JAMES T. LOW*

B u s i n e s s s i m u l a t i o n games a l l o w s t u d e n t s t o experience a p p l i e d decision-making i n a f a s h i o n n o t p r o v i d e d by o t h e r forms of c l a s s r o o m i n s t r u c t i o n . Well-designed games c a n g i v e s t u d e n t s hands-on e x p e r i e n c e i n d e c i s i o n - m a k i n g u n d e r u n c e r t a i n t y i n a c o m p e t i t i v e environment r e l a t e d t o .the c o u r s e c o n t e n t . However, t h e s e advantages w i l l be d i f f i c u l t t o o b t a i n without c a r e f u l p r e p a r a t i o n on t h e p a r t of t h e i n s t r u c t o r i n s e l e c t i n g and i m p l e m e n t i n g games f o r s p e c i f i c classes. T h i s a r t i c l e p r o v i d e s d e t a i l e d recommendations r e g a r d i n g t h e f a c t o r s which m u s t be c o n s i d e r e d b e f o r e i n t r o d u c i n g a s i m u l a t i o n game i n t o a c l a s s . Taking t h e s e f a c t o r s i n t o a c c o u n t s h o u l d e n a b l e even the uninformed i n s t r u c t o r t o s u c c e s s f u l l y u s e b u s i n e s s s i m u l a t i o n games and t o a v o i d t h e p i t f a l l s e x p e r i e n c e d by i n s t r u c t o r s who . l e a r n e d o f t h e s e f a c t o r s t h e h a r d way. GUIDELINES FOR THE USE OF BUSINESS SIMULATION GAMES

B u s i n e s s s i m u l a t i o n games have become more w i d e l y u s e d t h r o u g h t h e y e a r s a s i n s t r u c t o r s have become aware of t h e i r v a l u e . However, as many i n s t r u c t o r s ha-ve l e a r n e d t h e h a r d way, u s i n g s i m u l a t i o n games i n t h e c l a s s r o o m c a n have s e v e r a l p i t f a l l s f o r t h e uninformed. The b a s i c message i s t h a t c a r e f u l p r e p a r a t i o n on t h e p a r t o f t h e i n s t r u c t o r is r e q u i r e d b e f o r e u s i n g a s i m u l a t i o n game. F a i l u r e t o t a k e any of t h e f o l l o w i n g f a c t o r s i n t o a c c o u n t i s l i k e l y t o i m p a i r t h e s u c c e s s f u l u s e of a game i n t h e c l a s s r o o m . Purpose. of Using a Game A major r e a s o n f o r u s i n g a b u s i n e s s s i m u l a t i o n game i n t h e c l a s s r o o m is t h a t i t p r o v i d e s t h e s t u d e n t s w i t h a n o p p o r t u n i t y t o l e a r n decision-making under u n c e r t a i n t y as i t relates t o t h e material covered i n the course. S t u d e n t s w i l l g e n e r a l l y b e receptive t o t h e i d e a t h a t l e a r n i n g t o d e a l w i t h a n e n v i r o n n e n t which h a s w e l l - d e f i n e d r u l e s , a l t h o u g h i t must b e somewhat a r t i f i c i a l , p r o v i d e s good t r a i n i n g f o r d e c i s i o n - m a k i n 2 i n real l < f e where t h e is more complex and t h e r u l e s may b e p o o r l y d e f i n e d . environment P a r t i c i p a t i o n i n a s i m u l a t i o n game c a n p r o v i d e s t u d e n t s w i t h v a l u a b l e experience in making d e c i s i o n s i n a s p e c i f i c f u n c t i o n a l area of a n o r g a n i z a t i o n , and i n l e a r n i n g how t h a t f u n c t i o n a l area o p e r a t e s . The game p r o v i d e s a s u b s t i t u t e f o r hands-on e x p e r i e n c e i n r u n n i n g a b u s i n e s s .

A w e l l - d e s i g n e d game can p r o v i d e a means of t e a c h i n g some o f t h e m a t e r i a l to be c o v e r e d i n a p a r t i c u l a r c o u r s e . The s t u d e n t s c a n l e a r n f a c t s and g a i n a n u n d e r s t a n d i n g o f c o n c e p t s a n d t h e i r i m p l e m e n t a t i o n t h r o u g h t h e p r o c e s s of d e a l i n g w i t h t h e game. Having t o f o r e c a s t demand, s c h e d u l e p r o d u c t i o n , make s h i p m e n t d e c i s i o n s , o r a l l o c a t e p r o m o t i o n a l f u n d s can l e a d a s t u d e n t t o a b e t t e r u n d e r s t a n d i n g o f t h e s e matters t h a n a s t r a i g h t t e x t b o o k a p p r o a c h can.

