1. An Introduction to Mikes Bikes Advanced
Presented by:
Peter Janciw

2. What is a Business Simulation?
A representation of a real world company
Governed by real life business conditions trying to achieve goals and strategies
You are placed the role of Management and must make strategic decisions
It is NOT just a game, it is a learning experience

3. Why simulations are used
Application of theoretical business concepts (everything you learned in IB1!)
Used in both the academic and business realm
Simulations build teamwork skills and provide an enjoyable way to learn.
Manitoba International Marketing Competition

4. We will now look at… What is Mikes Bikes?
Simulation interface elements
The importance of strategy
The main functional areas of the business
Things to watch for

5. What is Mikes Bikes?
You are the new manager of a manufacturer in the bicycle industry
5 market segments and 3 distribution methods exist
2 versions: Single-Player and Multi-Player We will be using the Multi-Player version
Rollovers are automated!

6. Multi-Player Structure
Course
World
Firm
User

7. Simulation Interface Elements
Decision Screens – Enter the values for all functional areas for the next period
Reports – View company results and analyze for next decision
The Advisor - The Mikes Bikes “helper.” Provides tips and assistance

9. The Importance of Strategy
Strategy – How you will achieve your organizational goals
Each Marketing, Production and Financial decision you make ties into your overall strategy!
Monitor strategy by constant analysis (via reports) then make the right decisions

10. Applying The Strategy Big Picture > Main Objectives > Low Level
Meeting Main Organizational Objectives
Making Profit
Having enough Product
Keeping Customers Happy

11. The Main Functional Areas
Marketing – Advertising, Public Relations, Branding, Price, etc
Production and Operations – Our capacity to produce
Finance – Costs, Cash Flows, Profit
R and D – Developing products the consumer wants
HR – Size of our workforce, training, etc

12. 1. Marketing Promotion – Advertising, Public Relations
Distribution (Place) – Departments Stores, Bikes shops, and Sport Shops
Price – How much will we/can we charge our customer?
Product – Creating what the consumer wants

14. 2. Production and Operations
Plant capacity measured in SCU’s (Standard Capacity Units)
Control batch size, set up time reduction, preventative maintenance
Forecast sales to determine production values
Factory efficiency of 70% - 80% is very good

16. 3. Finance We want to cover our costs and make a profit!
We can increase or pay back long term debt
Shares can be sold to raise capital, or be bought back.
Provide shareholders with dividends from cash surplus

18. 4. Research and Development
Modify existing products or create a new one
Choose product attributes: Design/Style and Technical Specs
Use the product placement and the perceptual map to determine which attributes our target market wants

20. 5. Human Resources
We can increase or decrease the size of our workforce
We need to decide how much to pay our employees
We need to decide how much we are going to spend on training our employees

21. Things to watch for…
Plant capacity – Too much will be a waste of resources. Under capacity will result in not being able to meet our customer demands (opportunity costs).
Marketing decisions - Be sure to spend the right amount of resources in the proper areas.

22. Things to watch for…
Financing decisions - Watch your debt to equity ratio. Too much debt and not enough equity will hurt share price!
Is the price right? – Having a price that is too low results in lower revenues. Having a price that is too high results in lower sales.
Don’t stock out!

23. Simulation Schedule 2 practice moves 6 actual moves
Fri May 20th, Tues May 24th
6 actual moves
Move 1: Fri May 27th
Presentations to the board
Show how your company has performed over the past 5 periods

24. The Group Experience Do key tasks AS A TEAM
Listen to everyone’s ideas and opinions
Deal with situations as the occur

25. Downloading and Playing
Download all software and player manuals from
Smartsims
2 team members can register at a cost of $50 each. This amount is spread over the team to lower costs
Smartsims will your registration information to you

26. Downloading and Playing
Firewall configuration
Access Multi-player software in 3C13
UserID: student-01
Password: NetMike
Smartsims access:
Login: stuwinnipeg
Password: canada

27. Walkthrough
How to make a round of decisions…

28. Questions