PROFESS

1. PROFESS Professional Service Simulation an exploration of commerce

2. Introduction You will be responsible for the commercial development of a sales region. This will involve determining and anticipating customer needs, promoting and deploying a skilled sales force. The business modelled is a professional service company (such as a logistics or computer services company). Your purpose is to make the business a success

3. The Simulation This activity consists of three stages: Preparation • familiarisation & organisation • deciding strategies & objectives Decision-making • submit decisions • effect simulated • get & review results Review • discuss & compare results

4. Situation • Autonomous sales region • Responsible for obtaining new business • Sells to a range of business customers • Consists of three sales regions • Employs advisers (sales people) and technical staff • Run the region on a quarter by quarter basis

5. Services You currently sell four services Type 1 – for the biggest customers Type 2 – for middle sized customers Type 3 – for middle sized customers Type 4 – for the smallest customers But some time in the future additional services may become available

6. Customers Your customer base is divided into: • Very large multinational companies • Large companies • Medium sized companies • Small companies • Micro businesses

7. Sales Areas Area A – City Centre Mainly micro & small businesses but some large companies. Area B – City Edge Industrial Area – mainly small and large companies but with a few multinationals, small and micro businesses. Area C – Rural Small and micro but with several large and multi-national companies on green field sites.

8. Selling Process • Advisers contact prospective customers or customers contact the company • Advisers meet with prospects to discuss and determine needs • Advisers provide specification of need to technical staff. • Technical staff produce detailed proposal and return to advisers • Advisers meet with the prospect to discuss and finalise the proposal.

9. Sales Influences? • Adviser Availability • Adviser Skills • Sales Promotion • Service Offering • Proposal Speed • Brochure • Market Trends

10. Staff Development • Adviser Training • Done by corporate • Charged on a per adviser day basis • You decide number of days/adviser each quarter • Induction Training • For new hires • To provide basic knowledge of service & company • Technical Staff Training • Done on-the-job

11. Decisions • Required number of Advisers (by area) • Adviser Salary (whole region) • Adviser Training (days) • Induction Training (days) • Required number of Technicians • Service to update • Brochure to update • Regional Promotion

12. Costs All costs and revenue in a universal currency Adviser Salary currently 100 AUs/Quarter Area Overheads about 250 AUs/Quarter Technical Staff costs 40 AUs/Quarter Technical Overheads 500 AUs/Quarter plus 10AUs/staff member Service Updating 100 AUs when updated Regional Promotion typically up to 200AUs Recruitment Cost – 10 AUs/adviser 5 AUs/technician Training Course Cost – 1 AU/adviser

13. Results Returned in three stages Preliminary Results Area Summary and Business Summary Team Results Profit Statement, Operational Report, Recruitment and comments on operation Business Research Salaries Advertised, Number of Advisers, Market Share and editorials.

14. Observations • it takes time to understand • but the business still must be run • therefore your decisions will not be perfect • time will be a constraint • by the end you should (just) be in charge of your business • your business skills will be challenged • remember the purpose is to learn! (rather than just to win!) • so, take time to reflect & review • and have fun!