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IndustryMasters Business Simulations by Mind Map: IndustryMasters 
Business
Simulations
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IndustryMasters Business Simulations

Sustainability

About the game

You take over an established publishing business which has been moderately successful. You own a sunday newspaper, a range of popular books sold through retail outlets and a monthly magazine sold via a direct subscription.

The media industry produces billions of newpapers, magazines, books and other forms of communication every day. Each item uses vast amounts of non-renewable resources in its production - energy and materials. Much of the output is sent to landfill as waste on a daily basis. Each item is (indirectly) responsible for the production of additional carbon dioxide, released into a global environment already suffering from ecological imbalance.

Your Challenge

Build a successful print/media business that values CSR - Corporate Social Responsibility management practices - and still make profits.

To build a successful strategy, you need to answer questions like:

How do you measure carbon use in business?

What is a carbon footprint and how do you calculate it?

Business Decisions

You will base your business decisions on ecological profit, net profit after accounting for the estimated cost of carbon use. This is similar to the established concept of economic profit. You can manage your carbon footprint as well as using standard profit ability measures.

Pharma

Simulation Run Time

The simulation will run for 5 Years (5 years), at a screen-refresh rate of 10 minutes per simulated Year. The simulation round therefore lasts 50 minutes - plus some start up time, as you familiarise yourself with the screens.

Your Starting Position

The intial seed capital is 100M$ and your available investment budget is 242M$. Your company has already invested into 1 product lines: Vitamin Pills.

Competitors

BaseMed Inc.

H-Pharma Inc.

Q-Care Inc.

BioMax Inc.

Products

Allergy Pills, Investment: 55M$ Monthly Capacity: 100,000 Start Research: 5 months, Sales Price: 38$ Monthly Revenues: 3.84M$ Gross Margin: 43.75% Staff: 195

Antibiotics, Investment: 90M$ Monthly Capacity: 200,000 Start Research: 5 months, Sales Price: 32$ Monthly Revenues: 6.48M$ Gross Margin: 43.58% Staff: 332

Cold Medicine, Investment: 50M$ Monthly Capacity: 240,000 Start Research: 3 months, Sales Price: 14.40$ Monthly Revenues: 3.46M$ Gross Margin: 45.00% Staff: 167

Headache Pills, Investment: 75M$ Monthly Capacity: 1,000,000 Start Research: 4 months, Sales Price: 5.16$ Monthly Revenues: 5.16M$ Gross Margin: 44.17% Staff: 258

Vaccines, Investment: 180M$ Monthly Capacity: 600,000 Start Research: 6 months, Sales Price: 23.40$ Monthly Revenues: 14M$ Gross Margin: 43.33% Staff: 725

Vitamin Pills, Investment: 20M$ Monthly Capacity: 80,000 Start Research: 3 months, Sales Price: 17.40$ Monthly Revenues: 1.39M$ Gross Margin: 45.42% Staff: 66

Strategy

Marketing Mix, Market Research, Cust.Satisfaction +20.00% Overhead Costs +20.00% Demand +8.00% Marketing Budget 0$, POS Promotions, Staff Cost +10.00% Material Cost +4.00% Cust.Satisfaction +10.00% Demand +12.00% Marketing Budget 0$, Web Marketing, Cust.Satisfaction +10.00% Overhead Costs +20.00% Demand +5.00% Marketing Budget 0$, Print Campaign, Demand +10.00% Marketing Budget 0$, TV Campaign, Demand +15.00% Marketing Budget 0$

Investment

Additional Investments, 1.0x Integrated IT System, Investment: 25M$ Staff Cost -9.0% Receivable Days -40.0%, 1.0x Vertical Integration, Investment: 35M$ Demand +15.0% Staff Cost +5.0%, 1.0x Process Automation, Investment: 40M$ Staff Cost -8.0% Material Cost -4.0%, 1.0x Global Sourcing, Investment: 35M$ Material Cost -6.0% Payable Days +30.0%, 1.0x Energy-Efficiency, Investment: 30M$ Demand +2.0% Material Cost -5.0%

Consulting

Simulation Run Time

The simulation will run for 12 Business Quarters (3 years), at a screen-refresh rate of 3 minutes per simulated Quarter. The simulation round therefore lasts 36 minutes - plus some start up time, as you familiarise yourself with the screens.

Your Starting Position

The intial seed capital is 5,000K$ and your available investment budget is 10,000K$.

Competitors

Gain & Co Inc.

AAA Consultants Inc.

Products

Change Management, Investment: 2,400K$ Monthly Capacity: 5, Consulting Fee: 96,000$ Monthly Revenues: 480K$ Staff: 28

Corporate Strategy, Investment: 3,000K$ Monthly Capacity: 5, Consulting Fee: 120,000$ Monthly Revenues: 600K$ Staff: 35

Mergers & Acquisitions, Investment: 4,800K$ Monthly Capacity: 2, Consulting Fee: 480,000$ Monthly Revenues: 960K$ Staff: 56

Private Equity, Investment: 2,700K$ Monthly Capacity: 3, Consulting Fee: 180,000$ Monthly Revenues: 540K$ Staff: 32

Strategy

Strategy Positioning, Customer Service, Staff Cost +5.00% Cust.Satisfaction +50.00% Demand +5.00%, Research, Staff Cost +4.00% Material Cost +8.00% Production +5.00% Demand +5.00%, Recruitment, Staff Cost +4.00% Material Cost +8.00% Production +10.00% Demand +4.00%, Training, Staff Cost +4.00% Material Cost +4.00% G&A Expenses -25.00% Production +10.00% Demand +5.00%, Sustainability, Staff Cost +2.00% Material Cost +8.00% Demand +5.00%

Metal

Simulation Run Time

The simulation will run for 6 Years (6 years), at a screen-refresh rate of 7 minutes per simulated Year. The simulation round therefore lasts 42 minutes - plus some start up time, as you familiarise yourself with the screens.

