Challenging
modules...

Exactly what happens during the
simulation exercise?
The Protean Strategist is played out over a series of decision periods that last from two to three hours. At the end of each period, every management team must submit its company's strategic blueprint as a set of decisions in R&D, marketing, operations and finance. Between sessions, the simulation engine plays out the consequences of those decisions in the context of a competitive marketplace.

Because the complexity of the business scenario and the intensity of the competition increase over time, management teams naturally concentrate on different aspects of their assignment at different points in the simulation exercise. It's useful to describe each module separately and to point out key activities.

The five decision rounds are preceded by an introductory lecture and the exercise concludes with a set of management team reports and a debriefing by the simulation facilitator.

Simulation Overview presents an introduction to The Protean Strategist that's meant to supplement the material in the Management Decision Guide, providing background information on the business scenario, sources of data, reports, studies, and the analytic tools available. The facilitator focuses on management decision-making by looking at the strategy, planning, and implementation issues each team will face during the simulation exercise.

Decision 1 places managers in a new business environment, presenting them with the opportunity to analyze their own unique situation with respect to a complex marketplace in a competitive and rapidly changing industry. Players are asked to identify their company's strengths and weaknesses, and create a 5-period market strategy and business plan. They spend time organizing their teams to make full use of the data and tools available, and work on procedures to streamline decision-making.

Key activities:

• situation analysis
• long-range strategy
• organization and planning
• the decision-making process

Decision 2 focuses management attention on laying the groundwork for implementing strategy and business plans. Participants work to understand the structure and dynamics of the marketplace, paying special attention to customer needs analysis and market segmentation. They identify attractive target markets, and begin to develop new products as they take prototypes through the R&D process.

Key activities:

• market segmentation
• customer needs analysis
• target market identification
• new product R&D

Decision 3 usually sees a dramatic increase in the number of products on the market, as competing companies attempt to capture target segments with new product offerings. Managers develop the marketing mix for these new products, allocating additional resources to advertising, service and distribution so that they can best satisfy the needs of their target customers. At the same time, companies reposition existing products and anticipate the market reaction to a new emerging technology.

Key activities:

• test marketing
• new product introductions
• the marketing mix
• resource allocation
• technology strategy

Decision 4 highlights the effects of maturing markets, as effective product positioning becomes increasingly critical. Management teams focus on their competitors, and work to understand the critical success factors in each target market. Cost pressures in the mass market continue to drive the competition in the low end. And the increasing importance of a new technology in high-end markets necessitates a review of long-term market strategy.

Key activities:

• maturing markets
• competitor analysis
• product positioning
• product life cycle dynamics
• new technology

Decision 5 is usually the final decision period. Effective product portfolio management becomes increasingly important here as companies continue to invest in expensive technology while attempting to increase profits from their established product lines and customer bases.

Key activities:

• financial control
• product portfolio management
• sustained advantage

Team Debriefing concludes with a series of team presentations after the simulation exercise ends. These presentations focus managers' attention on their own performance during the exercise, exploring the effectiveness of strategy formulation, market planning, implementation, the management process, and team dynamics. The teams are asked to relate successes, challenges and lessons learned to issues raised in the other course sessions and place them in the context of their own industry and company.

Simulation Results are presented by the facilitator as part of a general review of the five simulation periods, including a summary of industry strategy and planning, overall spending patterns, key market data and financial profiles, as well as a look at successes and challenges faced by all teams. This wrap-up places the simulation activities, lessons and results back in context, revisiting the central issues surrounding competitive market strategy, planning and implementation.