*

M a r k e t i n g D e p a r t m e n t , Wayne S t a t e U n i v e r s i t y , D e t r o i t , Michigan

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I n t e R r a t i o n of t h e Game I n t o t h e Course The s u b j e c t matter of a s i m u l a t i o n game *and t h e l e v e l of d i f f i c u l t y i t p r e s e n t s t o t h e s t u d e n t s must b e a p p r o p r i a t e f o r t h e c o u r s e i f t h e game i s t o be useful. I n g e n e r a l , games f o r u n d e r g r a d u a t e c o u r s e s m u s t be r e l a t i v e l y However, s i m p l e , v h i l e t h o s e f o r g r a d u a t e c o u r s e s m u s t be more c h a l l e n g i n g . i n any game i n which c o m p e t i t i o n a g a i n s t o t h e r s t u d e n t s i s a n i m p o r t a n t f a c t o r of the, game e n v i t o n m e n t , t h e l e v e l o f s o p h i s t i c a t i o n of t h e c o m p e t i t i o n w i l l p r o v i d e a n e q u a l i z i n g f a c t o r . Thus t h e same game c o u l d b e u t i l i z e d . f o r u n d e r g r a d u a t e or g r a d u a t e classes, w i t h d i f f e r i n g r e s u l t s . An a n a l o g y t o t h i s is a game of c h e s s p l a y e d between two n o v i c e s as opposed t o a c h e s s game between t w o masters. The game i s i d e n t i c a l , b u t t h e l e v e l a t which it i s played i s q u i t e d i f f e r e n t . E v a l u a t i o n of t h e s u i t a b i l i t y of a s p e c i f i c s i m u l a t i o n game f o r u s e i n a c o u r s e s h o u l d t a k e i n t o a c c o u n t t h e q u a l i t y l e v e l of t h e game i t s e l f . One i n d i c a t i o n of q u a l i t y is t h e e v i d e n t c a r e w i t h which t h e game was d e s i g n e d . The author's of a s i m u l a t i o n game s h o u l d p r o v i d e c o m p l e t e d o c u m e n t a t i o n r e g a r d i n g t h e f o l l o w i n g f e a t u r e s of t h e game: 1'. 2. 3.

4. 5-

Recommended methods of implementing t h e game. An e x p l a n a t i o n of t h e i n t e r n a l workings of t h e game. A l i s t of p a r a m e t e r s which t h e i n s t r u c t o r may change. Any s e t s of o p t i o n s which a r e p r o v i d e d f o r t h e i n s t r u c t o r . S u g g e s t i o n s f o r any changes which t h e i n s t r u c t o r may w i s h t o make d u r i n g t h e c o u r s e of t h e game p l a y .

Another i n d i c a t i o n of q u a l i t y is t h e care w i t h which s t u d e n t materials t h e game are p r e p a r e d . These s h o u l d p r o v i d e a c l e a r a n d t h o r o u g h e x p l a n a t i o n of t h e game environment. They s h o u l d a l s o i n c l u d e sample i n p u t and o u t p u t so t h a t s t u d e n t s may g a i n an u n d e r s t a n d i n g of t h e s e r e p o r t s p r i o r t o a c t u a l p l a y of t h e game.

for

For include: 1.

2-

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45-

business

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indications

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quality

P r o v i s i o n s for s t r a i g h t f o r w a r d and e a s y i n p u t of d a t a t o t h e game o n t h e p a r t of t h e game a d m i n i s t r a t o r . D e t a i l e d s e t - u p and o p e r a t i n g i n s t r u c t i o n s f o r t h e computer program. Complete d o c u m e n t a t i o n of t h e computer program w i t h program l i s t i n g s , symbol t a b l e s , and f l o w c h a r t s . Numerous comment c a r d s t h r o u g h o u t t h e program t o e x p l a i n i n d e t a i l what t h e program is supposed t o do a t e a c h s t a g e . Well-designed p r i n t o u t o f s t u d e n t . . r e p o r t s f o r e a c h game p l a y .

An i n s t r u c t o r p l a n n i n g t o i n t r o d u c e a b u s i n e s s s i m u l a t i o n game i n t o a c o u r s e s h o u l d f i r s t a c q u i r e a t h o r o u g h knowledge of t h e game and i t s r u l e s , i t s i n t e r n a l w o r k i n g s , and t h e t a s k s e x p e c t e d of t h e s t u d e n t s . The i n s t r u c t o r s h o u l d l e a r n t h e s e a s p e c t s of t h e game by p l a y i n g i t a s if h e or s h e were b o t h a s t u d e n t p a r t i c i p a n t and a l s o t h e game a d m i n i s t r a t o r . I n t h i s way, t h e i n s t r u c t o r w i l l b e much more f a c i l e w i t h t h e game and w i l l u n d e r s t a n d b e t t e r t h e r e q u i r e m e n t s imposed on b o t h t h e s t u d e n t s and t h e a d m i n i s t r a t o r . A s a s i d e b e n e f i t , t h e i n s t r u c t o r may d i s c o v e r f l a w s i n t h e game by comparing t h e

