Management Simulation (in English)

  • Credits: 3
  • Ending: Examination
  • Range: 2C
  • Semester: summer
  • Year: 1
  • Faculty of Business Management

Teachers

Included in study programs

General Management

Teaching results

Knowledge:
A comprehensive view of business management and its economic activity, acquired by managing a fictitious company, that operates in multiple markets and sells differentiated products. Through the practical application of the knowledge obtained from previously completed management courses (on the first and second level of the university studies) and the extension of the knowledge of revenue management, the students will gain a realistic understanding of the complementary as well as competitive interaction of managerial decisions in all functional areas of control.
Competence:
• effective acquisition of correct information about specific business activities, their processing and their use in the decision-making process,
• critically evaluate the procedure of corporate activities and own managerial decisions in particular functional areas of control,
• make effective team decisions,
• based on proper data acquisition and processing, propose solutions to increase the efficiency of business decisions.
Skill:
• In this course, students will develop skills needed for building the corporate strategy through a set of tactics in the areas of personnel management, corporate finance and investment, marketing, corporate planning, production and operations management and product management,
• to interpret financial statements, product sales reports and critically evaluate alternatives for the future direction of the business,
• to analyze the impact of production, logistics, financial and pricing decisions,
• to conduct basic business analyzes in the areas of human resources, raw material purchasing, external production, machinery and equipment in relation to costs.

Indicative content

Thematic definition of exercises:
1. Test round 1:
Set up of company accounts, introduction of management simulation and description of basic
decisions in the context of business results. Description of the quarterly report outputs.
Prerequisites. Assignment of students to managerial roles - marketing, production, and
logistics, personnel management
2. Test round 2:
Theory: Revenue management of the company (essence, areas of application - price, production,
costs)
Simulation: sales f = (price optimization, cost (marketing, R&D, HR, Service). Test decisions
without knowledge.
Representation of the timeline of decisions and the operation of their consequences.
Quarterly simulation, report generation and analysis.
3. Game round 1:
Theory: Revenue model of a company in a specific industry - revenue model with additional
components such as customer value proposition and partner relationships form the concept of a
business model.
The revenue model specifies managing the revenue streams and how the different components of
the business model are involved in their creation.
Simulation: own decisions:
U1: recalculation of the staff need,
U2: the impact of social spending on turnover,
U3: recalculation of production volume.
Quarterly simulation, report generation and analysis.
4. Game round 2:
Theory: Revenue management - approaches to price management. Price optimization – demand
curve, Pasche’s index.
Price benchmarking, which is a management technique designed to analyze competitive pricing
environment
Cost – based pricing - short-run, long-run price floor, base price
Simulation: own decisions
Quarterly simulation, report generation and analysis.
5. Game round 3:
Theory: Revenue management - approaches to cost management.
Production - production volume planning, external production, planning the need for machinery,
raw materials.
Price elasticity of demand, recalculation using data from Reports.
Simulation: own decisions
Quarterly simulation, report generation and analysis.
6. Game round 4:
Theory: Revenue management - approaches to cost management.
Production - planning production volume in relation to the need for workers, calculating the need
raw materials applying information from the knowledge curve.
Simulation: own decisions
Quarterly simulation, report generation and analysis.
7. Game round 5:
Theory: Revenue management - approaches to production management.
Production - production volume planning, external production, planning the need for machinery,
raw materials
Simulation: own decisions
Quarterly simulation, report generation and analysis.
8. Game round 6:
Theory: financial investments, management of claims and liabilities, price controlling -
contribution margin, security margin.
Simulation: own decisions
Quarterly simulation, report generation and analysis.
9. Game round 7:
Theory: decision KPI (price controlling, contribution margin, operating profit, …)
Simulation: own decisions
Quarterly simulation, report generation and analysis.
10. Game round 8:
Theory: Revenue management KPI
Simulation: own decisions
Quarterly simulation, report generation and analysis.
11. Presentations of the results achieved in all rounds of play, focusing on key good as well as bad decisions and their impacts - groups 1 to 3.
12. Presentations of the results achieved in all rounds of play, focusing on key good as well as bad decisions and their impact - groups 4 to 6.
13. Summary of specific features of simulation models and simulation approaches.

