Effectiveness of Internal Business Simulation: A Comprehensive Report

This report delves into the effectiveness of internal business simulation as a modern training approach, contrasting it with traditional methods. It highlights the benefits of using simulation in business education to enhance student performance and improve decision-making. The report outlines various activities facilitated by business simulation, including theoretical instruction, software operation, gameplay, and group discussions, emphasizing the development of essential skills such as market analysis, strategy development, problem-solving, and teamwork. It also explores the ways in which business simulation is effective, such as motivating learning, promoting active learning skills, providing authentic experiences, allowing for repetitive practice, and offering personalized and diverse scenarios. The report concludes by emphasizing the growing importance of business simulation in training new teams and managers, as it provides realistic representations of real-world operations and contributes to experiential and reflective learning.

1
Internal Business Simulation
Institutional Affiliation
Date

2
Internal Business Simulation
Introduction
Students are expected to develop a high level of competence by having a broad range of
skills to be more flexible and adaptable as well as be more productive in their future work.
However, the methods and tools used in teaching business skills are insufficient to cater to the
rapidly changing business organization and market (Chatman and Barsade, 1995). Internal
business simulation enables theory to be applied in practice with no risks involved, as well as
encouraging team working in a decision-making process. The ability to think critically and solve
ill-structured problems has become very important in the competitive world. This, therefore,
calls for first hand experienced students to solve these problems. A platform to produce future
manager’s business school needed to change its learning practices and incorporate skills to solve
these problems.
The business simulation also called business games are a case study and feedback with
time frame.it is a representation of a real situation imitating some business situation or process.
A simulation is a working representation of reality. It has relevant behavioral similarity to the
original system. Business simulation can be a numeric or scenario simulation, in scenario
simulation a scenario is played out, and each leaner is asked to make an individual or team-based
decision. Throughout or at certain intervals feedback is provided. The simulation uses the
software as a processing tool. It involves the formulation of strategies, analysis of factors that
influence an outcome, improvement of analytical skills as well as team communication. Systems
thinking in the business situations or processes are seen as structural. There is also collaboration
which improves performance management. The students can be innovative through experience

3
giving them sustainability n the rapidly changing business activities (Springer and Borthick,
2004).
Activities Facilitated By Business Simulation Include;
Theoretical Instruction
This is carried out through normal lessons in which the lecturer goes through a theoretical
part of the study. He/she gives the scope of the study and the relevant notes the students need to
learn. The learner can ask questions at this stage or comment. Every student has an idea of what
is required to be learned. Preparation of the lecturer is also important. There is a need for
previous knowledge and previous experience by both the student and the lecturer.
Introducing the Business Simulation
The students are told on how to operate the computer software and how the game works.
The business simulation uses a software as a tool to learn. The students need to know how this
software is operated on the computer to facilitate smooth learning during the practicals and to
enable them to follow instructions with ease (Faria, 2001). This does not require it skills or
software installation knowledge from the lecturer.
Playing the Game
Following the rules, the participants now can play the game. They get an opportunity to
practice their knowledge learned in the class. They change different parameters and reflect on the
consequences of their decisions (Ben-Zvi, 2010). They play the game through forming different
teams in which each member participates in the game at the team level then latter shares with
other members from other groups.

4
Group discussions
Each participant should be given a chance to compare the results of the game with the
results of others. This discussion helps the participant to have the skills on the transfer of
knowledge to the world. They are also to look for similarities in their results and also the teacher
takes this chance to expound on their knowledge and finding connections in their results and the
real world. This is called debriefing, and it's the most important stage in the game. It deals with
factual errors, makes a general conclusion and the lesson which can be extrapolated to the real
world. (Salas and Burke, 2002) The participants receive feedback (process feedback) then they
can conclude what was learned.
Skills gained by students through business simulation include; market analysis, strategy
development, problem-solving skills, working as a team with common goal, business-decision
making, goal setting, time management, conflict resolution as well as sales and marketing
strategy.
Ways in Which Business Simulation Is Effective.
Motivation for learning
Students are motivated to learn since there is a use of computer games involved. This
helps them to retain what they have learned as well as better illustrate theoretical business
concepts. Students also enjoy having lessons and find it interesting to want to learn more. This
also takes away the classroom boredom, creating a more enjoyable school curriculum (Curry and
Moutinho, 1992). Different research has shown that simulation is recognized as an excellent
motivator and provider of valid decision-making.

