Tips & Tools

Students will assume the roles of corporate managers and make weekly decisions on price, production, marketing, research & development, and plant capacity. They will analyze industry reports, balance sheets, profit and loss statements, and market conditions before making their decisions and submitting a bi-weekly response. The simulation is based on JA Titan software program

• The Holo-Generator Industry -- Introduction

• Reports

• Decisions

• Guide to Reports & Glossary of Terms

• The Performance Index -- PI 

• Additional information and strategies

Tips/Strategy

• Full Business Cycle Scenario:
  The most challenging of all the scenarios, this simulates the four stages of a business cycle. To be successful, teams need to navigate the economy’s turning points by heeding messages throughout the simulation and using that information effectively for their six quarterly decisions.

• Global Production Scenario:
  Teams are faced with a loss of sales (drop in demand) because of the increase in imported Holo-Generators from international markets. The Holo-Generators are produced in developing countries that have much lower production costs, which puts further price pressure on domestic producers. Through dialogue, teams are informed that rising demand is the result of two factors. Global trade has provided economic growth in the developing countries that are producing and selling Holo-Generators. Consumers in these countries can now afford to purchase items like Holo-Generators either in their own locality or from global trading partners.
  Second, high-cost structures have forced the closure of some companies that could not afford to produce Holo-Generators at the prevailing global market price. This has resulted in a decreased supply from domestic producers. The scenario assumes that the Holo-Generator is in the “mature” phase of the product life cycle. No new features are being added, and past innovations are now standard on all Holo-Generators.

• Strategy tip to avoid bankruptcy:
  Competitors should watch their loan deltas each quarter and avoid reaching the loan limit. Loans are not paid from cash or retained earnings. Your loan payment is calculated based on your cash position, your spending, and your production costs. To avoid bankruptcy, you must avoid exceeding your loan limit for two consecutive periods.