MBA Simulation game
Free Winning Guide and Tips
MikesBikes
ROUND BY ROUND GUIDE
FOR 8 ROUNDS
This simulation game focuses on strategic management for bikes manufacturing.
You and your team take decisions as a leader of a firm to get higher profitability than competitors.
This is step by step guide from round 1 to round 8 to win the game with top sales, profit, market share and stock prices or SHV (shareholder value)
Because competitors will make different decisions of each round, your team decisions need to adjust, therefore use the step by step guides still need adjustment of each round to gain top sales and profit.
Do not just use the numbers, need adjustment to meet conditions of each round.
Follow the strategy guide with adjustment can Win the game all rounds.
START
Log in the game with provided id and password.
Think about a nice Name for your Firm, eg. Speed Bikes, Storm Riders, Flash Like or any name
Create a Vision and Mission for Your Firm.
VISION: To be the company having highest market share with best cycling experience to customer empowered by superior technology.
MISSION: To be the market leader globally & to provide customer best products and experience.
Just give a good Mission and Vision for Your Team.
Good product, check ideal spot in perceptual map
Good prices for Adventure, and also good prices for Leisure
High advertising: invest more on advertising and promotion.
Attract more and more suppliers for increasing of sales.
Provide Extra support to Supplier.
Increase SCU every round to meet next round demands
High quality, good prices to gain high sales and profit
Keep track of competitor strategy to make better decisions
Long term strategy with 8 rounds, invest in rounds 1-2-3 and lead the game with top sales and profit all later rounds 4-8
Important, R&D new products early to win good sales and profit, control market segments.
FREE EXCEL FILE FOR CALCULATION OF SALES, SCU, WORKERS, ADVERTISING & PR BUDGETS EVERY ROUND -DOWNLOAD HERE - LINK
Email: mbasimbikes@gmail.com
Blog: mbabikes2012.blogspot.com
MBA Simulation game - Free Winning Guide and Tips (MikesBikes 2019) - ROUND 1
Round 1 (2019) Step by Step Guide and Tips
In this game, every year is processed by Roll-Over function.
Before setting decisions, check the Reports
Think about the target goal for First Roll Over (first Round) and make suitable Strategies which help you to achieve them and after Roll Over Analyze them, which help You to target goals and make strategy for next year.
Note in advance, this is long term strategy game with 8 rounds.
Start early and invest strongly to gain good sales, otherwise competitors will do, and gaining back market share is always harder than get is from first rounds.
Round 1 starts with:
- SHV: $ 13.97
- Retail Sales: $ 27 million
- Profit After Tax: $ 2.5 million
- Cash: $ 6.6 million
- Wholesales Sales: $ 14 million
- SCU: 24.000 (utilization: 63%)
- Product: 1
Target
Most simple target or goal is to increase each round by 10% or 20%
Product
For Adventure Segment
Last round sold: 16.000 units --- forecast sales for this round: 18.000 units (+13%)
SCU needed: 18.000 x 1.0 = 18.000
Workers needed: 45 to 60 (300-400 SCU per worker)
Buy new SCU for next round: 25.000 (do not sell) – next round will also produce Leisure segment (can even add 2 products Leisure, Racers or Commuter and Kids, depends on your strategy).
Add new products early can increase sales and control market segments.
For Round 1
Price: $2000-2000
Produce: 20.000 - 23.000 (can even 28000)
Stock: 3-5 weeks
Price Production
Retail Price: put price between 1700 to 2200 (eg. $1800 - $1900 - $2000 - $2100 - $2200 then keep that prices for next rounds)
Planned Production: Increase to 23.000 or highest 25.000
Planned Safety Stock: 5 weak to avoid stock out and meet delivery requirement
Advertising
For the advertising, the ratios should be average divided in to 33%, 25%, and 42%.
TV: The investment on TV should be 40% maximum of total Advertising Expenses.
Internet: The Investment on it should be 30% max.
Magazine: On magazines it should not be above 50%.
For Round 1, can use TV: 400.000; Internet: 300.000 and Magazine: 500.000
Later rounds increase each round 20% or higher than competitors
Advertising for Round 1
TV: 400.000
Internet: 300.000
Magazine: 500.000
Public Relation
PB Exp. Ratio will be the same as the Advertising.
Manufacturing
Workers: 80
SCU: 25.000 + 5.000 (or 2.000)
Responsiveness
Current Employee: Increase your Employee according to need of your SCU and Production, But not very high because it Increase your Idle Time.
