Manage

This is an interactive management game for two players. The decisions each player makes will influence the market of the other. The game will appeal to budding teenage entrepreneurs as well as adults. The program may also be used for management training and business and economic studies. The users will learn through playing this game, the significance of pricing policy and the correct allocation of cash resources. However, no prior financial knowledge is required to be able to play and enjoy the game. The game can also be successfully played by teams instead of players.

Objective

The objective of this game is to build up cash resources and plant so that your opponent cannot compete successfully against you.

Initial Resources

Each player starts with £7,601 in cash and 71 units of stock valued at £35.35 each.

How To Play

The program requires each player to enter a password. This password will be required to be quoted before data can be updated or results displayed. The game may be played with or without a printer. When a printer is used, the results are not displayed on the screen and this increases the confidentiality of the game and prevents any cheating! Each period relates to a quarter of a year.

Decisions

The computer asks each player to make the following decisions:

1. Price of goods for each of four areas
2. Marketing expenditure budget for each of four areas
3. Production costs
4. Research costs
5. Plant additions (The numbers you type in will not be displayed on the screen)

Prices and marketing expenditure in each area of each company will determine each company's sales penetration. Your decisions are interactive with those of your opponent. Cash resources are limited. If you spend too much on marketing or you fail to sell your production, you will not have enough for Research or Plant Improvement, which affects the long-term performance of the company.

Plant value affects capacity to produce goods.

Transport Charges

Area 1 £0 per unit
Area 2 £2 per unit
Area 3 £1 per unit
Area 4 £1 per unit

Results

The results are shown in the following five statements and graph:

1. Net Contribution Statement giving a Summary of Orders, Shipments, Revenue, Marketing costs and the net contribution by area. (The net contribution is the Revenue less Cost of Sales Delivery and Marketing costs.)

2. Stock Report showing opening and closing stocks, sales and production by units.

3. Profit and Loss Accounts showing Gross Profit and Net Profit for quarter.

4. Cash Flow statement shows how the money is being spent

5. Asset Statement summarising current value of all assets. This is your net world as there are no creditors.

6. A line graph of orders and sales.

This game does not rely on luck. The player who wins will have achieved it by understanding the model and exploiting it.

Hints On Play

1. You must always have some cash resources at the end of each period. If your inventory is too high, you will get into difficulties. (One month's stock should be the maximum.)
2. Set an objective for each area and study the results. Note how changes to the input affects the results.
3. Do not spend too much on research to start with but gradaully increase the research expenditure each quarter.
4. Delivered Cost, i.e. Cost of goods plus delivery cost is initially £42-£44 a unit. Selling Price must ba above this figure initially, in order to make a contribution to marketing costs.
5. Area 2 is the area of your competitor and Area 1 is your own area. When competing in your competitor's area you are at a disadvantage.

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Tape: CHAIN"" (RETURN)
Disc: SHIFT-BREAK