HOW TO CREATE YOUR OWN BUSINESS GAME WITH IMAGINIT Simulations, Games and Experiential Learning Techniques:, Volume 1, 1974 15 HOW TO CREATE YOUR OWN BUSINESS GAME WITH IMAGINIT Richard F. Barton, Texas Tech University THE IMAGINIT MANAGEMENT GAME [1] was originally created to replace another business game then in use. This change suggested other changes would be desired in the future. IMAGINIT was designed to accommodate game changes without writing a new computer program or publishing a new book. To do this, all parameters and controls for IMAGINIT are included with the data fed to the computer. The IMAGINIT computer program, which is written in FORTRAN, contains no game parameters or controls. There is a capacity limit of five firms per industry, but even this was changed by one user. THE IMAGINIT MANAGEMENT GAME is a computerized business simulation offering experiential learning about many different industries. It serves several purposes: introduction to business, acquaintance with computer usage, integration of the business curriculum, training in decision making, and behavioral research. Teams manage ongoing firms that compete in the industry being simulated. The industry has two product markets and one labor market. Firms usually begin making and selling a Product A-l in Market A and may bring out a Product A-2, which competes with all products A-1 in Market A, and a Product B-1 in Market B. Periods simulated may be years, quarters, or months. Period size may be switched during play. Optional features include display, presentation, or report assignments that are graded by the game administrator. These grades enter the computer model as data and affect the quantitative consequences for players. This combines nuances of qualitative player be- havior with numerical decisions. Players make decisions for the following elements: For Each Product *Prices *Materials *Salesmen *Advertising *Product research and development Materials to be ordered Units to be produced For the Firma as a Whole *Employee fringe benefits per hour *Dividends per share to be paid *Operations research Short-term Loans Bonds Shares of stock to be offered Factory capacity The elements marked by asterisks above have magnitude, elasticity, and memory carrover controls that, along with other parameters, can be changed to create INAGINIT versions. Presently, there are ten versions. The disparity among these versions in price, materials inputs, and other variables illustrates the flexibility of the IMAGINIT simulation system. These ten versions simulate the following industries: Breakfast cereals Early television Automobiles Encyclopedias and books Simulations, Games and Experiential Learning Techniques:, Volume 1, 1974 16 Home Laundry Home climate Home computers Tires Post WWII typewriters Washing products After each decision, each player receives a computer report for his firm showing an income statement, a balance sheet, and a policy and environment report. Figure 1 is an example company report for an IMAGINIT firm. Players also receive an end-of-period industry report showing selected variables for all firms. An example is shown in Figure 2. To create a new version, starting values for decision elements are first selected. The same values are then entered into the histories for each firm. Next a beginning balance sheet is created. Then tentative parameters for elasticities and time weights are entered. These may be borrowed from an existing version. Many other parameters may at first be borrowed in order to generate a trial income statement. Later, adjustments are made to obtain the desired starting position profit and potential for growth. IMAGINIT parameters include controls for: Demand per firm Plant expansion & salvage Market trend Depreciation Marketing channels Overheads Seasonal variation Accounts receivable and payable Materials lead times Interest