Current Plant Size: Increase the plant size up to double in 1- 3 rollover its help in 3-6 rollover for new segment to increase capacity
Process
Batch Size: Increase the Batch size by minimum 200 in every rollover Its control your Idle Time as well as decrease your Expenses. For Round 1 use 400
Set Up Time Reduction: It will Decrease the Time Of Setting Up your Plants. For Round 1, use 300.000
Supplier Relation: Help You to Reduce to Raw material inventory Stock Out. For Round 1, use 350.000
Raw Material In. W. Out: The Inventory Period You Want To hold With you If it is perfect it increase your production and reduce the Ram material Out and you don't have to pay extra for the Inventory Keep with you, On the Other hand it's vice versa. For Round 1, use 3 Weeks
BS: 400
SUT: 300.000
SR: 350.000
RM: 3 weeks
Quality
Average Salary: It's not should be too much, just near by 23.000 or increase it by 500 – 1.000 every year. For Round 1 use $26.000
Training: it decreases the servicing of you product and increase the quality of your product, It should be average 40. For Round 1 use 45 then increase to 50-55 and keep 60 for later rounds.
Preventative maintenance: to reduce the plant crashes and increase production. For Round 1 use 600.000
Quality System Technology: Its increase your Product Quality and useful to increase your sale. For Round 1 use 600.000
Inspection: Inspect charges to inspect the quality of your Final product increase the Quality of your product and you have to pay less for service of the product under warranty for your customers. For Round 1 use 18%
AS: $26.000
Training: 45 (50 - 55 - 60)
PM: 600.000
QST: 600.000
Inspection: 18%
Distribution
You have to decide the Extra support and the Retail margin that you want to give to your Distributors for selling your cycles.
Should spend more than your competitor but also not very high because it Decrease you profitability.
Bike Shop: spend for Round 1, use 200.000 and 51%
Department Store: for Round 1 spend 500.000 and 36%
Branding
For 1 to 3 Rollover you have to invest high on your Brand to Increase your Brand awareness.
Use 1.000.000 for round 1, then increase to 2.000.000, and keep 3.000.000 for all rounds
D&D
Develop a new project for Adventurer: Style 52/ Tech 54
Develop a new project for Leisure: Style 52/ Tech 11
If you like to risk and take advantage, can try add 2 new products from Round 1, or 2. Can win faster but also higher risk.
NOTE, AGAIN:
Do not just use suggested numbers
Need to look at report and set numbers/decisions better than competitors
Finance
Equity: Buyback your Equity from the Second Rollover onward in installment it help you to increase your SHV.
Debt: Pay debt in Installment Second Rollover Onward to increase SHV.
Investors Relation: Pay little Bit More but Not too much to make good Relation with Investors It Increase your SHV A lot. For Round 1, use 300.000 - 400.000
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Estimated results for Round 1
Note in advance:
This is long term strategy game with 8 rounds.
Round 1-2-3 for investment, new products development, promo and sales
Therefore, round 1-2-3 will have good sales but low net profit
Lead the game all rounds 4-8 with top sales and profit.
- SHV: $ 14.31 - $17 / $12
- Retail Sales: $ 35 million - 43 M / 32M
- Profit After Tax: $ 500K - 3.2M / $620K
- Cash: $ 6.5 million - $10 M
- Wholesales Sales: $ 18.3 million - $22M