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'

i n p u t and o u t p u t f o r competing teams. S i m i l a r s e t s of i n p u t t o t h e game may g i v e d i f f e r e n t o u t p u t s f o r which t h e r e is no r e a s o n a b l e e x p l a n a t i o n . T h i s may p o i n t o u t a n i n s t a n c e of a f l a w i n t h e d e s i g n of t h e game o r a "bug" i n t h e computer program u s e d t o r u n t h e game. I f t h i s c o m p a r i s o n i s n o t d o n e , i t i s p o s s i b l e f o r "bugs" t o e x i s t u n c o r r e c t e d f o r y e a r s .

The i n s t r u c t o r must a l s o c o n s i d e r t h e b e s t method o f g r a d i n g s t u d e n t s i n a c o u r s e which i n c l u d e s a s i m u l a t i o n game. The w e i g h t of t h e game i n d e t e r m i n i n g t h e f i n a l c o u r s e g r a d e s h o u l d b e r e l a t e d t o t h e r i g o r of t h e game and t o t h e amount o f work r e q u i r e d of t h e s t u d e n t s . O t h e r w i s e , s t u d e n t s a r e q u i t e ' l i k e l y t o h a v e n e g a t i v e f e e l i n g s a b o u t t h e game. The i n s t r u c t o r m u s t d e c i d e w h e t h e r c o m p e t i t i v e s t a n d i n g a t t h e end of t h e game is to, b e t h e s o l e c r i t e r i o n f o r t h a t p a r t o f t h e c o u r s e g r a d e d e t e r m i n e d by t h e game, o r w h e t h e r a d d i t i o n a l c r i t e r i a r e l a t e d t o HOW TO GRADE Teams c o u l d b e g i v e n t h e game w i l l a l s o b e u s e d . p o i n t s . b a s e d on t h e i r r a n k i n g s a t t h e end o f t h e game, STUDENT PERFORMANCE s u c h a s 40 p o i n t s f o r f i r s t p l a c e , 30 p o i n t s f o r s e c o n d , and s o f o r t h . I f t h e game r e q u i r e s s t u d e n t p a r t i c i p a t i o n i n teams, t h e n any g r a d e r e l a t e d t o t h e s u c c e s s of t h e team s h o u l d b e a l l o c a t e d e q u a l l y among a l l team members, u n l e s s some team members c o n t r i b u t e d much more or much l e s s t h a n t h e i r s h a r e o f t h e e f f o r t . A team member r a t i n g f o r m i s o n e way i n which t h e i n s t r u c t o r c a n receive f e e d b a c k on t h e amount and q u a l i t y of e f f o r t p u t i n by i n d i v i d u a l team members. S t u d e n t s a r e u s u a l l y q u i t e f r a n k i n r a t i n g t h e e f f o r t s of t h e i r team members and w i l l g i v e c r e d i t where i t i s due.

0

I n a d d i t i o n , t h e i n s t r u c t o r can r e q u i r e e a c h s t u d e n t t o w r i t e a n s t r a t e g y f o r t h e game, i n c l u d i n g i n d i v i d u a l p a p e r a n a l y z i n g t h e team's successful and. unsuccessful decisions, and e x p l a i n i n g t h e s t u d e n t ' s u n d e r s t a n d i n g of t h e game e n v i r o n m e n t . S t u d e n t s who h a v e c o n t r i b u t e d w e l l t o e f f o r t w i l l b e a b l e t o w r i t e a good p a p e r , w h i l e t h o s e who h a v e t h e i r team's n o t c o n t r i b u t e d w i l l b e u n a b l e t o a n a l y z e m a t e r i a l t h e y have n o t l e a r n e d . A n o t h e r method o f d e t e r m i n i n g t h e same i n f o r m a t i o n is t o h a v e e a c h team keep a l o g o f t h e i r d e c i s i o n s t h r o u g h o u t t h e game, e x p l a i n i n g t h e i r c u r r e n t s t r a t e g i e s . A t t h e e n d of t h e game, t h e teams e x c h a n g e l o g s a n d r e s u l t s f o r e a c h of t h e game p l a y s . Each s t u d e n t t h e n writes a p a p e r i n which h e o r s h e p r e s e n t s a n a n a l y s i s o f t h e o t h e r team's performance. Again, o n l y t h o s e s t u d e n t s who u n d e r s t a n d t h e w o r k i n g s of t h e game w i l l b e a b l e t o a n a l y z e a competing team's s t r a t e g i e s w e l l . R e q u i r e m e n t s f o r U s i n g t h e Game The r e q u i r e m e n t s f o r u s i n g a s p e c i f i c b u s i n e s s s i m u l a t i o n game s h o u l d b e c a r e f u l l y d e f i n e d b e f o r e t h e game i s u s e d i n a c o u r s e . Most of t h e f a c t o r s d i s c u s s e d h e r e a p p l y e q u a l l y t o c o m p u t e r i z e d a n d non-computerized games. However, f o r t h o s e games which are r u n on a c o m p u t e r , t h e knowledge o f t h e computer s y s t e m and t h e s k i l l s needed t o make u s e o f i t i n o p e r a t i n g t h e game m u s t b e t a k e n i n t o a c c o u n t . T h i s a p p l i e s t o t h e i n s t r u c t o r , t h e s t u d e n t s , and t h e game a d m i n i s t r a t o r . S e v e r a l games have b e e n l o c a l l y c u s t o m i z e d by i n s t r u c t o r s t o allow the students t o input t h e i r decisions d i r e c t l y t o f i l e s . on t h e computer. The game a d m i n i s t r a t o r c a n t h e n a s s e m b l e t h e i n p u t t o t h e game w i t h o u t h a v i n g t o . p u t t h e s t u d e n t s ' d e c i s i o n s i n t o t h e colnputer h i m s e l f . T h i s p r o c e d u r e s a v e s a g r e a t d e a l o f t i m e a n d e f f o r t on t h e p a r t o f t h e

