Virtual Business Enterprise Project

This project involves managing a virtual business within a simulated environment called the Virtual Business Enterprise (VBE). Students work in groups to operate their businesses for a virtual year, competing with other retailers. The assignment provides detailed demographic and economic information about the virtual location, Virtual Island, near Brisbane, Australia. Students use half-yearly financial statements generated within the VBE dashboard to inform their business decisions and strategies. The goal is to successfully manage the business, utilizing provided data to make informed choices about pricing, product offerings, and overall business operations within a competitive market.

The Virtual Economy - Overview
Your group has been tasked with running a virtual business for a virtual year. Your group’s business is one
of 20 retailers operating in the Virtual Business Enterprise (VBE) world. Each business has 3 levels of
product on offer at 3 different price and quality points. At the end of each in-world session, half yearly
financial statements are generated for your business in your VBE dashboard. You should use these
financial statements to help to plan and execute your group’s in-world sessions.
Background context for Business Plan - Virtual Island
The following information is provided to inform you of the environment Virtual Island operates in:
Demographic information
The shopping mall where your VBE business is located is situated in Virtual Island, a satellite city north
of Brisbane, Australia.
Virtual Island is a growing middle-class community with 25,000 residents (51.3% females and
48.7% males). The majority of these residents are families of four or more. The average age is
37.3 years of age, the same as the Australian median age.
The main occupations of people in Virtual Island are Clerical and Administrative Workers 16.8%,
Technicians and Trades Workers 15.8%, Professionals 14.3%, Community and Personal
Service Workers 10.9%, Machinery Operators and Drivers 10.6%, Labourers 10%, Managers
10%, Sales Workers 9.8%.
The median individual income is $750.00 per week and the median household income
is $1675.00 per week.
9.7% of homes are fully owned, and 50.6% are in the process of being purchased by home
loan mortgage. 38.1% of homes are rented
Virtual Island adjoins the communities of North Lakes and Dakabin which have similar
population size and demographics.
The Brisbane CBD is a 40 minute drive from Virtual Island.
Economic background
There is currently an economic boom in the Virtual Island area, primarily in response to new
employment opportunities due to the area’s growth. It is expected that annual growth in the
region will be 10%.
The market primarily consists of individuals although there are opportunities for some sales to
the corporate sector.
The level of competition in all industries is high.
Consumer sentiment is expected to rise over the next three years.
Future revenue growth in the area is expected to increase in line with economic and
population growth.

Business Hours are unregulated with trading currently permitted 24 hours, 7 days a week
with businesses deciding their own trading hours.
Schools
There are two primary and two secondary public schools in the area and one P-12 independent
School.
Transport
The area is well served by Bus and Rail transportation.
Growth drivers
The new shopping mall and hotel complex on Virtual Island has generated the largest growth in
recent years with many new businesses recently opening and bringing new products and
services to the area.
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