What is STRATEGIC ProfitAbility®?
STRATEGIC ProfitAbility® is a board-based simulation that illustrates the generation of
profit and loss and the flow of cash in and out of a business. The game is fast-paced,
competitive and engaging; 6 teams compete to win orders and deliver them on time
and at a profit.
Who should attend?
This challenging business simulation is for CxOs, strategy developers and top decision
makers. STRATEGIC ProfitAbility® is a simulation of the workings of a company,
complete with manufacturing, sales, marketing and financial operations. It is
designed to give a global overview of how a company works, and to make the
learning of strategic planning, marketing, and financial concepts as easy and
enjoyable as possible.
What will they learn? STRATEGIC ProfitAbility® builds business strategy formulation and implementation
skills. This hands-on learning experience gives participants the opportunity to learn
about: the formulation and adjustment of strategy under rapidly changing and
uncertain conditions; the consequences of strategic choices; how to prioritize
among multiple issues and opportunities; using value-based management to guide
strategic choices; the added complexities of a global business; incorporating
financial analysis in strategy formulation and execution; and working effectively with
other members of the team.
How will they learn?
Experiential learning – or ‘learning by doing’ – enables your senior managers to absorb
essential concepts and transfer them directly to their workplace in the form of
changed behavior. Knowledge and business acumen are not only increased, but –
vitally – also retained.
What will they do?
Each participant is part of a 3– 4 person team, in competition with 5 other teams,
managing the growth of a small and barely profitable business in an environment rich
with opportunities and threats. Each team decides its R&D priorities, which products
and markets to invest in, which production methods to use, the level of capital
investment, price and promotion policies, and how the business is to be financed. The
goal is to outperform your competitors by creating more profit and value than them,
while maintaining cash flow that is critical to the business. The simulation is run over 6
to 8 business cycles. After each period of activity, there are mini-lectures followed by
relevant exercises:
Mini-lectures:
Statement of Cash Flow
Fixed & Variable Costs
Variance and Break-Even Analysis
Basic and advanced ratio analysis
Setting Share Prices
Exercises:
Competitor Analysis
Strategic Planning
Value Creation Metrics
Discounted Cash Flow
Internal Rate of Return
What’s the result? The learning outcomes include an understanding of:
Business plans, budgets, operational and financial plans, and variance analysis
Setting a price, standard and full costings, fixed and variable costs, and break-even analysis
Cash flow, profit and loss statements, balance sheets and depreciation
Managing receivables, paybles and loans
Ratio analysis and shareholder value
Diversification through product and market development
Dealing with a competitive market and links to the real world
Full manufacturing simulation including R&D, quality, buy or lease,
machinery efficiencies, purchasing materials, J.I.T. operations and much more
What pre-work is needed? None. Just bring a calculator, sharp mind and pencil! Prior to the program you may be asked to do a web-based questionnaire, the Business Savvy Survey. This 15-minute exercise will let you know the level of your business financial acumen. The result you get is virtually instantaneous, is only sent to you and is confidential to you. Furthermore, you can take the test anytime after the ProfitAbility® program to record exactly how much and where you have improved.
Who should attend:
CxOs, strategy developers and top decision makers Class size:
18–24 Duration:
3 days (can be flexed to suit your needs)
