IO_webbutton_knight1b

Focus on strategic thinking

In this two day business simulation, leaders draw on a range of skills to meet more complex sales and marketing challenges such as competitive differentiation, falling prices, and disruptive technology.

IO_webbutton_knight2b

Gaining practical experience

Teams decide which customer profiles to target, what product mix to adopt, what prices to set, whether to increase capacity, how much money to borrow, and the R&D options to pursue. Learners gain practical experience in the use of a range of financial planning and analysis tools including cash flow forecasting, budgeting, and ratio analysis.

IO_webbutton_knight3b

A complete mix of learning methodologies

Leaders are challenged and engaged throughout the simulation because Income/Outcome business simulations use a complete mix of learning methodologies: tactile, kinesthetic, visual, and auditory.

Learning Objectives

This simulation provides experiential learning across the business because participants play all the major roles in an operating company: production, R&D, sales and marketing, management, and finance. Participants experience:

  • Management uses of basic financial statementsbusiness decisions
  • The difference between cash and profit
  • The need to manage separately for cash and profit
  • Fixed and variable costs
  • The value of budgets and cash flow forecasts
  • The impact of inventory build-up
  • The need to control working capital
  • SWOT analysis
  • Break-even analysis
  • Unit cost analysis
  • Income Statement analysis
  • ROA, ROI, and other metrics
  • KPIs used at your company to gauge performance
  • Why market conditions dominate

Course Outline

Facilitator-led simulation
2 hours

Team competition
11 hours

Ratio analysis
2 hours

Analysis of your company’s financial position
1 hour

Facilitator-led simulation

This group experience provides the rules for the simulation, a general introduction to the process of business (financial statements, business terminology, fundamental business dynamics), and sets the framework of needing to manage separately for cash and profit.

Team competition

Team competition in this simulation consists of six strategically complex business cycles in which teams have full decision-making power and are held accountable for the results.

In each cycle, teams develop and implement a business strategy which incorporates real-world dynamics: production capacity, customers, prices, financing, and more. Each cycle includes:

  • Examining market drivers: supply and demand, niche marketing, quality
  • Competitor awareness, setting prices in a competitive market
  • Ongoing strategic analysis, updating the strategic plan in response to changes in the industry and in the marketplace
  • Budget and cash flow exercises
  • Monitoring cash flow
  • Maintaining the ‘books’ of the operating company (Income Statement and Balance Sheet)
  • Performance measurement and analysis
  • Posting, comparing, and discussion of results

Other activities include break-even analysis, SWOT analysis, income statement analysis and cost-benefit analysis.

Ratio analysis

In this module, participants discuss common business metrics with the Income/Outcome Triangle for Ratio Analysis.

Analysis of your company’s financial position

Using The Company Board®, a 3D visual representation of your current corporate financial position. This module transitions the learning from the classroom to the real world. The tie-back and discussion relate the simulation experience to your company’s concerns, measures, and goals. It can include additional visualization exercise and discussion of real world competitors such as:

  • An additional exercise in planning and analysis
  • A discussion of Key Performance Indicators (KPIs)