Support literature

Basic literature:
1. CROSS, G. Robert. Revenue management : Hard-Core Tactics for Market Domination. New York: Bantam Doubleday Dell Publisher Group, 1997. 124 s. ISBN 0-553-06734-6.
2. HINTSCHES, André – SPENGLER, Thomas – VOLLING, Thomas – WITTEK, Kai – PRIEGNITZ, Gerald. Revenue Management in Make-To-Order Manufacturing: Case Study of Capacity Control at ThyssenKrupp VDM. In Business Research, Berlin : Springer International Publishing, 2010, roč. 3, č.2, s.173-190. ISSN 2198-2627.
Supplementary literature:
1. MEEHAN, M. Julie – SIMONETTO, G. Michel – MONTAN, Larry – GOODIN, CHristopher. Pricing and Profitability management. Singapore : Wiley Publishing, 2011, s. 320. ISBN 978-0-470-82527-3.
2. TALLURI, Kalyan – VAN RYZIN, Garrett. The Theory and Practice of Revenue Management. New York : Springer, 2004. 713 s. ISBN 978-0-387-27391-4
3. VITHALA. Rao. Handbook of Pricing Research in Marketing. Glos : Edward Elgar Publishing, 2009, s. 616. ISBN 978-1-84720-240-6
4. YEOMAN, Ian – MCMAHON-BEATTIE, Una. Revenue Management: A Practical Pricing Perspective. Hampshire : Palgrave Macmillan, 2011, s.273. ISBN 978-0-230-24141-1.
5. ZATTA, Danilo. Revenue Management in Manufacturing. State of the Art, Application and Profit Impact in the Process Industry. Munich : Springer International Publishing, 2016, s. 129. ISBN 978-3-319-30239-3.
6. LEE, May – NEPAL, Brian. Analyzing cost-to-serve quantification methodologies in a wholesale industry setting. In: International Annual Conference of the American Society for Engineering Management : ASEM, USA, 18 October 2017. Huntsville : American Society for Engineering Management, 2017, s. 1-10. ISBN 978-1-5108-5160-3.

Syllabus

Thematic definition of exercises: 1. Test round 1: Set up of company accounts, introduction of management simulation and description of basic decisions in the context of business results. Description of the quarterly report outputs. Prerequisites. Assignment of students to managerial roles - marketing, production, and logistics, personnel management 2. Test round 2: Theory: Revenue management of the company (essence, areas of application - price, production, costs) Simulation: sales f = (price optimization, cost (marketing, R&D, HR, Service). Test decisions without knowledge. Representation of the timeline of decisions and the operation of their consequences. Quarterly simulation, report generation and analysis. 3. Game round 1: Theory: Revenue model of a company in a specific industry - revenue model with additional components such as customer value proposition and partner relationships form the concept of a business model. The revenue model specifies managing the revenue streams and how the different components of the business model are involved in their creation. Simulation: own decisions: U1: recalculation of the staff need, U2: the impact of social spending on turnover, U3: recalculation of production volume. Quarterly simulation, report generation and analysis. 4. Game round 2: Theory: Revenue management - approaches to price management. Price optimization – demand curve, Pasche’s index. Price benchmarking, which is a management technique designed to analyze competitive pricing environment Cost – based pricing - short-run, long-run price floor, base price Simulation: own decisions Quarterly simulation, report generation and analysis. 5. Game round 3: Theory: Revenue management - approaches to cost management. Production - production volume planning, external production, planning the need for machinery, raw materials. Price elasticity of demand, recalculation using data from Reports. Simulation: own decisions Quarterly simulation, report generation and analysis. 6. Game round 4: Theory: Revenue management - approaches to cost management. Production - planning production volume in relation to the need for workers, calculating the need raw materials applying information from the knowledge curve. Simulation: own decisions Quarterly simulation, report generation and analysis. 7. Game round 5: Theory: Revenue management - approaches to production management. Production - production volume planning, external production, planning the need for machinery, raw materials Simulation: own decisions Quarterly simulation, report generation and analysis. 8. Game round 6: Theory: financial investments, management of claims and liabilities, price controlling - contribution margin, security margin. Simulation: own decisions Quarterly simulation, report generation and analysis. 9. Game round 7: Theory: decision KPI (price controlling, contribution margin, operating profit, …) Simulation: own decisions Quarterly simulation, report generation and analysis. 10. Game round 8: Theory: Revenue management KPI Simulation: own decisions Quarterly simulation, report generation and analysis. 11. Presentations of the results achieved in all rounds of play, focusing on key good as well as bad decisions and their impacts - groups 1 to 3. 12. Presentations of the results achieved in all rounds of play, focusing on key good as well as bad decisions and their impact - groups 4 to 6. 13. Summary of specific features of simulation models and simulation approaches.

Requirements to complete the course

15 % semester project, 15 % Assessment test, 70 % active decision making in the simulation

Student workload

78 h (participation in seminars 26 h, preparation for seminars 26 h, preparation for the assessment test 26 h)

Language whose command is required to complete the course

English

Date of approval: 09.02.2023

Date of the latest change: 14.05.2022