The Beaver Republic Game

1. The Beaver Republic Game

2. Learning Objectives • Choose or define a strategy re: how to enter an industry - type of store, product, product mix options, price, type customers • Make choices that define economics of a business - capital investment, volume of sales, margins, fixed costs • Evaluate financial attractiveness of a business opportunity - financial projections, internal rate of return, hurdle rates

3. Learning Objectives continued • Make operating decisions - order raw materials, schedule production, price products, offer them • Respond to external environment challenges – decide position on various issues with different effects on business, i.e. taxes • Work or cooperate with competitors/ community at large regarding economic issues

4. Scenario • You are project managers working for a large diversified company. Investment limit B$200k • Your task is evaluate a business opportunity – make and sell bean bags – in the Beaver Republic. You need to prepare a Proposal to Invest or PIN. • If approved, you start and operate the business. • At the end of the game, you will have to submit a Post Audit Report or PAR.

5. Game Information • At least 25 companies (over three sections of BA 469 this summer) • There are two types of bean bag businesses available. Your choice, you invest, and the game will provide you the rest – factory, etc. • The game is accessible through the internet. The system is not located on campus. • We will use a survey system located on campus to collect votes. • Administrator (plus a couple of programmers and assists)

6. Resources • The Beaver Republic Game describes the scenario, including information you need to make an evaluation of the business. • The Beaver Republic Game: Student Guide describes the two (case) reports you will have to submit – the PIN and PAR. • The Beaver Republic Instructions describes the different portions of the game site to assist you in gaining access and navigating it.

7. Requirements • Note grading requirements on syllabus. • The case report due July 19/20 is the PIN described in student guide. • The case report due end of the term is the PAR described in student guide. • Make and enter decisions per turn (half year) as shown on schedule. • Respond to call for votes from the “Council”

8. PIN • The Student Guide describes what information are required for a PIN. • The student guide contains a template to get you started on the financial aspects of the evaluation. • Your investment limit is B$200,000. • Your financial projections become your targets, assuming you recommend investment and it is approved.

9. PAR • The Student Guide will describe what information are required for the PAR • You will need to keep or maintain your accounting books – record unit sales, price, cost of materials, taxes due, etc. - the program will give you (and administrator) totals to provide verification of your records. • Be ready to submit key variance figures • Explain variances with business reasons

10. Game Schedule • Refer to Game Schedule • 5 years, 2 turns per year (wet and dry season) • Turns start 5th week, four turns a week • Decisions for a turn may be entered anytime before next turn • The current turn will be reflected on your home pages.

11. The Message Box • Watch for messages - • Decisions that ask/request each student to vote • News on what is happening externally that may have a bearing on your business • The email system works internally. You can email your competition. • The administrator may broadcast news or requirements through this media.

12. Votes • The Beaver Republic is a democracy. • There are a few issues which will require constituents (business owners, residents, etc.) to vote. • Information on these issues are in the Beaver Republic Game document. A reminder and more information will be sent out through the message box. • Votes may be cast using the survey system.

13. Info Required to Get Started • User ID • Password • Investment amount requested • Type of store (defines segment) • Company name

14. Plan B