Your Starting Position

The intial seed capital is 200M$ and your available investment budget is 244M$. Your company has already invested into 2 product lines: Steel Tubes and Stainless Steel.

Competitors

BoldOven Inc.

HironSteel Inc.

QualySteel Inc.

TecMetal Inc.

Products

Aluminium, Investment: 227M$ Monthly Capacity: 15,000, Sales Price: 1,068$ Monthly Revenues: 16M$ Staff: 561

Stainless Steel, Investment: 101M$ Monthly Capacity: 15,000, Sales Price: 474$ Monthly Revenues: 7.11M$ Staff: 249

Steel Tubes, Investment: 115M$ Monthly Capacity: 4,962, Sales Price: 1,632$ Monthly Revenues: 8.10M$ Staff: 283

Steel Wire, Investment: 50M$ Monthly Capacity: 5,479, Sales Price: 648$ Monthly Revenues: 3.55M$ Staff: 124

Machinery & Equipment

Simulation Run Time

The simulation will run for 12 Business Quarters (3 years), at a screen-refresh rate of 5 minutes per simulated Quarter. The simulation round therefore lasts 60 minutes - plus some start up time, as you familiarise yourself with the screens.

Your Starting Position

The intial seed capital is 50M$ and your available investment budget is 115M$.

Competitors

BaseLine Inc.

HiTech Inc.

QualyCare Inc.

EcoMax Inc.

Products

Excavators, Investment: 139M$ Monthly Capacity: 120 Product Life Cycle: 25 months, Sales Price: 84,000$ Monthly Revenues: 10M$ Staff: 319

Farm Tractors, Investment: 178M$ Monthly Capacity: 200 Product Life Cycle: 25 months, Sales Price: 64,800$ Monthly Revenues: 13M$ Staff: 410

Forklifts, Investment: 166M$ Monthly Capacity: 288 Product Life Cycle: 25 months, Sales Price: 42,000$ Monthly Revenues: 12M$ Staff: 383

Road Tractors, Investment: 239M$ Monthly Capacity: 250 Product Life Cycle: 25 months, Sales Price: 69,600$ Monthly Revenues: 17M$ Staff: 551

Investment

Energy-Efficiency, 1.0x High Efficiency Pumps, Investment: 20M$ Material Cost -3.0%, 1.0x Insulation, Investment: 30M$ Material Cost -5.0%, 1.0x Process Energy, Investment: 25M$ Material Cost -4.0%, 1.0x Air Pressure Systems, Investment: 20M$ Material Cost -3.0%, 1.0x Ventilation, Investment: 30M$ Material Cost -5.0%, 1.0x Lightning Systems, Investment: 25M$ Material Cost -4.0%

Oil & Gas

Simulation Run Time

The simulation will run for 12 Business Quarters (3 years), at a screen-refresh rate of 3 minutes per simulated Quarter. The simulation round therefore lasts 36 minutes - plus some start up time, as you familiarise yourself with the screens.

Your Starting Position

The initial seed capital is 75M$ and your available investment budget is 173M$.

Competitors

Energy Corp Inc.

GreenPower Inc.

EncoGas Inc.

GulfOil Inc.

Products

Bio-Ethanol, Investment: 90M$ Monthly Capacity: 11,000 Product Life Cycle: 24 months, Sales Price: 601$ Monthly Revenues: 6.61M$ Staff: 198

Crude Oil, Investment: 128M$ Monthly Capacity: 154,060 Product Life Cycle: 24 months, Sales Price: 61$ Monthly Revenues: 9.43M$ Staff: 283

Gasoline, Investment: 191M$ Monthly Capacity: 24,331 Product Life Cycle: 24 months, Sales Price: 577$ Monthly Revenues: 14M$ Staff: 421

Natural Gas, Investment: 148M$ Monthly Capacity: 1,300,000 Product Life Cycle: 24 months, Sales Price: 8.40$ Monthly Revenues: 11M$ Staff: 328

Solar Panels, Investment: 77M$ Monthly Capacity: 188 Product Life Cycle: 24 months, Sales Price: 30,000$ Monthly Revenues: 5.64M$ Staff: 169

Wind Turbines, Investment: 81M$ Monthly Capacity: 142 Product Life Cycle: 24 months, Sales Price: 42,000$ Monthly Revenues: 5.96M$ Staff: 179

Other Industry Simulations

Bank Rush

Beverages

Simulation Run Time, The simulation will run for 12 Business Quarters (3 years), at a screen-refresh rate of 3 minutes per simulated Quarter. The simulation round therefore lasts 36 minutes - plus some start up time, as you familiarise yourself with the screens.

Your Starting Position, The intial seed capital is 100M$ and your available investment budget is 82M$. Your company has already invested into 1 product lines: Cola.

Competitors, BigBev Inc., MaxFresh Inc., Cooler Inc., GreenDrinks Inc.

