FuelRetail - Gas Station Network
In the simulation, the participants are the management team of a service station network in a virtual country. The task is to create a successful business strategy based on the market analysis, and make the strategy happen. The goal is to manage the operation of the service station network in the most effective way, in order to maximize the average Return on Assets, the ROA (ROA = Profit/Assets) in the virtual years. Participants should take into consideration the marketing mix (4P=Product, Price, Promotion, Place), the optimal staff number, the logistic capacity, the market information about the competitors and the demand forecast.
The company sells fuel (gasoline 95, gasoline 98, normal diesel, premium diesel) and other products in the shops in the following categories: basic, non-food, grocery, food to go, hot beverages. In the game the scope of activities can be extended by providing charging stations for e-cars and by offering car wash service by initiating various development projects.
How FuelRetail simulation software works:
- The players form groups and take over the management of the virtual company created by the simulation software.
- The virtual company is managed by making strategic decisions for every year.
- The software gives a written feedback about the results of the decisions, and it also shows the important economic indicators (profit, Cash flow, traffic,…) on a graph.
- The software settings can be modified in various ways based on different demands, purchase prices, the wage flexibility, credit conditions and a number of other factors.
- The software can simulate up to 8 periods.
Advantages and learning points:
- The program shows a basic economic activity, the operation of a producing company, highlighting the most important strategic points in the management of the company.
- The program is complex enough to synthesize and put into practice the knowledge of students, who are close to finishing their studies.
- As it simulates the operation of a large economic unit, it presents the competition on the market, that can be influenced by the members of the market themselves, just like in real life.
- The game challenges and develops analytical skills, as students are required to find the data they need from various financial and commercial reports (for example balance sheets, income statements, cash flow, market research).
- As a result, just like in real life, effective teamwork is essential to successfully complete the game.