Introduction to BPG

Intro to BPG

Overview of simulation

Briefing on company organization task

BA 490C

Intro to BPG

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Simulation overview  A business competition among teams in your

World (section)  Each company manufactures and sells a consumer durable product in 4 market areas, e.g., toaster, inside/outside thermometer, etc.  Your product directly competes with the products of other companies for consumer $  Each firm makes quarterly decisions on marketing, production, and finance BA 490C

Intro to BPG

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Decision form

BA 490C

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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  Your access to the BPG program is through Sun Global Desktop on the CBA site

BA 490C

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Tools to know how you are doing  Financial statements  Summary industry and competitor data  Your company’s financial statements  Income  Balance sheet  Cash Flow  Operating reports for industry and company  ProScore  Shows performance relative to other teams  Is the basis for team scores at the end BA 490C

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Quarterly industry report  Industry environmental data  

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Financial market data: GDP, CPI, interest rates, RGDP, Real GDP forecast Exchange rate forecast

 Comparative company data 

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BA 490C

Financial performance & condition Sales, market share, pricing, & product characteristics Intro to BPG

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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

BA 490C

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Your challenge  Organize your team to be successful

Designate functional roles and overall leadership  Assign decision responsibilities—operational & strategic  Define team expectations of members  Develop goals, objectives, strategies, policies for your company  Develop supporting functional objectives, strategies, and policies  Plan your work flow  Coordinate the work to successful completion  Manage (control) your performance  Estimate results  Measure actual results vs. your estimate & act  Monitor competitive position & performance  Understand why others do things better  Identify how you can do better  Reassess/confirm strategy Intro to BPG 8 BA 490C 

Performance evaluation 

Competency tasks—Team tasks for from 10-40 points        

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Management tasks—Team tasks for from 40 to 100 points   

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Sales order forecast Product cost Capacity evaluation Justification for investments in capital Cash planning Operational statement analysis Financial statement analysis Competitive analysis 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  

BA 490C

Multiple dimensions of financial results, many of which are driven by net income Reported on the ProScore report annually

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ProScore report

 Click for Sample ProScore report.  Note the factors and their weights may be

changed before we start the competition.

BA 490C

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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. 

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BA 490C

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.

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BPG resources—from web site  BPG

A Player’s Tutorial and a Quick Start reference guide are available from the Help menu in the BPG  The printed manual is available in Support Services (Room 229) for $12  View a pdf version of the Players' Manual at the BPG aurthor’s website: http://www.eskimo.com/~bpg/. Select Players Area and login: username = player; password = swb30oss (case is significant)  BPG simulation  Introduction to BPG initial decisions  Items affected by exchange rate fluctuations  Key to history report file names  Sales forecast blank form 

BA 490C

Intro to BPG

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Team organization & decision Due Wednesday responsibilities •Team roles

CEO

VP Marketing & Sales

CFO

Position Name

CEO

•Operational decision responsibilities

CFO

VP Marketing & Sales

VP Production

VP Production

Wednesday: Team roles due by email

Operational decisions

Strategic decisions BPG manual expertise BA 490C

Wednesday: Indicate responsible person in cells on decision form Next week: Strategic decisions for each role Next week: Specify general and expert manual knowledge expectations by role. Intro to BPG

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The BPG simulation: An opportunity  To bring together the knowledge & skills from

each CBA discipline to    

BA 490C

Apply strategic management concepts Integrate the decisions of each functional area to achieve organizational effectiveness See how the decisions of one function affect the performance of others and the entire firm Appreciate the importance of each function to successful operation of the business

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