Products, Beer, Investment: 97M$ Monthly Capacity: 300,000 Product Life Cycle: 20 months, Sales Price: 22.80$ Monthly Revenues: 6.84M$ Staff: 274, Cola, Investment: 106M$ Monthly Capacity: 40,000 Product Life Cycle: 20 months, Sales Price: 187$ Monthly Revenues: 7.49M$ Staff: 300, Energy Drinks, Investment: 60M$ Monthly Capacity: 186,973 Product Life Cycle: 20 months, Sales Price: 22.80$ Monthly Revenues: 4.26M$ Staff: 171, Fruit Juice, Investment: 22M$ Monthly Capacity: 127,159 Product Life Cycle: 20 months, Sales Price: 12.00$ Monthly Revenues: 1.53M$ Staff: 61, Lemonade, Investment: 50M$ Monthly Capacity: 15,000 Product Life Cycle: 20 months, Sales Price: 234$ Monthly Revenues: 3.51M$ Staff: 140, Mineral Water, Investment: 89M$ Monthly Capacity: 180,887 Product Life Cycle: 20 months, Sales Price: 35$ Monthly Revenues: 6.29M$ Staff: 252

Investment, Additional Investments, 1.0x Integrated IT System, Investment: 20M$ Staff Cost -9.0% Receivable Days -40.0%, 1.0x Vertical Integration, Investment: 25M$ Demand +10.0% Staff Cost +5.0%, 1.0x Process Automation, Investment: 30M$ Staff Cost -8.0% Material Cost -4.0%, 1.0x ISO 9000, Investment: 20M$ Staff Cost -2.0% Material Cost -4.0%, 1.0x Global Sourcing, Investment: 25M$ Material Cost -6.0% Payable Days +30.0%, 1.0x Energy-Efficiency, Investment: 20M$ Demand +2.0% Material Cost -5.0%

Car Dealer

Simulation Run Time, The simulation will run for 12 Business Quarters (3 years), at a screen-refresh rate of 5 minutes per simulated Quarter. The simulation round therefore lasts 60 minutes - plus some start up time, as you familiarise yourself with the screens.

Your Starting Position, The intial seed capital is 3,000K€ and your available investment budget is 537K€. Your company has already invested into 5 product lines: Repair Shop, Used Cars, Accessories, New Cars and Parts Shop.

Competitors, Class Cars Inc., Super Auto Inc.

Products, Accessories, Investment: 220K€ Monthly Capacity: 120, Sales Price: 264€ Monthly Revenues: 32K€ Gross Margin: 35.83% Staff: 1, New Cars, Investment: 3,750K€ Monthly Capacity: 15, Sales Price: 30,000€ Monthly Revenues: 450K€ Gross Margin: 35.00% Staff: 17, Parts Shop, Investment: 800K€ Monthly Capacity: 1,000, Sales Price: 144€ Monthly Revenues: 144K€ Gross Margin: 32.50% Staff: 4, Repair Shop, Investment: 1,500K€ Monthly Capacity: 100, Sales Price: 1,800€ Monthly Revenues: 180K€ Gross Margin: 35.00% Staff: 7, Used Cars, Investment: 2,400K€ Monthly Capacity: 15, Sales Price: 19,200€ Monthly Revenues: 288K€ Gross Margin: 35.83% Staff: 11

Investment, Additional Investments, 1.0x Factoring, Investment: 40K€ Material Cost +4.0% Receivable Days -60.0%, 1.0x Recovery Service, Investment: 300K€ Demand +3.0% Staff Cost +3.0%, 1.0x Bigsize Billboard, Investment: 80K€ Demand +4.0% Material Cost +2.0%, 1.0x Computerized Inspection, Investment: 500K€ Demand +3.0% Staff Cost -4.0%, 1.0x Open Sunday, Investment: 30K€ Demand +6.0% Staff Cost +8.0%, 1.0x Car Wash, Investment: 400K€ Demand +2.0% Staff Cost -1.0%

Cosmetics

Simulation Run Time, The simulation will run for 12 Business Quarters (3 years), at a screen-refresh rate of 3 minutes per simulated Quarter. The simulation round therefore lasts 36 minutes - plus some start up time, as you familiarise yourself with the screens.

Your Starting Position, The intial seed capital is 50M$ and your available investment budget is 115M$.

Competitors, SkinLine Inc., Aloe-X Inc., Q-Care Inc., EcoShop Inc.

Products, Body Lotion, Investment: 100M$ Monthly Capacity: 150,000 Product Life Cycle: 15 months, Sales Price: 48$ Monthly Revenues: 7.20M$ Staff: 240, Bubble Bath, Investment: 30M$ Monthly Capacity: 95,457 Product Life Cycle: 15 months, Sales Price: 22.80$ Monthly Revenues: 2.18M$ Staff: 73, Perfume, Investment: 70M$ Monthly Capacity: 120,000 Product Life Cycle: 15 months, Sales Price: 42$ Monthly Revenues: 5.04M$ Staff: 168, Shampoo, Investment: 40M$ Monthly Capacity: 120,762 Product Life Cycle: 15 months, Sales Price: 24$ Monthly Revenues: 2.90M$ Staff: 97, Sunscreen, Investment: 133M$ Monthly Capacity: 100,000 Product Life Cycle: 15 months, Sales Price: 96$ Monthly Revenues: 9.60M$ Staff: 320, Toothpaste, Investment: 53M$ Monthly Capacity: 200,000 Product Life Cycle: 15 months, Sales Price: 19.20$ Monthly Revenues: 3.84M$ Staff: 128

Credit Crisis

IndustryMasters on Facebook

About the game, Welcome to IndustryMasters, the most realistic business game - now available on Facebook. You are the CEO of a globally operating corporation. In real time you compete against people from around the globe for the highest share price. In the Shareholders menu you can invite your friends to join IndustryMasters and to become your shareholders. IndustryMasters is more than just a game, it's a powerful learning experience. You can use IndustryMasters to grow your business acumen and to develop your entrepreneurial skills! Start your career as the CEO of your own company by clicking on 'Play Now', or continue the Quick Tour before you enter the game.

How to play the game?, Click 'Play Now' to enter the game. You will build and run your corporation for 5 business years, divided into 20 quarters. Total Running Time: 45 Minutes Make sure to grow your Seed Capital and invite your friends to be your shareholders. They will earn a dividend every time you play and you will earn a dividend every time they play!

