INTEGRATING ACROSS FUNCTIONAL AREAS WITH A COMPUTER-ASSISTED CASE Simulation Games and Experiential Learning in Action, Volume 2, 1975 119 INTEGRATING ACROSS FUNCTIONAL AREAS WITH A COMPUTER-ASSISTED CASE Daniel W. DeHayes, Jr. William C. Perkins Indiana University--Bloomington INTRODUCTION The last decade has seen many universities striving to achieve three major goals in their undergraduate business programs: 1. the introduction of management science/operations research techniques which the students can apply to various decision settings; 2. the utilization of the computer as a significant tool in the decision- making process; and 3. the integration of various functional areas within the business school curriculum. Indiana University--Bloomington has made progress in achieving these goals through their integrative core program. In 1972, this program was enhanced by an Interesting teaching innovation--a computer- assisted, integrative case-The Gulfways Equipment Company, Inc. In this case exercise, students must develop a one year operating plan for this firm troubled by financial difficulty. A description of the experience and the results of this experiment are the subject matter of this paper. THE INTEGRATIVE CORE PROGRAM At Indiana University, each business undergraduate is required to enroll in the Integrative Core Program during his junior year. The first semester includes an introductory course in the functional areas of finance, marketing, and operations. One of the major goals of these courses is to integrate the three functional areas by showing their interrelationships and interdependencies. During the second semester, the core program includes a course in organizational behavior and a management simulation exercise. These two courses attempt to further reinforce and integrate the principles taught in the three functional areas during the first semester. The Core Program and its prerequisites are summarized in Exhibit 1. The core program has as its prerequisites introductory courses in accounting, economics, statistics, and computer programming. Students register for the entire set of courses each semester so that his team of four to eight members has a common base and frequent meetings. This small management group is responsible as a group for several assignments and are bound together by common goals. Simulation Games and Experiential Learning in Action, Volume 2, 1975 120 THE INTEGRATIVE CASE To help achieve the major goals discussed in the introduction, an integrative case, (Gulfways Equipment Company, Inc.) was written in 1972 and implemented during the Fall term of 1972. The case cuts across the three functional courses and integrates subject matter from these courses In one problem setting. It offers the student an opportunity to solve a complex but realistic business problem. It provides the student with experience in utilizing and evaluating the helpfulness of both management science techniques and computers. Gulfways is a small (1971 sales of $250,000) manufacturer of scuba diving equipment that finds itself in need of cash for the fiscal year 1972. In order to demonstrate the need for the loan, management must develop a total operating plan for the coming year. The general analysis flow is contained in Exhibit 2. This plan first requires an analysis of their relevant target market segments. This information is used to help forecast sales revenue for the year on a monthly basis. A finished goods inventory policy (in terms of availability) must then be formulated and defended. This policy, the monthly sales forecast, and an analysis of their current inventory position are used to arrive at a production schedule. EOQ analysis is used to settle on a purchasing schedule for the year. Next, a cash flow analysis is developed from the revenue and cost expectations that are implied by the sales forecast and production schedule. Lastly, proforma financial statements must be projected and a letter written to the bankers detailing the analysis and carefully Justifying its rationale and assumptions. Packaged programs to aid throughout the analysis are provided in both the batch processing and interactive time-sharing modes. Regression analysis, linear programming, and EOQ analysis are used as aids to the students. The student management groups are assigned to one computing mode or the other. The case composes the entire subject matter in all three of the core courses over a two week period. It comprises twelve percent of the grade In each course. EVALUATION OF THE CASE EXERCISE Three methods have been used to monitor the evaluation of the case from semester to semester. Specifically, student opinions, faculty opinions and the cost to operate the case (mostly computer cost) have been measured. Exhibits 3 - 6 show the results of the evaluation for the five semesters that the case has been In use. Exhibit 3 shows the results of selected questions from the 32-question student evaluation form. These data are collected approximately one week after the students complete their participation in the case in a discussion section of the finance course. Sample sizes only account for approximately 70% of the students. Exhibit 3 shows the generally favorable reaction by the students. Generally, students feel the case was mentally challenging, did not duplicate material in other courses, and seemed to help In learning the subject matter of the three courses involved in the core. The students also feel that they learned a lot from the case and that it facilitated their understanding of the functional areas. Amazingly, approximately 60% of the students feel that the case should be used again. The one surprising response was the consistent lack of positive feeling toward the computer as an educational tool. While several hypotheses could be generated on the reason for little positive response in this area, this subject remains as a question