32

a d m i n i s t r a t o r , b u t i t r e q u i r e s much rnorc computer s o p l i i s t i c a t i o n o f of t h o s e i n v o l v e d .

t;ic

part

P l a n n i n g t o u s e a s i m u l a t i o n gaine r e q u i r e s a n e g a l u a t i o n of t h e time, e f f o r t a n d money w h i c h must b e committed. The i n s t r u c t o r must t a k e t h e t i m e and e f f o r t t o l e a r n t h e game a n d t o s e t up a method o f a d m i n i s t e r i n g i t . The c o s t of p u r c h a s i n g m a t e r i a l s f o r t h e game, h i r i n g a n a d m i n i s t r a t o r , and any computer time c o s t s s h o u l d b e t a k e n i n t o a c c o u n t . The i n s t r u c t o r m u s t d e c i d e who w i l l f u n c t i o n a s t h e game a d m i n i s t r a t o r . Depending on t h e s p e c i f i c game, t h i s r o l e can b e r e l a t i d e l y e a s y , o r d i f f i c u l t and time-consuming. I f t h e i n s t r u c t o r m u s t assume t h e a d m i n i s t r a t o r ' s d u t i e s , h e o r s h e s h o u l d b e p r e p a r e d t o s p e n d t h e time needed t o do a c a r e f u l job. The a v o i d a n c e o f r u s h c o n d i t i o n s w i l l h e l p t o i n s u r e t h a t no m i s t a k e s a r e made i n o p e r a t i n g t h e game. These w i l l u s u a l l y r e q u i r e t h e g a q e p l a y t o be run o v e r a g a i n i n o r d e r t o c o r r e c t them. Even i f t h e i n s t r u c t o r does n o t ser-:e a s t h e a d m i n i s t r a t o r , he or s h e must b e a b l e t o e x p l a i n t h e s t u d e n t ' s r o l e i n t h e game, and s h o u l d a l s o b e a b l e t o t a k e o v e r t h e a d u i n i s t r a t o r ' s f u n c t i o n i n a n emergency. Use o f a s i m u l a t i o n game w i l l r e q u i r e t h e u s e of c l a s s t i m e t o e x p l a i n t h e g a m e . t o t h e s t u d e n t s . The s t u d e n t s s h o u l d recei.de a s much i n f o r m a t i o n a b o u t t h e m e c h a n i c s of t h e game e n v i r o n m e n t a s can b e p r o v i d e d w i t h o u t l e s s e n i n g t h e game's e f f e c t i v e n e s s . HOV NUCH CLASS TIYE T h i s e n a b l e s them t o c o n c e n t r a t e on l e a r n i n g how t o WILL BE REQUTRED d e v e l o p s t r a t e g i e s and t o make d e c i s i o n s , r a t h e r t h a n g u e s s i n g how t h e game works. U n c e r t a i n t y r e g a r d i n g t h e gane en'Jironment s h o u l d stem f r o m t h o s e p a r t s of t h e game which c a n n o t be r e v e a l e d t a t h e s t u d e n t s , a s w e l l as from t h e a c t i o n s of o t h e r s t u d e n t c o m p e t i t o r s .

