On April 30th, students took part in the IE Global Business Simulation, in which they were tasked with formulating a strategic plan for business expansion.
The IE Global Business Simulation (GLOBUS) marked the end of the elective course “International Business Strategy: Simulation” for undergraduate students at IE University. The winning team, comprised of both IEU students and exchange students from a range of nationalities, created a unique formula that helped them win the simulation. Their proposal would help a business expand across borders, working with many different aspects of decision-making across all major business functions over a two-month period.
In this online simulation, students had to run a company that was racing for global market leadership in two product categories: wearable (and mountable) video cameras and camera-equipped drones suitable for a variety of commercial purposes.
Throughout the course, students had to work together to make decisions in five key categories: earnings per share, return on equity, credit rating, stock price, and image rating. They had to meet industry standards and achieve competitive positioning against the other student groups. Thanks to this course, students deepened their understanding of revenue-cost-profit relationships, and their confidence in using the information in a company’s financial statements and operating reports grew hugely.
According to Marc Smelik, Associate Dean at IE Business School, “the students had to compete against the other members of the class, and did a great job on their presentations and creating solutions for the company. The winning team’s strategy was very well adapted to a changing industry and to its competitors in the classroom. This is what helped them to stand out from the rest.”
Congratulations to Jorge Alises Rodríguez (Spain), Man Yan Cheryl Lee (Hong Kong), Ismail El Oussoul (Morocco), and Tatiana Seinjet (Colombia) for their hard work in the simulation.
To get the inside scoop on their experience, we spoke to two of the team members: Tatiana Seinjet and Man Yan Cheryl Lee.
1. What was your experience like in this simulation? What did you learn?
Tatiana Seinjet: The first day of class, when the professor presented the simulation and we got to play the first trial round, I was very stressed and nervous because the game is complicated. However, after the first two trial rounds, my group became more familiar with the simulation thanks to plenty of research and learning about the most important parts of a business. During the simulation (which consisted of several rounds), I learned that every decision you make will have an effect on the success of a company. I also learned that behind every decision made, a huge amount of research must be done to ensure it will have a positive effect on the future of the company.
Man Yan Cheryl Lee: This course is unlike any other, as it is all about learning on the job. We were given a whole business setting and we had to build the business up from scratch, plan its entire short-term to long-term strategies, and put our vision into action. We were exposed to multiple fields of business, which helped to broaden our horizons. The most important takeaway from this simulation, for me, is learning to work well as a team. This is very much similar to real-world situations, where a company has to deal with a range of different scenarios. We had to learn to adapt, listen to others’ opinions, and reach a consensus, all while ensuring we had the best interest of our company at heart. Working with my group, which consisted of friends from different cultural backgrounds, was a brand new and exciting experience for me and I really enjoyed it. I would definitely recommend this course to anyone considering taking part.
2. What was your final project about?
Tatiana Seinjet: For our final project, we made a presentation describing our experience during the simulation and what are our strengths and weaknesses were. We also talked about our group dynamic, which was essential for this simulation.
Man Yan Cheryl Lee: The key idea of this course is to train us to better understand how a business works. From product management to marketing to finance, it’s all about how we prioritize and allocate our resources. An important takeaway from this course was learning which areas are more essential in contributing to the success of a company. Our final goal was to strive to become the best in the industry, no matter the consumers or investors.
3. What advice would you give to future students who want to participate in this simulation?
Tatiana Seinjet: I would recommend to all future students to take part in the simulation as it is such a great learning experience. However, I would also say that there is a lot of research required in order to be successful and to learn more about the real business world.
Man Yan Cheryl Lee: Be agile and open-minded. The simulation is a very challenging journey filled with ups and downs. You have to be fully aware of each aspect of your company and which areas are best to work on. Wise delegation of work is important in ensuring good team dynamics. It is also important to ensure everyone is utilizing their strengths and working towards the same goal.