Preview

It is lovely Sunday morning in TAPMI, a group of friends (all of them placed) planned for an outing to enjoy nature, which surrounds this beautiful campus. At 9:30 am, a mail is received from Prof. Natarajan, conveying about the Simulation game, which is to be played from tonight. The manual of the game is to be collected from library immediately. A file has also been sent where students were divided into teams of 5. The group of friends was divided into rival teams. These friends liked healthy competition and were eagerly waiting for this simulation game to start. They went ahead with their trip, enjoyed the waterfalls in hanuman kundi, then went to Malpe beach to relax and sit till the sunset, returned back to campus by 7PM. They collected their manuals and started reading about the game.

Background

Pedagogical games are a particular type of simulation for which the main objective is to learn and to practice concepts, techniques, and decision-making process. The simulation model used in a business game represents a business situation in such a way that the learning of concepts, techniques and decision-making processes can be transposed onto real business situations.

In a typical business game, several companies are in competition in a given industry, and each company is managed by a group of students. Each group makes decisions about various aspects of their companys management for a given period of simulated time, which may run from one month to one year. When all groups have independently made their decisions, they are entered in a computer-based simulation model. The results of each company are returned to the corresponding group. Often information may be purchased, including information on competing companies. The game is, thus, played over several simulated periods in which each team tries to maximize its objectives (for instance, sale, market share, or profits).

We are looking at industry containing three teams. One of the rival team Albatros perspective has been captured in this game. The Team consists of Marketing, Operations and Finance majors, which is ideal for a good business strategic decision-making. The first step is to read the manual and understand the rules of the game. The manual contains all the information about the products, customers, supply chain, Research & Development, Advertising & Marketing Expenditures, and Financials etc.

Once all of the team members are thorough with the manual, they are asked to experience the simulation, as the decisions needs to be taken quickly. All the tabs, Ins & Outs of the pages within the simulation game needs to be seen. Problem Description:

INTRODUCTIONStrategy Simulation is a course in the MBA program which is a simulation game involving a real life industry with multiple competitors. To play this game one needs to analyze a lot of information on market statistics and take decisions on the basis of the data provided. The objective of this game is to maximize stock price index (SPI) and be the leaders in their respective industries. To take informed decision proper understanding of perceptual maps, features of product, financial statement, company performance, market share, revenue is very important. Thus it is important to have proper representation of these data so that the player finds it convenient to make his decisions.

All the Teams started with Share price index of $1000. The budget at period 0 was $500 for all the teams. Each team started off with two products, which was given by default. Currently we are in the period 3 of the game making decisions for the next period and thus we can view the details of the previous 3 periods. The segments that we are targeting in this game include high earners, shoppers, professionals and explorers. There are three companies competing in the same market and our company Albatros has two products currently-Move and Most.In this game there are the following tabs:

Login: This is the first and the register and login page where the user is validated.

Team Info/ About Us: This gives us the information about the team members.

Home page: This page contains links to all report and decision making pages and shows the array of options where the player can visit to check details.

Consumer and survey panel: The shopping habits, brand awareness and purchase intensions of the customers over a period are given here which shows the buying intention.

Data multidimensional Scaling: This gives the marketer a positioning of his product in the minds of the customer in comparison with the ideal values.

Consumer Report: The segment size, the units sold to the segments and the market shares are presented here.

R and D Report: This contains the status and features of the product in the development stage.

Financial Report: This gives us details about profit and loss statement and brand contribution period wise.

Industry Dashboard: This provides Industry Information on SPI, Retail sales of all the firms in the Industry as well as the Market share.

Company Dashboard: This gives details about company & product contribution, production plan and distribution coverage.

FAQS: This contains a few frequently asked questions with solutions about the game.

OBJECTIVE To provide real time user experience with seamless transition between functionalities. Apply the learning from MDSS into a real time and practical project. Improve the existing simulation game project by providing features that would provide better convenience and functionalities.

Blue Print of the ModelCompany DashboardTeam InfoIndustry Dashboard

Financial ReportConsumer Survey & PanelMultidimensional scalingConsumer SurveyResearch & Development

Model & Functions Used

FUNCTIONS

Pivot Table Offset Function Match Function Name Manager Data Validation Macros Indirect Reference Slicers Charts & Graphs Hyperlinks Linked Images VB scripting Conditional Functions Algebraic functions (SUM, RANDOM) VLookup Function Index, CHOOSE, NOW function Grouping Freezing Panes Comment / Inline image

As we go to the model, each function will be mentioned. Where and how it is being used will be shown for each explained Excel tab.

