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Introduction To Competition Format PDF

This document provides an introduction and overview of the Global Management Challenge competition. It explains that teams will manage a company in a simulated competitive market environment over multiple quarters. The goals are to analyze company history, develop strategy, make decisions in areas like marketing, production, human resources and finance, and achieve the highest investment performance. Teams will submit decisions, receive management reports on company performance, and compete within their assigned group over multiple rounds.

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Rishabh Jain
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0% found this document useful (0 votes)
113 views

Introduction To Competition Format PDF

This document provides an introduction and overview of the Global Management Challenge competition. It explains that teams will manage a company in a simulated competitive market environment over multiple quarters. The goals are to analyze company history, develop strategy, make decisions in areas like marketing, production, human resources and finance, and achieve the highest investment performance. Teams will submit decisions, receive management reports on company performance, and compete within their assigned group over multiple rounds.

Uploaded by

Rishabh Jain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 26

TEAM BRIEFING

SESSION
Web. (India): www.gmcindia.in
Web. (International): www.worldgmc.com
Introduction to the Competition

You are about to start an unique experience.


Now you are part of a management team of a company that
operates in the global market.

Your team is going to manage a company in a competitive market, and


you will develop skills of:

▪ Strategic Management;
▪ Decision Making;
▪ Team Work;
▪ Leadership.

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 02
Introduction to the Competition

Your teams objective is to manage a company, analyze the recent past and
design a strategy for the near future: analyzing the results, making decisions in
different areas of the company, considering the competition and economic
situation; to obtain the best results against the competition.

The measure of success achieved by the management team is:


The highest Investment Performance at the end of each period, and of course
at the end of the competition.

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 03
What you have to know as a Participant

START: Team Draw and Opening of the Competition Manual

COMPETITION CYCLE: History, Analysis, Decisions, Processing & Management Report

MANAGEMENT REPORT: Decisions, Products & Resources, Finances, Group Info.

THE COMPANY: Economics, Marketing, Production, Human Resources, Finance

FORMAT: Trial Round, Round 1, Round 2, National Finals, International Finals

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 04
Start …

The first step is the Team Draw


The teams are organized into groups (Each Group consists of 5 – 8 Teams). Each Group creates a
competitive Market, in which the teams compete with one another.

The performance of each team is evaluated against the other teams competing within the same
Group. The performance of a Team in it’s Group has no influence on the performance of
another Team in different Group.

1 3
1 3 2 4
2 4

5 7
5 7 6 8
6 8

9 11
9 11 10 12
10 12

13 15
13 15 14 16
14 16

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 05
Start …

The next step is to study the Competition Manual


Managing a Company is a complex activity that requires much preparation. Read the manual to
understand how: the company works and relates with other companies; the simulation
fundamentals and what the team must do.

The manual is divided in 4 parts:


▪ INTRODUCTION: How to use the Manual.
▪ THE COMPANY ENVIRONMENT: The Economic Environment; World Events; Marketing;
Production and Distribution; Human Resources and Finances.
▪ MANAGEMENT REPORTS: Explanation of the Management Reports and how calculations are
made.
▪ DECISIONS: Explanation of how the decisions are communicated for each quarter.

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 06
Competition Cycle

The Simulation is organized in Quarters (i.e. One Competition Cycle)


Each Round consists of 5 Quarters.

Company
Analysis
Historical Data

5
Analyze the History and design
Corporate Strategy Management Make
The analysis of History is Report Decisions
important for team decisions,
covering the last 5 quarterly
management reports and is
available before the start of
each Round.
Processing

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 07
Competition Cycle: Company History

Company History (Decision Cycle 5)

Company History (Decision Cycle 4)

Company History (Decision Cycle 3)

Company History (Decision Cycle 2)

Company History (Decision Cycle 1)

Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
1 2 3 4 5 (1) 6 (2) 7 (3) 8 (4) 9 (1) 10 (2)

Decision Cycle 1 Decision Cycle 3 Decision Cycle 5


Decision Cycle 2 Decision Cycle 4

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 08
Competition Cycle: Submit Decisions

CEO
Team Captain

Human
Marketing Production Finance
Resources

- Advertising - Manufacturing - Recruitment - Investments


- Prices - Subcontracting - Training - Dividends
- Sales - Quality - Working - Loans
- Transport - Conditions - Taxes
- Raw Materials - Salaries - Shares
- Machines

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 09
Management Report

The Management Report contains the information you need to analyze before
making decisions and it is divided into 6 parts.

