BA 490C Intro to BPG 1

Intro to BPG

Overview of simulationBriefing on company organization task

BA 490C Intro to BPG 2

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 3

Decision form

BA 490C Intro to BPG 4

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 Intro to BPG 5

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 Intro to BPG 6

Quarterly industry report

Industry environmental data Financial market data: GDP, CPI, interest

rates, RGDP, Real GDP forecast Exchange rate forecast

Comparative company data Financial performance & condition Sales, market share, pricing, & product

characteristics

BA 490C 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

BA 490C Intro to BPG 8

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

BA 490C Intro to BPG 9

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 Reported on the ProScore report annually

BA 490C Intro to BPG 10

ProScore report

Click for Sample ProScore report.

Note the factors and their weights may be changed before we start the competition.

BA 490C 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.

BA 490C Intro to BPG 12

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 13

CEO

CFOVP Marketing & Sales

VP Production

Position CEO CFO VP Marketing & Sales

VP Production

Name

Operational decisions

Strategic decisions

BPG manual expertise

Team organization & decision responsibilities

Wednesday: Indicate responsible person in cells on decision form

Due Wednesday

•Team roles

•Operational decision responsibilities

Wednesday: Team roles due by email

Next week: Strategic decisions for each role

Next week: Specify general and expert manual knowledge expectations by role.

BA 490C Intro to BPG 14

The BPG simulation: An opportunity

To bring together the knowledge & skills from each CBA discipline to 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