Hello. I have a business game and my part is to do the finance income statement, i will send u the file. I have only medium cars with age 25-40 paid 20.000 pound and luxury car age 55 over with price 60.000 pound.

2021/2022 Page 1

The EXECUTIVE Simulation
Brief Guide
(Operations Module)

BACKGROUND
Each team has the opportunity to build and run its own company. Participants enter and save a set of decisions that
the simulation analyzes, the results are then printed in the form of an annual report showing company trading and
accounts. The decisions made involve a wide range of business skills, including finance, marketing, strategy, effective
interpretation of information, negotiation, time management and presentation skills. Moreover, the simulation
highlights the importance of working effectively as a team. Executive is fully interactive, teams are working in a live
marketplace, competing against each other as well as the background competition that represents the large global car
manufacturers. It provides the opportunity to explore, experiment and then evaluate knowledge, judgement and
decision making.

The main decision areas comprise :

 financing the venture and financial control;
 the sector of the market to be sold into;
 the technical specification of the cars to be sold;
 the selling price;
 the size of the workforce;
 the amount of cars to be produced;
 marketing/advertising the cars.

THE STARTING POSITION
 A green field site
 £500 million in the bank raised from the issue of 5 million £100 shares.
 No production facilities
 No workforce
 All companies (teams) will sell cars into the European marketplace.
 Production facilities are in the UK.
 The currency is £sterling.
 All costs rise with inflation annually.
 In the first year of operation two different models of car must be produced. A maximum of five models is allowed

but only one new model can be introduced each year (see the section on New Models, page 5 for more details).

THE MARKETPLACE
The marketplace is the European Community and market research informs us that statistically the car market is divided
into 16 sectors relating to the car platform/size and the target age group, as identified in the grid below. One of the
sectors must be selected for each car model as the target market. Once a sector has been chosen the size of car cannot
be changed, however, it is possible to target it a different age group.

Market Sectors – Car Categories
Car Size

Buyer’s Age Group

Small
e.g. Peugeot 208

Medium
e.g. VW Golf

Large
e.g. Audi Q5

Luxury
e.g. Jaguar F-Type

Under 25 1 2 3 4

25 to 40 5 6 7 8

41 to 55 9 10 11 12

Over 55 13 14 15 16

Note : When making and submitting decisions online you will have to enter the actual car size and target age group but
the market sectors in the table will be referred to in the results/reports.

April
TRAINING

EXECUTIVE

Executive Simulation Brief Guide

Page 2

Separate market research about the European car industry provides the initial size of these sectors. The sizes change
over time and up-to-date information is provided on the




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