Case MobilandCase Mobiland
Business simulation In the KHLeuven business game Str@tvision
Played by students in the 2nd bachelor Business
Management – Marketing
In the international week
Business simulation In the KHLeuven business game Str@tvision
Played by students in the 2nd bachelor Business
Management – Marketing
In the international week
Case MobilandCase Mobiland
Mobiland = an island (636.000 inhabitants)
students start up their own company that manufactures and sells smartphones companies offer a similar product portfolio
Mobiland = an island (636.000 inhabitants)
students start up their own company that manufactures and sells smartphones companies offer a similar product portfolio
This case is aboutThis case is about
Production4 types of SmPh
PurchaseRM, components
RecruitingEmployees
Inventorycontrol
DistributionStore, hypermarket, …
AdvertisingRadio, TV, newspaper
Sales5 target groups
InvestingPU, building, …
FinancingEquity, IC, overdraft
BudgetingFin., prod. … plan
AccountingReports, …
Market and productsMarket and products
Population attaches great importance to mobile communication
4 types of smartphones
BAS: telephony & games GOO: idem BAS, + photo, video & MP3 ADV: idem GOO, + Wi-fi, Bluetooth, internet (GPRS/EDGE/3G) GPS: idem ADV, + GPS, GPS-software & Windows Mobile
Not necessarily all models on the market!
Population attaches great importance to mobile communication
4 types of smartphones
BAS: telephony & games GOO: idem BAS, + photo, video & MP3 ADV: idem GOO, + Wi-fi, Bluetooth, internet (GPRS/EDGE/3G) GPS: idem ADV, + GPS, GPS-software & Windows Mobile
Not necessarily all models on the market!
Target groupsTarget groups
The techies (TEC) looking for technologically advanced device between 18 & 36 yr, price not too high (personal use)
The short-callers (SHO) important: the device should be cheap new technology is less important
De professionals (PRO) price is not so important (company buys) technology is important
The earners (EAR) price is not really relevant customer expects (almost) all features
The others (OTH) technology is not important: only call - texting Other features not so important, not too expensive
The techies (TEC) looking for technologically advanced device between 18 & 36 yr, price not too high (personal use)
The short-callers (SHO) important: the device should be cheap new technology is less important
De professionals (PRO) price is not so important (company buys) technology is important
The earners (EAR) price is not really relevant customer expects (almost) all features
The others (OTH) technology is not important: only call - texting Other features not so important, not too expensive
Size target group
%
TEC 66.780 10,5%
SHO 208.608 32,8%
EAR 85.860 13,5%
PRO 106.212 16,7%
OTH 168.540 26,5%
Total: 636.000
What do students get?What do students get?
1. Capital: € 1.000.000 cash2. You can borrow from the Eurobank
- Investment credit (building, machinery): limited!- Overdraft: temporary liquidity shortages: unlimited
interest (changes from the 2nd round)
)
- IC: 5%- OD: 10%- bank account (neg): 15%- bank (pos): + 2,5%
1. Capital: € 1.000.000 cash2. You can borrow from the Eurobank
- Investment credit (building, machinery): limited!- Overdraft: temporary liquidity shortages: unlimited
interest (changes from the 2nd round)
)
- IC: 5%- OD: 10%- bank account (neg): 15%- bank (pos): + 2,5%
What can you buy ?What can you buy ?
A production unit (PU): € 1.250.000 includes: - one building - 4 machines
Every company: at least one PU !
Company has costs: insurance overhead costs maintenance & repairs
Maximum capacity of 1 PU: 26.000 devices
A production unit (PU): € 1.250.000 includes: - one building - 4 machines
Every company: at least one PU !
