Was it just a simulation?

The integrative exercise continued today. Third and last day. As Kristin mentioned yesterday we are competing in a virtual universe, where each group represents a company that is competing in the same market. Each company must set and execute a strategy for their product. This means deciding how to position the product in terms of price, quality, advertising and distribution? We need to plan the production, establish new production lines, invest in new technology as well as pay interest, taxes and dividends. All of it is managed on a piece of software that simulates consumer behavior and calculates your profit and loss statement, your balance sheets and not least your CASH! Although the different groups went very different ways in the market we all experienced the lack of cash in the early rounds. In the words of Accounting Professor Stewart Hamilton 'Profit is an opinion, cash is an opinion!'.

The game was very realistic and we had plenty of discussion on the many, many trade-offs that a company faces. In the words of Alex Rubio [Brazil]: 'I used to do this and this is exactly what it is like. The CFO is fighting to keep the company liquid while the marketing manager insists on investing in the brand'. Alex used to be a CFO and he quickly took on the same role in the group, constantly reminding us of our cash restrictions when we wanted to invest in advertising, production, innovation and so forth. A great and intense learning experience!

I am one of seven people hosting a party tonight to celebrate the May birthdays in the class. The party is coordinated by Ruslana Zbagerska [Canada/Ukrain] and will be held a Jodie Roussel's [American] apartment as she has a balcony big enough for all of us. The weather is perfect so I am sure we will have a great night. I have two friends from Denmark visiting at the moment and Jodie's sister is staying with her. The three of them have 'volunteered' to go shopping for us and to prepare for the party in general. So let this be a warning for you if you plan to visit an MBA student in the near future: Expect to be put to work!



It is midnight last night and group 10 is discussing the last details of the industry analysis that were presented this morning.



The case for Wednesday's marketing class was about the Japanese beer industry. The case was an example of how a so-called mature industry suddrenly can start changing dramatically. The class was the last marketing class and after the class Marketing Professor Dominique Turpin had arranged for refreshments, which of course was ........ Japanese beer!