Post on 29-Mar-2015
Developing Technical Developing Technical and Management and Management
Abilities.Abilities.in individuals holding in individuals holding
key-decision jobs.key-decision jobs.
Bill Armitage BSc, MSc, FOR, CEng, MIMechEDr Dan Davidson BSc, PhD
Brasov, Romania 3Brasov, Romania 3rdrd-5-5thth Oct 2007 Oct 2007
Emerald-VbeEmerald-VbeEmerald-VbeEmerald-VbeAn EDIT 515 Ltd.An EDIT 515 Ltd.Virtual Business Virtual Business
EnvironmentEnvironment
DECISIONS INPUT
Accounts
OVERHEADS PROFIT and LOSS BALANCE SHEET CASH FLOW Advertising Sales Revenue Assets Trading Receipts Sales Office Materials Purchased Liabilities Capital Receipts etc etc etc etc Overdraft Limit Next Quarter
AVAILABILITYAND USE OFRESOURCES
PRODUCTMOVEMENTS
The Management Report
Last Quarter of HistoryLast Quarter of History
GENERAL BUSINESS INTELLIGENCE
MARKET SHARE% Share of markets by
Products sold
Share Price % Dividend Last Qtr
All COMPANY BALANCE SHEETS
Free information Prices, Number Employed, and Wage Rate
PAID FOR INFORMATION Advertising, Research Spend and Star ratings
SimulationSimulation FormatFormat
History
Analysis
DecisionMaking
Computation
ManagementReports
QuartersQuarters
NOW
LastQuarter
NextQuarte
r
QBL QAN
Time
LatestReport
NewDecisions
NOW
CorporateCorporate FunctionsFunctions
Managing Director
H.R.M FinanceProductionMarketing
Product Package
Promotion
Selling
R & D
Scheduling
Purchasing
Transport
Borrowing
Investment
Dividends
Hire & Fire
Wages
Conditions
Sources Of FinanceSources Of Finance
MarketsMarkets
The ProductsThe Products
DistributionDistribution
Factory
South
West North
Retailer
Retailer
Retailer
Retailer
Retailer
Marketing FunctionsMarketing Functions
MARKETING
PRODUCT DESIGN PROMOTION ORDER GATHERING MARKET INTELLIGENCE
Product DesignProduct Design
Prices
Design
CompetitionAvailability
Quality
CompetitivenessCompetitiveness
COMES FROM
Low PricesGood DesignHigh Quality
High Stock Levels
But Market Share doesn’t always bring Profit
DemographyDemography
4 Million Homes
7 Million Homes
13 Million Homes
AdvertisingAdvertising
Trade PressReaches out to
the retailers
TV & Press AdvertisingInfluences the buying
public
Merchandising
Builds a long term image
Sales ForceSales Force
How Many?
Where?
Commission?
Salary?
How Many
?Where?
Commission?
Salary?
Some EconomicsSome Economics
Underlying Trend
Seasonality
The Competition
The Law of Diminishing Returns
Diminishing ReturnsDiminishing Returns
Effort
Result
Research & DevelopmentResearch & Development
Product ImprovementsProduct Improvements
Minor?
avoided obsolescenc
e
Product ImprovementsProduct Improvements
Major?
ProductStocks?
Product ImprovementsProduct Improvements
None? Its
deteriorated!
ProductionProduction
Machine
ShopAssembly
Shop?
Product ContentProduct Content
1
2
MaterialContent
MachiningTime
AssemblyTime
1 Unit 100 mins60 mins
3 Units
120 mins 300 mins
The Machine ShopThe Machine Shop
Single Shift needs 4
Unskilled operators per
machine
The Machine ShopThe Machine Shop
2 Shifts needs 8
Operators per
machine
The Machine ShopThe Machine Shop
3 Shifts needs
12 men
The Assembly ShopThe Assembly Shop
Skilled Assembly WorkersWork only single
shift
The Underlying ConflictThe Underlying Conflict
Marketing Production
The Vision
Marketing PlanResources
Production PlanThe Forecast
Warehouse Stock Order Backlog
H.R.M.H.R.M.
Take Home Pay
Overtime
Product Quality
Downsizing
Recruitment
AbsenteeismWastage
Strikes
The Underlying ConflictThe Underlying Conflict
Marketing
Production
H.R.M.