▪ The Management Report reproduces the decisions you made.

▪ The Management Report informs you about: the Means of Production, Factory build/extend,
Raw Materials, Human Resources, Sales, Products, Carbon Footprint, Transportation, and
data on Financials: Balance sheets, Profit and Losses, Overheads, Cash Flow, Investment
Performance, etc.

▪ The report also informs on the activities of competitors in the areas of Price, Total
Employees, Payroll, Agents and Distributors, Market Shares, Consumer Opinion; and
expenditures made by competitors in areas such as Advertising, Research and Development
and efficiency of Websites.

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 10
Management Report: Your Decisions (1st Part)

This sheet represents the 75 Decisions, that will be considered by each Team to implement their
Corporate Strategy.
Corporate Product 1 Product 2 Product 3 Number Support Commn.
Advertising: (€'000) Agents and distributors: needed (€'000) %
Europe 15 10 10 10 European agents 3 10 7
Nafta 5 0 0 0 Nafta distributors 1 7 6
Internet 0 0 0 0 Internet distributor 0 * 0

Prices (€): Operations:


Europe 285 450 680 Materials to buy ('000) Spot 4 3mth 0 6mth 0
Nafta 0 0 0 Maintenance hours/machine 15 Shift level 2
Internet 0 0 0 Number of ports operated 0 Web-site development 0

Quantities to deliver to: Personnel:


European agents 1200 800 400 Assembly workers to recruit 0 Number to train 2
(Not in full Nafta distributors 0 0 0 Hourly wage rate (€.c) 11.00
if starred) Internet distributor 0 0 0 Management budget (€'000) 70 Staff training (days) 0

Quality: Finance:
Take up product improvements 0 0 0 Shares to issue/repurchase 0 Dividend (cents/share) 0
Product development (€'000) 25 20 15 Term loans (€'000) 0 Term deposit (€'000) -500
Assembly times (minutes) 115 165 325 Machines to buy 0 Machines to sell 0
Premium materials (%) 0 0 0 Factory extension (sq. m.) 0 Insurance plan 1

Subcontracting: Information:
Components to order (units) 0 0 0 Market shares 0 Corporate activity 1

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 11
Management Report: Resources & Products (2nd Part)
PHYSICAL RESOURCES: Usage and availability HUMAN RESOURCES: PRODUCT DATA: Product 1 Product 2 Product 3
Quantities:
Space: Sq. m. Production personnel: Assembly Machining Scheduled 1200 800 400
Land owned 1000 At start of last quarter 14 15 Produced 1229 820 410
Access/parking etc 200 Recruited 0 17 Rejected 29 20 10
Unused land 300 Trained 2 Lost or destroyed 0 0 0
Factory size next quarter 500 Dismissed 0 0
Circulation and access 125 Left 0 1 Delivered to:
Machining operations 100 Available for next quarter 16 31 European agents 1200 800 400
Assembly operations 160 Nafta distributors 0 0 0
Material and component stocks 10 Internet distributor 0 0 0
Available space (overflow if negative) 105 Assembly workers:
Hours available 8064 Orders from:
Machines: Number Absenteeism/sickness (hours) 2 Europe 1257 713 380
Number decommissioned 0 Hours worked 6830 Nafta 0 0 0
Machines in use last quarter 4 Internet 0 0 0
Number bought and installed 0 Notice of strike weeks for next quarter 0
Machines available for next quarter 4 Sold to:
Europe 1257 713 380
Theoretical hours available 4272 Nafta 0 0 0
Hours breakdown 38 Internet 0 0 0
Hours worked 3130 Agents/distributors: Europe Nafta Internet
Hours planned maintenance 22 Active last quarter 3 0 0 Backlog of orders:
Average machine efficiency % 98.2 Resigned 0 0 Europe 0 0 0
Dismissed 0 0 0 Nafta 0 0 0
Materials: Appointed 0 1 0
Opening stock available 2179 Active next quarter 3 1 0 Warehouse stocks:
Bought spot 4000 Europe 99 212 145
Bought default 0 Nafta 0 0 0
Lost or destroyed 0 Internet 0 0 0
Used 4099
Closing stock 2080 Transport: Europe Nafta Internet
For delivery next quarter: Journey length (km) 1381 0 0 Guarantee services 0 0 0
Bought last quarter 0 Number of loads 9 0 0
Bought quarter before last 0
For delivery quarter after next: 0 Product improvements Minor Major Minor

