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business schools

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Strategic E-Commerce simulation

Target course: The Strategic E-Commerce simulation is designed specifically for the e-commerce courses. It illustrates the business concepts of the e-commerce environment.

Content: The participants learn about the differences and tradeoffs between the traditional and web sales channel, and between traditional marketing and web marketing. The decision content also includes product development, human resource management, fundamentals of finance, accounting and operations.

Time frame: The game is set for 6 decision rounds, with each round taking one and a half to two hours to complete.

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The 15 minute demo below highlights the main decision areas of this simulation.

NOTE: The following demo is a Flash movie. You need to have Macromedia Flash MX Player installed in order to view it. If you can see a little animated word "demo" below, then your browser is set up to view the Flash demos.

If you can not see the animation, you can download the FREE Flash Player here.

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More details: As the executive team, the students, start an e-commerce company that enters the microcomputer business. They deal with the product development, web site management, marketing, production, and human resource management. Throughout the exercise, students have limited financial resources and complete accounting responsibility.

The students are provided the seed capital (investment money) to start their e-commerce business. They can use this money to startup a web center (or a traditional brick-and-mortar sales channel), design brands and build a factory. They will invest 2 million in the first quarter and another 1 million in each of the next 2 quarters. An additional 4 million will become available in quarter 4 from venture capitalists, for a total of 8 million.

The executive team has a year and a half (6 quarters or decision periods) to get their new e-commerce company off the ground. Within this time frame, the company should become a self-sufficient firm, earning substantial profits from its operations.

Students play against peers. The grading is based on the balanced scorecard that measures profitability, customer satisfaction, market share in the targeted market segments, human resource management, asset management, preparedness for the future and wealth.

Sample instructor materials:

	PowerPoint Presentation
	Game scenario
	Sequence of activities

Note: Full set of instructor materials is available for registered Instructors.

View the complete list of simulations for different courses and their decision content

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