- SCU: 25.000 (utilization: 77%)
- Product: 1
BSC
SHV $ 17
Retail sales $ 43 M
Profit after tax $ 3.2 M
Cash $ 10 M
Wholesales $ 22 M
SCU 25.000 (Utilization: 77%)
Market summary
Leisure not sold yet
Adventure sold 19.000 ($ 2200/ 1750)
Market Information
Adventure 38.000 --- 43.000 (+ about 13%) No inventory (Can sell 40.000)
Leisure 42.000 (+ 7%) Start selling from Round 2 (can sell 50.000)
Commuter - Can also sell 35.000 x $340 (if develop from Round 1)
Product summary
Adventure 19.000 --- 22.000 x 1.0 --- 22.000 SCU
Leisure 21.000 --- 26.000 x 0.2 --- 5.000 SCU
Commuter (can also sell in round 2)
Total needed: 27.000 SCU --- need about 90 workers
Should add 30% 8.000 SCU for next rounds
Production
Adventure 22.000 x $2.200 (5 weeks)
Ads 480.000 - 360.000 - 600.000
Leisure 25.000 x $ 400
Ads 300.000 – 240.000 – 180.000
SCU 42.000 + 8.000
80 + 40 Workers
Process 480 – 360.000 – 400.000 – 3 weeks
Quality 27.000 – 50 – 720K – 720K –19%
D&B 240K (78/120) – 52/55%
800K (116/300) – 38/40%
D&D New Adventure 54/57
Dividends 0
PR 500K
Estimated Cash $ 46M
Results for Round 2
SHV $27 - $40
Retail Sales $ 71 M - $100
Profit After Tax $ 9.7 M - $15.0 M
BSC
SHV $27 - $40
Retail Sales $ 71 M - $100
Profit After Tax $ 9.7 M - $15.0 M
Cash $ 21 M
Wholesales $ 37 M
SCU 34.000 (Utilization: 67%)
Market summary
Adventure sold 26.000 (loss sold : 4.000) $ 2200/ 1775 (can sell 50.000)
Leisure sold 31.000 (loss sold: 10.000) $ 420/ 400 (can sell 60.000)
Commuter can sell 60.000 x $ 340
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Can also sell
Race 10.000 x $ 4.100
Kids 90.000 - 180.000 x $360
If have developed in Round 2
AGAIN, PLAN IS IMPORTANT TO WIN IN EARLY ROUNDS
IF START R&D LATE, CAN STILL SELL WELL BUT HAVE TO SHARE MARKET WITH CURRENT COMPETITORS, PRODUCING PRODUCTS IN SAME SEGMENT.
Market Information
Adventure 58.000 --- 74.000 (+ 13%)
Leisure 58.000 --- 63.000 (+ 7%)
Com 60.000 - 11.000 x $340
Race 10.000 x $4100
Kids 90.000 - 180.000 x $360
Product summary
Adventure 30.000 --- 34.000 x 0.66 --- 24.000 SCU
Leisure 40.000 --- 43.000 x 0.19 --- 8.000 SCU
Total needed: 32.000 SCU
Should add 30% 9.000 SCU for next rounds
Production
Adventure 34.000 x $2.100
Ads 600.000 - 430.000 - 720.000
Leisure 36.000 x $ 400
Ads 320.000 – 300.000 – 220.000
SCU 32.000 + 9.000 SCU
120 + 20 Workers
Process 580 – 430.000 – 500.000
Quality 28.000 – 55 – 860K – 860K – 20%
D&B 280K (101/120) – 53/55%
1000K (179/300) – 38/40%
D&D New Adventure 56/58
Dividends no
PR 600K
Estimated Cash $ 36M
Results for Round 3
SHV $ 41 - $80
Retail Sales $ 106 M - $200
Profit After Tax $ 16 M - $40M
BSC
SHV $ 41 - $80
Retail Sales $ 106 M - $200
Profit After Tax $ 16 M - $40M
Cash $ 39 M
Wholesales $ 54 M
SCU 43.000 (Utilization: 83%)
Market summary
Leisure sold 33.000/27.000 ($ 400/ 375)
Adventure sold 44.000/20.000 ($ 2100/ 1800)
Market Information
Adventure 65.000 --- 73.000 (+ 13%) No inventory
Leisure 60.000 --- 64.000 (+ 7%) Inventory: 3.000
Commuter 20.000 - 80.000 x $390 - $450
Racer 8.000 - 26.000 x $4.100 - $4.900
Kids 45.000 - 89.000 x $ 439
Product summary
Adventure 44.000 --- 50.000 x 0.66 --- 35.000 SCU
Leisure 33.000 --- 36.000 x 0.19 --- 6.000 SCU
Total needed: 41.000 SCU
Should add 20% 10.000 SCU for next rounds
Production
Adventure 50.000 x $2.100 (5 weeks)
Ads 720.000 - 550.000 - 860.000
Leisure 36.000 x $ 390
Ads 430.000 - 360.000 - 270.000
SCU 41.000 + 10.000
140 + 30 Workers
Process 720 – 520.000 – 600.000 (3 weeks)
