MANAGEMENT GAME

"BULGARIAN YOGHURT"

(in Bulgarian...)

Video instructions...

1. DESCRIPTION OF THE GAME

1.1. WHO ARE YOU ?

You are a company for production and sale of the valuable food product "Yogurt"

• Your company was established not long ago

• Before you the company was managed by an acting executive director

• Through contributions from the shareholders a filed of land and a building with production purpose has been bought

•  A loan in the amount of 30000 was taken out as initial capital,

• The business of your company is production and trade of Yogurt (unit of measure = container  

You are the newly appointed board of directors

• You have the current managerial report of the company

• You operate in one area with a total of 10 companies - direct competitors and many others - indirect

1.   Blagoevgrad

2.   Burgas

3.   Varna

4.   Veliko Tarnovo

5.   Kyustendil

6.   Montana

7.   Pleven

8.   Ruse

9.   Sliven

10. Haskovo

Preliminary decisions:

• Name of the company

• Trademark of your product

• distribution of roles

1. 2. SUGGESTED ROLES (each team decides on their own how to distribute the responsibilities among its members)

CEO:

   Establishes the way to make decisions

   Resolves disputes in discussions

   Prepares the general business plan with the assistance of the board of directors

   Officially represents the company to external institutions and the media

Marketing Director:

   Formulates and implements a marketing plan

   Orders and interprets marketing research

   Determines advertising strategy and advertising costs

Sales Director:

   Plans sales

   Determines sales prices

Production Director :

   Plans the volume of production

   Prepares a production schedule

   Manages production staff

   Monitors the level of stocks

Research and Development Director :

   Responsible for the quality of production

   Manages investment in research and development

   Communicates with the research laboratory

Business Analysis Director:

   Organizes and conducts data analysis in the company

   Conducts all necessary accompanying studies

   Prepares specific studies for particular situations

Financial director:

   Responsible for taking and repaying bank loans

   Performs financial analysis

   Monitors cash flow

   Proposes the amount of deposits

Operational Director :

   Keeps a protocol of the decisions made

   Coordinates the work of the board of directors

   Responsible for all documentation             

1. 3 . YOUR FACTORY

         Up to 3 conveyor lines are installed in it, one for each type of production product

         Capacity: 2000 container per line per one game period

1. 4. PRODUCTS

You can produce production in 3 market segments :

   To organize the production of each product, you appoint a product manager.

   If you do not produce a product, you release the product manager.

   If you have not produced this product in the previous period, you pay higher costs associated with the introduction of the new product manager.

2 . DECISIONS

The following decisions must be developed for each period and for each segment:

   Production and transportation of products

   Sales prices

   marketing budget

   Research & Development budget

   Order market research

   Taking / repayment of a loan

   Overdraft repayment

2 .1. PRODUCTION AND TRANSPORT

   You decide how much production to produce and transport on the market in the different segments

   You store the unsold products in the warehouse of the distributor

   At the beginning of the game you do not have any production in stock.

2 .2. PRICES

   The price must be acceptable to buyers

   The price is one for a given period for the same product (even if there is a stock left from previous period)

   maximum value is 50, minimum is 10, whole number

2 .3. ADVERTISING:

   advertising increases demand, but you should consider the availability of supplied products to the market

   in case of shortage of production in a certain segment (over-advertising) the demand quantity is redistributed among your competitors

   maximum limit is 5000

2 .4. RESEARCH AND DEVELOPMENT EXPENDITURE

   Your R&D department employs researchers, technologists, laboratory technicians, etc.

   Their job is to improve the quality of the products

   Improving quality takes time and carries a research risk

   Once mastered technology is kept and the quality can not worsen

   maximum limit is 5000

	Scale	Quality
	1.00 - 1.99	Unfit for consumption
	2.00 - 2.99	Admissible for consumption
	3.00 - 3.99	Good quality
	4.00 - 4.99	Excellent quality
	5.00	Maximum quality

2.5. MARKETING RESEARCH

You can order from a marketing agency market research (by market segments) on some of the decisions of your competitors in the area:

   price survey - the prices of all companies for the period

   sales research - quantity of products sold by companies for the period

   quality research - achieved quality by companies

   marketing cost study - total advertising budget for the period

2.6. FINANCE

Input:

   In the loan field, a positive number means a new additionally drawn loan, a negative number means a loan repayment.

   If repaid in full, the loan becomes a negative number, i.e. becomes a deposit and interest becomes a negative expense, i.e. income.

