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BUILD YOUR BUSINESS

VERSION 1.0 STORYLINE - PUNCTO

DEMO_BYB_88
REPORT_TEST

Why play Build Your Business? Measures


Imagine running a firm, taking its products The simulation measures 4 broad
to the right customer segments, investing in competencies: business acumen, strategic
strategic initiatives, financing your working thinking, market orientation and inventory
capital, producing and pricing your management. As decisions were taken
products and service as agreeable to the during the simulation gameplay, these
market and earning revenue and net profit metrics were measured and benchmarked
while running your operations. This is Build with fellow participants such as yourself.
Your Business. It puts your business
acumen capabilities to the ultimate test.

PERFORMANCE SUMMARY

Illustration of how you fared across the 4 competencies is


shown here.

BUSINESS ACUMEN

STRATEGIC THINKING

MARKET ORIENTATION

INVENTORY MANAGEMENT
1 ACUMEN 2 THINKING
BUSINESS STRATEGIC

Business acumen is derived from Strategic thinking is your firm's


your ability to generate net profit, ability to meet future market trends
market share of revenue & sales, i.e. innovative budget, employee
average employee utilization and training, R&D initiatives, bank debt &
economies of scale. product quality.

NET PROFIT R & D COST

$7089472 $0
Net Profit is the amount accrued by Investments in improving quality,
the firm after subtracting direct (Eg: efficiency & lower cost of raw
Raw materials cost) & indirect (Eg: materials are outlined here providing
Marketing expenses) costs from an indication of your preparedness
revenue earned. for future growth.

3 ORIENTATION 4 MANAGEMENT
MARKET INVENTORY

Your ability to target the right Your firm's ability to foresee demand
product to the right customer and avoid any product inventory is
segment & to spend the most chalked out here. More the
optimum marketing budget to do so inventory, more expensive is the
is Market Orientation. cost of storing it.

OPPORTUNITY LOST TOTAL INVENTORY

2518 units 13592 units


Opportunity lost summarizes the Inventory refers to your product
business (revenue & market share) units that didn't get sold. This could
lost due to your firm's insufficient be due to high price, poor product
product capacity. quality or incorrect fit with your
customer segments.
BUSINESS ACUMEN
Business acumen summarizes your understanding of how a company is run and its ability to
make money (revenue and net profit) with the optimum strategic execution capabilities. In
this report, business acumen is derived from net profit, market share of revenue & sales,
average employee utilization and economies of scale.

NET PROFIT MARKET SHARE


Net Profit is the amount accrued by the firm after Market share can be in terms of
subtracting direct (Eg: Cost of raw materials) and revenue or units sold. More
indirect (Eg: Marketing expenditure) costs from the generically, it refers to the % of
revenue earned for that financial period. sales in the market attributed to
your company.
$7089472 SALES 28.75 %
NET PROFIT REVENUE 33.7 %
$8M

$7M ECONOMIES OF SCALE


Net Profit

$6M Economies of scale is the cost


$5M
advantage obtained by your
company due to the scale of your
$4M
production operations. Larger the
$3M scale, lower is the cost per unit of
$2M your product manufactured.
$1M

$0
162576 403380
1 2 3 4 5 6 7 8 9 10 11 12

0
Month

AVERAGE EMPLOYEE UTILIZATION


Employee utilization refers to the % of your workforce required to manufacture and sell your
products.
AVERAGE EMPLOYEE UTILIZATION
100%
Avg Employee Utilization

87.5%

75%

62.5%

50%

37.5%

25%

12.5%

0% 1 2 3 4 5 6 7 8 9 10 11 12
Month
STRATEGIC THINKING
Strategic thinking illustrates how well your firm was prepared to meet future trends in the
market. This involves investments in upskilling your employees, innovative budget, futuristic
initiatives, any bank debt borrowed and the quality at which you produced your products.

LOAN AMOUNT R & D COST


Loan amount borrowed from bank. R&D cost to enhance quality & efficiency.
$0 $0
LOAN AMOUNT R & D COST
$1k $1k

Investment Cost
Loan amount

$800 $800

$600 $600

$400 $400

$200 $200

$0 $0
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
Month Month

TRAINING COST
Training cost to improve productivity.
$600000
TRAINING COST
$50k
Training Cost

$40k

$30k

$20k

$10k

$0
1 2 3 4 5 6 7 8 9 10 11 12
Month

MAXIMUM QUALITY THAT USER HAS PRODUCED


Shows your firm's maxium product quality. All else being equal, customers buy high quality
products.
5
Differentiator or a Cost
4
Leader?
Quality

2
 Quality is remembered
1
long after the price is
0
1 2 3 4 5 6 7 8 9 10 11 12 forgotten. - Gucci 
Month
MARKET ORIENTATION
Your ability to target the right product to the right customer/segment and spend the most
optimum marketing budget is captured in the market orientation section.

OPPORTUNITY LOST
Opportunity lost summarizes the business (revenue & market share) lost due to your firm's
insufficient product capacity.

1,000 1,000
Opportunity lost (in units)

Opportunity lost (in units)


900 900
800 800
700 700
600 600
500 500
400 400
300 300
200 200
100 100
0 1 2 3 4 5 6 7 8 9 10 11 12 0 1 2 3 4 5 6 7 8 9 10 11 12
Month Month

PRODUCT - SPORTY PRODUCT - CLASSICA


1,000
Opportunity lost (in units)

900
800
700
600
500
400
300
200
100
0 1 2 3 4 5 6 7 8 9 10 11 12
Month

PRODUCT - EXOTIQUE

STP SCORE
STP score indicates how well you identified the right product for your customer segment's
pain points. Higher the STP score, higher the likelihood that a customer segment would buy
your products.
100%

75%
Predict what customers want,
don't just build what they ask.

50%  You can't just ask


STP SCORE

customers what they want


25%
and then try to give that to
them. By the time you get it
built, they'll want
0%
something new. - Steve
1 2 3 4 5 6 7 8 9 10 11 12
Jobs 
Month
INVENTORY MANAGEMENT
Your firm's ability to foresee demand and avoid any product inventory is chalked out here.
More the inventory, more expensive is the cost of storing it.

INVENTORY
Inventory refers to your product units that didn't get sold. This could be due to various
reasons: high price compared to your competition, product not meeting customer needs and
poor quality.

2,500

2,250
Inventory is just money sitting
2,000
around.
Inventory (in units)

1,750
 The more inventory a
1,500
company has, the less likely
1,250
they will have what they need.
1,000
- Taiichi Ohno 
750

500

250

0
1 2 3 4 5 6 7 8 9 10 11 12
Month

1,000 1,000

900 900
Inventory (in units)

Inventory (in units)

800 800
700 700
600 600
500 500
400 400
300 300
200 200
100 100
0 1 2 3 4 5 6 7 8 9 10 11 12 0 1 2 3 4 5 6 7 8 9 10 11 12
Month Month

PRODUCT - SPORTY PRODUCT - CLASSICA

2,500

2,000
Inventory (in units)

1,500

1,000

500

0
1 2 3 4 5 6 7 8 9 10 11 12
Month

PRODUCT - EXOTIQUE

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