m

Some time s h o u l d b e s p e n t e a c h week i n p r o v i d i n g a p p r o p r i a t e and t i m e l y f e e d b a c k t o t h e s t u d e p t s a s t o t h e i r s t a n d i n g i n t h e game t o d a t e , r e l a t i b - e t o t h e i r c o m p e t i t i o n . T h i s h e l p s t o a v o i d s i t u a t i o n s i n which s t u d e n t s g e t h o p e l e s s l y b e h i n d b e c a u s e t h e f a i l u r e of t h e i r c u r r e n t s t r a t e g i e s i s n o t p o i n t e d o u t s o o n enough. An e f f e c t i v e method f o r h e l p i n g s t u d e n t s t o l e a r n t h e m e c h a n i c a l w o r k i n g s of t h e game' a n d t o u n d e r s t a n d t h e game's environnient i s t o have a t r i a l r u n a t t h e s t a r t of t h e game. Once t h e s t u d e n t s ha-de t h e o u t p u t f r o m t h e t r i a l r u n , t h e s l a t e i s wiped c l e a n and t h e game t h e n b e g i n s i n e a r n e s t . T h i s a l l o w s t h e s t u d e n t s t o make m i s t a k e s and t o a n a l y z e t h e r e s u l t s w i t h o u t b e i n g p e n a l i z e d f o r t h e i r i n i t i a l l a c k of u n d e r s t a n d i n g . An a l t e r n a t i v e method of h e l p i n g s t u d e n t s t o l e a r n t h e game i s t o s t a r t t h e game w i t h o u t a t r i a l r u n , b u t t o e n c o u r a g e t h e s t u d e n t s t o as!< t h e i n s t r u c t o r or game a d m i n i s t r a t o r f o r a s s i s t a n c e when i t i s n e e d e d , and t o charge a n appropriate consulting f e e f o r t h e explanations given. Of course, t h e advice s h o u l d b e l i m i t e d t o q u e s t i o n s a b o u t t h e mechanics of t h e game. Class t i m e s h o u l d a l s o b e r e s e r v e d f o r a d e b r i e f i n g s e s s i o n ante t h e s t u d e n t s have completed t h e game. T h i s s e s s i o n h e l p s t h e s t u d e n t s t o s e c hov t h e y c o u l d h a v e been more s u c c e s s f u l t h r o u g h t h e u s e of b e t t e r a n a l y s i s of t h e A spokesman f o r e a c h team s h o u l d d e s c r i b e t h a t team's s t r d t e t ; i * s dild game. r e s u l t s t h r o u g h o u t t h e game, i n c l u d i n g t h e a p p r o a c h e s t h a t were s u c c e s s f u l a s w e l l a s t h e m i s t a k e s t h a t were made. A f t e r each teaa has presented a s y n o p s i s , t h e i n s t r u c t o r s h o u l d p r e s e n t an o v e r a l l v i e w of t h e o c c u r r e n c e s

33

d u r i n g t h e Game. An e s p e c i a l l y e f f e c t i v e way of d o i n g t h i s i s t o show t h e s t u d e n t s a p p r o p r i a t e c o s t , s a l e s , and p r o f i t c o m p a r i s o n s f o r t h e teams i n e a c h The a u t h o r p r e s e n t e d T a b l e s 1 i n d u s t r y f o r e a c h week of t h e game p. l a y.. 4 as overhead transparencies t o s t u d e n t s i n a graduate-level through TABLE 1 COMPETE GAME ANALYSIS HIGHEST PRICE BY PRODUCT (IN DOLLARS) Company