   Loans are made at the end of the period, interest from the current period (for overdraft and loan or for deposit) is accrued in the next period

   Loans and deposits are automatically attributed to one bank account

Bank loans:

   multiples of 1000

   maximum limit 60000

   initial interest = 0.5% per period

   initial capital = 30000 loan

   is repaid upon deposit of funds

Contingent loans (overdraft):

   automatically when there is a shortage of funds

   interest = 10% per period

   it is accounted in a separate account

   is repaid upon deposit of funds (positive number) in a separate filed for repaying overdraft

Deposits:

   interest = interest on planned loans

   multiples of 1000

   Entered with a negative sign (negative loan)

   be careful with loan restructuring

   maximum limit -20000

3. GAMEPLAY

3.1. GAME GOAL

Your goal is profit!

   (Satisfied consumer, quality product, community service, preserved nature, etc. are wonderful goals, but without profit, they are self- serving and most importantly - unattainable).

   Main game goal: Maximum net profit at the end of the game (with accumulation).

+ 1 more point for the top 3 companies with the highest profit for the current period

• Companies finishing with loss (for the period or for the game) do not get points for profit

   In the fight for markets you are not alone - You have competitors !!!

   At the market you meet your rivals, competing for sales among the customers and depending on the laws of supply and demand

Demand

   Factors for higher demand :

o          Higher quality

o          More advertising

o          Lower price

   Each period, market demand is affected by current unpredictable conditions

Supply

   Supply quantity = production + remaining in stock from the previous period

   If the quantities supplied by the company are less than the generated demand for the product (seen as zero stocks in the report), some of the competitors make sales at the expense of your demand.

   Sales income = quantity sold (num.) * Price for 1 pc.

4 . EXPENSES

4.1. MANUFACTURING COSTS

   these are valid at the beginning of the game

   Remain in force unless something unforeseen happens (action of accidental disturbing effects from the environment)

   Anti-dumping restrictions: Sales price>= 10

4.2. NON-PRODUCTION COSTS (PREDICTABLE)

Advertising costs:

   increase the final demand for the product

   have time-decay action

   a maximum of 5000 per market segment for the period

Research and development costs:

   improve quality, but over time (several periods) and with a certain probability (research risk)

   maximum 5000 per product per period

Transport costs:

   follow from the decisions on production volume by segments

   1.5 / container

Market research costs:

   4 types for each market segment

   500 for each study ordered

4.3. NON-PRODUCTION COSTS (SOMEWHAT PREDICTABLE)

Administrative costs:

   5000 fixed administrative costs (rent, line depreciation, overheads)

   +1000 for product manager for each product in production in the previous period

   or

   +1500 for product manager for each non - manufactured product in the previous period

   in the report they are  distributed proportionally by segments, but they refer to the whole company

  There may be administrative costs even if there is no production from the respective segment

Interest:

   charged on the loan amount and overdraft at the end of the previous period (delay)

   if they are a negative number, they represent deposit income

   in the report they are  distributed proportionally by segments, but they refer to the whole company

  There may be interest even if there is no production from the respective segment

4.4. NON-PRODUCTION COSTS (NON PREDICTABLE)

Warehouse costs

   stocks at the end = stocks at the beginning + production - sales

   0.50 / container

Other expenses:

   depending on unpredictable factors

   needs for some financial reserve

   may be a negative number (i.e. revenue)

4. 5. FINANCIAL RESULTS

   Current profit (loss) at the end of the period = income for the period - Expenses for the period

   Accumulated profit / loss = Accumulated profit up to the previous period + current profit / loss

(This is what we work for !!!)

Available funds = Accumulated profit + withdrawn loan

   These are operating cash that the company has.

   If a deposit is made (i.e. a negative loan) - they are decreased

Bank balance at the end of the period (loan / deposit) = Bank balance at the end of the previous period + withdrawn loan

   The company has one bank account for a loan. If it is a negative value - it means a deposit (and interest on it is income).

   Initially, you start with a working capital loan of 30000.

Overdraft = - available funds (to the nearest 1000), if available funds <0

   In case of lack of funds, a temporary overdraft is withdrawn under extraordinary interest conditions.

   The amount of the overdraft is sufficient so that no negative available funds remain.

5 . DEVELOPMENT OF  DECISIONS

It is necessary to make considered and justified decisions

TEAM-MODEL WORKFLOW

6. ORGANIZATION OF THE GAME

6.1. INITIAL ACTIVITIES

1. Look at the team in which Destiny has assigned you .

2. Connect with other team members.

3. Determine how the team works online.

4. Assign your roles. CEO. Org. secretary. R&D.

5. Register your team.

6. Read the preliminary instructions.

6.2. FOLLOW THE SCHEDULE

6.3. SCHEME OF THE GAME CYCLE

6.4. THE LEGAL ENTITIES

l  DO NOT EAT!

l  DO NOT SLEEP!

l  DO NOT REST!

l  DO NOT...

l  WORK 400 days х 25 hours!

l  DELIVER THEIR DECISIONS ON TIME!

l  AWLAYS HAVE A REPRESENTATIVE IN THE CLASS!

l  READ THE NEWSPAPER BEFORE ASKING!

6.5. INITIAL CONDITIONS