Company has costs: insurance overhead costs maintenance & repairs
Maximum capacity of 1 PU: 26.000 devices
DistributionDistribution
3 possibilities:
1. A store- min. one
min. one seller (specialized)- rent per period: € 150.000
2. A distribution point (in a hypermarkt)- no specialized seller- rent per period: € 50.000
3. Cost of development online sales system- a non-recurrent investment: € 26.000
3 possibilities:
1. A store- min. one
min. one seller (specialized)- rent per period: € 150.000
2. A distribution point (in a hypermarkt)- no specialized seller- rent per period: € 50.000
3. Cost of development online sales system- a non-recurrent investment: € 26.000
PersonnelPersonnel
Commercial € 40.000(min. 1, max. 3 per store)
Administrative € 35.000(min. 1, and min. 1 per group of 3 commercial)
Production € 35.000(min. 1 per PU)
Executive € 60.000(min. 1)
Commercial € 40.000(min. 1, max. 3 per store)
Administrative € 35.000(min. 1, and min. 1 per group of 3 commercial)
Production € 35.000(min. 1 per PU)
Executive € 60.000(min. 1)
AdvertisingAdvertising
3 media channels
1. TV- MoTv (Mobiland Television): young people- TV1: official government station
2. Newspapers- La Gazetta: popular newspaper- Los Intelectos: quality newspaper
3. Radio- Torro: the only radio station in Mobiland
Attention!Good harmony: advertising - production - sales
3 media channels
1. TV- MoTv (Mobiland Television): young people- TV1: official government station
2. Newspapers- La Gazetta: popular newspaper- Los Intelectos: quality newspaper
3. Radio- Torro: the only radio station in Mobiland
Attention!Good harmony: advertising - production - sales
ProductionProduction
For the production of the four models:-> required product components-> Vary by model
For the production of the four models:-> required product components-> Vary by model
Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Comp 6 Comp 7
Basicelectronics
Screen parts (in front, behind)
Internal & ext.connection &
earpiece
Photo & video
& MP3
Wi-fi &Bluetooth
InternetGPRS/
EDGE/3G
GPS & software
+ Windows Mobile
BAS 1 2 1 0 0 0 0
GOO 1 2 1 1 0 0 0
ADV 1 2 1 1 1 1 0
GPS 1 2 1 1 1 1 1
Cost of componentsCost of components
In EUR
Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Comp 6 Comp 7
Basicelectronics
Screen parts (in front, behind)
Internal & ext.connection &
earpiece
Photo & video
& MP3
Wi-fi &Bluetooth
InternetGPRS/
EDGE/3G
GPS & software
+ Windows Mobile
< 20000 24.7 3.3 4.8 21.6 33.7 16.6 106.3
< 23000 21.8 2.9 4.2 19.1 29.8 14.7 94.0
< 26000 19.8 2.6 3.8 17.3 27.0 13.3 85.2
< 29000 18.3 2.4 3.6 16.0 24.9 12.3 78.7
< 32000 17.3 2.3 3.4 15.1 23.6 11.6 74.4
< 35000 16.7 2.2 3.2 14.6 22.8 11.2 71.8
> = 35000 16.3 2.2 3.2 14.3 22.3 11.0 70.3
DecisionsDecisions
During each round the team takes concrete decisions about: Final pricing for each product model determine the deployment of staff determine the number of production units +
production volume Determine the promotional efforts determine the number stores, distribution points,
online sales determine additional financing needs
Enter the decisions in the 'decision form'
During each round the team takes concrete decisions about: Final pricing for each product model determine the deployment of staff determine the number of production units +
production volume Determine the promotional efforts determine the number stores, distribution points,
