Sustainability - CSR

Sustainability Simulation

This simulation offers insights into the management of global corporations using sustainable business practices, including the “Sustainable Value Framework” developed by Stuart Hart, Johnson School of Management, Cornell University.

You take over a large, global automobile manufacturer where your objective is to build sales, improve profitability and to maximize shareholder value. At the same time you need to control total carbon emissions from your business operations, in a tightening regulatory environment. Failure to limit “fleet” CO2 emissions will result in large financial penalties being applied to your company ́s profits, leading to a reduction in company value.

You also need to develop Sustainable Value for your business by implementing certain balanced, strategic investments which have various beneficial impacts. These include reducing total carbon emissions in your operations, reducing operating costs or improving consumer demand for your products.

A number of KPIs (Key Performance Indicators) allow you to track improvements in CO2 Efficiency, Energy Efficiency and Corporate Reputation, in addition to the more usual business indicators linked to profitability or cash flow. Your business success is also measured by the Market Value (Market Capitalization) of your company, which is directly connected to the profitability of your business, and operating decisions that you take. The higher your profits, the higher the market value of your company by the end of the simulation run. The regulatory environment in the auto manufacturing sector will impose increasing constraints on decision-making over time, so you will need to manage your business to conform to these new regulations and yet still make a profit.

This simulation and case study does not directly address issues of global warming, or the politics of such issues. It deals with the realities of operating a business where managers are obliged to understand and adapt to government regulations covering carbon emissions and other environmental concerns.

Also see: the Virbela/UCSD/Rady School of Management project - this simulation has been adapted for use in 3D worlds.

Learning points in this simulation

This simulation helps you, your students or manager-learners understand how business operates in the real world. Some of the issues you will cover are:

  • Sustainable Business Strategies, and the Stuart Hart model of Sustainable Value.
  • Carbon management strategies in a global manufacturing setting.
  • Finance – Corporate Finance, Debt and Equity Financing, Credit Quality and Rating, Coverage Ratios, Corporate Valuations, Mergers and Acquisitions, EPS and PE values, Cost of Capital, WACC, Economic Value, NPV, Shareholder Value and Value Added concepts.
  • Economics – Dynamic Supply and Demand, Cost ratios and cost curves, Economies of Scale and Scope, MEPS, Experience and Cost curves,
    Accounting – Income Statements /P&L statements, Balance Sheets, Cash Flow Statements, Corporate Performance Ratios, Budgeting and Planning, ROI, ROS, ROCE, EBITDA and other profitability ratios.
  • Strategic Marketing – product launch / relaunch / withdrawal, marketing budgets, product portfolios and profitability, Product Life Cycles and impacts on firm profitability, supply chain upstream and downstream integration.
  • Team Building – working with other teams in this simulations builds understanding of team dynamics and collaboration, as well as self-knowledge and self-awareness
  • HR Management – hiring and layoff of staff, set salary levels, training and development of teams, motivation levels and impact on productivity and firms’ performance.

How is this simulation used ?

  • In Corporate Management Training programs - where regulatory impacts on corporate performance is either interesting or relevant to executive development and future strategic initiatives, or where global corporate performance is influenced by continuing debate around carbon emission controls and regulations
  • In Business School, University and College programs where discussions around Sustainability, CSR, ethics, finance, accounting, marketing, operations management and economics in global industries are being covered. Especially useful where the Sustainable Value model of Stuart Hart is being discussed in class.
  • In executive development programs, and in university classes:
  • In one- to five-day events to build confidence in the language of business, business awareness training, Finance for Non-Financial Manager programs, Business Acumen programs, young manager / new hire events
  • For specific seminar-long classes in many subjects, dealing with all aspects of business, or a specialized subject program. Each week could focus on a separate topic in finance, economics or marketing (write to us for suggested teaching plans)
  • In competitive team-building events, such as a special prize event, a motivational tournament between different departments, offices or campuses. An unlimited number of participants are possible.

 



 

The Single Player version, where you can log on 24/7 from anywhere in the world, and compete against our pre-programmed virtual competitors. the Single User version is used for:

  • Personal, private study
  • Pre-course or post course assignments in business courses
  • Team based projects
  • Compete against our pre-programmed players

What's in our Single User Package:
  • 2 complete simulation runs, running to your schedule (subject to time limit)
  • Free User Guide for this simulation, with information on:
  • Complete Operating Instructions for this simulation
  • Financial and Business Glossary with common terms and definitions
  • Discussions about the economic, financial and marketing theories which are embedded in our simulation models

The MMultiPlayer version, where a number of teams or individuals compete in real time against each other, for a predefined period, with the event controlled by an instructor. Normally used for :

  • Management Training Seminars in companies
  • Individual Simulation-based lectures in colleges
  • Complete semester-long programs in colleges
  • Inter-office or inter-campus competitions and tournaments

What's in our Multiplayer Package:
  • MultiPlayer simulation access, with 5 to 50 user connections, and the ability to run a multi user/team simulation event using this model.
  • Access to our proprietary Learning Center system, including management features - start, run, stop the simulation event, review scores, view individual or team performances.
  • Free instructor briefing slides, including an introduction and sign-on instructions, theoretical concepts, operating instructions
  • Free User Guide for this simulation, with information on:
  • Complete Operating Instructions for this simulation
  • Financial and Business Glossary with common terms and definitions
  • Discussions about the economic, financial and marketing theories which are embedded in our simulation models
 

Click to go to InstructorZone

 

We are currently not able to provide individual users with access to our simulations, or deliver smaller scale simulation exercises for schools on an economic basis.

IndustryMaasters supplies corporations, large training companies and business schools across the world with world-beating business simulations to build leadership and management capabilities.