How do I launch IndustryMasters from my wall or profile ?, There are two ways of doing this:, Bookmarking, If you have just used IndustryMasters (IM) recently, you will see IM listed under “Recently Used Applications ” in your Applications list (bottom left side of your screen). Right click on the words IndustryMasters and choose “Bookmark this link”. IndustryMasters will then be added to your bookmarked links section of the Application menu. Then, every time you want to play IndustryMasters, click the IM icon which sits in this section – and also shows at the bottom of the screen. You are automatically registered, and each time you play IndustryMasters, our system remembers your last score, Adding a new Tab to your profile, If you have installed IndustryMasters in your account, the following will work. You do not need to have actually played IndustryMasters yet to do this. Go to your Profile, and look for the "+" icon near the top of your page, in the tabbed section. Click on this "+", and a menu will drop down to show "Add a new tab" and a list of applications you can add. IndustryMasters is on that list. Click on IndustryMasters to choose it. Facebook will add now an IndustryMasters Tab to your profile, which shows some detail about your score and awards, as well as a link which can put you into the game quickly

How do I earn Game Bonus Capital ?, Great Business Performance !

Fast Food

Simulation Run Time, The simulation will run for 12 Business Quarters (3 years), at a screen-refresh rate of 3 minutes per simulated Quarter. The simulation round therefore lasts 36 minutes - plus some start up time, as you familiarise yourself with the screens.

Your Starting Position, The intial seed capital is 600K$ and your available investment budget is 400K$. Your company has already invested into 6 product lines: Ice Cream, Soft Drinks, Milk Shake, Burgers, Salad and French Fries.

Competitor, BigBurger Inc.

Products, Burgers, Investment: 400K$ Monthly Capacity: 5,000, Sales Price: 8.40$ Monthly Revenues: 42K$ Gross Margin: 29.17% Staff: 3, French Fries, Investment: 500K$ Monthly Capacity: 10,000, Sales Price: 4.80$ Monthly Revenues: 48K$ Gross Margin: 34.17% Staff: 3, Ice Cream, Investment: 300K$ Monthly Capacity: 6,000, Sales Price: 4.20$ Monthly Revenues: 25K$ Gross Margin: 36.67% Staff: 2, Milk Shake, Investment: 300K$ Monthly Capacity: 4,000, Sales Price: 5.40$ Monthly Revenues: 22K$ Gross Margin: 39.17% Staff: 1, Salad, Investment: 100K$ Monthly Capacity: 1,000, Sales Price: 14.40$ Monthly Revenues: 14K$ Gross Margin: 24.17% Staff: 1, Soft Drinks, Investment: 400K$ Monthly Capacity: 10,000, Sales Price: 3.60$ Monthly Revenues: 36K$ Gross Margin: 40.00% Staff: 2

Investment, Additional Investments, 1.0x Drive Thru, Investment: 500K$ Demand +10.0% Staff Cost +8.0%, 1.0x Playground, Investment: 25K$ Demand +1.0% Staff Cost +0.5%, 1.0x Bigsize Billboard, Investment: 60K$ Demand +4.0% Material Cost +0.5%, 1.0x ISO 9000, Investment: 200K$ Staff Cost -3.0% Material Cost -4.0%, 1.0x Responsible Sourcing, Investment: 50K$ Demand +2.0% Material Cost +4.0%, 1.0x Energy-Efficiency, Investment: 250K$ Staff Cost +1.0% Material Cost -5.0%

Feed The World

Introduction, Feed The World is an immersive, web-based business game based on a simulation of real world economy. Players take the role of an entrepreneur and compete against each other in real-time for market leadership and shareholder value. They experience the outcomes of their strategies in a situation of real competition.

About the game, Your company is a leading producer of prepared foods and fmcg/branded goods, with significant market shares. More established brands have been supplying good cash flows for some years, but maye be in need of product re-launches in the near future. A recently introduced product line in the home pizza market seems to be growing well, and new opportunities are being looked at in the dynamic candy and snackfoods markets. An innovative new line of frozen dinners will become available in the near future. An aggressive competitor is also investigating new product launches, and a recent market research survey suggested solid growth prospects in most markets in the coming 3 years. This is an industry where the market leader has the best chance to dictate market pricing and build profitability. It is essential that you maintain a lead in the race against this competitor. Failure could result in your company being taken over - or you being removed from your position., Although this case study is intended to reflect in a very general sense events in the world food markets in 2006-2008, it is intended for educational study purposes only, not to indicate effective or ineffective management decisions made by any persons in any real world situation. It does not make any attempt to offer any investment advice in any real world situation.

Your Mission, The Food Manufacturing Industry is faced with a number of challenges - a world population that is growing and becoming more affluent is taking a growing share of available resources. Shortages of basic commodities are pushing raw material prices ever higher. Manufacturing margins are under extreme pressure as consumers demand better quality products, greater selection and a higher level of customer service. At the same time, consumers and legislators require food producers to take greater responsibility for their impact on their environment - governments are starting to motivate firms with tax breaks for positive action on environmental issues. How do you make money and continue to grow the company for your shareholders?

Products, Fish Products, Investment: 8.29M$, Beef Products, Investment: 11M$, Potato Products, Investment: 12M$, Pizza, Investment: 15M$, Frozen Dinners, Investment: 46M$

