Marketplace Business Simulation in The Daily Athenaeum


what is marketplace?

business schools

corporations

competitions

who is using marketplace?

testimonials

Students run mock businesses

back

From: The Daily Athenaeum, West Virginia University's Student-Run Newspaper
Friday, April 5, 2002.

by Tamara Woods, Staff Writer

Building a business from the ground up is more than plugging numbers into a computer and balancing them.

Last night, West Virginia University students in the masters of professional accountancy degree program were given the power to start their own mock businesses in the form of Marketplace. The annual program, started by the University of Tennessee, is in its third year.

The faux computer companies are competing against each other.

"We’re trying to simulate what the real world is like so when they (students) leave, they have a sense of what it takes to run a company," Richard Riley, assistant professor of accounting said.

Six groups with about four students each vie for money from the possible investors. They each started with no money and generated funds from savings, borrowing from friends and other means.

Midway through the program, the entrepreneurs run out of money, so the students need to generate more capital to expand their businesses. The companies develop presentations to try to garner money from the venture capitalists. Business professionals, who are WVU alumni, come and pretend to be venture capitalists.

The six teams are: B.A. Machines Inc., Envision, Simple Solutions, Sunrise Solutions, Lear Systems Inc. and Surf Corp. The companies tried to sweeten the deal a little by offering refreshments. B.A. Machines even had candybars with their name on the label.

"(Riley) told us we could be jerks if we wanted to," David Hill, executive director of Arnette & Foster and venture capitalist said, laughing. "He told us you had thick skins."

He gave advice to B. A. Machines Inc. after closing their deal, like not to stray from their path and not get too cocky.

"Don’t try to hit home runs, because you’ll get hammered," Hill said.

Overall, the students had positive responses to the project. Not working on a lecture-discussion basis seemed to be a blessing and a curse.

"It’s made me confident with working without parameters," said Thomas Rist of Sunrise Solutions. "There’s not a lot of handholding here."

Amy Pauley from Sunrise Solutions said she felt she gained teamwork skills and conflict management skills.

The students had different options on which to use their money, such as buying extra market research.

"It lets people from the outside see what we’re doing," Anne Bookholt from B.A. Machines said.

Thursday was the students’ last chance to earn more money other than loans. As the presentations were winding down and the students were waiting for the venture capitalists to come and negotiate with them, the wear of the evening began to set in.

"It’s fun, but I’m ready to get this suit off and get into something more comfortable," John Witt from Surf Corp said. Lori Birchman, a part-time student and an employee of the WVU Foundation, said the experience has given her more sympathy toward venture companies asking for money.

"This isn’t easy," said the B.A. Machines member.

The groups will have to do another presentation near the end of the semester for the venture capitalists to show them how their money had been used and any gains or losses.

Source: The Daily Athenaeum, West Virginia University's Student-Run Newspaper, Friday, April 5, 2002.

back