Week 1 2

3 4 5 6

7 8

1 CHSS QPR TCR 450 136 23

525 700 775 775 800 800 800

Note: CHSS QPR TCR

142 200 300 240 260 260 260

24 37 45 40 43 43 43

2 CHSS QPR TCR

475 475 479 474 635 505 640 640

143 23 145 24 149 25 147 2 2 252 30 150 26 188 26 180 24

3

4

CHSS QPR TCR 428 1 2 2 23

CHSS QPR TCR

450 600 650 750 800 800 720

140 175 180 250 260 260 284

23 25 26 40 40 40 34

500 600 630 800 835 800 800 800

25 30 200 33 990 36 340 45 300 45 300 45 300 45 150 180

= Complete Home Sound System = Q u a d r i s o n i c Phono-Radio

= T r a n s i s t o r i z e d Clock Radio

i n t r o d u c t o r y m a r k e t i n g c l a s s a f t e r t h e y had p l a y e d t h e o r i g i n a l v e r s i o n of t h e COMPETE game d u r i n g t h e c l a s s . [ l ] Through t h e u s e o f t h e s e t a b l e s , t h e c l a s s c o u l d o b s e r v e t h e r e s u l t s of t h e p r o m o t i o n and r e s e a r c h b a t t l e i n which t h e teams had engaged t h r o u g h o u t t h e game. Team 1 u t i l i z e d a s t r a t e g y of v e r y heavy i n v e s t m e n t i n r e s e a r c h and development i n o r d e r t o u p g r a d e t h e q u a l i t y of t h e i r p r o d u c t s . They a l s o s p e n t h e a v i l y on a d v e r t i s i n g and on p r o f i t s h a r i n g f o r t h e i r e n l a r g e d s a l e s f o r c e . They r a i s e d p r i c e s s u b s t a n t i a l l y i n o r d e r t o pay f o r t h e o t h e r m a r k e t i n g a c t i v i t i e s w h i l e s t i l l making v e r y h i g h p r o f i t s . I t s h o u l d b e p o i n t e d o u t t h a t t h i s might n o t b e a w i n n i n g s t r a t e g y i n other circumstances. However, t h e u s e of t a b l e s g e a r e d t o t h e s p e c i f i c game c a n p r o v i d e s t u d e n t s w i t h a v e r y clear p i c t u r e o f t h e c o m p e t i t i o n t h e y have e x p e r i e n c e d . O b v i o u s l y , t h i s form of d e b r i e f i n g r e q u i r e s a s i g n i f i c a n t e f f o r t on t h e p a r t of t h e i n s t r u c t o r and game. a d m i n i s t r a t o r . Feedback f r o m students indicates that the e f f o r t is w e l l spent. The i n s t r u c t o r s h o u l d b e aware t h a t a g r e a t d e a l o f t i m e may b e r e q u i r e d t o g e t a new s i m u l a t i o n game o p e r a t i n g p r o p e r l y o n t h e computer. With some games, e v e r y t h i n g w i l l go s m o o t h l y , b u t PROBLEMS h e or s h e s h o u l d b e p r e p a r e d f o r j u s t t h e o p p o s i t e . Even t h e r e - i n s t a l l a t i o n o f a p r e v i o u s l y u s e d game may t a k e l o n g e r t h a n expected. Last-minute i n s t a l l a t i o n s h o u l d b e avoided a t a l l c o s t s .

34

TABLE 2 COMPETE GAME ANALYSIS RESEARCH AND DEVELOPMENT Company

Week 1 2

3 4 5 6 7 8 Total Grand Total

1 CHSS QPR TCk 4.0 3.0 2.0 6.5 2.0 5.5 9.9 4.0 9.9 9.9 4.5 9.9 9.9 5.0 9.9 0 9.9 ,9.9 0 0 0 0 0 0 49.1 49.1 17.5

2 QPR 1.5

,

CHSS 1.5 4.0 5.0 0.5 0.5 0 0 4.5 3.5 1.7 1.3 1.7 1.3 1.7 1.3 16.6 13.4

2

TCR 0.5 1.0 0 0 0.5 0 0 0 2.0

3 CHSS -QPR TCR 1.8 0.8 0.4 0.7 1.7 0.6 9.5 9.5 2.0 9.9 9.9 5.0 9.9 9.9 5.0 5.0 9.9 6.0 0 0 0 0 0 0 36.8 41.7 19.0

CHSS 7.5 9.9 9.9 9.9 9.9

QPR 1.0 7.5 9.9 9.9 9.9

0 0 0

0 0 0

47.1

38.2

T d 0.6 1.6 1.6 9.9

3.2 0 0 0 16.9

102.2

97.5

32.0

115.7

4

J

-

Note: F i g u r e s are i n M i l l i o n s of D o l l a r s I n v e s t e d CHSS Complete Home Sound System QPR = Q u a d r i s o n i c Phono-Radio TCR = T r a n s i s t o r i z e d C l o c k R a d i o

TABLE 3 COMPETE GAME ANALYSIS ADVERTISINGB SALES FORCE, PROFIT SHARING Company

Week 1 2

3 4 5 6 7 8 Total ADV

ADV 27.0 29.6 49.0 64.2 61.0 65.1 65.1 65.1

426.0 Note:

1 SLSP 1000 1000 1000 1250 1450 1450 1450 1450

PRSH 1.6 2.0 2.5 4.5 6.0 5.0 5.0 5.0

-

ADV 30.2 30.2 37.7 42.1 27.7 32.1 37.5 38.7

2 SLSP 1060 1090 1070 1110 1110 1110 1110 1110

PRSH 1.2 1.3 1.3 1.3 1.5 2.0

4.0 4.0

276.2

3 ADV SLSP PRSH 20.0 1000 1.5 27.3 1050 1.5 32.0 1050 1.7 52.7 1050 2.5 64.2 1250 2.5 64.2 1500 3.0 65.0 1500 3.0 49.5 1500 3.0 374.9

4

A D V SLSP PRSH 24.9 37.0 40.2 58.3 88.9 71.0 76.0 76.0

1000 1000 1000 1000 1400 1450 1500 1500

2.0 2.0 2.0 2.0 2.0 4.0 6.0 9.9

472.3

ADV T o t a l Advertising Expenditures (Million Dollars) SLSP = T o t a l Number of S a l e s p e r s o n s PRSH = P r o f i t - s h a r i n g P e r c e n t a g e f o r S a l e s p e r s o n s