rates Ordering costs Financial constraints Storage costs Income tax rate Standard labor hours Importance on market quote of: Labor rates Dividends Overtime percentage Book value Length of strikes Current profits Factory capacity per man Past quote In addition, administrator’s controls for size of period, starting period, number of periods to be simulated, number of report copies, and number of firms per industry must be set. To create your own business game with IMAGINIT, you first name the industry you have in mind. This name goes on a version identification card along with the Market A and Market B product classes to be simulated. Then, establish starting decision values, histories, a starting balance sheet, and tentative parameter values. These are run with the computer model and the resulting income statement analyzed for desired characteristics such as dollar profit, return on sales, return on investment, and cash flow. Adjustments can then be made in decisions, starting conditions, and parameters until the starting income statement, balance sheet, and environment are as desired. Running for several periods with unchanged decisions and demands checks histories and memory carryovers. Market trend is then turned back on and analyzed if adequate to support an additional added product by each firm in Market A. Finally, some “wild” decisions should be tried to check on settings of memory carryovers and elasticities. Simulations, Games and Experiential Learning Techniques:, Volume 1, 1974 17 Figure 1 EXAMPLE COMPANY REPORT FROM A PLAY OF THE IMAGININT TIRE INDUSTRY THE IMAGINIT TIRE COMPANY YEAR 3 QUARTER 0 MONTH 0 PRACTICE DECISIONS—BA1290—TIRE INDUSTRY—10:30 CLASS COMPANY REPORT FOR FIRM 36 A-1 A-2 B-1 TOTALS INCOME STATEMENT SHIPMENTS IN UNITS OF PRODUCT 3965618 0 0 NET SALES REVENUE 39007369 0 0 39007369 COST OF GOODS SOLD DIRECT LABOR ($) 4238214 0 0 4542899 DIRECT MATERIALS 16164350 0 0 16164350 STORAGE 102603 FACTORY DEPRECIATION 3940000 OTHER FACTORY OVERHEAD 3227918 COST TO MANUFACTURE 27977769 CHANGE IN FINISHED FOODS ON HAND ($) 120782 0 0 120782 COST OF GOODS SOLD 28098551 GROSS PROFITS ON SALES 10908819 SALESMEN 750000 0 0 750000 ADVERTISING 550000 0 0 550000 RESEARCH AND DEVELOPMENT 250000 0 0 250000 EMPLOYEE FRINGE BENEFITS 216839 0 0 212738 OPERATIONS RESEARCH 100000 ADMINISTRATIVE OVERHEAD 541905 INTEREST 0 PROFIT BEFORE TAX 8504176 INCOME TAX 4082004 NET EARNINGS 4422171 DIVIDENDS PER SHARE 4.00 TOTAL PAYOUT 4000000 SHARES SOLD 0 PROCEEDS 0 CHANGE IN STOCKHOLDERS EQUITY 422171 BALANCE SHEET CASH 2769047 ACCOUNTS PAYABLE 1585689 ACCOUNTS RECEIVABLE 5025319 SHORT-TERM LOANS 0 MATERIALS 2052050 BONDS 0 FINISHED GOODS 0 PAID-IN CAPITAL 40800000 NET PLANT 44405000 RETAINED EARININGS 11865726 TOTAL ASSETS 54251416 TOTAL EQUITIES 54251416 COMMON SHARES 1000000 BOOK VALUE 52.67 MARKET QUOTE 58.45 CURRENT POLICY AND ENVIRONEMENT ---A--- ---B--- AVERAGE INDUSTRY PRICES THIS PERIOD 10.28 0.0 CURRENT TOTAL MARKET DEMAND (UNITS) 16699162 0 A-1 A-2 B-1 SHARE OF MARKET THIS PERIOD 0.373 0.0 0.0 POTENTIAL SHIPMENTS NEXT PERIOD 6851305 0 0 PRICES 10.10 0.0 0.0 MATERIALS INPUTS PER UNIT ($) 4.1 0.0 0.0 MATERIALS ON HAND ($) 2052050 0 0 2052050 MATERIALS ON ORDER ($) 0 0 0 MONTHS UNTIL MATERIALS ARRIVE 0.0 0.0 0.0 PRODUCTION LEVELS (UNITS) 3942524 0 0 NUMBER OF FINISHED UNITS ON HAND 0 0 0 DISTRIBUTION CHANNEL INVENTORIES 0 0 0 PURCHASE OR SALE OF FACTORY CAPACITY 8945000 LOANS MADE OR REPAID 0 BONDS ISSUED OR REDEEMED 0 QUARTERS DIVIDENDS TOO LOW 4 TOTAL DIVIDENDS TO DATE 6500000 FIRM LABOR RATE 4.3 ACTUAL LABOR HOURS 966992 FRINGE BENEFITS PER HOUR 0.22 PROBABILITY OF A STRIKE 0.14 CURRENT NUMBER OF LABOR SHIFTS 1 PERSONS ABAILABLE PER SHIFT 444 Simulations, Games and Experiential Learning Techniques:, Volume 1, 1974 18 FIGURE 2 EXAMPLE END-OF-PERIOD REPORT FROM A PLAY OF THE IMAGINIT EARLY TELEVISION INDUSTRY THE IMAGINIT