In June 2012, April Training ran a simulation event at Liverpool University as part of the MSc Management degree, involving the use of Executive to illustrate some of the key business ideas that made up part of the academic study for the course. It was run with over 400 students simultaneously, with participants split into small teams, which competed in leagues of 8 or 9 teams.

The aim of the simulation was to consolidate the business principles taught by the lecturers through active learning, using a realistic model of the current car manufacturing industry as a base. Before the simulation began, the students researched a real manufacturer in detail with focus on its business strategy and company image, in order to gain an appreciation of the industry. The students created posters to present their findings.  They also developed a business plan and strategy for the company they would create within the simulation environment.

The simulation event began with a trial run  to enable the students to get used to the functionality of the software and test out some initial ideas.  With the students confident in using Executive, the real simulation event was launched and the competition began!

Students set up a company from a greenfield site and built up the business over four years (each simulation round is equivalent to one year).  By using a start up scenario participants had free rein to use their ideas for business strategies and see how they played out over the years.  The exercise allowed them to put into practice the skills they had learnt over the degree course, as well as applying their own business intuition and acumen to find innovative solutions. The results were very interesting, with all teams submitting sensible and well thought-through decisions that led to most companies prospering, despite the intense competition within most market sectors.

Congratulations must go to the staff involved at Liverpool University for the superb organisation and smooth running of the programme, despite the large number of students. The simulation will be run in a similar way with next year’s cohort, with numbers set to increase substantially.

Business simulations are widely accepted as an excellent way to give university students, particularly within courses such as business and management, some experience in running a company in a risk-free environment, and to give them the opportunity to put their knowledge from lecture courses into practice. But why do so many universities use them? Thanks to a recent study by the University of Huddersfield, we can see proof of the development of students, both in terms of their business skills and on a personal level.

The study took the form of a questionnaire based on the National Council for Graduate Entrepreneurship entrepreneurial outcomes, which the participants filled in, both before and after a simulation programme (in this case SimVenture, which has similar learning objectives and structure to the Executive Business Simulation by April Training) was run. The results, though preliminary and only of a small sample, are very promising:

Source: Dr. D Williams, 2010;

Impact of Business Simulation Games in Enterprise Education

This shows that students perceived themselves to have improved in every entrepreneurial area, from being more able to tolerate failure to improved financial analysis. Although there may be some bias, particularly immediately after the simulation, the results seem to show that simulations such as Executive really do benefit students in a tangible and useful way.

Executive focuses on developing these key skills in participants, as well as being an enjoyable way to learn and test out business strategy ideas in a risk-free environment. It is also an online simulation, meaning that it is easily accessed and fast-responding, a real bonus and a unique feature among training simulations. This makes Executive perfect for use as both part of a university or college-level course, and in corporate environments, to give employees and students alike the necessary personal and entrepreneurial skills to succeed in real-life busienss.

For those of you taking part in the Executive business training simulation, and for those of you looking for ways to succeed in both real-life business situations and realisitic models, here is another tip from the creators behind Executive on how to get the most out of your experience and create a successful company with viable business propects.

In the real world, no business exists without some form of competition; these days there are many similar companies offering the same types of service or products. This charactistic of the current business climate is modelled in Executive through the use of competing teams in the same marketplace or ‘world’. A successful business will differentiate itself from the other corporations in the same sector through use of marketing, product differentiation and product placement. The same is true within a business simulation, where, just like real-life, the markets can become saturated and it becomes very difficult to squeeze out a profit.

With this in mind, our top tip for you is to differentiate your company. Whether you do this by company image and branding, targeting specific market sectors or offering exclusive features, find a way to make your business stand out from the crowd. Just like car manufacturers such as Porsche, Ford and Jeep, find a niche that your company can fill and there are high profits to be made.