Strategic Positioning, The corporates Strategic Positioning is defined by adjusting five parameters. Which combination of choices is more successful depends on various factors like saturation, maturity and debt ratio which fluctuate during the simulation. The strategic positioning may only be changed every 3 month (Tick: 0,3,6,9,12,15,18,..)., Customer Service:, If you sell your products with a high level of customer service, then they are more in demand. The higher service level is increasing the staff cost. A company, which positioned itself as a provider of high customer service should also consider to adjust its pricing policy upwards. If a company chooses the strategy to produce at the lowest possible cost (cost leadership), then it should choose a lower customer service., TQM/Product Quality:, If your products are of high quality, then they are more in demand. The production of quality products is more complex and requires the fulfilment of higher industry standards, thus increasing production costs. A company, which positioned itself as a provider of quality products should also consider to adjust its pricing policy upwards. If a company chooses the strategy to produce at the lowest possible cost (cost leadership), then it should choose a lower quality budget., R&D/Innovation:, With an increased budget for research and development (R&D) you can produce and offer more innovative products. Innovative products will be more in demand than the standard product because they are more attractive to the buyer. The R&D department is located in the production, so get off at an increase of the budget, the production costs. A company, which positioned itself as a provider of innovative products should also consider to adjust its pricing policy upwards. If a company chooses the strategy to produce at the lowest possible cost (cost leadership), then it should choose a lower R&D budget., HR/Training of staff:, With the budget for staff training the employee satisfaction can be increased. Because the employees are more motivated, they work more efficiently. The employees in the administration learn to think more entrepreneurial. This has a strong effect on productivity in the administration and effect significant savings in fixed costs. In the production staff training incerases labour productivity. Overall, the production output increases while the staff costs rise., CSR/Sustainability:, With your CSR budget you can find a voluntary contribution to sustainable development. The Company may, for example, to convert solar energy to contribute to climate change. CSR (Corporate Social Responsibility) stands for responsible corporate action and combines environmental, social and economic business objectives. By CSR action can we the reputation of our company. This causes a greater demand for our products, but increased by CSR spending our production costs. The main effect, however, is a tax advantage. Companies that promote sustainable development are rewarded a tax reduction of up to 30%. CSR therefore particularly worthwhile for companies that make profits.

Investment Budget, At any time during a simulation your current available Investment Budget is shown. The Investment Budget can be used for starting new Business Unit as well as for Upsizing or Re-Launching existing Business Units. As long as profits are made; existing credits are paid back and the Investment Budget rises with every tick. The more profitable a corporation runs, the faster the Investment Budget rises.

How to use this Food Industry business simulation?, Register for an account - click on "Sign Up" above - or log-in if you already have an account, Enter the online simulation using the log-in details that have been emailed to you, Click the "Participate" button to start the simulation, Test your skill in managing this major food producer, and build a successful strategy

Starting a Business Unit, Goto to Industry Info page and select an industrial sector and then a specific license in that sector, finally click Start New Business Unit where it appears. The new Business Unit will be installed and automatically start producing and selling the products. Caution: With each installed Business Unit the corporation´s overhead costs rise. If you operate seveal Business Units within the same sector, your corporation has synergy effects that can result in up significantly lower production costs.

Upsizing a Business Unit, Goto to My Corporation page, click Upsize where it appears. The capacity increases by 1x at a time and the Maturity decreases according to the mixture of existing and new capacities with their respective age. When upsizing a Business Unit beyond 1x, the amount of the corporate´s overhead cost do not rise. Accordingly the ratio of overhead costs to revenue decline. At the same time, the supply ratio of the industry rises and the market price level may decline when the supply level gets over 70%. Before turn 30 you can only upsize if maturity is over 66%, after turn 30 you can upsize at 40% maturity. Before upsizing work out whether that upsize will take the supply ratio over the crucial level of 70% or 100%. If you get near these boundaries it may be beneficial to relaunch instead.

Downsizing a Business Unit, Goto to My Corporation page, click Downsize where it appears. The capacity decreases by 1x at a time while the Maturity stays the same. When downsizing a business unit, the supply ratio of the industry decresases and the market price level rises. You can only downsize if the Supply in the industry is over 100%.

Relaunching a Business Unit, Goto to My Corporation page, click Relaunch where it appears. Maturity (life cycle) is set back to 80% while capacity remains the same. The Relaunch button gets visible when there is sufficient budget and the Maturity is 120% or higher. Relaunching a Business Unit is the alternative to upsizing when product supply is close or exceeds 100%. You may also want to relaunch at 1x in a fast cycle license as relaunching gets more expensive with the size of the company. If you are going to relaunch it’s often worth letting a licence reach 140% maturity or more before relaunching depending on number of turns left in the level.

Finance, Bank credits are automatically taken as required and repaid as far as liquidity allows it at any time. The debt ratio shows the proportion of a company´s assets which are financed through bank credits. The lower the company´s debt ratio, the less risky the company is since excessive debt can lead to a very heavy interest and repayment burden. However, when relying largely on equity, a company also gives up the tax reduction effect of interest payments (Leverage Effect). When deciding on an optimal debt ratio, both risk and tax issues have to be considered., Credit Rating:, For each company a Credit Rating is calculated and shown. The ratings are defined from 'AAA' (best) to 'D' (worst). The higher the debt ratio, the worse the credit rating and the higher the Interest Rate to be paid. Any A-Rating ('AAA','AA','A') strongly indicates to take further investments to ensure the continuous growth of the company. Any B-Rating ('BBB','BB','B') indicates that further investments might be taken soon to ensure the continuous growth of the company. Any C-Rating ('CCC','CC','C') indicates that further investments should not be taken to avoid very heavy interest and repayment burden., Liquidation:, If a Business Unit reached +100% Maturity and an EBIT margin of less than 3% or if the Market Saturation is higher than 140%; it can be liquidated. In such a case 70% of the assets bookvalue will be credited and the Business Unit eliminated. Caution: Use this option with care as the equity and the share price drop after liquidation!, Bankruptcy:, A Corporation gets bankrupted when the debt ratio rises above 70% (Bank is cutting credit lines) or the share price falls below 45$. In such a case all production lines are liquidated and all operations are stopped.

