1. Business Simulation (35%) 01/04/2013

1. Business Simulation (35%) 01/04/2013 SimVenture Guide

Skip the INTRO and load a New Game on the Easy Level.

 Type in your UG ID number as your Player Name.  Type in anything you fancy as your Company Name.  Confirm the game as at the Easy level.  Click OK.

You are given the Scenario Briefing. READ IT.

If it is your first time, click on View Advisor Report. READ IT.

Then Dive straight into the Game by going to the Home page which looks like this:

1 Product Production

Sales Strategy

Finance

Any Business begins with a revenue stream. If no money comes in you do not have a business. To generate revenue you need to make sales.

Month 1…

 Go to Sales Strategy > Sales Channels  and click on Change sales channels  Then click on Transactional Sales > Configure website and > employ web designer.

Click on HOME.

 Go to Sales Strategy. Click on Pricing > Change Pricing  Change your Unit Price to £440, with a Promotional Discount of 10% for a Promotional Period of 2 months.  Click Load current values.  SimVenture will remind you to update your cost information, which can be found in Product.

Click on HOME

2  Change your styling to 75%, which increases your costs to £343. Click on HOME. You should also change Production by clicking on Modify Production Strategy and changing your monthly production from 1 (you should have one existing order to fulfil) to 4.

Click on HOME.

 SimVenture will remind you that you need to purchase more components and click on OK.

Click on HOME.

 You need to begin Book-keeping (It’s a legal obligation). Go to the calculator and select Account > Book-keeping and choose “Do it yourself”.

Click on HOME.

Click on Run the Month.

 A Final Check of your planning and decisions is displayed.

Click on Run the Month.

► At the END of the month, you will get the Month Completed screen. Don’t forget to click the PRINT button (top right screen) or you will have no record of what your decisions were. You should SAVE the printed report (see Print icon top left screen) to disc to incorporate in your Reflective Report.

Your printout should look like this:

3  Click on HOME again.

Month 2

► I changed my Production to 2 this month. ► I also decided to do my own Market Research (following the pop-up advice). This is found under Marketing and Sales > Research strategy. I clicked on “do it yourself”.

► I ran the month (ignoring the warning that I would run out of time).

The PRINT report for the month looked like this:

Result

I had completed 2 months. My bank balance was improving again and my orders looked promising. I had 2 units in stock and had shown a profit for the month.

I had been advised to do some competitor analysis, but on the whole I was pleased with the story

4 Activity 1

In teams of no more than three (from the tutor group), students must explore the SimVenture business simulation package and, working as a team, trade a company for at least 12 consecutive months. Each team will choose a “managing director” whose decision will be final if there is disagreement. Each team will save print versions of their end-of- month reports and keep a brief “diary record” of their decisions in the business, the logical reasoning behind them, and any advice they had from the SimVenture package.

Note that students may decide to trade for longer than 12 months. Also, note that students do not need to do this once only. Students can try it again and again and only submit the “best shot.” This diary record and (at least) 12 consecutive end-of-month reports form the first part of the students’ assignment and will obviously be the same for all members of the team. Marks will be given for authenticated trading success. Diary record guide length 500 words (excluding end-of-month reports). Team Report- Business Diary Report

Activity 2 (Individual)

Students should individually prepare an end-of-year (or end of period, if more than 12 months) report for a company, suitable for submitting to a bank manager in support of a loan application (to convince him that the business is viable and credit-worthy). The report will explain the success of the company so far, and make reasonable estimates of its performance in the next 6 months with a view to obtaining a loan from the bank to help finance expansion. It should be addressed to the Bank Manager. Marks will be given for authentic trading success, for credible predictions, and for business-like presentation.

Trading report guide length 1000 words. Individual Report to Bank Manager

Activity 3 (Individual)

Students will write an Individual Reflective Report in which they will:

(a) Discuss experiences of working with the team. What difficulties were encountered, how did students make decisions. Were there any negotiations or within a given team. Comment on progress during the SimVenture exercise

(b) Explain the commitment needed – in terms of personal time and sacrifice – in order to make a success of a real small business.

5 Guide length for each individual reflective report is 500 words. The individual reflective report will be different for every member of the team. Marks will be given for originality, logic, and relating an argument to actual experience.

The individual assignment submission will thus consist of

(1) A group diary record of the students’ company’s trading decisions, explained, and at least 12 end-of-month reports (500 words) (2) An individual trading report to support the application for a loan from a bank (1000 words in report format) (3) An individual reflective report – 500 words – addressing points (a) & (b) above.