5
Active Learning Skills
All team members are engaged in the study. Every student is given a chance to present to
different team members the finding of their team as they compare their results. This helps in
developing shared leadership skills as well as improving student-student interaction. This also
gives them a powerful tool to test what they have learned. This also boosts in teamwork as
students are forced to think together, make decisions together and solve problems together
(Kneebone, 2010). The business simulation is not reduced to single thinking.
Authenticity
It combines important features like completion, cooperation, rules, roles, participants as
well as protocols. The rules refer to an empirical model of reality. These are closer to reality.
This improves the employability of students (Green and Ryans, 1990) Students can see the big
picture with the broad range of challenges they face during simulation. This gives them the
advantage in the job market since an employer would consider someone with experience than
with theoretical knowledge only.
Repetitive
For valuable results, students need to continuously repeat what they learn. Repeating the
same contents or using same notes learned might not be of great help, could be tiring and or
boring. Therefore, simulation helps to solve that problem. This helps student easily remember
what they learn in class and accelerates performance (Walters, Coalter, and Rasheed, 1997).

6
Personalized and Diverse
Depending on different situations, simulation provides different scenarios. Every player
must face consequences of their actions. They also help individuals to learn from their mistakes,
evaluate their performance and compare it with a previous one. Simulation provides an overall
view of corporate strategic functions (Moorthy, Vincent, and Darzi, 2005).
Leadership Pool
As students participate and try to solve simulation problems, some will perform better
than others. In that case, one can use that opportunity to get the best students who have the best
leadership skills and give them job opportunities. These business simulation games bring out the
inner talents of individuals who would have rather stayed quiet or unnoticed with their talents.
This shows that business simulation games are coming forefront of team building activities.
Realistic Experiences
Business simulation games give real experience to be used in the real business world. Not
experiences used by young people in early ages of studying. These experiences are complex and
involve scenarios found in the real world. Employees will build their work experience and
understand what they do better. When the business simulation is done by students, it gives them
ready experience before being employed. It also ensures that employees know what they will be
doing in the organization before their orientation thus producing better business decision makers
and thinkers.

7
Conclusion
The business simulation is growing as a training approach for traditional methods of
expert-led lecturer’s. Simulating critical business systems and processes can greatly help train
new teams and managers (Ryan, 2000). Business simulation games serve as a realistic
representation of the real operations in a virtual environment and use it to develop managerial
skills primarily in corporate decision-making. Internal business simulation is helping in
increasing performance in students and improving decision making in the business world
(Laguna and Marklund, 2013). Those undertaking the course gain knowledge and develop
managerial skills by having firsthand experience through practicals.it enables experiential and
reflective learning while the learning outcomes are relevant. Business simulation brings the real
world into the classroom. Business simulations are used to support rather than replace lecturers,
and they also provide much more interactions. Simulation-based training has opened up a new
application in business. Theoretical knowledge can be put into practical experiments through the
use of scenarios.

8
Reference
Chatman, J.A., and Barsade, S.G., 1995. Personality, organizational culture, and cooperation:
Evidence from a business simulation. Administrative Science Quarterly, pp.423-443.
Springer, C.W., and Borthick, A.F., 2004. Business simulation to stage critical thinking in
introductory accounting: Rationale, design, and implementation. Issues in accounting education,
19(3), pp.277-303.
Faria, A.J., 2001. The changing nature of business simulation/gaming research: A brief history.
Simulation & Gaming, 32(1), pp.97-110.
Ben-Zvi, T., 2010. The efficacy of business simulation games in creating Decision Support
Systems: An experimental investigation. Decision Support Systems, 49(1), pp.61-69.
Salas, E. and Burke, C.S., 2002. Simulation for training is effective when…. BMJ Quality &
Safety, 11(2), pp.119-120.
Curry, B.U., and Moutinho, L., 1992. Using computer simulations in management education.
Management Education and Development, 23(2), pp.155-167.
Kneebone, R., 2010. Simulation, safety, and surgery. BMJ Quality & Safety, 19(Suppl 3),
pp.i47-i52.
Green, D.H. and Ryans, A.B., 1990. Entry strategies and market performance causal modeling of
a business simulation. Journal of Product Innovation Management: AN INTERNATIONAL
PUBLICATION OF THE PRODUCT DEVELOPMENT & MANAGEMENT ASSOCIATION,
7(1), pp.45-58.

9
Walters, B.A., Coalter, T.M. and Rasheed, A.M., 1997. Simulation games in business policy
courses: Is there value for students?. Journal of Education for Business, 72(3), pp.170-174.
Moorthy, K., Vincent, C. and Darzi, A., 2005. Simulation-based training.
Ryan, T., 2000. The role of simulation gaming in policy‐making. Systems Research and
Behavioral Science: The Official Journal of the International Federation for Systems Research,
17(4), pp.359-364.
Laguna, M. and Marklund, J., 2013. Business process modeling, simulation, and design. CRC
Press.