THE EX-STRA EXPORT STRATEGY GAME Developments in Business Simulation & Experiential Learning, Volume 11, 1984 45 THE EX-STRA EXPORT STRATEGY GAME Y. F. Bissada, INSEAD, European Institute of Business Administration Gundar J. King, Pacific Lutheran University ABSTRACT EX-STRA is a business simulation game especially designed for teaching international strategy development and management of multi-national operations. Five or six teams are placed in charge of competing firms. They have to design, test, implement, and modify export strategies for their companies over six to eight decision periods. The firm may operate in three different markets, and it can enter one or all of these markets at any time during the simulation. Teams make decisions concerning product development, production strategy, and marketing strategy. Software used for the game requires Apple lIe computer with two disc drives. DESCRIPTION EX-STRA is a business simulation game especially designed for teaching international strategy development and management of multi-national operations. It lends itself for use in executive training of general, international and export managers. It is used in undergraduate and graduate courses of international business and international marketing as a core component of the course or as a supplement. It may be used in policy and strategy courses to provide them with an international dimension. Typically, five to six student teams are placed in charge of competing firms. They have to design, test, implement, and modify policies related to exporting for their companies over six to eight semi-annual periods. Every firm may operate in as many as three different markets. It can enter one or all of these markets at any time during the simulation. Teams make decisions on product development (adaptation to specific export requirements), production strategy (capacity use), marketing strategy (pricing, channels, and marketing mix), and risk taking policies. Distinctive Features There is flexibility in the selection of markets. They can be chosen from twelve different countries located on four continents. Students are required to make a thorough country analysis, study the local environment, and assess political and economic risks. Realism and student interest may be increased by such expected or unforeseen events as changes in customs duties and interest levels, currency values, and trade policies of various countries. Although the game has been computerized (software adapted to the use of Apple lIe computer with two disc drives), it can also be processed manually. Decision Making Processes The flow chart of the team decision processes is shown below. The flow of decisions may be modified by autonomous events generated by the game administrator. Flow Chart of Decision Making Processes NO YES Analyze the data concerning the company, conditions in the exporting countries and past sales. Define or review your long-term strategy. Fix your financial market share objectives for the period. Assess alternative export options. Make your export decision. Calculate your projected profit or loss for the period. Goals achieved. Submit decision to the administrator for approval. The administrator calculates the quantities sold by each team and returns the results. Decide disposition of unsold articles. Calculate your profit or loss for the period as well as the total cash available at the end of the period. Cash available at the end of period becomes the cash available at the beginning of next period. Analyze the changes in conditions that have occurred in the exporting countries as well as your competitor’s strategies Table of Contents Volume 11, 1984 Simulation Gaming as a Means of Researching Substantive Issues: Another Look A Further Test of the Group Formation and its Impacts in a Simulated Business Environment Impact of Economic Patterns on Student Performance in Computer Business Simulation Games Majority Fallacy Game with Independent Student Simulation and a Case Introducing the Marketing Channel Laboratory A Comparative Evaluation of a Marketing Game A Study of Comparative Effectiveness of Problem-Solving Technologies The Impact of Hierarchical and Egalitarian Organization Structure on Group Decision Making and Attitudes Risk-Free Decision Making The EX-STRA Export Strategy Game Computer Education for Management Students Developing a Computer Game/Job Simulation to Teach Functional Literacy Skills Experiencing Socialization First Hand: An Experiential Exercise in Organizational Socialization Networking Distributive Versus Integrative Approaches to Negotiation: Experiential learning Through a Negotiation Simulation Managerial Education and the Real World: Foudations for Designing Educational Tools Diagnosing Group Climate to Improve Supervisory Effectiveness Student background as a Factor in Simulation Outcomes: The Collective bargaining Example The Use of Pre-Plays in Management Education Experiencing the Process Debrief: A Workshop ABSEL Megatrend Roots MEGATRENDS for Business Simulation and Experiential Learning The Effects and Consequences of the Megatrends on Simulation Gaming: One View Opportunities for the Future: ABSEL's Role Experiential Learning-Based Discussion vs. Lecture Based Discussion: A Comparative Analysis in a Classroom Setting An Evaluation of the Minitab Package in Teaching Business Statistics Concepts A Path Analytic Study of the Effects of Alternative Pedagogies Developing and Using Weighted Application Blanks: An Experiential Exercise Building Airplanes Individual vs. Group Grade: An Exercise in Decision making A Marketing Plan Exercise: Development of Interteam Cooperation Using a Coordinated Experiential Approach Using Student Experience as the Basis for a Consumer Behavior Learning Exercise Student Evaluations of Instructors: What do Students Believe? A Description of the SOFTCAT Computer Assisted Teaching System Comparisons of Practitioners' and Professors' Perceptions of Business Policy Content and Learning Methods The Perceived Relationship Between Pedagogies and Attaining Course Objectives in the Business Policy Course The Use of Simulation in the Teaching of Business Policy A Research Study on Strategic Decisions in a Business Simulation Strategic Management Decision Making Researched Via Simulation Gaming Using Simulation to Investigate Factors in Competitive Bidding Combining Experiential Learning and management Assistance A Model for Teaching Management Skills Putting Experience Back into Experiential Learning: A Demonstration The Teaching and Behavioral Measurement of Managerial/Organizational Competencies: Developing Experiential Exercises and Simulations A Simulation Game Model for Conglomerates QCLAB - A Microcomputer Laboratory in Quality Control CTSS: A Commodity Trading Simulation System Problem Solving: An Exercise on Learning, Coaching, and Operant Conditioning A Demonstration of the Effects of Feedback as a Category of Reinforcement The Assessment of Feedback and Disclosure in Interpersonal Relations: An Experiential Exercise A Study to Determine Whether the Teaching of Basic Grammar Skills in Business Communication Classes Improves Students' Business Letter Writing Corporate Maladies Through the Eyes of the Memo Writer: A Seldom Used Experiential Tool Executive Bailout at Shake & Spear, Inc. The H.E./L&P Merger Intercultural Nonverbal Communications: An Experiential Exercise The Evolving Business Policies Course - Is Management Gaming the Logical Pedagogy? The Use of Decision Simulations in Management Training Programs: Current Perspectives Humanizing the Business of Medicine: The Use of Simulated Patients to Train medical Students Systematic Integration of Simulation Methods in a Graduate Management Curriculum Modeling Non-Price Factors in the Demand Functions of Computerized Business Using Spacial Relationships to Estimate Demand in Business Simulations Two Algorithms For Redistribution Of Stockouts In Computerized Business Simulations Leadership And Strategic Behavior A Comparison Of Two Business Strategy Simulations For Microcomputers Incorporating Decision Support Systems Into Management Simulation Games: A Model And Methodology Using Micro-Computers To Support The Analysis Of Complex Cases: It's As Easy As 1-2-3 Strategic Formulation Consistent With Pims: A Micro-Computer Application