The Americas Edition
The Americas Edition allows students to compete in up to
three economic zones within the Western Hemisphere. Mexico and. Mexico and
Colombia are in Zone 1, Canada and the United States are in Zone
2, and Brazil and Argentina are in Zone 3. This edition features
the top-loading washing machine segment of the Home Appliance Industry.
The game can be set to run for 8, 10, or 12 decision rounds.
Strategic options and tactical decisions
The Global Business Game allows players to design and implement any one of a complete range of generic business-level strategies within a single-business corporate-level strategy. The complexity of the firmís operations can be controlled by the instructor via the number of countries put into play.
Firms can engage in a differentiation generic strategy by investing
heavily in product research and development efforts. If successful,
they can apply a patented technological breakthrough to its washing machines.
A firm could implement a generic strategy of cost-leadership by
(1) using inexpensive but low quality raw materials, (2) employing
high degrees of supervision, quality control programs, and assembly
line robots to minimize the human errors that cause warranty charges
to be required on returned defective units, (3) lowering distribution
costs by creating a company-owned and operated wholesaling operation,
or (4) shifting manufacturing operations to low labor cost countries.
A focused cost-leadership generic strategy can be implemented in
a number of ways - by tailoring the firm's washing machines to only one
market segment or by concentrating sales in only one country or
one economic zone. A focused differentiation generic strategy could
be implemented by making only one product model and having that
model appeal to just one of the industry's user segments.
The integrated cost-leadership/differentiation strategy would be
based on unique firm strengths such as efficient and well-located
factories and a loyal and productive sales staff.
If all three economic zones are available
in the Americas Edition, players can implement strategies and are able to use
a large number of market entry modes within the Western Hemisphere.
Regardless of the level of dynamism
and complexity that you chose, all firms can expand their existing
Home Country factory.
In the Americas Edition, firms can also increase the
plant's productivity by installing automated equipment, conducting
quality training programs with quality circle meetings, and by using
assembly line worker training programs. Quality Control inspection
programs can also be implemented which ultimately reduce warranty
work charges. Firms can also build new facilities in foreign countries.
They can also move a domestic operation's capacity to these offshore
sites. They can also sell excess or unwanted automated and assembly
line equipment to other firms in the industry. As a last resort,
if capacity is not needed, firms can either sell off or decommission
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Each firm's external finances are tied to the financial centers
associated with its home country.In the Americas Edition, Zone 1's financial center
is Mexico City; Zone 2's is in New York City; and Zone 3's is in
In order to raise capital, firms can sell common stock or issue
bonds. In the Americas Edition, companies can obtain
outside capital through short-term loans as well. They can also
call their bonds and purchase Treasury stock on their own account.
If you choose the "Dynamic" option,
all economic factors change throughout the exercise. This entails
quarterly changes in exchange rates, the stock market's activity
level, long-term and short-term interest rates, raw materials costs
and assembly line worker wages.
After each decision round, firms receive The Global Industry Report,
which comes in the form of a trade newsletter. It summarizes the
general activities engaged in by the competitors while also informing
students about future events. Additionally, students can obtain
market research reports with the information on the industry's major
competitive elements such as comparative sales promotion budgets,
near-term unit sales and estimates of competitor product quality.
Finally, each firm also receives a set of confidential reports such
as the operations report, income statement and balance sheet.
alliances and business negotiation
In the Americas Edition, student teams can negotiate
joint-venture arrangements and strategic alliances through patent
licensing, subcontracts and the sale and transfer of production
capacity. By doing this, students learn to build and maintain business
relationships and balance short-term and long-term interests. At
the same time, the negotiation element turns the game into an even
more exciting and realistic exercise.
factors and ethical issues
The Americas Edition features exercises that cover human
factors and ethical issues faced by those making real-world strategic
decisions. Your students can be asked to respond to a number of
critical incidents presenting some of the "softer" problems faced
by managers. These critical incidents are presented in mini-case
format and you can optionally introduce them at any point during
the exercise. They include challenges in sales promotion considerations,
employment practices, culture clashes, organizational change strategies,
technological enhancements, and alternative structures for global
competitiveness. Other human factors involve the work ethic and
job satisfaction and aspirations of the workers in each of the simulated
to use in your course