Enhancing Business Simulations Through Advertising and Promotion Programs

The role of business simulations as an advanced learning tool

John Flanagan
St. Francis College, NY

ROLE OF BUSINESS SIMULATIONS AS AN ADVANCED LEARNING TOOL

Most business executives at one time or another have participated in the use of business simulation models whereby an individual or a group of individuals (a team) was tasked with running an enterprise in a compressed time frame competing either singularly against a computer or collectively against other teams.

These simulations were initially introduced mainly into graduate business programs and senior executive training seminars. Their value was the sharpening of analytical skills, fostering of precise decision-making, development of interpersonal skills, and if the instructor so desired, the creation of a stress environment. The results of the team’s decision inputs were readily available in the form of financial statements, market data, and production performance. Some of the more sophisticated models would penalize the team that fell behind in research and development resulting in product obsolescence and inflated inventories. Or the team that failed to maintain competitive wage rates or employee training would have labor strife and quality shortfalls. The experienced business executive or graduate student recognized that there was a lot more to running an enterprise than entering some data into a computer, but through the use of the simulation model they gained an appreciation for the interdependence of the decision making process and the consequences of their decisions.

PROLIFERATION OF MODELS INTO UNDERGRADUATE PROGRAMS