Intro to BPG

1. Intro to BPG Overview of simulation Briefing on company organization task Intro to BPG

2. BPG resources—from web site • BPG manual.   View the pdf version of the Players'Manual or additional sources.  • BPG simulation • Instructions to access your company's work folder and templates through Citrix or the I drive • BPG Tutorial from the author of the simulation • Introduction to BPG initial decisions • Instructions for Saving history reports • Items affected by exchange rate fluctuations • Key to  history report file names • Sales forecast blank form Intro to BPG

3. Simulation overview • A business competition among teams in your World (section) • Each company manufactures and sells a consumer durable product in 4 market areas • Your product directly competes with the products of other companies for consumer $ • Each firm makes quarterly decisions on marketing, production, and finance Intro to BPG

4. Decision form Intro to BPG

5. Simulation overview--continued • The BPG then simulates the competitive results based on the decision input, and • Produces quarterly reports for the industry and your company Intro to BPG

6. Industry report A summary of the operating reports of each company in the Industry • Financial market data • Real GDP data • Exchange rate forecast • Financial performance & condition of each company • Sales, market share, pricing, & product characteristics Intro to BPG

7. Company operating reports A detailed report of financial, marketing, and production results for your company--available only to you • Income statement • Cash flow analysis • Balance sheet • Production cost analysis • Output, inventory, & sales analysis • Standard cost per unit • Sales force analysis • Latest decision inputs Intro to BPG

8. The BPG simulation: An opportunity • To bring together the knowledge & skills from each CBA discipline to • See how the decisions of one area affect the performance of other areas • Appreciate the importance of each to successful business operation • Apply strategic management concepts • Integrate the decisions of each area to achieve organizational effectiveness Intro to BPG

9. Your challenge • Organize your team to be successful • Develop mission, objectives, strategies, policies and plans for your company • Do individual tasks • Coordinate your work • Manage (control) your performance • Estimate results • Measure actual results vs. your estimate & react • Monitor competitive position & performance • Understand why others do things better • Identify how you can do better • Reassess/confirm strategy Intro to BPG

10. Performance evaluation • Competency tasks—Team tasks for from 10-40 points • Sales order forecast • Product cost • Capacity evaluation • Justification for investments in capital • Cash planning • Operational statement analysis • Financial statement analysis • Competitive analysis • Management tasks—Team tasks for from 40 to 100 points • Strategic planning: mission, overall objectives, business strategy • Strategic management: hierarchy of objectives, strategies, and policies • Control: analysis of financial and operating results, determine need for operational and/or strategic change; then, implement the changes • Competitive results • Multiple dimensions of financial results, many of which are driven by net income • Cash management: investing cash wisely and avoiding emergency loans Intro to BPG

11. Peer evaluations • Individual grades for team assignments may differ greatly from the team’s grade depending on peer inputs. • Peer evaluations are confidential; they become the property of the instructor and will not be divulged to team members. • Additionally, the following factors may affect individual grades for team work. • Non-participating team members, i.e., those whose names are not listed by a team on the submitted copy of an assignment, receive no credit. • Teams may terminate their association with members whose contribution is unsatisfactory; however, they must do so professionally and obtain the instructor’s prior approval. • Students terminated from a team will be dealt with on an individual basis, with at least a one-letter grade penalty. Intro to BPG

12. Follow this structure in a word document. Team organization & decision responsibilities Team roles due Wednesday Operational decisions due Friday Wednesday: Team roles due by email Friday: Each decision on the decision form must be shown. Next week: Strategic decision for each role Next week: Specify general and expert knowledge expectations by role. Intro to BPG