Production, The quantities for the monthly production cycle are planned automatically. Usually the production lines run at full utilization., Supply:, For each industry the supply is shown as a percentage of demand. A supply of 50% indicates that only 50% of the market demand is met by the current suppliers. When the supply rises well above 70% the industries overall price level starts to decline. A supply of +100% leads to low or even negative profit margins in the industry., Overtime:, When you see the overtime icon on a Business Unit, this indicates that your are producing at 120% output level. Due to wage premiums costs are higher but you will still make higher net profits in this situation., Overhead Cost:, With each installed Business Unit the corporates total overhead cost rise over proportionally but remain the same when upsizing (economies of scale). If the corporations weighted (by Assets) average Maturity rises over > 100% then the overhead cost start rising exponentially.

Marketing, Price Adjustment:, With the pricing policy you determine the price-level at which your company offers the products. The price level has a strong influence on the profit margins associated with the sale of products and on the demand for the products. Companies with a high-price strategy, should also consider the quality of their products and increase its R&D/Innovation budget. In order to sell products at premium prices, the products need to be premium too. If a company chooses the strategy to produce at the lowest possible cost (cost leadership), then it should also turn the price level of their products downward. The Price Adjustment is measured as % and can be increased and decreased in steps of 1% between -5% and +5% for each Business Unit by clicking the + / - Price Adjustment buttons on the My Corporation page., Marketing Budget:, Marketing serves to increase the demand for a product. At an early stage of a product´s life cycle, an increase of the Marketing Budget accelerates sales. Once a product reaches the stage of maturity and its production lines run at maximum capacity (overtime) you may re-consider the product´s Marketing Budget, since an additional demand cannot be supplied. The Marketing Budget is measured as % of Revenues and can be increased and decreased in steps of 1% for each Business Unit by clicking the + / - Marketing buttons on the My Corporation page., To simplify the management of the PLC, the Maturity is displayed as the product age relative to the life cycle. A maturity of +100% means that the maximum point of the life cycle was reached and revenues/profits begin to decline unless the Business Unit is upsized or relaunched. Short cycle time licenses can quickly exceed 100% market demand as they will need to be upsized frequently., Product Life Cycle:, Each industry sector has a specific Product Life Cycle that ranges from 12 to 27 month in length. During the PLC the Revenues and Profits start at a low level and then start rising until they reach the maximum. Thereafter Revenues and Profits start declining and finally remain on a low profitablity level., Market Share:, Market Share is measured each tick within each Industry. Each competitor within an industry gets price mark-ups depending the degree of his Market Leadership and the competition level (# of competitors) in that industry.

Accounting, On the My Corporation page the detailed Accounting data can be displayed by selecting the desired tick and clicking 'Show Accounting Data'., The Profit & Loss (P&L) Statement is part of the financial documentation required by a public company and shows how well the company has performed in its business activities. It starts with the Revenues and then subtracts all the operative costs to come up with the EBIT. In the next step EBIT is reduced by Interest and Tax payments to calculate the Net Income., The Cash Flow Statement shows the movement and availability of cash through and to the business over a given period. In Feed The World this is done by adding the Depreciation to the Net Income, as Depreciation is the only not Cash Flow relevant position., The Balance Sheet is part of the financial documentation required by a public company and shows all assets a company owns (Long Term Assets, Cash, Finished Goods) and the capital (Equity, Debt) which is used to finance the assets.

Economy, The Economy Size is shown at any time in the economy menu as well as in the Economy Size Graph. The growth of the Economy is determined by the investments of all players and is overlayed by a randomized cycle. The demand for each product and thereby the Supply Level and the Market Price are directly derived from the Economy Size.