F u r t h e r m o r e , t h e exact p r o c e d u r e t o be f o l l o w e d by t h e game a d m i n i s t r a t o r s h o u l d b e c a r e f u l l y w r i t t e n . R e l a t i v e l y . h i g h t u r n o v e r is u s u a l when s t u d e n t

35

TABLE 4 COMPETE GAME ANALYSIS EARNINGS PER SHARE Company

Week 1 2 3 4 5 6 7 8

1 CURR YR 2.14 2.89 5.03 4.00 9.03 4.81 13.84* 3.01 4:26 7.27 5.82 13.09 6.74 19.83

Cub1

16.85* 21.11* 26.93* 33.67* 1

Rank

CURR 2.82 2.14 2.53 1.29 1.59 1.24 2.24 2.81

2 YR

CUM

4.96 7.49 8.78 10.37 2.83 11.61 5.07. 13.85 7.88 16.66 4

CURR YR 2.29 2.60 4.89 2.65 7.54 3.60 11.14 3.01 2.86 5 . 8 8 3.76 9.64 4.99 14.63

CUM

14.15 17.01 20.78 25.77 3

CURR YR 2.90* 3 . 8 1 6.71* 3.18 9.89* 1.69 11.58 1.54 3.98 5.52 5.25 10.77 5.97 16.75

CUM

13.12 17.10 22.35 28.32 2

Note: CURR = C u r r e n t P e r i o d E a r n i n g s P e r S h a r e ( D o l l a r s ) YR = C u r r e n t Year E a r n i n g s P e r S h a r e ( D o l l a r s ) CUM = Cumulative E a r n i n g s P e r S h a r e ( D o l l a r s ) I n d i c a t e s Current I n d u s t r y Leader

*

a s s i s t a n t s a r e u s e d as a d m i n i s t r a t o r s , so t h a t a w r i t t e n p r o c e d u r e i s e s s e n t i a l f o r a s u o o t h t r a n s i t i o n from one a d m i n i s t r a t o r t o a n o t h e r . D e t a i l e d i n s t r u c t i o n s w i l l a l s o b e e x t r e m e l y u s e f u l t o t h e i n s t r u c t o r who serves as a d m i n i s t r a t o r on a n i n f r e q u e n t b a s i s , s i n c e t h i s w i l l a s s i s t i n r e c a l l i n g t h e i m p o r t a n t d e t a i l s of t h e game’s o p e r a t i o n , r a t h e r t h a n w o r k i n g f r o m memory. I f a c o m p u t e r i z e d game which h a s b e e n o p e r a t i n g s m o o t h l y f o r some t i m e s u d d e n l y s t o p s o p e r a t i n g or b e g i n s t o g i v e i n c o r r e c t r e s u l t s , t h e game a d m i n i s t r a t o r s h o u l d f i r s t c a r e f u l l y examine t h e i n p u t d a t a f o r e r r o r s . The most common e r r o r s a r e t h e f o r m a t t i n g o f numbers i n t o t h e wrong f i e l d s , l e a v i n g o u t r e q u i r e d data e n t r i e s , and f a i l i n g t o f o l l o w t h e i n s t r u c t i o n s c a r e f u l l y a s t o t h e s e q u e n c e of f i g u r e s e x p e c t e d by t h e program. Checking t h e s e f i r s t w i l l e l i m i n a t e most o f t h e problems which might b e e n c o u n t e r e d w i t h c o m p u t e r i z e d games. I t i s v e r y u n l i k e l y t h a t a program w i l l s u d d e n l y d e v e l o p i n t e r n a l e r r o r s , a l t h o u g h i t i s p o s s i b l e t h a t s t u d e n t s w i l l uncover h i d d e n e r r o r s by making u n u s u a l d e c i s i o n s . With a good s i m u l a t i o n game, i t i s -rery u n l i k e l y t h a t i n s t r u c t o r s and game a d m i n i s t r a t o r s w i l l have any problems t h a t are n o t of t h e i r own making. Problems With F r e q u e n t U s e of t h e G a m e I f a s i m u l a t i o n game i s t o b e u s e d more t h a n o n c e a y e a r , t h e i n s t r u c t o r must b e aware o f t h e problem of p a s s - t h r o u g h knowledge a b o u t t h e game. S t u d e n t s who have a l r e a d y p l a y e d t h e game w i l l o f t e n t e l l o t h e r s t u d e n t s e v e r y t h i n g t h e y know a b o u t t h e b e s t s t r a t e g i e s t o employ. I f t h e game r e w a r d s any s p e c i f i c s t r a t e g i e s more t h a n i t slrould, t h i s knowledge w i l l q u i c k l y spread. I f t h e game is n o t p l a y e d i n s u c c e s s i v e semesters, t h i s problem w i l l o f t e n d i s a p p e a r , b e c a u s e s t u d e n t s w i l l f o r g e t s p e c i f i c d e t a i l s of t h e game a n d b e c a u s e normal t u r n o v e r among t h e s t u d e n t s w i l l l e a d t o a l a c k of c o n t a c t between t h o s e who have p l a y e d t h e game a n d t h o s e who have n o t .