LOGIN PAGEThis is the first page that is displayed in the simulation game. This page contains a brief description about the functioning of the game and has the option of viewing the details of the team, registering as a user and logging in and proceeding as a registered user and thus entering into the home page. This page also generates the current date and time taking from the system. This is done using the Now function. For the functioning of the buttons the Macro function has been used. The buttons present in this page are:1) About Us2) Register3) Login

About UsUpon selection of this button we get directed to a new page where we get to see the detail of the team with the names of every member. When we take the cursor on an individual members name a comment box pops up with that persons roll number and picture. This page also has a button to return back to the login page.

RegisterWhen a new user wants to register himself he needs to click on the register button and enter his details of username and password in the dialog box. The user needs to enter his name and password in the text box and click on Register. These details get stored in the users sheet and thus now the user gets registered. To further proceed in the game, the registered user needs to just login with those details.

LoginThe login button is for a user who is already registered from before and wants to enter the home page to play the game. However if the user still clicks on login without being registered and enters his details a pop up box appears with the notification User Id unavailable, please register. Then it gets directed back to the login page so that the user can register self and then login.

If a user is registered and commits an error while entering the password the system will again pop up a box with the message Incorrect password. For the convenience of the user when only the password is wrong the box with the details have user id intact and the user only needs to rectify the password to proceed.When the user types the correct user id and password it matches the details from the user sheet and shows Login Successful. After this the user is directed to the Home page from where on he can start playing the simulation game.

Industry Dashboard:

Data representation:The Industry Dashboard shows two types of data i.e. individual firm results and entire industry results. The individual firm results show the individual revenues, net contribution and share price index of each firm. The industry results show simultaneous data about the SPI, retail sales, market share and top selling brands of all the firms of the industry. Thus, this can be used to compare data of different firms and for data analysis. For individual firm, the user can select the firm (L, M, N) and period 0,1,2.

Excel Working:The individual chart shows the option to select the firm and the period for the data is to be selected. This can be selected using a slicer. The screen shows a table of data of the firm selected for a given period. This table is then represented with a chart. Similarly, for the industry results, the period is selected from a list created by data validation. Once the period is selected, the data for all the firms for the given period is showcased. Once the firms and the period are selected, the charts are created and displayed using Name Manager.

Data Market Report:

Data representation:The Data Market Report shows product wise data for a given market. The first table shows the market sales, volume, retail price, cost, etc. for each product of the market. The second table shows the characteristics and features of each product of the market. It is also possible to view the collated data for each product of the market for the purpose of data analysis.

Excel Working:The Data Market Report has two static tables for each product of the sonite market. These two tables can be collated for data analysis using Power View. The Power View will combine the two tables and a new collated table will be displayed in a new sheet.

Consumer Survey Report:

Data Representation:The Consumer Survey shows key perceptions by the consumers like Purchase intentions and Brand awareness of all the products in the market. This also shows the Shopping habit of all the consumers location wise. The survey also reveals the market share of all products in percentage units and total units sold consumer segment wise. The last graph shows about the relative consumer segment size. The information is available for all the past periods.

Excel working:Indirect reference and name manager has been used to create a link between each period data and main consumer survey report. A data validation tool is used to create a cell to select the period. When there is a change in data, the chart automatically updates the same in main report.

Period 1:

Period 2:

Period 3:

The R & D Report:

Data representation:The R & D Report shows the R & D result generated for a new product or an already existing product in terms of its characteristics. i.e. features, design, battery, display, power, current base cost, minimum base cost. A chart is generated for every selection made. The user can select the product and the period.

Excel Working:A slicer is used to select the product and period based on which the table is generated. The options available are POMORE and POMOST for periods 0 and 2. The chart is then generated based on the table. VLOOKUP function is used to generate this table based on the slicer.

FINANCIAL REPORTThe process of evaluating businesses, projects, budgets and other finance-related entities to determine their suitability for investment. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to be invested in. When looking at a specific company, the financial analyst will often focus on the income statement, balance sheet, and cash flow statement. In addition, one key area of financial analysis involves extrapolating the company's past performance into an estimate of the company's future performance.