MANAGEMENT GAME YEAR 4 QUARTER 4 MONTH 0 END-OF-PERIOD REPORT THE IMAGINIT EARLY TELEVISION INDUSTRY BLACK & WHITE COLOR COMPANY REPORT FOR FIRM 41 A-1 A-2 B-1 TOTALS SHARE OF MARKET THIS PERIOD 0.162 1.128 1.462 PRICES 77.00 77.00 465.00 MATERIALS INPUTS PER UNIT ($) 30.00 31.00 240.00 ADVERTISING 200000 150000 160000 510000 SALESMEN ($) 185000 150000 150000 485000 QUARTERS DIVIDENDS TOO LOW 2 TOTAL DIVIDENDS TO DATE 525232 COMMON SHARES 40266 BOOK VALUE 13.38 MARKET QUOTE 15.75 COMPANY REPORT FOR FIRM 42 A-1 A-2 B-1 TOTALS SHARE OF MARKET THIS PERIOD 0.099 0.102 0.0 PRICES 77.00 75.00 0.0 MATERIALS INPUTS PER UNIT ($) 29.00 28.00 0.0 123000 ADVERTISING 13000 13000 110000 0 123000 SALESMEN ($) 90000 130000 0 220000 QUARTERS DIVIDENDS TOO LOW 1 TOTAL DIVIDENDS TO DATE 277938 COMMON SHARES 24750 BOOK VALUE 13.38 MARKET QUOTE 26.59 COMPANY REPORT FOR FIRM 43 A-1 A-2 B-1 TOTALS SHARE OF MARKET THIS PERIOD 0.144 0.147 0.0 PRICES 79.00 76.00 0.0 MATERIALS INPUTS PER UNIT ($) 32.00 30.00 0.0 ADVERTISING 150000 150000 0 300000 SALESMEN ($) 115000 115000 0 220000 QUARTERS DIVIDENDS TOO LOW 1 TOTAL DIVIDENDS TO DATE 855039 COMMON SHARES 32023 BOOK VALUE -30.41 MARKET QUOTE 0.0 COMPANY REPORT FOR FIRM 44 A-1 A-2 B-1 TOTALS SHARE OF MARKET THIS PERIOD 0.115 0.103 0.538 PRICES 77.00 75.00 450.00 MATERIALS INPUTS PER UNIT ($) 29.00 27.00 225.00 ADVERTISING 90000 90000 460000 640000 SALESMEN ($) 90000 100000 235000 425000 QUARTERS DIVIDENDS TOO LOW 4 TOTAL DIVIDENDS TO DATE 386000 COMMON SHARES 28000 BOOK VALUE 16.19 MARKET QUOTE 60.25 Simulations, Games and Experiential Learning Techniques:, Volume 1, 1974 19 TO MODIFY AN EXISTING IMAGINIT VERSION Rather than create an entire new version, IMAGINIT users may merely modify existing versions. Their purposes may be to update levels for prices and overheads, to change a product class, or to introduce changes during play. Inflation can be introduced by increasing the price control parameters and decreasing price elasticities. Overhead, direct labor hours, and the wage rate may also be increased. The energy crisis was represented in a play of the IMAGINIT automobile industry by dramatically increasing demand for low-price automobiles (changing the product class name to economy cars) and shrinking demand for the luxury class (changing its name to “gas eaters”). Modifications of existing versions can be made in any of the controls, starting conditions, and parameters available for creating new versions. During play modification should be made only where the transition is smooth and explainable in the next period, as with demand and cost shifts. Except in special cases such as bankruptcy, changes in histories and balance sheets during play are to be avoided. GAME ADMINISTRATOR CREATIVITY Without touching the computer program and without rewriting any part of the Player’s Manual, a game administrator can create an IMAGINIT version to meet his needs and industry interest. Versions may relate to local industries or correspond to case studies used in conjunction with THE IMAGINIT MANAGEMENT GAME. With several of his own versions at hand, an administrator’s use of IMAGINIT becomes highly individualized and personal. PLAYER CREATIVITY The optional assignments, with grades that enter the IMAGINIT model as data and affect consequences, provide opportunity for unlimited player creativity. These assignments can capture those nuances of player behavior not reflected in numerical decisions and incorporate them in the game model. Optional assignments are available for marketing, production, finance, administration, personnel, labor, overall policy, and team organization. Optional assignments can be structured by the game administrator to serve special purposes for any industry he may create. Maximum player creativity can be generated by asking players to make up an IMAGINIT version and then play it themselves. For