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I am in the process of setting up my international entrepreneurship game for the spring semester. I will be pleased to include your students, and the students of any other academic members of the list. You can install and try out the player-paced demo from the link at http://pages.towson.edu/precha/geo. The actual event will be clock-paced, spanning the entire semester. Financial management is part of the game. Notice that players also can found banks. Banks are one of the six industries supported by the game. E-mail me if interested.

Happy New Year,

Precha

--

Precha Thavikulwat, Ph.D.
Professor of Management

Business Area Editor, Simulation & Gaming

Department of Management

Towson University

Towson, MD 21252-0001

U.S.A.

t. 410-704-3230

f. 410-704-3236

pthavikulwat@towson.edu

Skype: pthavikulwat

http://pages.towson.edu/precha

From: Entrepreneurship Division Listserv [mailto:ENTREP@AOMLISTS.PACE.EDU] On Behalf Of Raymond Jones III
Sent: Thursday, January 02, 2014 10:12 AM
To: ENTREP@AOMLISTS.PACE.EDU
Subject: [ENTREP] Entrepreneurship Simulation Programs

************************************** This message is from ENTREP which is sponsored by the Entrepreneurship Division of the Academy of Management. Please do not post messages with attached files. Commercial messages or spammed messages are not allowed on the list. The use of auto-responder "out-of-office" messages may also lead to your removal from the list. You can manage your subscription options, including joining or leaving the list here: http://aomlists.pace.edu/scripts/wa.exe?SUBED1=entrep&A=1 If you have questions or need help, please contact Dr. John Bunch jbunch@benedictine.edu. Ventures HO!

Dear Raymond,

Back in October, Todd Finkle at Gonzaga University expressed an interest in a simulation game for teaching entrepreneurship. Earlier this week, you also asked about entrepreneurial-related simulation programs. You have a particular interest in a simulation that helps students in understanding entrepreneurial financial management.

I am the author of a family of Marketplace ^® simulations. Let me briefly describe the Venture Strategy simulation as it may help both of you and others

In the Venture Strategy simulation, students work within a full-enterprise business setting where they start up and manage a new venture. The decision content includes the essential elements of marketing, distribution, human resources, manufacturing, finance and accounting. The game is set for 6 decision rounds, with each round taking two to three hours to complete. All of the work can be done outside of the classroom because the simulation is played over the internet. 

To your point, the funding options include self-financing, venture capital financing, and bank loans (only after the firm has established itself in the market).

The students start Quarter 1 by conducting a market analysis, formulating an initial strategy, and making initial investments in brand design, sales outlets and production. In Quarter 2, they go to test market where they set prices, hire sales people, set compensation, design ads, schedule media, schedule production, and project cash flows. In Quarter 3), they receive information on the test market, including market, operational and accounting information on how they and their competitors did. With this information in hand, they then skillfully adjust their strategy and tactics and return to the market for a second test market.

A key ingredient of this simulation is the preparation of a business plan in Quarter 4. Student teams must formulize their entrepreneurial strategy, along with a tactical plan and a set of pro forma financial statements. The software provides templates for the completion of these tasks. The preparation of the business plan is rather extensive and an entire week can be dedicated to the task.

A favorite pedagogical option of the simulation is to have the students present their business plan to a group of outside investors and then negotiate with these VCs for an equity investment in their firm.  This experience is highly realistic and gives the students experience in selling their ideas to independent, outside investors.

Another advantage of a simulation is that after the students prepare and present their business plan, they must then execute it for an additional three decision periods (Quarters 4, 5 and 6). Very seldom is it possible to execute the plan as formulated. There is generally a need to make skillful adjustments in response to surprises in the market or their own ability to make good decisions.

At the end of the exercise, the students must make a report to the investors regarding their performance following the infusion of new equity. This report is to underscore the students' accountability to an investment group. They review their plan, deviations from the plan, justification for the deviations and how well the team has prepared the firm for the future.

In the end, the student teams are graded based upon the business plan, report to the investors and their performance on a balanced scorecard.

In total, the simulation gives students experience in starting up and running a new venture, preparing a business plan, and working with investors.

If you are attending USASBE this weekend, you can visit the Marketplace ^®  booth to learn more. Or, visit the following website: http://www.marketplace-live.com/simulations/venture-strategy.php

I would also be happy to discuss the simulation and how we use it at the University of Tennessee.