THE GLOBAL BUSINESS GAME: A STRATEGIC MANAGEMENT AND INTERNATIONAL BUSINESS SIMULATION Developments in Business Simulation & Experiential Learning, Volume 27, 2000 THE GLOBAL BUSINESS GAME: A STRATEGIC MANAGEMENT AND INTERNATIONAL BUSINESS SIMULATION Joseph Wolfe. Experiential Adventures LLC ABSTRACT The millenium's newest computer-based busi- ness game will be presented by its author. The presentation will cover the rationales for the various design decisions that were made, the wide array of talents assembled by its publisher, South-Western College Publishing, and a "walk- ing tour" of the simulation's Player and Game Administrator Windows-based applications. The Global Business Game is a very flexible simulation set in the television set manufactur- ing industry. Players face the challenge of work- ing with companies that are under attack, must compete internationally if they are to survive and must provide a wider base of consumers with sets possessing greater complexity. To in- sure a "world class" learning experience for all players, the simulation offers the following fea- tures which can be added or subtracted from the game by the Game Administrator: • Global Focus. Competition is based in coun- tries representing the world's three major trade blocs of NAFTA, EU and APEC and the United States, Mexico, Germany, Spain, Taiwan and Thailand. • Flexible Business Environment. The Game Administrator can decide on the number of products manufactured and sold, the eco- nomic parameters controlling the economies involved and the countries and country of incorporation for the industries involved. • Generic and Business Level Strategies. Players can design and implement the most complete array of strategies provided by any game. • International Dynamics. Students can ex- perience currency fluctuations, value-added taxes, dividend taxes, technology transfers, joint ventures, product patent cross licens- ing, differing labor wage rates, culturally- related productivity and absenteeism rates as well as off-shore manufacturing opportuni- ties. • Supported by Windows 95/98/NT. The game employs standard Windows func- tionality including pre-formatted raw data for Excel use. • Market Research Studies. In addition to a wide range of standard reports, further mar- ket research studies can be purchased in or- der to plan which markets to enter and to gain and retain competitive advantage. • Critical Incidents. The Game Administrator can invoke up to ten Critical Incidents over the course of the game. These incidents are in mini-case form and highlight the "soft" side of the strategic manager's decision- making situation. • Reality-Based. Real world data can be used for each country in operation as well as for the various financial markets within which they reside. Exhibit 1 summarizes the game's major features which will be presented during the game's dem- onstration. REFERENCES Wolfe, J. (2000). The Global Business Game: A Strategic Management and International Busi- ness Simulation. Cincinnati: South-Western College Publishing. 248 Developments in Business Simulation & Experiential Learning, Volume 27, 2000 EXHIBIT 1 GAME CHARACTERISTICS CHARACTERISTIC RANGE Industries 1-9 separate industries; Any number of separate "games" or playing sessions. Firms per industry 3-9 Economic blocs 1-3— NAFTA, EU and APEC Countries 1-6— Germany, Mexico, Spain, Taiwan, Thailand and the United States Currencies 1-7— US dollar, New Mexican peso, German Mark, Spanish Peseta, New Taiwan dollar, Thailand baht and the European Union's euro Financial markets 1-3— New York City and New York Stock Exchange (Dow-Jones Industrial Average), Frankfurt and Frankfurt Stock Exchange (DAX-30) and Tokyo and the Tokyo Stock Exchange (Nikkei 225) Products 1-4— 25" and 27" television sets and both sizes for private label sales and sub- contracted operations Shipping methods 1-3— Surface, Air Express or a combination of Surface and Air Express shipping meth- ods Manufacturing methods 1-4— Man-attended assembly line, Automated assembly line with two types of Automa- tons and Subcontracted products Factories 1-6— Single country or multiple countries Factory capacity changes 1-4— Increase Base Capacity, purchase Automaton Type 1s, purchase Automaton Type 2s, Transfer Automaton Type 1s and transfer Automaton Type 2s. Inter-company Automaton transfers possible. Maintenance 1-3— General Factory Maintenance, Maintenance Automaton Type 1s and Maintenance Automaton Type 2s Shift options 1-3— First shift, Second shift and Overtime Factory staffing 1-2— 25" TV set workers and 27" TV set workers per shift Raw materials 2-6— Two groups with three different quality grades within each group Wholesaling types 1-2— Independent or Company-Owned Sales promotion methods 2-3— Advertising, Base salaries and commissions for sales force by product lines Sales force staffing methods 1-2— Hiring of experienced Sales Representatives or