Quality 29.000 – 60 – 1000K – 1000K – 20%
D&B 250K (120/120) – 54/55%
1500K (277/300) – 39/40%
D&D New Adventure 57/60
Dividends 2.000K – 1800K - 200/824
PR 600K
Estimated Cash $ 52M
Results for Round 4
SHV $ 61 - $100
Retail Sales $ 140 M - $200
Profit After Tax $ 22.7 M - $40
BSC
SHV $ 61 - $100
Retail Sales $ 140 M - $200
Profit After Tax $ 22.7 M - $40
Cash $ 60 M
Wholesales $ 70 M
SCU 55.000 (Utilization: 86%)
Products 2
Market summary
Leisure sold 45.000 / 29.000 ($ 390/ 370)
Adventure sold 58.000 / 20.000 ($ 2100/ 1800)
Market Information
Adventure 78.000 --- 88.000 (+ 13%) No inventory
Leisure 74.000 --- 80.000 (+ 7%) No Inventory
Product summary
Adventure 58.000 --- 66.000 x 0.67 --- 46.000 SCU (can sell 78.000)
Leisure 45.000 --- 49.000 x 0.19 --- 10.000 SCU ( can sell 70.000)
Commuter 15.000 x $499
Racer 8.000 - 10.000 x $4100 - $4500
Kids: 89.000 - 10.000 x $440
Total needed: 56**.000 SCU** --- Workers: 150 – 190 Workers
Should add 20% 10.000 SCU for next rounds
Production
Adventure 66.000 x $2.100 (5weeks)
Ads 800.000 - 660.000 – 1000K
Leisure 49.000 x $ 380
Ads 550K – 430K – 330K
SCU 55.000 + 10.000
170 + 20 workers
Manufacturing
Process 860 – 600K – 720K
Quality 30.000 – 60 – 1200K – 1200K – 20%
D&B 360K (120/120) – 55/55% (MAX)
1500K (299/300) – 40/40%
D&D New Adventure 59/62
Finance 5.000 – 300/1.400
PR 600K
Estimated Cash $ 74 M
Results for Round 5
SHV $ 83 - $160
Retail Sales $ 162 - $300
Profit After Tax $ 25 - $50
BSC
SHV $ 83 - $160
Retail Sales $ 162 - $300
Profit After Tax $ 25 - $50
Cash $ 62 M
Wholesales $ 68 M
SCU 52.000 (Utilization: 87%)
Products 2
Market summary
Leisure sold 33.000 (loss: 5.000) ($ 400/ 365 – should lower price)
Adventure sold 57.000 (loss: 7.800) ($ 2200/ 1800 – should keep going)
Market Information
Adventure 89.000 --- 100.000 (+ 12%) No inventory
Leisure 79.000 --- 85.000 (+ 8%) No Inventory
Product summary
Adventure 58.000 --- 66.000 x 0.67 --- 46.000 SCU (can sell 78.000)
Leisure 45.000 --- 49.000 x 0.19 --- 10.000 SCU ( can sell 70.000)
Commuter 15.000 x $499
Racer 8.000 - 10.000 x $4100 - $4500
Kids: 89.000 - 10.000 x $440
Total needed: 58**.000 SCU** --- Workers: 150 – 200
Should add 20% 10.000 or 12.000 SCU for next rounds
Production
Adventure 73.000 x $2.200
Ads 1000K – 800K – 1200K
Leisure 42.000 x $ 400
Ads 500K – 340K – 660K
SCU 58.000 + 10.000 (or 12.000)
Manufacturing
Process 1000 – 720 K – 860 K
Quality 31.000 – 60 – 1500K – 1500K – 20%
D&B 360K (120/120) – 55/55% (MAX)
1800K (295/300) – 40/40%
Finance: Buy back stocks $3.000.000 (or $5.000.000)
D&D New Adventure Project (if needed)
Dividends 500/ 1480
PR 800K
Estimated Cash $ 76 M
BSC
SHV $ 91 M
Retail sales $ 171 M
Profit after tax $ 26 M
Cash $ 78 M
Wholesales $ 83 M
SCU 64.000 (Utilization: 88%)
Products 2
Market summary
Leisure sold 34.000 / 49.000 ($ 400/ 360 – should lower price)
Adventure sold 71.000 / 29.0000 ($ 2200/ 1750 – should keep going)
Market Information
Adventure 101.000 --- 114.000 (+ 13%) No inventory
Leisure 84.000 --- 90.000 (+7%) No Inventory
Product summary
Adventure 72.000 --- 81.000 x 0.69 --- 56.000 SCU
Leisure 34.000 --- 37.000 x 0.19 --- 7.400 SCU
Total needed: 64**.000 SCU** --- Workers: 160 – 220
Should add 20% 10.000 or 12.000 SCU for next rounds
Production
Adventure 55.000 - 81.000 x $2.200/ $2150 (Ads 1200K – 960K – 1400K)
Leisure 30.000 - 68.000 x $ $400 - $430 (should $390 or $380)
