Vol. 3, No. 1, Spring 2008
| New and Improved Marketplace Simulations Supply Chain and Channel Management We have completed development of our new Supply Chain and Channel Management simulation. The focus of this simulation is on demand and supply integration. It deals with both the logistical activities of demand fulfillment and the behavioral aspects of supply chain management. Student teams compete in this Marketplace simulation as either resellers or suppliers. The reseller teams focus on the marketing and distribution of microcomputers to end users. They outsource production to other firms that specialize in production. The supplier teams focus on achieving economical and reliable production of microcomputers. They outsource the marketing and distribution activities to the resellers that specialize in the creation of market demand. Clearly, resellers and suppliers have to work together to accomplish their organizational goals. Each party must negotiate both short-term supply contracts and long term relationship agreements in order to thrive within the industry. There are many opportunities to experience the challenges of finding win/win relationships that allow all parties to succeed. Trust, dependence, power, influence, and conflict are essential parts of everyday life within this simulation. This simulation provides students with considerable insight into the management of supply chains and distribution channels. They develop a mental discipline that facilitates their success in a world where demand/supply integration is one of the cornerstones of modern business. Upgrading the International Scenario We have undertaken to refresh the international scenario for all simulations that include exchange rates, tariffs, and geopolitical interactions. These simulations include International Corporate Management, International Corporate Management with Outsourcing, and Advanced Strategic Corporate Management. We are now testing the new scenarios and hope to have them ready by summer. International Corporate Management with Outsourcing We had to develop a number of new contract options and procedures when we created the Supply Chain and Channel Management simulation. As a result of our work to create the Supply Chain and Channel Management game, we have updated the International Corporate Management with Outsourcing simulation. We incorporated all of these changes into the Outsourcing game. In addition, we updated the specification of supply chain options and have clearly spelled out these options and their implications for the Balanced Scorecard. This simulation is probably the most sophisticated business simulation available in the world. It is definitely a World Class Simulation. If you want to challenge your honors students, MBAs,or Executive MBAs, you will not find a broader, deeper, or more demanding simulation anywhere. Adding Financial Risk to Balanced Scorecard At the behest of several faculty, we are adding a financial risk performance metric to all of our Marketplace simulations that include some kind of debt. The financial risk indicator is designed to measure the use of debt. Normal debt will not negatively impact a firm’s standing too much (especially as some debt is encouraged), but excessive emergency loans will. Therefore, firms that are not financially prudent and experience large emergency loans will find their performance scores diminished.
Marketplace Community Newsletter, issued quarterly. www.marketplace-simulation.com |
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