Internet statistics: Product components:


Number of web-site ports operated 0 Carbon footprint (CO2e): Tonnes Assembled last quarter 0 0 0
Number of visits to your web-site 0 Factory heating and lighting 4.75 Ordered last quarter 0 0 0
Estimated level of failed visits (%) 100 Energy used in production 13.32 Closing stock 0 0 0
Number of internet service complaints 0 Total primary CO2e 18.07 Available for assembly 0 0 0

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 12
Management Report: Financial Statement (3rd Part)

FINANCIAL STATEMENTS

ADMINISTRATIVE EXPENSES € INCOME STATEMENT € BALANCE SHEET € CASH FLOW STATEMENT €

Advertising 50000 Sales revenue 941455 Non-current assets: Operating activities:


Internet distributor 0 Land 50000 Trading receipts 626989
Internet service provider 0 Opening inventory values 138767 Buildings 250000 Insurance receipts 0
Agents and distributors 103124 Components purchased 0 Machinery 1126492 Trading payments 760938
Sales office 9414 Materials purchased 148980 Property, plant and equipment 1426492 Tax paid 0
Guarantee servicing 0 Machine running costs 66440 Net cash flow from operations -133949
Product development 60000 Machinists wages 120842 Current assets:
Web-site development 0 Assembly wages 80354 Product inventories 85762 Investing activities:
Personnel department 34000 Quality control 2459 Component inventories 0 Interest received 8750
Machine maintenance 5100 Hired transport 23400 Materials inventory 72295 Asset sales 0
Purchasing and warehousing 9004 Less closing inventory values 158057 Trade receivables 614564 Assets purchased 0
Business intelligence 7500 Cost of sales 423185 Cash and cash equivalents 1400000 Net cash flow from investing 8750
Credit control 2350 Gross profit 518270 Current assets 2172621
Insurance premiums 9564 Administrative expenses 370778 Total assets 3599113 Financing activities:
Management salaries 70000 Insurance receipts 0 Shares issued 0
Other costs 10722 Depreciation 28884 Liabilities: Shares repurchased 0
Total administrative expenses 370778 Operating profit/loss 118608 Tax due 0 Dividends paid 0
Finance income 8750 Trade payables 161994 Additional loans 0
Accumulated taxable profit: Finance expense 18966 Bank overdraft 679925 Interest paid 18966
Profit/loss before tax 108392 Profit/loss before tax 108392 Current liabilities 841919 Net cash flow from financing -18966
Previous taxable profit/loss -351198 Tax assessed 0 Term loans 0
Taxable profit/loss -242806 Profit/loss for the period 108392 Net cash flow -144165
Earnings per share (cents) 3.61 Net assets 2757194 Previous cash balance 864240
Cash balance 720075
Dividends paid 0 Equity: (including a term deposit of - 1400000
Insurance claimed 0 Transferred to retained earnings 108392 Share capital 3000000
Primary non-insured risk 1594 Previous retained earnings -351198 Share premium account 0 Overdraft limit for next quarter 620000
Retained earnings -242806 Retained earnings -242806 Borrowing power next quarter 912000
Total equity 2757194

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 13
Management Report: Economic Intelligence (4th Part)

ECONOMIC INTELLIGENCE Europe Nafta Rest (of developed world)


Gross domestic product (de-seasonalised) 3816 4021 59
% Unemployment rate (de-seasonalised) 7.1 5.4
Balance of external trade 1270 1985

Information about next quarter:


Central Bank base rate (% p.a.) 2.5 1.0 Exchange rate in € per $ (USD) 0.79

Building cost (€ per square metre) 500

Component cost (€ per unit) Product 1 Product 2 Product 3


from ( no premium materials) 104 159 247
to (100% premium materials) 123 198 306

Spot price 3 month 6 month


Material prices ($ per '000 units) 49756 49435 48885

BUSINESS REPORT: Small businesses depend on good teamwork. Team members must have
the skills required to carry out their own function and be able
to understand the functions of the others. Where all of the members
operate profesionally the results can be well above those of other
groups.