Economic Concepts, Supply and Demand, The Supply and Demand model is a macroeconomic model that explains price level and output through the relationship of aggregate demand and aggregate supply., Demand, Demand refers to the amount of goods and services that buyers are willing to purchase. Typically, demand decreases with increases in price; this trend can be graphically represented with a demand curve. Demand can be affected by changes in income, changes in price, and changes in relative price., Supply, Supply refers to the amount of goods and services that sellers are willing to sell. Typically, supply increases with increases in price, this trend can be graphically represented with a supply curve., Equilibrium Price, The price of a good or service at which quantity supplied is equal to quantity demanded. Also called the market-clearing price. At the equilibrium price buyers want to buy exactly the same amount that sellers want to sell. If the price were higher, however, sellers would want to sell more than buyers would want to buy. Likewise, if the price were lower, quantity demanded would be greater than quantity supplied., In the Feed The World simulation the Equilibrium Price is determined by the aggregate demand to aggregate Supply functions for each industry. The aggregate Demand is driven by the Economy Size and the aggregate Supply depends solely on the participants investment decisions., Perfect Competition, A market operates under perfect competition if it satisfies the following conditions:, Numerous firms, Freedom of entry and exit, Homogeneous output, Perfect information, In a market economy, competition occurs between large numbers of buyers and sellers who vie for the opportunity to buy or sell goods and services. The competition among buyers means that prices will never fall very low, and the competition among sellers means that prices will never rise very high. This is only true if there are so many buyers and sellers that none of them has a significant impact on the market equilibrium., Pure monopoly, A firm that satisfies the following conditions: 1. It is the only supplier in the market. 2. There is no close substitute to the output good. 3. There is no threat of competition., Natural monopoly, A firm with such extreme economies of scale that once it begins creating a certain level of output, it can produce more at a lower cost than any smaller competitor. Generally characterized by a declining average cost curve., Duopoly, A market dominated by two firms. Both firms are large enough to influence the market price., Oligopoly, A market dominated by a small number of firms. At least several of these firms are large enough to influence the market price., A monopoly differs from competitive firms in that it is not a price taker. Because it is the only supplier in the market, it faces a downward sloping demand curve, the market demand curve. As a result, the monopoly is free to choose its price and quantity according to market demand. Monopolies are still profit maximizing firms and are thus going to satisfy the profit maximizing condition that marginal cost equal marginal revenue. The key to understanding monopolies and monopoly power is the marginal revenue calculation. In a perfectly competitive market, there exists a market price. Marginal revenue is simply equal to price in this market; every additional unit that is sold brings the market price. In a monopoly, however, every quantity is associated with a different price., In the Feed The World simulation the 3 main conditions (Freedom of entry and exit, Homogeneous output, Perfect information) of perfect competition are given. The number of competing firms depends on the participants investment decisions. All competition patterns, as Monopoly, Duopoly and Oligopoly may occur in Feed The World. In any case the Equilibrium Price is determined by the aggregate demand to aggregate Supply functions for each Industry., Economies of Scale, Economies of scale, also called increasing returns to scale, refers to the situation in which the cost of producing an additional unit of output (i.e., the marginal cost) of a product decreases as the volume of output (i.e., the scale of production) increases. It is important to understand the concept of economies of scale because they can be an important factor in determining the optimal and equilibrium size of firms and thus the structure of industries and their prices and output levels. Oftentimes, large firms in industries with high fixed costs can take advantage of savings that smaller firms cannot. Economies of scale characterizes a production process in which an increase in the scale of the firm causes a decrease in the long run average cost of each unit. Economies of scale can be enjoyed by any size firm expanding its scale of operation., Marginal cost can decrease as the volume of output increases for several reasons. One is that larger production volumes allow fixed costs to be spread over more units of output. Fixed costs are costs that do not change regardless of the amount of use, or at least change relatively little as a function of use. That is, they are costs that must be incurred even if production were to drop to zero. Examples of fixed costs could include factories, warehouses, machinery, electrical transmission systems and railways. In the Feed The World simulation the Economies of scale is implemented by Overhead Costs and the effects of Upsizing a Business unit. A 1x business unit (i.e. Small Cars) incurs the same amount of Overhead cost as a 2x business unit. When upsizing the business unit from 1x to 2x the Overhead cost per unit fall and therefore generate Economies of scale., Economies of Scope, Economies of scope refer to efficiencies primarily associated with demand-side changes, such as increasing or decreasing the scope of marketing and distribution, of different types of products. If a sales force is selling several products they can often do so more efficiently than if they are selling only one product. The cost of their travel time is distributed over a greater revenue base, so cost efficiency improves. There can also be synergies between products such that offering a complete range of products gives the consumer a more desirable product offering than a single product would. Economies of scope can also operate through distribution efficiencies. It can be more efficient to ship a range of products to any given location than to ship a single type of product to that location., A company which sells many product lines, will benefit from reduced risk levels as a result of its economies of scope. If one of its products falls out of fashion or one country has an economic slowdown, the company will, most likely, be able to continue trading. In the Feed The World simulation Economies of scope are implemented via the Synergy effects for maintaining multiple business units within the same industry sector. As a general rule one should start with 1-3 business units and add up to 1-3 more business units during the course of the simulation., Leverage Effect, The leverage effect explains a company´s return on equity in terms of its return on capital employed and cost of debt. The leverage effect is the difference between return on equity and return on capital employed. Leverage effect explains how it is possible for a company to deliver a return on equity exceeding the rate of return on all the capital invested in the business, i.e. its return on capital employed. When a company raises debt and invests the funds it has borrowed in its industrial and commercial activities, it generates operating profit that normally exceeds the interest expense due on its borrowings. The company generates a surplus consisting of the difference between the return on capital employed and the cost of debt related to the borrowing. This surplus is attributable to shareholders and is added to shareholders’ equity. The leverage effect of debt thus increases the return on equity., If the return on capital employed falls below the cost of debt, then the leverage effect of debt shifts into reverse and reduces the return on equity, which in turn falls below return on capital employed. In the Feed The World simulation the appropriate usage of the leverage effect is one of the main success factors for making top scores. As long as the sales margins remain high enough to repay the increased interest cost, it makes sense to invest as much capital as possible. But a highly leveraged company incurs a higher risk of being strongly hurt by a decrease in sales prices. As a general rule the average debt ratio should be kept between 20% and 40% to leverage the company while still not incurring too much risk.

Gas Station

Simulation Run Time, The simulation will run for 12 Business Quarters (3 years), at a screen-refresh rate of 5 minutes per simulated Quarter. The simulation round therefore lasts 60 minutes - plus some start up time, as you familiarise yourself with the screens.

Your Starting Position, The intial seed capital is 1,000K$ and your available investment budget is 1,200K$. Your company has already invested into 2 product lines: Diesel and Gasoline.

Competitor, Super Gas Inc.

Products, Bio-Fuel, Investment: 900K$ Monthly Capacity: 30,000 Construct: 1 months Market Outlook: Growth, Sales Price: 2.52$ Monthly Revenues: 76K$ Gross Margin: 25.00% Staff: 2, Convenience Store, Investment: 300K$ Monthly Capacity: 3,500 Construct: 2 months, Sales Price: 7.20$ Monthly Revenues: 25K$ Gross Margin: 50.00% Staff: 1, Diesel, Investment: 900K$ Monthly Capacity: 30,000 Market Outlook: Stagnation, Sales Price: 2.58$ Monthly Revenues: 77K$ Gross Margin: 25.00% Staff: 2, Gasoline, Investment: 900K$ Monthly Capacity: 30,000 Market Outlook: Stagnation, Sales Price: 2.64$ Monthly Revenues: 79K$ Gross Margin: 25.00% Staff: 2, Repair Shop, Investment: 500K$ Monthly Capacity: 35 Construct: 3 months, Sales Price: 1,200$ Monthly Revenues: 42K$ Gross Margin: 44.17% Staff: 3