36

The i n s t r u c t o r f a c e d w i t h a problem of pass-through knowledge of t h e game h a s two s t r a t e g i e s t h a t can be used t o d e a l w i t h t h e problem. One s t r a t e g y i s t o change t h e s t a r t i n g c o n d i t i o n s of t h e game t o remove any advantagk 'from t h e u s e of a s p e c i f i c s t r a t e g y . For example, t h e o r i g i n a l v e r s i o n of t h e COMPETE game began with .$?ch team h a v i n g e i g h t y s a l e s p e r s o n s The s t r a t e g y of g r e a t l y i n c r e a s i n g t h e s i z e of t h e s a l e s f o r c e w a s unduly rewarded. T h q c a p h e d e a l t w i t h by s i m p l y changing t h e s t a r t i n g c o n d i t i o n s s o t h a t e a c h team h a s 1000 s a l e s p e r s o n s , t h e r e b y removing t h e o p p o r t u n i t y t o g a i n by g r e a t l y i n c r e a s i n g t h e s a l e s f o r c e . T h i s approach does n o t r e q u i r e changes i n t h e o p e r a t i n g p a r a m e t e r s of t h e game.

..

'

The o t h e r s t r a t e g y t o d e a l w i t h pass-through knowledge i s t o change t h e o p e r a t i n g p a r a m e t e r s of t h e game from s e m e s t e r t o s e m e s t e r . Plost good computerized s i m u l a t i o n games have a n e x t e n s i v e s e t of o p e r a t i n g p a r a m e t e r s which a r e e a s i l y changed by t h e i n s t r u c t o r or game a d m i n i s t r a t o r . However, a word of c a u t i o n i s i n o r d e r h e r e . Changes t o t h e o p e r a t i n g p a r a m e t e r s of a game can have unexpected and f a r - r e a c h i n g consequences. Such changes s h o u l d b e v e r y c a r e f u l l y examined beforehand i n o r d e r t o d e t e r m i n e t h e l i k e l y r e s u l t s i n o p e r a t i o n of t h e game. Even t h e n , t h e changes should b e i n s m a l l The p a r a m e t e r s e t s for most computerized s i m u l a t i o n games have increments been a r r i v e d a t through a p r o c e s s of t r i a l and e r r o r , i n o r d e r t o o b t a i n a s e t that works r e a s o n a b l y w e l l . The i n s t r u c t o r s h o u l d f e e l f r e e t o change the parameters t o s u i t h i s c i r c u m s t a n c e s , b u t s h o u l d be c a u t i o u s about d r a s t i c changes.

.

Summary

Use of a b u s i n e s s s i m u l a t i o n game i n t h e c l a s s r o o m can p r o v i d e s t u d e n t s w i t h t h e o p p o r t u n i t y t o l e a r n a p p l i e d decision-making under u n c e r t a i n t y in a c o m p e t i t i v e environment r e l a t e d t o t h e c o u r s e c o n t e n t . I n o r d e r t o make t h e t h e i n s t r u c t o r should consider s e v e r a l f a c t o r s p r i o r t o game work w e l l , i n t r o d u c i n g t h e game i n t o t h e c o u r s e . These f a c t o r s i n c l u d e : t h e purpose of u s i n g a game i n t h e c o u r s e , t h e manner of f i t t i n g t h e game i n t o t h e c o u r s e , t h e r e q u i r e m e n t s imposed on t h e i n s t r u c t o r and s t u d e n t s i n o r d e r t o u s e t h e game, and problems which may a r i s e i f t h e game i s used more t h a n once p e r y e a r . P o t e n t i a l u s e r s of s i m u l a t i o n games s h o u l d n o t b e i n t i m i d a t e d by t h e f a c t t h a t c a r e f u l p r e p a r a t i o n i s i m p o r t a n t i f t h e games a r e t o be u s e d s u c c e s s f u l l y . I f t h e y are i n t r o d u c e d p r o p e r l y , b u s i n e s s s i m u l a t i o n games can b e a v e r y v a l u a b l e a d d i t i o n t o o t h e r methods of c l a s s r o o m i n s t r u c t i o n . REFERENCES. .

a. I

1.

A. J. F a r i a , D. G. J o h n s t o n e , and R. 0. Nulsen, Jr., COIYPETE: A Dynamic Marketing S i m u l a t i o n ( D a l l a s , Texas: B u s i n e s s P u b l i c a t i o n s , I n c . , 1 9 7 4 ) . (See a l s o t h e Revised E d i t i o n , 1 9 7 9 ) . '

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