Commuter: 40.000 - 60.000 - 100.000 x $329
Racer: 8.000 - 13.000 x $4.100 - $4250
Kids: 80.000 - 100.000 x $449
Ads 600K – 480K – 800K
Workers 180 + 20
SCU 68.000 + 12.000
Manufacturing
Process 1200 – 860 K – 1000 K
Quality 32.000 – 60 – 1800K – 1800K – 20%
D&B 360K (120/120) – 55/55% (MAX)
1800K (300/300) – 40/40% (MAX)
Finance: Buy back stocks $3.000.000 (or $5.000.000)
D&D New Adventure Project (if needed)
Dividends 600/ 1600
PR 1000K
Estimated Cash $ 96 M
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FREE EXCEL FILE FOR CALCULATION OF SALES, SCU, WORKERS, ADVERTISING & PR BUDGETS EVERY ROUND -DOWNLOAD HERE - LINK
FREE SUPPORT FOR ROUND 1 AND 2
Email: mbasimbikes@gmail.com
Blog: mbabikes2012.blogspot.com
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AGAIN, DO NOT USE JUST NUMBERS ABOVE. NEED TO ADJUST BASED ON SITUATION OF EACH GAME, AND NUMBERS OF COMPETITORS.
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SHV,
How to increase SHV,
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EPS,
marketing,
product development,
operations,
finance,
human resources,
information technology,
perceptual map,
racers,
adventurers,
commuters,
leisure,
kids,
safety stocks weeks,
retail price,
brand advertising,
brand expenditure,
product advertising,
bike shop,
sport stores,
department stores,
bike shop support,
department store support,
SCU,
process,
batch size,
how to reduce set up time,
quality system technology,
developing a new product,
style,
tech specs,
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BSC
SHV $ 126 M --- $ 185
Retail sales $ 194 M --- $ 223 M
Profit after tax $ 28 M --- 34 M
Cash $ 96 M
Wholesales $ 126 M
SCU 75.000 (Utilization: 89%)
Products 2
Market summary
Leisure sold 41.000 / 47.000 ($ 400/ 360 – should lower price)
Adventure sold 80.000 / 32.0000 ($ 2200/ 1750 – should keep going)
Market Information
Adventure 114.000 --- 128.000 (+ 13%) 2.000 inventory
Leisure 89.000 --- 95.000 (+7%) 640 Inventory
Product summary
Adventure 45.000 - 80.000 x 0.71 --- 64.000 SCU
Leisure 41.000 --- 45.000 x 0.19 --- 9.000 SCU
Total needed: 73.000 SCU --- Workers: 200 - 240
Should add 20% 12.000 or 14.000 SCU for next rounds
Production
Adventure: 45.000 - 90.000 x $2.200 (Ads 1400K – 1200K – 1700K)
Leisure 45.000 - 66.000 x $ 380 - $430
Commuter: 70.000 - 105.000 x $329
Racer: 8.000 - 13.000 x $4.200
Kids: 610.000 - 76.000 x $480
Ads 700K – 600K – 900K
Workers 200 + 40
SCU 80.000 + 12.000 (or 10.000)
Manufacturing
Process 1500 – 1000 K – 1200 K – 3 weeks
Quality 33.000 – 60 – 2100K – 2100K – 20%
D&B 360K (120/120) – 55/55% (MAX)
1800K (300/300) – 40/40% (MAX)
Finance: Buy back stocks 20.000.000
D&D New Adventure Project (if needed)
Dividends 1000
PR 3000K
Estimated Cash $ 98 M
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For ROUND 1
For Adventure Segment
Price Production->
Retail Price- put your price between 1700 to 2200
Planned Production- Increase to highest (23.000 units - 25.000 units)
Planned Safety Stock: 5 weak
ROUND 1
For Adventure
Use 3%-5% estimated Revenue eg. 23.000 x $2.000 = $46.000.000
Use 1.300 - 2.300 for Advertising
Adventure
TV-Internet-Magazine: 40-30-50
Advertising = PR
Use 2.300 for PR also
Divide Advertising into: 800K - 600K and 1000K for TV-Internet-Magazine
or can use 400K - 300K and 500K
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FREE SUPPORT FOR ROUND 1 AND 2
Email: mbasimbikes@gmail.com
Blog: mbabikes2012.blogspot.com