hiring Sales Trainees Employee training 0-4— Programs for Line Workers, Automaton Technicians, Sales Representatives and Sales Trainees Product quality methods 1-5— Raw materials grade, Automaticity, Supervisors, Quality Control budgets and In- spection Programs Finance options 1-7— Sell Stock, Retire Stock, Issue Bonds, Call Bonds, Short-Term Loans, Intra- Company money transfers and Overdrafts Report types 1-2— Standard output and special Market Research studies Company performance criteria 1-6— Profits, Rate-of-Return on Assets, Rate-of-Return on Equity, Earnings per Share, Stock Price and Composite Performance Index 249 Table of Contents Volume 27, 2000 Internet International: A Simulation Exercise for Understanding Technological Innovation and customer Service In a Rapidly Growing Internet Server Company Simulations and Learning: Dialog and Directions Endnote Activity: A Tool for Integration of Course Content and Communication Skill Practice Incorporating Video as a Teaching Strategy in Interpersonal Communication Vision Quest: An Alternative Approach to Industry Analysis for MBA Courses in Strategic Strategic Management: An Evaluation of the Use of Three Learning Methods Trainer, Mentor, Educator: What Role for the College Business Instructor in the Next Century? Using the Internet and Shareware to Facilitate Computer Simulation in Distance Learning Classes Visual Modeling of Business Simulations Teaching about Information with Management Games A Self-Evaluation Based on the Discussion and Decision in Experts' Business Gaming The Restaurant Game Using Journals to Enhance Computer Simulation Based Learning Exercises to Facilitate Better Student Writing in the Undergraduate Strategy Class Identifying, Resolving, and Managing Common Ethical Dilemmas in the Workplace: An Experiential Approach Integrating the Digital Revolution into the Classroom The Wheel of Learning: An Integrative Business Curriculum Experiment The Changing Nature of Simulation Research: A Brief ABSEL History Perspectives on Simulation & Gaming's Review Process Experiential Learning Across Disciplines: Mixing International Business and Accounting Simulating Governmental Effects on Economic Development Internationalizing the Introduction to Business Course Using an International Text and Domestic Simulation with a Twist Using Stock Value as the Performance Measure in a Business Simulation Game Introducing Cross-Elasticities in Demand Algorithms Validating a Model of Currency Valuation An Exercise for Exploring the Relationship between Jungian Psychological Types and Organizational Politics Exercise: Preparing Financial Reports Using the Group Categorizing Technique Effect of Trust and Cultural Beliefs on Negotiation Processes: Data from an Experiential Role Play Experiential Learning Gets Stamp of Approval From the Boyer Commission Talent Search 2000 - An Experiential Activity to Help Strengthen Skills in Employee Recruitment and Selection Clemson University's Collaborative Learning Environment Initial Data on a Test Bank Assessing Total Enterprise Simulation Learning Changing the Assessment Paradigm: Using Student Portfolios To Assess Learning from Simulations How We Learn and Why We Don't: The Cognitive Profile Model: A Workshop in Teaching to Reach Your Students Knowing Thyself: A Portfolio Approach to Student Self-Assessment Collaborative Learning and Web-Based Instruction in a Cognitive Apprenticeship Model Teamwork Attributes in a Classroom Simulation Virtual Teams: Meeting the Next Challenge for Experiential Education New Age Learning: Nuance or Nonsense Developing Charisma: An Experiential Exercise in Leadership Problems and Solutions in Going Web-based with an Agribusiness Simulation Creating a Comprehensive Web-Enhanced Classroom Your Class is in Session, Now What? The Challenges of Teaching On-line An Application of Process Control Charts for Attributes as a Form of Classroom Assessment for Experiential Learning Work Goals and Life Aspirations: Do You Have What it Takes to be an Entrepreneur An Exercise to Develop Initiative: Possible Dream? The Ball Point Pen Assembly Company Management Game Review System Development Total Enterprise Simulations and Optimizing the Decision Set: Assessing Student Learning Across Decision Periods Facilitating Learning in the New Millennium with the Complete Online Decision Entry, System (CODES) The Marketing Management Experience The Right Venue for Your Simulation One More Time: Overall Dominance in Total Enterprise Simulation Performance A Profile of ABSEL Conference Attendees Learning Readiness: An Underappreciated Yet Vital Dimension in Experiential Learning Active Learning in a Professional Undergraduate Curriculum The Problem Is - They Think Differently! Cultures Integration in Mergers and Acquisitions: Putting Managers Together in a Business Simulation The Global Business Game: A Strategic Management and International Business Simulation