Vol. 1, No. 1, Spring 2005
| Strategy and Business Policy and International Corporate Management with Strategic Planning From their names, it is probably apparent that the first two of ILS's three new simulations, Strategy and Business Policy and International Corporate Management with Strategic Planning, place a heavy emphasis on formal strategic planning. The Strategy and Business Policy simulation is targeted towards the capstone course in business or one with a heavy strategy component. The students work within a multifunctional business setting where they start up and manage a new venture for six decision periods (a decision period is the simulation equivalent of a real-world business quarter). Each decision period takes about two hours to complete. International Corporate Management with Strategic Planning is targeted towards integrative courses at the MBA and Executive MBA level. It includes an in-depth treatment of all functional areas of business, plus international exchange rates and tariffs. Each decision period takes about four hours to complete (games can last ten to twelve periods). Dominique Garval, Professor at the Reims Management School in Reims, France, provided the mental discipline that underlies the strategic planning module in the simulations. On the importance of strategic planning to business students, ILS founder and module co-designer Dr. Ernest Cadotte says, "Strategic planning is not new; it's been around for ages. It's the foundation of the business curriculum. But there's a disconnect between teaching and practice. Left to their own devices, students don't consider everything and will make snap judgments. They want to finish the work and move on. They need something that gives them the structure to consider the possibilities. The goal is for the mental discipline to become part of their thinking. "The strategic planning component of these simulations allows students an opportunity to do planning in a context that makes sense to them, and they get to see the results of doing the hard work of planning strategically." What differentiates these from other strategy simulations is that the strategic planning process is built into the software. It follows the OST (objective-strategy-tactics) format and forces the students to explicitly perform strategic analysis, strategy specification, tactical execution, and control. What will students find challenging about strategic planning? Dr. Cadotte says, "First of all, it's time consuming. You can't make assumptions, can't make snap judgments. You have to take time to analyze information and run the numbers and develop the plan." Furthermore, "It's not just planning; you have to be able to manage your strategy. It's not something they can just do in the initial phases of the business and then forget about. It takes continuous monitoring and adjustment; it takes continuous effort. The strategic planning component requires a very hands-on effort that teaches students to be aware of their strategy." Because the strategic plan is used every quarter in these simulations, students get to see how their plans build from one quarter to the next. This repetitive process aids students in retaining the concepts and methods of strategic planning. As Doctor Cadotte puts it, having this component available in a business simulation offers students a means "to absorb strategic planning, so that it becomes part of the fiber of their thought." Ultimately, he says, because strategic planning is highly respected, "It is worth doing the work that it takes to incorporate strategic planning into one's reflexive approach. But to do it right takes extra effort. And, just like with physical exercise, we can be reluctant to do things that take repetition and exertion." So the simulations make strategic planning part of a necessary routine for participants. These simulations will be ready for extended beta tests (at ½ price) in summer and go into widespread distribution in fall 2005. If you are interested in beta-testing the new strategic planning simulations, please contact Sean Mullins via email or by phone at 865-522-1946.
International Corporate Management with Outsourcing Designed for use with integrative business courses, the International Corporate Management with Outsourcing simulation provides participants with a profound understanding of the global business enterprise in the international market environment. Instructors who want students to be challenged for an entire semester (ten to twelve quarters or decision periods) will love this simulation. Starting in quarter 5, students can outsource part or all of their company's production to another firm in the industry. By the same token, some teams can become suppliers to other firms. With the addition of the outsourcing module, International Corporate Management is possibly the most advanced business simulation exercise in the world. Normally, the International Corporate Management game would take four hours per decision period to complete. The addition of outsourcing negotiations could add another hour or two of work per decision period. The outsourcing element provides the students with a full set of supply-chain options, allowing them to make investments to speed up and better coordinate the exchanges between business partners. After a series of investments, suppliers will be able to fulfill a reseller's orders without inventory ever touching the reseller's warehouse. However, achieving this level of supply-chain coordination requires extensive negotiations and trust between the parties. Noting that the supply chain looms ever larger as a component of business today, Dr. Cadotte says the new module can help business professors teach students to appreciate the complexities of supply-chain management: "In business development courses, it's very easy for students to believe they can develop a business simply by outsourcing everything. In reality, it isn't so easy to do. It requires more than just saying 'Well, I'm going to outsource this, let somebody else do all the work, and I'm going to make all the money.' It takes lots of work, lots of time, lots of building up of relationships and channels." The International Corporate Management with Outsourcing simulation gives students extended exposure to what actually goes into making outsourcing work. For instructors looking to, as Dr. Cadotte puts it, "provide students new intellectual mountains to climb," it should prove ideal. "They learn that it isn't easy," says Dr. Cadotte. "It's not easy to execute; it's very complex; there are many conflicts. They have to learn to balance selfishness and short-term gain with the potential for greater reward if they focus on the long-term gain and go through the process of setting up the outsourcing. It's about learning to look at the end result, focusing on that win-win solution, but recognizing that it's not easy to get there. It takes negotiation, cooperation, and coordination. And it's important to recognize, even with all the hard work through the complicated process of building relationships and putting channels in place, that things can still go wrong." One important skill students will practice in the outsourcing module is negotiation. Students will learn to negotiate to achieve desired ends, which Dr. Cadotte observes is something they probably don't have much experience at: "This module gives them an introduction to negotiation. It's a stimulating activity, but it can be frustrating, and that's another thing for them to learn to deal with, in terms of setting priorities and reaching goals." This simulation will be ready for extended beta test (at ½ price) in summer and go into general distribution in the fall of 2005. If you would like to become a beta tester for the International Corporate Management with Outsourcing simulation, please contact Sean Mullins via email or by phone at 865-522-1946.
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