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 14
Management Report: Group Information (5th Part)

The winning criteria of each Round is the Investment Performance.

FREE INFORMATION Company Company Company Company Company Company Company Company
1 2 3 4 5 6 7 8
Stock market data:
Share price (cents) 102.14 102.14 102.14 102.14 102.14 102.14 102.14 102.14
Market valuation (€) 3064200 3064200 3064200 3064200 3064200 3064200 3064200 3064200

Dividend paid (cents/share) 0 0 0 0 0 0 0 0


Investment performance (€) 3064200 3064200 3064200 3064200 3064200 3064200 3064200 3064200

Business intelligence:
Product prices (€)
Product 1: Europe 285 285 285 285 285 285 285 285
Nafta 0 0 0 0 0 0 0 0
Internet 0 0 0 0 0 0 0 0
Product 2: Europe 450 450 450 450 450 450 450 450
Nafta 0 0 0 0 0 0 0 0
Internet 0 0 0 0 0 0 0 0
Product 3: Europe 680 680 680 680 680 680 680 680
Nafta 0 0 0 0 0 0 0 0
Internet 0 0 0 0 0 0 0 0

Production employees 46 46 46 46 46 46 46 46
Assembly wage rate (cents/hr) 1100 1100 1100 1100 1100 1100 1100 1100
Number of agents/distributors 3 3 3 3 3 3 3 3

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 15
Management Report: Company Balance sheets (6th Part - A)

COMPANY BALANCE SHEETS


for Company: 1 2 3 4 5 6 7 8
Assets
Property, plant and equipment 1426492 1426492 1426492 1426492 1426492 1426492 1426492 1426492
Inventories 158057 158057 158057 158057 158057 158057 158057 158057
Trade receivables 614564 614564 614564 614564 614564 614564 614564 614564
Cash and cash equivalents 1400000 1400000 1400000 1400000 1400000 1400000 1400000 1400000

Liabilities
Tax assessed and due 0 0 0 0 0 0 0 0
Trade payables 161994 161994 161994 161994 161994 161994 161994 161994
Bank overdraft 679925 679925 679925 679925 679925 679925 679925 679925

Long term loans 0 0 0 0 0 0 0 0

Equity
Ordinary capital 3000000 3000000 3000000 3000000 3000000 3000000 3000000 3000000
Share premium account 0 0 0 0 0 0 0 0
Retained earnings -242806 -242806 -242806 -242806 -242806 -242806 -242806 -242806
Net Worth 2757194 2757194 2757194 2757194 2757194 2757194 2757194 2757194

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 16
Management Report: Purchased Reports (6th Part - B)

PURCHASED INFORMATION Not requested


Company number:
Market shares (% by volume sold)
Product 1: Europe
Nafta
Internet
Product 2: Europe
Nafta
Internet
Product 3: Europe
Nafta
Internet

Competitors' business activity


Company number: 1 2 3 4 5 6 7 8
Total advertising expenditure (€) 50000 50000 50000 50000 50000 50000 50000 50000
Total product development (€) 60000 60000 60000 60000 60000 60000 60000 60000
Consumer star ratings:
Product 1 ** ** ** ** ** ** ** **
Product 2 ** ** ** ** ** ** ** **
Product 3 ** ** ** ** ** ** ** **
Web-site

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 17
The Company: Economic Environment

The company operates in direct competition with others, who manufacture and
market the same products, in the same geographic areas.

The market is divided into two geographic areas for the traditional distribution
and marketing- European Union (EU) and the dollar market (NAFTA)

Simultaneously the company reaches these areas and the rest of the world
through the Internet. In all areas there is competition between the same
companies.

Exchange rates influence the competitiveness in some markets; economic statistics are
supplied with seasonality correction. In the internet the dollar is the used currency

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 18
The Company: Marketing

Decide how many products


THE PRODUCTS you want to manufacture
Up to 3 Products and market.

