Mikes Bikes Quick Start Guide
Quickstart Guide
MikesBikes-Intro (MB-I) is an Online Business Simulation that will give you the opportunity to run your own company, managing all the key functional areas of a Firm. It is used as an interactive tool to enhance the integration and learning of the basic concepts of business in a real life context: the Bicycle Manufacturing Industry. You will get hands on experience at making critical price, marketing, operations, product development, and financial decisions.
Your team will take over an existing Bike Company. You start as Brand Managers, but the company President has announced his/her intention to retire in 3 years time. Your team has been selected to be the Executive Officers that will be gradually given full control over the company. Each year you will be given more control over the business.
Technical Requirements:
You will need one of the following web-browsers to use the WebSim:
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•
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Internet Explorer 7
Mozilla Firefox 1.5 or later
Safari 1.3 or later
We recommend Firefox. For a free download of Firefox, please visit: www.firefox.com Your Goal – Creating Shareholder Value (SHV)
As the Managers/Executive Officers of your MikesBikes Firm, the primary goal for your company is to enrich its shareholders (owners) by paying Dividends and increasing Share Price. The measurement of this total return to shareholders is known as Shareholder Value (SHV), so the success of your company is measured by the amount of Shareholder Value you create compared to your competitors.
Shareholder Value is a measure of the current Share Price, including all past dividends paid, plus interest accumulated on these past dividends. It is the value to an investor over time of owning a single share in your firm (if you never pay dividends then SHV is the same as Share Price).
Your Share Price is driven by:
•
•
Profitability and Earnings Per Share (EPS)
E.g. Firm A has 2 million shares issued and made $1 million profit, EPS = $0.50
MikesBikes-Intro (MB-I) is an Online Business Simulation that will give you the opportunity to run your own company, managing all the key functional areas of a Firm. It is used as an interactive tool to enhance the integration and learning of the basic concepts of business in a real life context: the Bicycle Manufacturing Industry. You will get hands on experience at making critical price, marketing, operations, product development, and financial decisions.
Your team will take over an existing Bike Company. You start as Brand Managers, but the company President has announced his/her intention to retire in 3 years time. Your team has been selected to be the Executive Officers that will be gradually given full control over the company. Each year you will be given more control over the business.
Technical Requirements:
You will need one of the following web-browsers to use the WebSim:
•
•
•
Internet Explorer 7
Mozilla Firefox 1.5 or later
Safari 1.3 or later
We recommend Firefox. For a free download of Firefox, please visit: www.firefox.com Your Goal – Creating Shareholder Value (SHV)
As the Managers/Executive Officers of your MikesBikes Firm, the primary goal for your company is to enrich its shareholders (owners) by paying Dividends and increasing Share Price. The measurement of this total return to shareholders is known as Shareholder Value (SHV), so the success of your company is measured by the amount of Shareholder Value you create compared to your competitors.
Shareholder Value is a measure of the current Share Price, including all past dividends paid, plus interest accumulated on these past dividends. It is the value to an investor over time of owning a single share in your firm (if you never pay dividends then SHV is the same as Share Price).
Your Share Price is driven by:
•
•
Profitability and Earnings Per Share (EPS)
E.g. Firm A has 2 million shares issued and made $1 million profit, EPS = $0.50