In the Entrepreneurial Challenge® business simulation, the goal is for each participant - whether he or she is a front line worker, a manager, or an executive - to grasp essential financial concepts and tools such as:
- The difference between cash and profit
- Fixed versus variable costs
- The impact of inventory build-up
- The need to control working capital
- Income statements and balance sheets
- Standard measures (operating income, net income, ROA)
- Your company's specific financial measures
In about four hours of experiential learning, they build business acumen including a big-picture understanding of:
- Investing, generating profits, and posting losses
- Maintaining financial statements
- Deciding strategic direction in the marketplace
- Implementing change and measuring results
- Monitoring cashflow, receivables, and inventories
- Using operating income to compare results to competitors
Participants get immersed in the competition, form lasting friendships with teammates, and also take improved decision-making skills back to the office. Among other things, they:
- Know how they impact the financial reports
- Make better choices in everyday activities leading to reductions in costs, inventories, and working capital
- Help build shareholder value day-to-day
- Build beneficial relationships with customers and suppliers
- Recognize the value of a customer
- Better serve internal and external customers
- Understand how actions impact other areas of the company
And the whole organization benefits from the results, including:
- Employees understand the needs of the business
- Visualize strategic alternatives
- Better able to implement directives
- Communicate issues impacting business results
- Increased respect for management decisions
- Greater engagement in financial planning
- Buy into the budget (and budgeting process)
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