Simulations are now well-established teaching methods in universities all over the world, but why are they so popular? Harvard Business Publishing investigated by asking a group of simulation authors (Prof.  T. Luehrman, Prof. W. Shih, Prof. A. Edmondson, Prof. R. Casadesus-Masanell; all  Harvard Business School,  Prof. M. Roberto; Bryant University, Prof. R. Ernst; Georgetown University, Prof. R. Austin; University of New Brunswick) about the real reasons why students love to learn in a virtual environment.

What does a simulation do for student learning that other methods don’t?

Prof. Luehrman: A simulation stimulates active engagement of students. They are playing a role, not just reading and analyzing. They make decisions and see the results of their decisions in the response of other players and the outcome of the sim. Simulations generate much more energy among students than traditional lectures or case discussions.

Prof. Shih: A simulation forces students to synthesize and integrate what they read and make actual decisions based on facts or data presented in the case. Simulations give students a temporal dimension, an opportunity to experience outcomes that change based on their inputs over time.

How do students react to using simulations?

Prof. Ernst: Students enjoy winning. A well designed business simulation includes an element of competition that encourages them to strive and to impress their classmates (and the faculty) while learning!

Prof. Shih: Students have told me that sims force them to integrate and apply material that they have learned. The opportunity to try things—test a hypothesis and receive immediate feedback—gives the sim a dimension that you can’t get from a case alone.

Prof. Casadesus-Masanell: When I first started using a sim, I did not imagine the energy it would bring to the class. I’ve taught with sims in MBA and Executive Education and with both, the level of discussion is different than with cases—people get much more emotionally involved and competitive—they get hooked and their understanding of the learning points increases.

For faculties who haven’t tried a simulation- what one thing would you say to convince them to try one?

Prof. Edmondson: The students love it. It’s hard to get them to stop talking about it; they want to do it over and over, and to share the experience. They have fun, it’s engaging, they laugh, and they’re surprised. And it’s memorable. It sticks.

Prof. Austin: I’d say “Just wait until you hear the students’ discussion after they’ve used the simulation.” It’s exhilarating, really, the issues the sim gives them access to. This is a really important point: The educational power is in the debrief. A sim is a way to get students talking about what you need to teach them.

The Executive business simulation and April Training‘s other products are used extensively within universities, in the UK and world-wide. For more information about using our simulations as part of a university module or college course, call us on (+44) 1928 735 868 or email info@trainingsimulations.com.

If you are currently taking part in an Executive simulation; whether as part of a university course, corporate training or within a school or sixth form, this post will give you another handy hint from the creators to help you on your way to business success. As everyone knows, a key aspect of a viable business is profitability – no-one will think you’re a good businessperson if your company doesn’t have the capacity to make money! If you want to succeed in Executive, a clear monetary strategy is vital and will set you apart from your colleagues. So, when you’re planning your route through Executive, make sure you think carefully about margins, as these will unlock the potential to achieve great results.

In order to get the maximum results from the company you build up, make sure to keep a good record of all costings; don’t just rely on the system but work it out for yourself. This will make sure that you stay 100% on top of all your spending throughout the simulation. It’s easy to let costs run away from you, and this can have disastrous consequences for your finances at the end of the round. Keep a tight hold on the reins and you’ll sail through each round with ease.

Executive is a very realistic business simulation, so when your group are making decisions, make sure to plan your finances carefully. You could even appoint a specialist ‘Finance Manager’ to make sure that your team keeps an eye on this crucial aspect throughout the course of the simulation. For many instances of Executive, the overall placements of teams are heavily influenced by the financial performance of their companies throughout the rounds (check your briefing documents for more details and specific information for your programme), so this is a very important part of running a successful company.

Good luck! Check back soon for more handy ideas.

As seen in the current series of The Apprentice, business does not always involve a high standard of business ethics! However, we believe that a fundamental part of good business lies in the fair and ethical practice of business across the board. Without a sense of right and wrong, companies hardly ever succeed in the long term as they cannot build relationships of trust with any other corporations, employees or the customers.