Financial analysts often assess the following elements of a firm:

1.Profitability- its ability to earn income and sustain growth in both the short- and long-term. A company's degree of profitability is usually based on theincome statement, which reports on the company's results of operations;2.Solvency- its ability to pay its obligation to creditors and other third parties in the long-term.3.Liquidity- its ability to maintain positivecash flow, while satisfying immediate obligations;Both 2 and 3 are based on the company'sbalance sheet, which indicates the financial condition of a business as of a given point in time.4.Stability- the firm's ability to remain in business in the long run, without having to sustain significant losses in the conduct of its business. Assessing a company's stability requires the use of both the income statement and the balance sheet, as well as other financial and non-financial indicators. etc.

The financial report of the section can be accessed from the Home page:

Financial Report is hyperlinked to the Financial Dashboard page, which further displays the financial data for the periods 1 to 3.The screen looks as follows:

Period 1, 2 and 3 are hyperlinked to their respective pages where detailed information regarding each of the periods is shown.Period 1 gives us the details of the Profit & Loss statement and Brand Contribution of 2 of our products i.e. MOVE & MOST.Graphical description of EBT via Column Chart and Revenue contribution of both the products is shown via Pie chart.Period 1 is depicted as follows:

Also, each page of the period 1, 2 & 3 has a hyperlink Bank which redirects back to the home of the Financial Report page.

The period 2-sheet illustration makes use of Pivot table to depict all the financial costs involved along with the revenues and profits. Also, a second pivot table is inserted to compare the performance of the 2 products across the periods. By making use of Pivot table, we can effectively compare the various results across periods and make the necessary changes required to our strategy. Pivot table helps us to clearly analyse the data in concise form.

In the same sheet, we have also made use of Slicers to compare the individual costing across the periods. The slicers have also been used to compare the performance of the 2 products across periods.The Pivot table charts have also been inserted to analyse the data in graphical form.

Period 2 sheet is depicted as follows:

The period 3 sheet illustration makes use of Pivot table to depict all the financial costs involved along with the revenues and profits. Also, a second pivot table is inserted to compare the performance of the 2 products across the periods. Also, for period 3 we can enter the production decisions in the Decide tab and the same would be reflected in the results dynamically. Pivot table helps us to clearly analyse the data in concise form.In the same sheet, we have also made use of Slicers to compare the individual costing across the periods. The slicers have also been used to compare the performance of the 2 products across periods.The Pivot table charts have also been inserted to analyze the data in graphical form.Period 3 sheet is depicted as follows:

COMPANY DASHBOARDThis page helps the player to get an overview about the performance of their products in the market and also helps the user take informed decision based on the data provided. The representation of the data is very user friendly for the easy understanding of the player. Like the rest of the tabs this one also has a home button, which takes us to the home page. Moreover the pictorial charts makes the data look attractive and thus makes this game more interesting. This is done by using the slicer function, that is by taking data from the table and making relevant slicers for the respective charts. This page also has a button to return to the Home Page, which is done by using a Hyperlink. This dashboard contains:1) Market and Product Contribution2) Distribution Coverage3) Inventory Statistics

Market and product ContributionHere we can see the period wise details aligned in the graph which will give us information about the profit and loss accounts like product contribution, revenue, earning before tax, contribution before marketing, contribution after marketing, inventor. We have the option of viewing this data according to the individual products, which we may want to check. This is an important function to see how the company is doing overall and how each product doing in the particular periods, to know if there is an improvement over the periods in terms of revenue, margin etc. Apart from that the expenditure on advertising research, advertising and commercial team can also be checked over the individual periods depending on what we wish to view. We can select the detail we want to view and also the product for which we want to view by clicking on the respective details.

Distribution CoverageThis chart contains the details regarding the distribution channels and the percentage of stores covered by the particular product. The types of stores are specialty, online and mass merchandiser. Thus we can see the percentage of these stores covered both period wise and product wise. This is an important decision to decide if we need to increase the commercial team size or not to have proper reach and distribution of the products. The period wise details tell us how we have improved on the coverage after investing on the sales team.

Inventory StatisticsHere we can see the inventory details like units sold, production plan, actual production, inventory left and beginning inventory etc. these details can be viewed by selecting the respective detail and also selecting the product whose details we want to view. Thus from here we can check the details for individual periods for every product. This helps us to take decision regarding the production plan for the next period, which we do by taking into account the inventory remaining and the units sold which help us predict the demand for the next period.