THE DISTRIBUTION
Up to 3 Markets Decide how and in which
markets you will be present.
Read the practical details in
EU NAFTA E-COMMERCE
the manual.

You may buy information to


CONSUMERS know what consumers think
about your products.

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 19
The Company: Marketing

CONFLICT: MARKETING / PRODUCTION

Market Production
Potential Plan

Marketing Production
Projections Capacity

Forecast Resources

Forecast
Order Backlog Inventory
Inaccuracy

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 20
The Company: Production

MACHINING ASSEMBLING

Raw Materials Components Finished Product

Up to 3 Shifts One shift, extra hours,


limited number of workers
Option to buy Premium Option to sub contract
Materials components

Consult the tables in the manual, to see the From the manual, check the conditions that will
number of hours available for production, for affect assembly. Assembly times are your
each of 3 shifts. decision, based on the quality standards defined.

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 21
The Company: Human Resources

Human Resources Management is responsible for providing the company with enough
manpower and a motivated and efficient workforce. The workforce is recruited in a
competitive market. The management of Human Resources requires the monitoring of
the market and co-operation between departments to anticipate the needs of
manpower.

It is therefore essential for Human Resources Management to work as part of the


management team to ensure that requirements for workers are met, and that those
who are working for the company do so under the best conditions that the company
can afford.

Sickness, absenteeism, unrest, strikes; will influence the company costs.


Wages influence the company success, including the top management remuneration.

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 22
The Company: Finance

The Finance Department is responsible for ensuring that the company's funds are managed
efficiently, in line with corporate strategy. This implies a variety of roles, which include
monitoring:

• Profitability
• Investment and loans
• Assets
• Taxation and Dividend policy

Importantly, it must work closely with the management team with the objective of getting the
highest Investment Performance, against which performance is judged.

Loans, Assets and Insurance influence the costs.


Read carefully the accounting procedures and understand all costs associated with the
company management.

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 23
Competition Format

Global Management Challenge is played over 4 Rounds of Competition (Each round


consists of new Company History):
Note: Performance in any Round does not influence the results of succeeding Rounds..

National International
Trial Round Round 1 Round 2
Finals Finals

Participants: Participants: Participants: Participants: Participants:


All Registered Teams in All Registered Teams in All Qualified Teams All Qualified Teams All winners from
the Competition the Competition from Round 1 from Round 2 GMC National Competitions

Duration: Duration: Duration: Duration: Duration:


2 Decision Cycles 5 Decision Cycles 5 Decision Cycles 5 Decision Cycles 5 Decision Cycles

Teams / Group: Teams / Group: Teams / Group: Teams / Group:


6 Teams / Group 8 Teams / Group 8 Teams / Group 5 - 8 Teams / Group

Qualification: Qualification: Winner: Winner:


Top 2 Teams / Group Top 2 Teams / Group 1 Team 1 Team

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 24
Competition Format: Awards & Recognition

S.NO TEAM CATEGORY INTERNATIONAL FINAL TROPHY CERTIFICATE *


The National Winner to represent SDG Portugal signed Certificate
01 WINNER – NATIONAL FINALS Team India at Global Management Winner’s Trophy for Training completion and 1st
Challenge World Finals Rank in the Competition.
SDG Portugal signed Certificate
02 1ST & 2ND RUNNER UP – NATIONAL FINALS Runner’s Up Trophy for Training completion along with
2nd / 3rd Rank in the Competition.
SDG Portugal signed Certificate
03 3RD – 8TH RANK TEAM – NATIONAL FINALS Finalist Trophy for Training completion along with
Final Rank in the Competition.
SDG Portugal signed Certificate
04 OTHER TEAMS – NATIONAL FINALS for Training completion and
qualification till National Final.
SDG Portugal signed Certificate
05 OTHER TEAMS – ROUND 2 for Training completion and
qualification till Round 2.

* Note: The other participating Teams will receive Participation Certificate issued by GMC India Event Organizers.

Global Management Challenge is the world’s largest strategy and management competition, organized by SDG – Simuladores e Modelos de Gestao, Lisbon - Portugal Page 25
All the best for the
Competition !!
For any more information or clarification, please write to us at
[email protected]

Web. (India): www.gmcindia.in


Web. (International): www.worldgmc.com

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