GearBike - Advanced Retail
During the simulation, players can take over the control of a bike retail store in which we model their business decisions over an entire quarter. In the simulation, players sell 6 different products and have the opportunity to take over the control of e-bike production.
On the one hand, the simulation focuses on developing business decisions, and on the other hand, it offers players the opportunity to collaborate with direct market competitors to open up a new marketing channel to enhance their business reputation.
GearBike, as an economic simulation, builds specifically on market mechanisms. It matters in the game, who is in which market and how many teams these markets (pools) contain. Teams with a better offer (higher quality; low price, etc.) can gain customers from their direct competitors, so they can achieve larger market share.
How GearBike simulation software works:
Students take over the management of a virtual bike retail store modeled by the software, forming individual or multi-person teams.
The virtual shop is managed by making strategic decisions for every quarter of a year. The software gives 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, so 8 virtual quarter year.
The goal of the game is to maximize the final score defined on the interface while minimizing point deductions. There is a point deduction, for example, if the occupancy of the business premises and warehouses exceeds 100%, if we overburden the employees or if we have too large a current account loan portfolio.
Decisions:
Sales: In the simulation, it possible to sell 6 different products, all six products are chosen by customers based on different preference compositions (price, marketing, home delivery, service, consultation, quality).
HR: In order for a company to be able to sell the right quantity and quality of product, it is important to accurately plan and allocate human resources. For this, we define two different type of workers in the simulation.
Quality: We also define e-bike product quality in the game, but players can only have an indirect effect on this. Quality is influenced by two factors: the quality of the raw materials used and the qualifications of the workers, and the final quality of the products is given by the weighted average of these two.
Infrastructure: the size and amount of the sales area, warehouse and equipment are important aspects. All for these, players have to make a decision.
Project: Within the game, projects play an important role that have a significant impact on the company’s performance through their impact, but also require funding. These provide an opportunity to differentiate your company and products. Currently, players can choose from 4 different projects.
Advantages and learning points:
The program presents the diversity of management decisions, from the most important strategic points to the basic economic activities, from the management of the company, to special situations.
The simulation is complex enough to synthesize and put into practice the knowledge of the students, but it can also be useful and enjoyable, attitude-forming supplement to the acquisition of the theoretical curriculum, even for first-year students.
It shows the relationships between traditional economic decisions and a company’s profitability.
Cooperation also improves negotiation skills.
Because participants need to filter out relevant data from various financial and commercial reports (balance sheet, income statement, cash flow report, market research report), the simulation significantly tests and develops their analytical skills.
Due to the above, the successful implementation of teamwork, which is so important in life, is essential for successful participation in the simulation.
References:
Budapest Business School
26th Student Management Championship https://www.diakverseny.hu/