online sales determine additional financing needs
Enter the decisions in the 'decision form'
Beslissingsformulier
Periode: 1
Groepsnaam (bv. C3):Minimum-maximum
Aantal productie-eenheden 1 min. 1
Totale jaarproductie p1 BASTotale jaarproductie p2 GOOTotale jaarproductie p3 ADVTotale jaarproductie p4 GPSTotale jaarproductie p5Totale jaarproductie p6Totale jaarproductie p7Totale jaarproductie p8
Totaal: 0 max. 26.000 per PE
Personeel administratief ! min. 1 FTE & max. 2 FTE per PE
Personeel commercieel min. 1 FTE & max. 3 FTE per winkel
Personeel leidinggevend ! min. 1 FTE, max. 3 FTE
Budget opleiding personeel
P1 - TV BAS (200.000-600.000 EUR)
- dagbladen (7.500-200.000 EUR)
- radio (15.000-400.000 EUR)
P2 - TV GOO (200.000-600.000 EUR)
- dagbladen (7.500-200.000 EUR)
- radio (15.000-400.000 EUR)
P3 - TV ADV (200.000-600.000 EUR)
- dagbladen (7.500-200.000 EUR)
- radio (15.000-400.000 EUR)
P4 - TV GPS (200.000-600.000 EUR)
- dagbladen (7.500-200.000 EUR)
- radio (15.000-400.000 EUR)
P5 - TV (200.000-600.000 EUR)
- dagbladen (7.500-200.000 EUR)
- radio (15.000-400.000 EUR)
P6 - TV (200.000-600.000 EUR)
- dagbladen (7.500-200.000 EUR)
- radio (15.000-400.000 EUR)
P7 - TV (200.000-600.000 EUR)
- dagbladen (7.500-200.000 EUR)
- radio (15.000-400.000 EUR)
P8 - TV (200.000-600.000 EUR)
- dagbladen (7.500-200.000 EUR)
- radio (15.000-400.000 EUR)
Aantal winkelruimtes ! min. 1
Aantal distributiepunten
Budget marktonderzoek
Prijs p1Prijs p2Prijs p3Prijs p4Prijs p5Prijs p6Prijs p7Prijs p8
R&D
Analysis received results Analysis received results
The participants receive:
the actual demand of customers,
actual amount of sales,
comparative data: pricing & margin
price and image positioning,
market share by target group and product model
data on production and inventory,
Results (balance sheet, income statement, cash flow)
The participants receive:
the actual demand of customers,
actual amount of sales,
comparative data: pricing & margin
price and image positioning,
market share by target group and product model
data on production and inventory,
Results (balance sheet, income statement, cash flow)
0
10,000
20,000
30,000
40,000
50,000
60,000
TEC KOR VEE PRO OVE
Marktaandeel per doelgroep & product
GPS
ADV
GOO
BAS
0
5,000
10,000
15,000
20,000
25,000
30,000
B1 B2 B3 B4 B5 B6
BAS (periode 1): productie, vraag en verkoop
Productie
Vraag
Verkoop
Grafiek: Prijs, kostprijs & directe marge
BAS B1 B2 B3 B4 B5 B6Verkoopprijs 100 110 0 85 90 0Directe kost 24 24 0 29 24 0Directe marge 76 86 0 56 66 0
GOO B1 B2 B3 B4 B5 B6Verkoopprijs 0 125 119 0 110 0Directe kost 0 38 46 0 38 0Directe marge 0 87 73 0 72 0
ADV B1 B2 B3 B4 B5 B6Verkoopprijs 180 170 0 200 0 0Directe kost 71 71 0 87 0 0Directe marge 109 99 0 113 0 0
GPS B1 B2 B3 B4 B5 B6Verkoopprijs 420 400 460 0 400 0Directe kost 142 142 172 0 142 0Directe marge 278 258 288 0 258 0
Positionering: prijs en technologie
-100
-50
0
50
100
-100 -50 0 50 100
Prijs
Tech
no
log
ie
TECKORVEEPROOVEGPSBASGOOADV
WinnerWinner
Per market: winning company Criteria for selection: 'Company health index’ (CHI)
CHI = 2.0 RE - 0.8 TD + 1.3 EQ + 1.2 SA + 2.9 OC
RE = retained earningsTD = total debtEQ = equitySA = salesOC = operating cash flow
Per market: winning company Criteria for selection: 'Company health index’ (CHI)
CHI = 2.0 RE - 0.8 TD + 1.3 EQ + 1.2 SA + 2.9 OC
RE = retained earningsTD = total debtEQ = equitySA = salesOC = operating cash flow