All entrepreneurs have to work with other people, and this will only work if both sides follow an appropriate moral code allowing them to establish and maintain a relationship. Business ethics specifically involves negotiation skills and results in ‘win-win’ scenarios; in which both companies are satisfied with the outcome. This is extremely important when building up contacts for the future, for example if you build a good relationship with suppliers in which you get a discounted price per item for a very large order quantity, both sides will be happy with the arrangement and it is mutually profitable. If business ethics were to be ignored, the approach of the company would be to push for the maximum quantity at the lowest possible price: an act that would certainly make the supplier unlikely to renew the deal. This would actually result in a bigger loss for the company than if the first route was taken, as although they would achieve a cheaper price in the first year, they would have difficulty securing a repeat in the following year. This example shows that business ethics is mutually beneficial and can result in long-standing business arrangements that can make a company very successful and result in high returns year-on-year.

In most entrepreneurial education schemes and business degrees, business training includes an education into the world of business ethics. This encourages young entrepreneurs to have the right attitudes for success in business, and ensures that they make friends instead of enemies in the business world. Other important aspects of business ethics include environmental and social concerns, which can add substantially to company image and can dramatically increase popularity. Everyone has their own moral code, and it is important to follow it while trying to succeed in business. Accepting bribes or negotiating unfairly will not pay in the long-term and can result in a negative company image. Many companies have fallen after a deal turned sour or scandals were revealed!

Although The Apprentice is one of the most popular programmes about business and entrepreneurship on television, it does not always accurately portray the world of business. Many of the competitors on the show appear to have little or no ethical values; however, you will find in the real world that corporate ethics are vital to the long term success of any company.

Lord Alan Sugar’s comments on Engineers in business has received a lot of media flak, mostly deserved. However there is an inkling of truth in his statement. He may not have met an engineer who could turn his hands to business simply because the majority of engineers simply choose not to do the day to day running of  business.  The few who do include some spectacularly successful entrepreneurs, like Henry Ford, James Dyson, Steve Jobs, Bill Gates, Michael Bell etc, etc.

Engineers make very good entrepreneurs and business leaders in technology businesses, where their knowledge and vision allow them to see far beyond the limited technological horizons of most other professions. Indeed the subsequent replacement of the technological entrepreneur by a “business administrator” has led to some spectacular business declines, reversed only when the original entrepreneur returned – Apple and Dell Computer are classic examples.

So what else is stopping the budding engineer/technologist from going on to be successful entrepreneurs?

Fundamentally it is far easier to learn appropriate business skills than to learn engineering and technology skills; after all the best MBA can be picked up in a year or less. Business training courses are available throughout the world and many qualified engineers step up to the challenge each year. However it is an expensive proposition and not high on the priority of many an engineer who in general want to get on and “do things”: practise engineering, rather than waste too much time in the seemingly boring world of business.

Many good engineering Universities recognise this dilemma and have added business courses to the engineering curriculum so as to introduce engineers to world of business, and in so doing demonstrate the value of business “nous”.

The even more switched on Universities use modern computer simulation technology to allow engineering students to run virtual businesses and prove to themselves that they have the requisite skills. An example is the Executive Business Simulation, one of the most advanced computer simulations of a manufacturing business available.

So many more engineers are now being trained in the art and science of business, many with the help of simulation, and are emerging into the workplace more than able to take on the challenge of entrepreneurship and business leadership.  This should please Lord Sugar.

Finance can be seen as a dry and potentially dull topic by even the most enthusiastic of students and employees, but accounting and financial skills are essential to succeed in any area of business. It is for this reason that the Business Simulation “Executive” has an additional financial module that can be activated, allowing participants to get more of a feel for how to manage the money side of running a business. This is unique in the work of business simulations, making Executive one of the most desirable training simulation games around!  The extra functionality provided by the add-on means that it is a great way to educate students and company members of any level about both the world of business and management and the area of finance and economics specifically. 