DECISIONS PAGENow we have currently completed the third period and are supposed to make decisions for the fourth period. Thus after reading and analyzing data of three periods by observing the data and charts in the individual departments it is important to be able to predict the requirements for the next period and decide what will be suitable to make profits for the company and be a leader in the industry. Once the decision-making is done we need to click on the Submit button, which will take us to the Proforma Cash Flow Sheet. This page also has a button to return to the Home Page, which is done by using a Hyperlink. The primary decisions that we need to make are:

1) Production Data2) R and D3) Advertising Budget

Production DataHere two decisions need to be taken regarding the production. One is the quantity of goods that needs to be produced in the next period. This is done keeping into account what amount is sold in the period before, what is the trend in demand by observing the sales over the periods and the current inventory. The other is that of the price at which we want to sell the product. This decision needs to check how the product is doing in the market, which segment it is targeted to and the competitors pricing. There are two products currently in the company and thus we have to enter for both Move and Most. After arriving at the numbers it needs to be entered in the specified boxes.

R and DThe decision that needs to be taken here involves what specifications need to be there in the product being developed. Here we need to enter these attributes viz. design, display, power, features by deciding which segment we are going to target our new product. The new product will thus have the mentioned features. The amount to be invested with the name of the product also needs to be entered. After arriving at the numbers it needs to be entered in the specified boxes.

Advertising Budget

Depending upon how much we are producing, the current brand awareness and purchase intentions of the existing products and requirements we make this decision. The advertising amount is dependent upon the awareness of the product, the research amount depends on the opinion of the product and the commercial team depends on the coverage we are targeting to achieve. Analyzing these data from the consumer panel we take a call. After arriving at the numbers it needs to be entered in the specified boxes.

Application & Conclusion

As concluded, Excel 2013 is a very strong tool to analyze and make decision in strategy of a business. From top management to lower management, all uses Excel to strategize. Particularly in our case, where there are hundreds of parameters, number of complexities and lots of circularities, Excel 2013 has simplified the decisions and created a lot simpler picture for strategizing.

We created one home page, to which all the reports, surveys, decision-making criteria, FAQ, Manual, and decision-making tab is connected. It is also easy to toggle from one page to another by just clicking Home tab in every Excel. Analyzing all the reports, a person can directly take operations, marketing & finance decisions in one excel. Immediately the decision can be submitted and after execution we will be able to see the results of our decision for that particular period. Automatically all the graphs in reports and surveys will change according to the latest updates. The circularity maintained in our case has been very good.

Case1:

Another area where this can be used is other simulation like blue ocean strategy simulation, which is taught in B-schools like Harvard & Stanford. Similar to above case, but parameters and criteria would change. All the functions used above will be used to maintain the circularity.

Case2:

This Model also can be used for financial strategy planning, where decision on acquisitions and mergers are taken. There is a decision to acquire a company or not based on our requirements and potential gain from the acquisition. There are set parameters and criteria for the decision. There is various markets informations and companys information for the decision to be made. For a course like Mergers & Acquisitions, similar type of model can be used to come up with the decision to acquire/ merge/ reject.

References & Hyperlinks

VLOOKUP:https://www.youtube.com/watch?v=-hJxIMBbmZY

MATCH:https://www.youtube.com/watch?v=-hJxIMBbmZY

PIVOT TABLE:https://www.youtube.com/watch?v=962r5nH7CHw

SUMIF ():https://www.youtube.com/watch?v=tHMq7xv0-oo

COUNTIF:https://www.youtube.com/watch?v=CiukwcCjP4I

MACROS:https://www.youtube.com/watch?v=43U7dBsmxZI

CONDITIONAL FORMATTING:https://www.youtube.com/watch?v=LOaezdoyJDE

IF:https://www.youtube.com/watch?v=OMu7LTGHMVc

OFFSET:https://www.youtube.com/watch?v=bxUnOGo3z54

ISNUMBER:https://www.youtube.com/watch?v=_nNt3edFhuQ

DATA VALIDATION:https://www.youtube.com/watch?v=2UDRm-hU0Jw

AVERAGE:https://www.youtube.com/watch?v=BcrBeWjXyzw

MAX/MIN:https://www.youtube.com/watch?v=xTATum0glw4