HEC Montreal ERP Simulation Game Reflective Report Analysis

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Added on  2022/10/06

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This reflective report details a student's experience with the HEC Montreal ERP Simulation Game, a hypothetical business simulation where teams manage a dairy product distribution company across three German regions. The game involved making decisions on pricing, marketing expenditure, storage, and funding within a time-constrained environment, simulating real-world business challenges. The report analyzes the team's experience, highlighting the importance of effective decision-making, cost control, and strategic focus. It discusses the most and least liked aspects of the game, identifies areas for improvement, and outlines key takeaways such as the significance of patience, pricing strategy, and the impact of market dynamics. The report emphasizes the value of coordinated actions, the need for adapting to evolving market conditions, and the importance of financial management in achieving business success.
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Reflective Report on ERP Game
Introduction about the game
The game is a hypothetical simulation of a practical situation of real business wherein 5 team
consisting of 3 to 4 members participated in three rounds of 15 minutes each. The time slot of
15 minutes symbolised a time frames if 20 days and the business catered three regions of
Germany with a central warehouse engaged in purchasing. The rules of the game was
modified with the changing round. The game encompassed distribution of 5 products relating
to dairy industry and the market dealt was highly competitive with little or no scope for
negotiation for purchasing. Hence, no cost cutting was possible for purchase of raw material.
However, setting selling price was at discretion of the team members and played a critical
role in sales and profit of the company. The name of the software on which the game is
played is HEC Montreal ERP Simulation Game.
The Game had additional constraint with respect to funding, storage, financing, credit rating,
market valuation, distribution etc. The same was required to be properly taken care of while
taking business decision in a simulated environment.
Team Experience
As detailed earlier, the game was played in teams with each team comprising of 3 to 4
members. The member of my team had a fantastic experience as we were quite interested in
understanding the financial mathematics behind business. During the game the team members
realised the importance of effective decision making as a single wrong decision can bring
down sales and valuation drastically. The team devoted its time in understanding the game
and realised that all the markets and product should not be tapped, rather focussing on some
profitable sector and appropriate pricing can be the game changer.
Further, during the game the team also realised how the coordinated and quick actions can
help in achieving miracles as seen in the team performance from round 1 to round 3. The
thing that particularly interested the team was cost control by reducing the marketing
expenditure and corresponding impact on profitability. The time slot of 45 minutes made the
members feel as if we were running our own actual company and we the members of board
were executing key strategic decisions.
Apart from above experience, we also learnt the importance of patience in business as we
realised that looking the movement of the flow and then acting is better than start acting
impromptu without realising how the market responds.
Most Liked Part in the Game
As discussed earlier, the game was based on real life simulation wherein the catered market
was Germany. The most interesting part of the game was the exposure as we were involved
in multiple facets of business ranging from decision regarding the pricing of product, decision
regarding expenditure on marketing, decision on storage, decision on region to be catered,
funding etc. The overall facets made the members of the team feel like a business man.
Further, to be specifically precise the most liked part was the evolution of the game as we
played. The game was adapting and evolving with the decisions and no decision was perfect.
Least Liked Part in the Game
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The game has evolved with the play, however the least liked part in the game was the time
constraint of 15 minutes which symbolised a time if 20 days in the game scenarios. The team
members believed a bigger time span would have made a drastic difference and could be the
game changer. Further, the number of variables to be catered in the time span was more than
required. Apart from above, the experience of the game was highly satisfying and made the
members feel the pinch of real world business decisions.
What could have been done differently?
Now with the actual experience of the game and realising the mistakes made by the members
of the team during the game, the members feel that a more coordinated effort towards
increased marketing expenditure would have bought a better results for the team. Also, we
should have focussed on 2-3 products rather than catering all the dairy products as improved
focus could have bought us better performance results. Apart from above, we don’t feel any
other decision could have created a deep impact on the results.
Most Liked Part in the Game
As discussed earlier, the game was based on real life simulation wherein the catered market
was Germany. The most interesting part of the game was the exposure as we were involved
in multiple facets of business ranging from decision regarding the pricing of product, decision
regarding expenditure on marketing, decision on storage, decision on region to be catered,
funding etc. The overall facets made the members of the team feel like a business man.
Further, to be specifically precise the most liked part was the evolution of the game as we
played. The game was adapting and evolving with the decisions and no decision was perfect.
Additional Knowledge or skill that would have helped
Additional knowledge regarding the facets of business to be taken care off would have
created deep impact. Further, as detailed above an earlier insight on not to look on all
products rather a restricted range would have helped. Also, better business skills and more
effective timely communication among the members of the team could have changed the
result to further more satisfying.
Take Away from the game
The key takeaway from the game encompass the following:
(a) Acting in a stressed environment;
(b) Importance of appropriate pricing in the business;
(c) Patience is a key to success;
(d) Cost control is important to increase profits;
(e) All opportunities should not be tapped;
(f) Competitors pricing is important in a saturated market;
(g) Appropriate distribution model is required for timely stock;
(h) Appropriate financing is must for growth of business.
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