Simventure Marking Criteria Marks allocated to criteria: Focus 20 Is there evidence of trading success? Is there use of persuasion with regard to the bank letter? Is there excellent discussion of working as part of a team, drawing attention to the positives and negatives of working as part of a team? Synthesis 15 Is there theoretical evidence and cash flow analysis in support of the trading report? Would a bank likely advance the money requested? Soundness 30 Did the student use appropriate literature to support a simulated letter for a bank loan? Are there few or no errors with regard to the referencing used for such literature? Clarity of structure 15 Is there synthesis where sub-paragraphs and sentences clearly tie together? Excellent use of tables/graphs. How is the presentation of the report? Mechanical Soundness 20 Is the essay clearly written, spell checked and grammatically sound and referenced appropriately? *Note: The above table constitutes a general marking criteria. Marking criteria are subject to change and students will be advised accordingly in lectures and via Moodle of any such changes.

2. Summary Business Plan (35%): 15/04/2013

This will be an individual project. Each student is expected to submit a summary business plan of no more than 2500 words. The plan can be thought of as a precursor to the development of a full business plan. The summary plan will identify a market opportunity, describe the target market(s), evaluate the competition, indentify the legal form of organization and government regulations, profile the marketing strategy, estimate the initial capital requirements, financial projections, highlight the timetable for establishing the venture, and indicate how the venture will be financed. Students will be requested to conduct a brief feasibility survey of their business idea and utilize descriptive statistics in Microsoft Excel to analyze the survey findings.

6 Summary Business Plan Marking Criteria Marks allocated to criteria: Focus 25 Is there use of persuasion with regard to the business plan? Does the plan form around a centralized mission? Does the rest of the plan conform to the company’s stated mission and objectives? Have the students posed and answered any research questions/hypotheses with regard to data collection that are on topic to the theme of the business plan? Synthesis 25 Is there theoretical evidence in support of a financial analysis such as a cash flow forecast which shows that this type of product or service would be profitable? Is there theoretical evidence of a marketing strategy and competitor analysis? Would this plan elicit funds from an investor? Is there critical analysis of any survey data reported? Soundness 20 Did the student use appropriate literature to support the business plan? Does the literature help to identify a need for the product or service? Clarity of structure 15 Is there synthesis where sub-paragraphs and sentences clearly tie together? Did the student use technology within Microsoft Excel to properly format tables/graphs to summarize descriptive statistics? How is the presentation of the business plan? Mechanical Soundness 15 Is the plan clearly written, spell checked and grammatically sound and referenced appropriately? *Note: The above table constitutes a general marking criteria. Marking criteria are subject to change and students will be advised accordingly in lectures and via Moodle of any such changes.

3. Portfolio Binder (15%): 22/04/2013

Students are required to keep a binder of all written/typeset notes throughout the year to obtain partial credit for this assignment. All of the above marked assessments with feedback must also be included in this binder. Students also obtain points towards this mark by attending extracurricular and active learning activities. Students will earn points towards the overall portfolio mark. The points will be earned as follows:

Students must complete ALL of the following:

Quality Notes & Assessments with feedback. Students should reflect on their notes and assessment feedback by revisiting textbooks and the literature and reporting on it = 5 points

Attendance at a University of Greenwich business school open lecture or seminar. A series of events will be announced in class as they become available. Students will need to take notes during the event and sign a register with the course leader or other member of the team who will attend the event = 10 points

Attendance at a business open lecture, seminar, or workshop at another university such as the London School of Economics. If it is a paid event, students should present the receipt and notes that were taken during the event = 10 points

7 Visit to the bank of England museum. Notes will have to accompany as evidence of your visit = 5 points

Creation of a Linkedin page (page should be printed and inserted into the binder) = 5 points

Students must complete only Three of the following:

Submission of an article to the The Beagle (University of Greenwich student journal), business blog, essay competition, or online publication = 5 points

Submission of a business plan to the University of Greenwich’s Business Planning Competition (plan should be included in the binder) = 5 points

Engagement in at least one e-bay trade (a copy of the trade should be printed and inserted into the binder) = 5 points

Visit to the London Metal Exchange Gallery. Notes will have to accompany as evidence of your visit = 5 points

Students may suggestion one 5 point item of their choosing, but will need to obtain prior approval of this item from their tutor before completing the task.

Portfolio Marking Criteria Marks allocated to criteria: Focus 50 Is there evidence of selected tasks/activities? Did the student provide evidence of extracurricular learning outside the classroom? Has the student mastered internet technology to set up a Linkedin page? (Note: Add up the points above based on a checklist for a total of 50 marks). Synthesis 20 Does the portfolio report accurately on the student’s own work? Is there a depth and range of exploration? Are the notes critically reflective? Soundness 10 In writing notes for the portfolio activities, and in reflecting on assessment feedback, did the student revisit course textbook, external literature, or lecture slides? If so, is it reported in the student’s notes and properly cited? Clarity of structure 10 Is there a table of contents? Are pages numbered? Is feedback included with the assessments? Has the student provided evidence of quality reflection with regard to the feedback on assessments? Mechanical Soundness 10 Is the portfolio chronologically ordered? Are the notes and reflection sections free from spelling errors and grammatically checked? *Note: The above table constitutes a general marking criteria. Marking criteria are subject to change and students will be advised accordingly in lectures and via Moodle of any such changes.