FinanceFinance
PROFIT & LOSS BALANCE SHEET
Revenue
Cost of SalesOverheads
PROFIT
Fixed Assets
Current Assets
Liabilities
NET ASSETS
Dividends
FinanceFinance
PROFIT & LOSS BALANCE SHEET
Revenue
Cost of SalesOverheads
Fixed Assets
Current Assets
Liabilities
NET ASSETSLOSSES
AdditionalFunding
Buying MachinesBuying Machines
Machines cost £120,000and take two quarters to come on-line
Overdraft Limit
Current Overdraft
Share PriceShare Price
Some of the factors affecting Share Price
Net Asset Value per ShareLiquidity
R & D Effort
Stocks & Backlog
Resources (Machines & People)
Market DominanceDividend Performance
The Criterion for Success
The Underlying ConflictThe Underlying Conflict
SHAREHOLDER’S MEETINGSHAREHOLDER’S MEETING
DECISION TIME
SummarySummary
- Virtual Business Environments (VBE)- Virtual Business Environments (VBE)Decision and ChoiceDecision and Choice
- Human Resource Management- Human Resource ManagementAssessing EmployeesAssessing Employees
NeedsNeedsAspirationsAspirationsAttitudesAttitudesConflictsConflicts
Recruiting EmployeesRecruiting EmployeesTraining EmployeesTraining Employees
- Training HR Staff- Training HR Staff- Conclusion- Conclusion
Virtual Business Environments (VBE)Virtual Business Environments (VBE)
- Business or Management Games- Business or Management Games
Examples:-Examples:-
- Global Management Challenge- Global Management Challenge
- Emerald-Vbe- Emerald-Vbe
- Users- Users
- Human Resource Managers- Human Resource Managers
- Management Consultants- Management Consultants
- Universities and Colleges- Universities and Colleges
- Banks and Financial - Banks and Financial Institutions Institutions
Decision versus ChoiceDecision versus Choice
- Choice is when a solution to a - Choice is when a solution to a problem is selected qualitativelyproblem is selected qualitatively
typified by entrepreneurial typified by entrepreneurial ‘decisions’‘decisions’
- Decision is when a solution is the - Decision is when a solution is the result of continuous problem result of continuous problem transformations by the action of transformations by the action of decision criteria defined to achieve decision criteria defined to achieve a global objective (or strategy) and a global objective (or strategy) and often subject to constraints -often subject to constraints -
typified by analytical decisionstypified by analytical decisions
A rigorous definition of ‘Decision’A rigorous definition of ‘Decision’D.J. White rigorously defines decision asD.J. White rigorously defines decision as
ФФ {Q, A}----{Q, A}----{q {q ६६ Q}Q}
WhereWhereQ is the set of possible solutionsQ is the set of possible solutionsA is the decision environment A is the decision environment including the objective and the set of including the objective and the set of constraintsconstraintsФФ is the decision criterionis the decision criterionqq is the solution selected by the action is the solution selected by the action
of the criterionof the criterion
If q is still a set of alternative solutions If q is still a set of alternative solutions then the action of the criterion has then the action of the criterion has transformed the problem into a simpler transformed the problem into a simpler problem requiring a new criterion.problem requiring a new criterion.
Human Resources (HR) use of VBEsHuman Resources (HR) use of VBEs
- Team Building- Team Building
Participants working togetherParticipants working together
Common objectiveCommon objective
Appreciation of other’s problemsAppreciation of other’s problems
- Ice Breaking- Ice Breaking
Introducing graduates to companyIntroducing graduates to company
All have similar experience - noneAll have similar experience - none
Assess team leadership qualitiesAssess team leadership qualities
Assess analytical approachesAssess analytical approaches
Human Resources use of VBEsHuman Resources use of VBEs (cont) (cont)
- Behavioural Studies- Behavioural Studies
Individual behaviour in various Individual behaviour in various simulated environmentssimulated environments
- Team player or individual?- Team player or individual?
- Team leadership qualities?- Team leadership qualities?
- Effective communicator?- Effective communicator?
- Easily dissuaded or forceful?- Easily dissuaded or forceful?
Assess an individual’s initiatives,Assess an individual’s initiatives,
entrepreneurial and qualitative entrepreneurial and qualitative skillsskills
Human Resources use of VBEsHuman Resources use of VBEs (cont) (cont)
- Functional Training- Functional Training
Objective is to improve personal Objective is to improve personal technical performancetechnical performance
- Focus on the task (for example- Focus on the task (for exampleunderstanding management understanding management
accounts)accounts)
- Working under pressure - Working under pressure (complexity or shortage of time) (complexity or shortage of time)
- Improve quantitative skills such - Improve quantitative skills such as using computers, modelling, as using computers, modelling, mathematical and analytical mathematical and analytical
other other relevant quantitative toolsrelevant quantitative tools
VBEs in training HR personnelVBEs in training HR personnel- ‘Learning through Decision - ‘Learning through Decision Making’ teaching paradigmMaking’ teaching paradigmA simulated but realistic scenario A simulated but realistic scenario that requires participants to make that requires participants to make decisions that enhance their decisions that enhance their expertise and experienceexpertise and experience- Gaining experience by adopting - Gaining experience by adopting disparate functions in the disparate functions in the simulationsimulation- Understanding the need for - Understanding the need for effective ‘sub-optimal’, objective effective ‘sub-optimal’, objective driven decision-making.driven decision-making.
Team DynamicsTeam Dynamics
- Multi-disciplinary teams - Multi-disciplinary teams (including HR personnel) allow (including HR personnel) allow the HR professional to observe, the HR professional to observe, interact with and improve the interact with and improve the team dynamics.team dynamics.
- Need for a single global - Need for a single global objectiveobjective
- VBEs are very effective in - VBEs are very effective in internal training when business internal training when business roles are inter-changedroles are inter-changed
ConclusionsConclusions
Virtual Business Environments are Virtual Business Environments are much simplified simulations of a much simplified simulations of a business, but essentially, they must business, but essentially, they must be complex enough to pose realistic be complex enough to pose realistic business problems.business problems.
If it is difficult in a VBE to achieve If it is difficult in a VBE to achieve optimal performance, this illustratesoptimal performance, this illustrates
the H.R. message that training is the H.R. message that training is essential and necessary if a company essential and necessary if a company is to have any chance of being ‘Fit to is to have any chance of being ‘Fit to Execute’ the implementation of the Execute’ the implementation of the company’s strategy.company’s strategy.