Management Simulation MBA program

Management Simulation MBA program 51-451-02 Mouloud Khelif HEC Montreal - Fall 2006 BONJOUR ! NIHAO ! HELLO ! WELCOME TO ALL OF YOU This is your simulation-based introductory management course Managing A Firm Using a complex simulation: NETSTRAT Getting acquainted The Team Mouloud Khelif MSc. (France) Consultant MBA (HEC) 2002 Ph.D. (SM and Governance): joint program (HEC, McGill, UQAM, Concordia) - 2007 Lecturer (MBA, MSc., Undergrad.) Mouloud.khelif@hec.ca Engineer, Just Call me MOULOUD ! The Team…  Guillaume Choquette Assistant  Simulation Management  Guillaume.choquette@hec.ca  Teaching  Rachel Bonnier  Secretary  Rachel.bonnier@hec.ca  You… Our program today  Introduction acquainted: The Team  Overview: in search of excellence  Introduction to the simulation  Practicing the simulation  Focus on what to do next  Getting  Starting the simulation: Decision #1 Tuesday Program Netstrat decisions #2 & #3  The concept of strategy  Environmental analysis  Wednesday Program Netstrat decisions #4 & #5  Internal Analysis  Assignment: Team Strategy (1 Page)  In Search of Excellence (A)  The General Manager’s roles  The human side of management  Thursday Program Netstrat decision #6  Implementing strategy : a few ideas  In Search of Excellence (B)  ERP, planning and control and their possible use  Start writing your report  Friday Program Present your report to the Board  Conclusion: the art and craft of management  Introducing Yourself  Please tell us  Your name  Where you come from  Your work experience  Your education  One word that comes to your mind when think «Good Management» or «Good Manager» Objectives      Case method Practice general and strategic management in a highly competitive situation Experiment the contributions and interdependencies, and the limits to a firm’s key functions Practice the craft of managing Assume decision making and its long term and short term implication Objectives  Experience the importance of consistency when it comes to managing a firm  Learn something about team behaviour and efficiency The context You have the responsibility of a manufacturing firm that manufactures and markets telephones  Your company sells three (3) different types of telephones:   Touchtone  Cordless  Cellular  And you can also develop and try to market a fourth one:  Digital The context  You have competitors in each segment for each product type  There are five (5) potential competitors in your industry The context  As in many firms, the decisions cover all the functions of an enterprise:  Sales, Marketing  R&D  Production  Human Resource management  Finance The context In order to do that, you can access internal information. You can also purchase information through external consultants  This information covers market sensitivities and the competition’s position  For more details, refer to your Netstrat manual  Evaluation   Two performance measurement factors 1. Firm performance as measured by the share price (30%) 2. Management reports (70%)  Oral  presentation of your report  Individual written report  Group written report  Deadline for reports: Tuesday August 29th Blank decision      From 10:00 to 12:30 you have the opportunity to make a decision that does not count The blank decision is a chance to learn how the simulation works and how the variables can vary Do not hesitate to experiment, but remember to be consistent if you wish to learn We shall discuss the blank decision results at the beginning of session 2 – 13:30 Remember that all needed guidance is in your Netstrat simulation manual Entering Netstrat…  Online go to the following address:   http://cetai.hec.ca/netstrat/login_f.htm Use the user name and password that is provided to enter the simulation. These are: User name: team221(to 226) for teams 81, 83, 84, 85, 86, 87  Password: NULL    Use the decision page to record your decision Please note that only the last decision recorded is taken into account. Make sure you have control over final decisions recorded… Entering Netstrat…  See you at 13:30 for session #2 Session 2 Netstrat simulation The decisions  Sales and Marketing  Products (Range, Innovation, Delivery Priority)  Budgets (Service, Advertising)  Sales Force (Number, Allocation, Salaries, Training)  Prices The decisions  Production  Equipment Improvements  Supplier Selection  Inventory  Budgets (Productivity, Quality)  Personnel The decisions  Finance  Balance Sheet structure  Capital (dividend policy, …)  Subsidies (with justifications)  Participatory Lending and Borrowing  Bank (line of credit, long term loans)  Participations (equity interest) The decisions  Research and Development  New Products  Current Products The decisions  Human Resources  Sales  Rep. Compensation  Training  Number Personnel  Workers Compensation  Training  Number Personnel  Partial layoffs, overtime hours  The decisions  Studies  Market  Study Costs $100,000  Provides forecast for volume and five (5) customer sensitivities (for all 4 markets)  Competition  Study Costs $150,000  Main indicators for national firms  Information on operations  Forces present on each market  Equity interests held by the competition A few recommendations…  Think about the importance of:  Objectives  Environment  Shareholders  Social climate  Coordination and Integration  Being Consistent  Team Work  Time (Management)  Moderation Decision #1   Opens at 15:00 Closes at 8:30 tomorrow Tomorrow… We will meet for session 3 – The concept of strategy – 8:30  Decision #2 will open immediately after  We will meet for session 4 – Strategy analysis: the environment and forces that constrain management – 13:30  Decision #2 will close at 19:00  Decision #3 will open at 19:30 