Investment, Additional Investments, 1.0x Factoring, Investment: 10K$ Purchase Cost +2.0% Receivable Days -80.0%, 1.0x Recovery Service, Investment: 150K$ Demand +8.0% Staff Cost +8.0%, 1.0x Bigsize Billboard, Investment: 80K$ Demand +3.0% Staff Cost +2.0%, 1.0x Computer Diagnostics, Investment: 120K$ Demand +3.0% Staff Cost -4.0%, 1.0x Open 24/7, Investment: 30K$ Demand +10.0% Staff Cost +15.0%, 1.0x Car Wash, Investment: 150K$ Demand +4.0% Staff Cost -2.0%

Hotel Manager

About the game, You take over as investor-manager of a dynamic hotel group, and compete against four other major players - virtual intelligent competitors. You have to quickly make decisions about where to invest across the world, which categories to invest in, how to promote and price the products, and build a sustainable business strategy. Build your understanding of modern hotel management metrics - REVPAR, GOPPAR, ADR, room occupancy rates - as you create your own hotel business empire., Use your business skill to build a global hotel empire - a portfolio of properties around the world, in different hotel categories from De Luxe 5-star to Budget City Center - and compete for market share and profitability in this dynamic business game.

Your Objectives, To test out your business ideas in the global hotel industry, To develop business strategies that build profits, and grow a sustainable empire, To be successful, you will have to manage room rates, marketing budgets, staff training, service levels and many more

Competitors, US Resort Corp., Gulf Star, EURO Comfort Group, Global Inn

Ice Cream Factory

Simulation Run Time, The simulation will run for 8 Business Quarters (2 years), at a screen-refresh rate of 5 minutes per simulated Quarter. The simulation round therefore lasts 40 minutes - plus some start up time, as you familiarise yourself with the screens.

Your Starting Position, The intial seed capital is 1,000K$ and your available investment budget is 600K$. Your company has already invested into 1 product lines: Ice Cream.

Product, Ice Cream, Investment: 900K$ Monthly Capacity: 3,000 Orders Product Life Cycle: 24 months, Sales Price: 24$ / Orders Monthly Revenues: 72K$ Staff: 6

Social Entrepreneur

About the game, You take the role of the Executive Director of a Social Enterprise in the education sector. In the first month your organization receives an initial funding of 100,000 Euros from an Educational Foundation that wants to provide primary and secondary education in Africa.

Your Challenge, Over a simulated period of 5 years you are challenged to develop commercial educational operations which will allow you to fund the setting up and running of these schools.

Your Mission, To lead the Social Enterprise to sustainable long-term growth. Should you succeed, the Educational Foundation will be encouraged to fund the setting up of a university.

Objectives, Commercial Activities, Your first objective is to successfully market your Social Enterprise's services and products to local customers., Social Activities, Your second objective is to re-invest the profits you make with your commercial operations into complimentary social activities., Sustainable Growth, Once your Social Enterprise's commercial activities generate enough earnings in terms of Return on Funding you can invest your profits into complimentary social activities that contribute to the quality of education.

Rescue Detroit

About the game, The AI MASTERS CUP is a new, exciting on-line business competition - and open to anyone with an interest in the global automobile industry., The tournament is spread over several months, and will feature a series of automotive sector industry simulations for you to compete in. This is business education at its best - competitive and with valuable learning built in.

Game Requirements, computer with a web browser, internet connection

The Business Challenge, The Big Three auto producers of Detroit have major financial and strategic business problems - the auto industry is in crisis. You have to take over the management of a large auto producer, try to save it from bankruptcy, and compete for market share and profits against two other major competitors in the auto business.

Introducing the AI MASTERS CUP, The AI MASTERS CUP is a business competition - a series of dynamic, interactive business simulations dealing with real issues in the global automobile industry. The simulations are all "single user" experiences, where you compete against programmed "intelligent competitors". Every 3 to 6 months a new simulation will be released, which will highlight urgent and current scenarios from the automotive business. The AI MASTERS CUP is operated within the IndustryMasters business simulation platform. Customised IndustryMasters Simulations are used in corporate training and help organizations to develop business acumen at a large audience scale. Like a Custom IndustryMasters Simulation, the AI MASTERS Business Simulation is an effective way for managers to build business acumen.AI MASTERS is also an opportunity to acquire entrepreneurial and strategic management skills through an exciting and challenging online learning experience.

What does it cost to enter the AI MASTERS CUP and what do I get for this ?, The fee for entering the AI MASTERS CUP is 9.50 US Dollars for personal use. For this, you receive up to 3 hours of simulation training. You can participate in 3 simulation rounds. Virtual consultants are helping you take the right decisions. After each simulation round you get an evaluation of your performance. At each round, you can improve your results. By participating in the AI MASTERS cup, you can explore the structure of the automotive market, learn new approaches to real business strategy and build confidence in financial concepts. This is a valuable learning experience. You also get a chance to win this fascinating on-line tournament. Corporate multi-user packages are offered at discounted rates: 10 user accounts: 89 US Dollars (8.90 US Dollars per user) 20 user accounts: 169 US Dollars (8.45 US Dollars per user)

How can I pay to enter the AI MASTERS CUP?, You can pay on-line by credit card or by using your PayPal account. Once you have paid you receive an instant log-in link by email and can start the AI MASTERS CUP.

TelCo Manager

About the game, Your company is a leading provider of Mobile and Broadband services, with significant market shares. The 4 established product lines are supplying good cash flows now, but may be in need of expanding to keep up with the competitors. Two aggressive competitors, BigTel and PeopleTel are also investigating new product launches, and a recent market research survey suggested solid growth prospects in most markets in the coming 3 years. This is an industry where the market leader has the best chance to dictate market pricing and build profitability.

Competitors, BigTel, PeopleTel

Principal Objective, To generate the highest possible share price

To define a clear business strategy, you need to answer questions like:, Where do you want to compete?, Which existing or new product markets do you want to invest in?, How will you compete on the dimensions of quality, innovation, staff training, customers, service levels and sustainability?, What value proposition are you proposing to your customers?