8 How to Write a Summary Business Plan

A business plan doesn't have to be all encompassing, especially when you're trying to generate buzz. Here are the elements you really need. When writing a business plan, it's easy to get lost in the details. You want to demonstrate how you've studied the ins and outs of the marketplace and have crunched every conceivable number. But, really, writing a 100+ page business plan is not the best use of your energy. The shorter you can make your summary business plan, the better. You want to focus on just a few key elements of your business that will generate the most excitement among those reading it -- without requiring them to invest a weekend in doing so. You can always pass along a more detailed plan to those interested later. 'One of the most common mistakes is for people to get bogged down in details,' says Mark Herschberg, a veteran entrepreneur and instructor at MIT. 'You don't need to describe every feature, or have detailed product designs. If your investors have detailed questions, they'll ask for more information.' How to Write a Summary Business Plan: A Few Don'ts With that in mind, here are some suggestions for things to leave OUT of your summary business plan:  Excessive market research: 'You need to do a tight analysis of your product or service and the competitors. But you should be able to summarize it into one page max.'  An overwritten product description: 'You need to spend no more than a paragraph on this.'  Detailed finances: 'Bottom line - How much money do you have? How much does it take to run the business? How much will you earn (hopefully)?' How to Write a Summary Business Plan: The Essential Pieces Turning to what you DO want to focus on, consider the following tips: 1. Description: Kick off your plan with a one-page description of your business. Give a brief history of the business and its ownership structure by focusing on:  Who you are  What you do  Where you are 2. Vision Statement: Write a concise one- or two-paragraph vision statement, which gives your answer to the question: 'What do we want this company to become over the next five to 10 years?' 3. Mission Statement: Lay the groundwork for your 'brand promise' in a one or two paragraph description of what your company will be to its customers. 4. Values: Provide a list of three to five core principles upon which you will build the business and stick to no matter what. 5. Goals: Make a list of three to five long-term goals that translate your company's vision into specific, measurable, attainable, relevant and time-specific objectives. 6. Market research: Take the next two to three pages to briefly answer the following questions:  What do you know about your industry?  What do you know about your competition?

9  Who is your target customer and what do you know about them (i.e. demographics, buying patterns)? 6(a). Market differentiation: Take the next page to detail what makes your product or service unique in the market by answering questions like:  What makes you different from your competition that actually matters to your target customer?  What is your unique value proposition?  What is your big bold brand promise? 6(b). Marketing message: Based on the answers you outline above, take the next half page to explain the message you plan to communicate to your target market. 6(c). Marketing mix: Use the next page or so to detail the methods you will use to deliver that message. 6(d). Measurement: Follow the previous two sections with another half-page describing how you will measure the effectiveness of each of those delivery methods and, based on the results, adjust your plan accordingly. 7. Sales: Take the next full page to summarize your sales plan by answering these questions:  What is your overall sales process?  What are the specific steps in your process? - How are leads generated? - How are they researched/qualified? - How do you get in front of your customer? - How do you close the sale?  How will you achieve the optimal sales cycle? 8. Operations plan: Now, take one to two pages to answer the following questions:  How will you produce the product and/or deliver the service?  What are the logistics?  What business process will you employ?  What facility, equipment, and other resource needs are involved?  How will you assure and measure quality and customer satisfaction?  Who are the key players?  What are their backgrounds and qualifications?  What are their specific roles?  How will the business be organized (org. chart)? 9. Personnel Plan: Use one page to describe your 'people' plan by answering questions like:  What personnel are needed now to accomplish current goals?  How will the number of people needed change with the growth of the business? 10. Financial Plan: As noted earlier, keep the details about your financials brief, using the same narrative style you have been using throughout the plan. Then, use a footnote to alert readers that more detailed financial schedules and assumptions will exist in a separate document. To keep focused, consider telling your story by providing the following information:  Start-up costs, if applicable  Revenue projections with detailed assumptions  Three- to five-year cash-flow projections  Three- to five-year balance sheet projections  Sources and uses of funds if you are raising capital

10 11. Executive Summary: Save the beginning for the end by taking one to two pages to write a concise synopsis of the entire plan. If you have followed these guidelines, the narrative portion of your plan should be 10 to 15 pages, with perhaps another eight to 15 pages of attachments and schedules related to the additional details of the marketing and financial sections. Halkin also recommends that you put together a detailed strategic plan that establishes the strategies, steps, accountability and timelines for achieving the one-year goals of the business.