BUSINESS SIMULATION
GAMES – CHESTER TEAM
Group Members:
1. Hoàng Như Thơ
2. Nguy n M nh Hùng
3. Vũ Văn Thêm
4. Lê Thanh H i
5. Phan Minh H nh
6. Nguy n Phú Huy n
7. Lưu Chí Cư ng
Recent Business Performance – General Analyse
2
Recent Business Performance - Profit
Acc. Pro.
$30,000 $108,820
$25,000
$20,000
$15,000
$10,000
$5,000
$0
2 3 4 5 6 7 8
3
Recent Business Performance - Share
25.00%
22.00%
20.00% 20.40%
19.10%
18.20% 18.20% 18.00%
17.00%
16.00%
15.00%
10.00%
No.1
5.00%
0.00%
1 2 3 4 5 6 7 8
4
Recent Business Performance –
Return on Sales (ROS)
12.00%
11.00%
10.00%
9.30%
8.50%
8.00%
6.00% 6.20% 6.00% 5.90%
4.00%
3.40%
2.00%
0.00%
-0.60%
1 2 3 4 5 6 7 8
-2.00%
5
Recent Business Performance –
Return on Asset (ROA)
16.00%
14.00% 14.40%
13.50%
13.00%
12.00%
10.00%
8.60% 8.20% 8.60%
8.00%
6.00%
4.00% 3.50%
2.00%
0.60%
0.00%
1 2 3 4 5 6 7 8
6
Recent Business Performance –
Return on Equity (ROE)
25.00%
21.60%
20.00% 19.90%
18.10%
15.00% 15.60%
14.20%
11.30%
10.00%
6.90%
5.00%
1.40%
0.00%
1 2 3 4 5 6 7 8
7
Recent Business Performance –
Asset Turnover
2
1.8
1.6 1.6
1.5
1.4 1.4 1.4 1.4
1.3
1.2
1 1
0.8
0.6
0.4
0.2
0
2 3 4 5 6 7 8
8
Recent Business Performance –
Stock Price
$131.32
$140.00
$120.00
$129.48
$100.00
$88.17
$80.00 $76.25
$60.00
$50.11
$41.57 $45.65
$40.00
$23.86
$20.00
$0.00
1 2 3 4 5 6 7 8
560%
Increas
e
9
Strategies
1st 5 years: apply Niche Cost Leader (Low Technology):
focus on Traditional and Low End markets as these market
shares counts for 70% of the total market.
The 5th year: Starts apply R&D for generating new product
at High End segment because this segment has the high
development speed, 16, and 2%.
From the 6th year: begin implementing the distribution
channel new High End product
Concentrate on balance statement: equity and long-term
loans to make sure of full manufacturing facility.
Allocate resources appropriately to ensure the ratio of
Contribution Margin reaching around 30%
10
Tactics
Analyze elements influencing on each product: Price-Age-
Performance-Size-MTBF in order to adjust and position
products for optimizing market share and production
efficiency.
Balance annual financial statement: ensure financial
resources for each production line
Take advantages of new modules: Advance Marketing/
TQM/ Negotiation Labor.
Last years: evaluate depreciation of fixed assets to
calculate profits after write-off
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Major Mistakes and
Success Factors
Major mistakes:
not decisive to make important decisions at the right time
not take full advantages and strengths of each member in the team
time management skill is not efficient (cid product)
afraid of taking risks (too careful)
Reasons: short time, no experience,
Success factors:
good teamwork
good analyzing ability (SWOT)
good data consolidation and evaluation skill
enthusiastic and hardworking
optimistic spirit
Difficulties and Solutions
Difficulties:
how to allocate finance and resources in catching up with competitors
while make contribution to the growth of the company
not get consensus in making important decisions
lack of technical skill in various areas/ sectors
Overcomes:
beside meeting face-to-face, make several online confenrences to explain
more details for each members to understand more deeply before making
final decisions
after each round, swap the position of each member in the team to
develop their own abilities and have a better understanding about their
responsibilities
after each round, have an overview about the work to find out the
weaknesses and strengths of each product to improve in the next round
Lessons From the Course
Structure of manufacturing enterprises
Simulation of real market
Financial reports
Relationships among functional departments within a
company: Marketing – Sales – Production – R&D – HR and
their contribution to the total business results
Capability and importance of market forecast
Teamwork spirit
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