players, this is an exercise in modeling an industry by man-computer simulation without computer programming. Simulations, Games and Experiential Learning Techniques:, Volume 1, 1974 20 PARMATER SUMMARY THE IMAGINIT MANAGEMENT GAME Player’s Manual contains an appendix that is a parameter summary. Also, blanks for parameters appear throughout the text. In these blanks and in the parameter summary go all the data needed by players to play any industry version, including a newly created version or one of the ten available versions. For a new version, a brief description of the industry should also be written. Descriptions for the ten present versions are in the Player’s Manual. REFERENCES 1. Barton, Richard F., THE IMAGINIT MANAGEMENT GAME, (Lubbock, Texas: Active Learning, 1973). Table of Contents Volume 1, 1974 Long Live Your Business Game Marketing In Action In Collegiate Education How to Create Your Own Business Game with Imaginit The Design, Conduct and Evaluation of a Computerized Management Game as a Form of Experiential Learning Experiential Learning: Conceptualization and Definition The Teaching Potential of a Structured Experience The Lecture versus the Game Tracking the Elective: Student-Goal Oriented Education The Use of Internal and External Assignments with a Marketing Simulation Game Constructing Mini-Courses to Supplement Business Simulations A Video-Tape/Computer Learning Experience A Collective Bargaining Negotiation Simulation: Settle or Strike Simulation in Personnel Administration Introduction to Pablum: A public Administration Game Enrichment of a Multi-Functional Game through Dynamic Overlays and Intensive Decision Analysis An Orientation to the Oklahoma Farm Management Game A Description of INTSTRAT: A Game of Investment Strategy DØG: A Decision Mathematics Game The Use of Production Scheduling Simulation in a Production Planning and Control Course Interactive Gaming: A Production Example Marketing Interaction: A Marketing Management Game ADMAG I: An Advertising Management Game Meeting the Decline in College Enrollments Using the Money Game in the Classroom Training Salesmen with The Sales Management Game Smith Management Game (BUSOP) The Business Game: A New Approach to Managerial Accounting Administration: The Key to a Successful Gaming Experience Simulation: A Frustration, A ‘Game’, or a Meaningful Experience Using Complex Simulations in Policy Courses in Institutions with Limited Resources Flexibility in Simulation Design for Continual Student Motivation A Terminal Keyboard Experience in Executive Gaming Application of Theory and of Computerized Grading in Management Simulation The Executive Education Experience Using the Toronto Management Game Experiences with the Harvard Management Game Managing the Dynamic Small Business Via Simulation The Use of Business Game and a Simulated Stock Exchange in a Business Policy Course Managerial Strategy and Systems - An integrative M.B.A. Course SIMQ, A Business Simulation Game for Decision Science Students: Towards a Total Gaming and Teaching Package The Use of Simulation in a Financial Planning Course Simulation as a Supplementary Learning Experience in Marketing Principles Intercollegiate Business Gaming: The State of the Art Intercollegiate Business Gaming from a Participant's Viewpoint Correlates of Satisfaction, Learning and Success in Business Gaming A Student' s View of Leadership Training with a Two-Level Hierarchy, Two Course Simulation Autocratic versus Democratic Decision Making: The Executive Game as an Experiment Identifying Potential Game Participants Assessment Centers Selection Based on Simulation Business Games in the Process of Management Training in Israel and the United States Evolution and Flexibility in Business Gaming Quantitative Applications of Games Growing Emphasis on Implementation Debits and Credits: First National ABSEL Conference