The Finance module of Executive proves that numbers can be fun, with opportunities ranging from investment purchases and share-trading with other teams in the simulation and and even company take-overs to keep everyone on their toes and all the teams continually interacting. This gives an exciting new dimension to the business simulation and encourages maximum involvement as well as a healthy amount of competition between teams, which mirrors the real world of business.

Dividends can also be paid and additional finance raised by share issues. These relatively complex concepts are made easy to understand with handy hints available throughout the simulation, as well as the results of decisions being clearly shown, allowing students and employees to learn and develop their own entrepreneurial skills and ideas related to finance. This idea of learning-by-doing is one of the key aspects for any simulation and is a fantastic way for anyone to gain experience in the running of a business, in a risk free environment.

Business simulations need not only teach beginners; they can be used with anyone eager to experience the world of business and management, whether they be secondary school students, middle management, senior managers or even MBA’s. The Finance module is a great addition to Executive, and is a new innovative way to learn the principles behind company finance, economics and accounting.

April Training are running an event at Liverpool University starting on Friday 10th June, which involves the use of our Executive business training simulation, aiming to give students a new and exciting insight into the world of business and entrepreneurship. This will give the students the chance to test out their business skills and try some new ideas in order to attempt to build up a successful company in the European car manufacturing business. They will use real-life current market data to make the simulation as realistic and believable as possible, and their performance will be assessed by tutors, along with associated paperwork.Executive is designed to be competitive, which increases motivation of the students at Liverpool University, as well as giving them even more reason to carefully their decisions and make sure that their team follows good business principles. They will be competing against 8 other teams, so the students are separated into ‘worlds’. This prevents the markets from becoming saturated and gives everyone a better chance of success.

The simulation programme is intense, lasting just over week, meaning that students only have a short time to get to grips with the principles behind the simulation, as well as learning how to input data and making use of the what-if facility built into Executive. However, the short time period increases engagement with the simulation, and gives the students some experience of the time pressures commonly found in a business environment. It will also test their organisational, time-keeping, teamwork and communication skills; all of which are essential for success in the world of business.

Our team here at April wish them good luck, and as always will be on hand to provide both technical support and a helping hand to any teams who find themselves in difficulties.

First you need the basic knowledge:

For a high technology business these days, this may mean a university education or equivalent in the right area. If you are studying Engineering then make sure you also pick up the basics of business. One very effective method is the use of business simulations. The best ones provide excellent experiential and quantitative learning of the key ingredients, profit and loss, balance sheets, marketing, financing the business and most importantly – bringing all the skills together by team working.

You need the skill base.

Anders Ericsson postulated the 10,000 hour rule – that works out to be 5-10 years working in the relevant technology. Specific examples; The Beatles and Microsoft’s Bill Gates are given in the book Outliers by Malcolm Gladwell.  The key element here is that you need long enough to know what works and what does not. Interestingly this period will probably include some initial failed attempts – very important learning. Frank Williams at Williams Grand Prix engineering is just one a classic example; early failures did not deter him.

You need your team

Invariably you alone will not have all the detailed skills required, or the desire to do all that is needed to be successful in business. Building your team is extremely important as they can make or break the venture. They can also “steal” the business so great care is needed (and a fair dose of paranoia).  Choose the skills you need carefully – typically you may need, finance, marketing, sales, manufacturing, technology, logistics etc. Try to get the best there is and don’t be afraid to pay them more than yourself- this is not about pay prestige, it is about results. Short term consultants can also work.

Clarification of team roles, rewards and time scales is very important. One very important, rarely mentioned reality is the transient lifetime of any team. A successful venture will grow quickly and as it evolves will require new and different skills. Some team members will need to go and new ones to come in, at all levels, perhaps eventually even you. Be prepared for this, plan ahead and keep on learning, regular sessions on the business simulator will always be beneficial – like sessions in the gym.

Finally

Goes without saying that you also need a clear vision for the business, along with drive, ambition, courage and determination.  Most importantly, you also need to conduct your business ethically, with concern for your employees, customers, suppliers and the society and environment you operate in.