Flowers For The World

1. Flowers For The World A Business Game to Support the Teaching of MIS Concepts

5. Overview • What is involved in playing the business game: • Management roles • Information issues • Game rules

6. Flowers for the World • Flowers are bought at auction in lots of 100: • Approx. 5 mins • Three main breeds of flowers: • Rose, Iris, Daffodil • Sold on demand to customers throughout the world • One “week” = approx. 15 mins

7. Purchasing Manager Accounts Manager Sales Manager Flowers for the World, Inc. Managing Director

8. The flower auction • Guaranteed quality (no returns) • Must match or be more than minimum price • bids must be in units of $10s • Get two chances to bid on each lot • Must pay before week is out

9. For example: The auction • 3 lots of roses • Offer $100. Require min. of $50. You win! • 4 lots of irises • Offer $300. Require min. of $310. You lose!! • 5 lots of daffodils • Offer $1000. Require min. of $100. You win?

10. Sales to customers • Enquiries after the auction for X number of a particular flower • quote price and delivery date • Must match or be less than maximum price and minimum delivery time • Must deliver, otherwise: • Order cancelled

11. For example: Customer enquiry • Request for 85 roses • $0.10 per rose, in 2 weeks • max. is $0.10, 2 weeks. You win! • Request for 30 irises • $0.10 per iris, in 2 weeks • max. is $0.05, in 1 week. You lose! • Delivery note to referee • week 2, customer 1, 85 roses@$0.10

12. Financial report • Required by law at the beginning of each week for the last week • Failure to submit a report carries penalties: • $500 fine each time you fail to submit a financial report on time • One week to pay, or company suspended from the game for one week

13. Costs • Flowers: auction price • Storage: $25 per 100 flowers per week (or part thereof) • Flowers can be stored for a maximum of 4 weeks, then written off (cannot be sold)

14. For example: Financial report • Previous balance: $1000.00 • In storage: 200 flowers (2 weeks old) • $25 per week per 100 flowers • $50 storage fee this week • Income: $0 • Final balance: $950.00 • Give copy to referee

15. Current balance • Roses: 100 (1 lot), good sales • Irises: 50, poor sales • Daffodils: 50, average sales • Bank balance: $1000.00

16. Marketing Information: Auction • Roses: • Selling for about $50 at auction • Price has been rising • Irises: • Selling for about $30 at auction • Price has been rising • Daffodils: • Selling for about $40 at auction • Price has been fluctuating

17. Marketing Information: Customer Orders • Roses: • Customers buying at $.60 per flower • Price has been rising • Irises: • Customers buying at $.55 per flower • Price has been fluctuating • Daffodils: • Customers buying at $.50 per flower • Price has been steady

18. Week 1 Auction • 6 lots of roses • 7 lots of irises • 9 lots of daffodils

19. Week 1 Customer Enquiry • Customer 1: • 357 roses • 406 irises • 448 daffodils • Customer 2: • 327 roses • 325 irises • 374 daffodils

20. Week 2 Auction • 5 lots of roses • 7 lots of irises • 9 lots of daffodils

21. Week 2 Customer Enquiry • Customer 1: • 382 roses • 471 irises • 483 daffodils • Customer 2: • 125 roses • 213 irises • 397 daffodils