for further study. Simulation Games and Experiential Learning in Action, Volume 2, 1975 121 Exhibit 4 shows the trend in the overall evaluation of this case by students. The percentage distribution shows a definite trend toward a more positive evaluation of the case although the case is by no means considered In the same way as the Last Supper. Exhibit 5 shows faculty responses to selected questions from a 36-question instrument given approximately one week after case reports are submitted by the student. Faculty generally responded positively to the case exercise. A high proportion consistently felt that the students learned a lot from the case arid that the case integrated the course material very well. The faculty were not as pleased with the role of the case in fulfilling the specific course objectives (essential parts), however. Accordingly, the next case is being more carefully planned to specifically emphasize the major teaching objectives of the course and somewhat de-emphasize the integrative aspects of the case. Finally, the faculty seemed to regard the computer’s role in the case somewhat more positively than did the students. Exhibit 6 shows the cost of development and operation of the case. Approximately $4,000 was required during the summer of 1972 to develop the case, now in its sixth semester of operation. Operating costs other than for faculty time is almost entirely the internal charge made for computing. As can be seen in Exhibit 6, the cost of computing per enrollee has generally been increasing. Two Important reasons dictate this trend. First, the charging algorithm for the interactive mode did not include a charge for terminal connect time during the Fall 1972 and Spring 1973 semesters. Therefore, the costs for these two semesters are somewhat understated. Secondly, Fall 1974 marked the introduction of an automated proforma statement generation routine. This capability allowed the students to generate their cash budgets, income statements, and balance sheets through the computer. This program is only available in the batch mode. Exhibit 6 shows the marked increase in the number of batch jobs in Fall 1974, much of which is due to the introduction of this new program. In summary, experience to date with the case has generally been positive. Some problems certainly remain, the most significant of which is the “institutionalization” of answers to the case. Accordingly, Summer 1975 has been designated as the time to develop a replacement case which will also involve integrating all three functional areas. Simulation Games and Experiential Learning in Action, Volume 2, 1975 122 Simulation Games and Experiential Learning in Action, Volume 2, 1975 123 Simulation Games and Experiential Learning in Action, Volume 2, 1975 124 Simulation Games and Experiential Learning in Action, Volume 2, 1975 125 Simulation Games and Experiential Learning in Action, Volume 2, 1975 126 Table of Contents Volume 2, 1975 ABSEL Research - From Adolescence to Adulthood, Framing the Future of Business Simulation and Experiential Learning Inventory Simulation - A Time Sharing Television Output Simulation OMSIM: An Operations Management Game An Experiential-Cognitive Methodology in the First Course in Management: Some Preliminary Results Experiential Training Methodology, Traditional Training Methodology, and Perceived Opportunity to Satisfy Human Needs Operational Problems and Solutions of Business Gaming: A Primer One Experience with the V. K. Gadget Company - An Introduction to Managerial Accounting A conversational Marketing Mix Exercise The Use of Program BAYES in the Teaching of Sample Size Determination in Survey Research An Experiential Study of Performance in a Basic Management Course Using Student Opinions in Evaluation Results with a Business Game Some Impacts of Varying Amounts of Information on Frustration and Attitudes in a Finance Games Player Performance under Differing Player Configurations in the Investment Game: Some Preliminary Observations Integrating Across Functional Areas with a Computer-Assisted Case Using Computer Assisted Cases for Marketing Research Instruction ACQUIRES: ACcounting QUick Information REtrieval System A Simulation Approach to Data Processing Controls Motivating Simulation Game Performance and Satisfaction with Group Performance-Contingent Consequences The Educational Impact of Supplementary Personal Interaction in Computerized Business Games The Minnesota Manpower Management Simulation Games RAISE II, A Personal Simulation Management in a Test Tube: A Small Group Laboratory Simulation A Methodology for Measuring Decision Making in a Business Game A Case Study of a Capital Investment Simulation Combining Experiential and Clinical Methodologies in a Small Business Management Program Results of Using Gaming to Teach Ethics and Social Responsibility Business and Society: An In-Basket Simulation Crisis versus Non-Crisis Simulation Gaming Warm-up Company: A Business Simulation Business Simulations: Competition or Learning A Computerized Management Training System for Franchized Dealers Mode I Stores, Inc.: Computer Supported Cases on the Marketing Research and Problem Solving Process Experiential Learning in Statistics Through the Computer The COMPUSTAT Analysis System as an Instructional Resource Research on Experiential Learning: Enhancing the Process A Comparison of Lecture-Case Study and Lecture-Computer Simulation Teaching Methodologies in Teaching Minority Students Basic Marketing Student Evaluation of Reaction to a Marketing Simulation Game Under Varying Circumstances The Validity and Usefulness of Packaged Models in Game Play The Effectiveness of Experiential Methods in Training and Education: A Review Guidelines for the Future Development of Business Games The Future Potential of Structures Learning Exercises Turning Them on to Management by Turning Them Out to Managers with Video Tape Recorders