CORPORATION: A Global Business Simulation
Jerald Smith and Peggy Golden
4th Edition in Windows
This simulation
game is a dynamic, interactive, competitive business exercise designed for
practicing managers and college students that features decision making at the
strategic management level. The business simulation involves the takeover and
continuing operation of a multi-divisional,
multinational corporation. The FOURTH EDITION IN WINDOWS is now available.
If you are a registered
instructor please contact Prentice Hall
publishers for an exam copy.
Instructors who have adopted
the simulation and ordered student manuals may download the latest copy of the
software. Contact the author at SmithandGolden@yahoo.com
for a password. If you do not hear from Jerald Smith within 3 days, contact the
co-author Peggy Golden.
Use "corpfiles" as the User Name,
then enter the password we will give you (all lower case):.
Click Here to Download Corporation Instructor Program
CONTENTS
Jump
to Overview
Jump
to Fourth Edition Enhancements
Jump
to Description of the Simulation
Jump
to Student Manual Overview
Jump
to Decisions that are made in the Simulation
Download
Excel Spreadsheet Program-(Contributed by a student team)
Jump to How to Order the Simulation
Jump to Index for Other
Simulation Games
OVERVIEW
Each decision
period is assumed In playing the simulation, players acting as management teams
make a variety of decisions that will have an impact on the future of their
company. These include the type and size of strategic business units, the
quality of product/service that will be delivered to the marketplace, and the
risk-taking behavior of the strategic management team as they make decisions
about new ventures. Prices must be established for all products in the
portfolio, and the size of the sales force established. Some unique features of
the simulation are the ability to acquire or merge with similar business units
of other companies; the ability to control product/service quality; and the
opportunity to make decisions about critical management
such as social responsibility, ethics, and unusual business
opportunities.
The decisions for all teams in the
industry are entered into the instructor's personal computer that calculates
the values and produces a printout containing each firm's results within minutes.
Students analyze the printout, decide on a new set of decisions, and enter
these. Decisions are for one-half of a fiscal year (6 months).
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THIRD EDITION
ENHANCEMENTS
In this edition, we have attempted to
incorporate additional concepts of global strategic management and allow teams
to export to five different economic areas such as NAFTA and ASEAN instead of
specific countries. In addition, we have added the opportunity for a firm to
install total quality management in any or all of their business units, and
have listed several programs from which to choose. Teams may hedge the currency
exchange risks if they desire through forward exchange contracts. Decisions in
human resource development have been simplified with several unique choices
given. New ventures have been added and venture pricing has been moderated. The
popular feature of buying and selling companies has been retained. The student
manual has had a major re-write after focus groups made input to the format in
terms of clarity and ease of locating the decision making variables.
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The objectives of the simulation are:
1. To learn how to operate in the global environment.
2. To allow students with different backgrounds and training to
make business decisions after
considering the multidimensional aspects of the decisions.
3. To provide the opportunity for participant interaction in
organizational teamwork.
4. To allow the player to practice his/her leadership and
interpersonal communication skills.
5. To aid in developing logical and rational decision making
skills.
6. To demonstrate the importance of management information tools.
7. To introduce the student to the various environmental, ethical,
and social responsibility
problems that may occur in a firm and to show the
consequences of the decisions that
are made.
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STUDENT MANUAL
The Student Manual consists of eight
chapters. Chapters 1 and 2 describe the decision making processes. The interpretation of results are
found in chapter 3. Chapter 4 has suggestions for organizing the team and Chapter 5 contains a mini-case (incident) for each
decision period. Financial analysis is covered in chapter 6 while chapter 7
gives an approach to developing a strategic plan and control systems. Chapter 8
contains the decision forms that are submitted
each decision period. The instructor needs minimum computer knowledge to
administer the simulation.
The simulated company currently has three strategic business units
(SBUs):
1. A hardware company selling branded and private label mini- and
personal (single user) computer systems (including terminals, disk drives, and
printers). This firm is located on a Caribbean island that has good relations
with the U.S. and uses U.S. currency. Virtually all of its sales are in the
U.S. although there has been some recent interest in the hardware by some
foreign firms.
2. A software company that develops operating systems and
application software. All production and sales are currently in the U.S.
3. A vertically integrated "turnkey" company that sells a
complete information system for special purpose applications. All production
and sales are currently in the U.S.
4. (Optional) A team may also purchase a new venture to complement
its portfolio of businesses. Ventures are recently formed small companies with
limited histories that have been offered for sale..
Although a team begins with three business units, it may choose to focus its
operations on one type of product or market by selling an unwanted SBU to
another team and purchasing an SBU from another team. Currently, all sales have
been in the U.S. However, a team may begin to export goods to one of five
foreign areas.
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DECISIONS THAT ARE MADE IN THE SIMULATION
Corporate
1. Bank Loans
2. Stock Sold or Redeemed
3. Bonds Issued
4. Dividends
5. Invest excess cash in what type of instrument
6. Investment Amount
7. Advertise an SBU for Sale
8. Asking Price for this SBU
9. Sell an SBU
10. Selling Price
11. Purchase a Venture
12. Market Research Studies Requested
13. Incident Response
Decisions for each Strategic Business
Unit
1. Product Price
2. Marketing Budget
3. Operations Technology Budget
4. New Product Research Budget
5. Quality Programs Budget
6. Expansion of plant
7. Add or Reduce Sales Force
8. Add or Reduce Service Team
9. Human Resource Development Budget
10. Percent of Marketing Budget for Export Area #1
11. First Export Area (5 choices)
12. Percent of Marketing Budget for Export Area #2
13. Second Export Area (5 choices)
14. Forward Exchange Contract for Currency Risk
15. Location of Production Plant (6 choices)
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HOW TO ORDER
The student manual, instructor's manual, and program disk is
published by Prentice Hall, Inc.
Business Publishing Division, One Lake Street, Upper Saddle River, NJ 07458.
Potential academic adopters may contact their local Prentice Hall
representative for an
adoption copy or via web page http://vig.prenhall.com/catalog/main_content/0,1151,-500,00.html
Corporations
or individuals interested in purchasing ten or more copies,
please contact:
Corporate Sales
Department, One Lake Street, Upper Saddle River NJ
07458
Email: mailto:corpsales@prenhall.com Voice (201) 236-7156 Fax (201) 236-7141
Instructors
may contact the authors via Email for questions:
Jerald Smith
Peggy
Golden
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Revised 4-2-2007
