesmen 7, Number of technicians 8, Number of visits 9, Training of technicians Decions to be made year 4 We can open up more budget conditions for you the coming years if you ask for and motivate why!

9. (Messes, or people oriented issues) In order to achieve a good result you must have both motivated employees as well as satisfied customers. It is not only financial results that counts! These put the ratings in the form of stars. The rating affects the outcome of the simulation!

10. The eight goals after year 9  Costumer satisfaction: 12 stars total  Personnel motivation: 4 stars average  Total market share after period (6) 8: 80 %  Market share new sales after period 8: 80 %  Solidity or solvency after period 8: 35 % (Total personal capital/Total assets in balance sheet). The ability of a corporation to meet its long-term fixed expenses and to accomplish long-term expansion and growth. As a rule of thumb, the solidity or solvency it need to be greater than 25% in order to acquire loans.

11. The eight goals after year 9  Return on assets (ROA) after period 8: 25% That is, in the income statement, gross profit (Operating profit/loss)/Total assets (in balance sheet). How profitable a company's assets are in generating revenue.  Gross profit margin after period 8: 20%. That is, in the income statement, gross profit (Operating profit/loss)/ total turnover. A measurement of potential profitability per amount of sales revenue (not including overhead costs)  Positive cash flow in period 8. That is, available assets in the balance sheet compared to the year before is positive. The possibility to pay bills in time.

12. This is a message you will not want to get! NB! 50% of the share capital is spent and the company is bankrupt. You have been blocked and must contact the teacher in order to continue to next period. See the Balance Sheet.