Online Gbg Teaching Tips

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Teaching Tips
The environment created by The Global Business Game will give you many opportunities to realize pointed lessons when a management team asks you for advice. A number of Teaching Tips have been placed within Help based on decision areas that have subtle yet meaningful conundrums. These Teaching Tips might also be the basis for your presenting decision set mini-lectures later on in the gaming experience. The following cites the topic section where Teaching Tips exist along with a short description of each tip's content or approach. Automatons-Illustrates how to conduct a cost/benefit analysis of substituting capital with labor by country, and choosing between Auto1s versus Auto2s given quantitative and qualitative effects. Company Sales-Indicates how to calculate a country unit's true sales potential for the quarter. Company-Owned Wholesalers-Addresses the quantitative and qualitative factors associated with replacing I-Wholesalers with C-Wholesalers. Decision Set-Encourages players to optimize various totally quantifiable decision areas rather than relying on the interface's sub-optimal WARNING acceptances. Home Electronics King-Indicates the rewards and risks associated with a bold strategic move with great promise but also many contingent unknowns. Line Supervisors-Forces players to realize the human overhead costs associated with using the labor pool found in low labor-cost countries. Logistics-Indicates the shipping costs associated with each television set given a factory's location. Provides a clue as to which elements of the logistics process, inbound costs vs. outbound costs, are of greater impact on the producing unit's total costs as well as the degree to which logistical matters should influence a factory investment decision. Plant and Equipment-Examines all costs and benefits associated with plant automation efforts by country unit. Plant Configuration/Production-Examines the reasons why a factory's actual output can be less than its engineered or designed capacity. Sales Representatives-Provides an "economic" analysis of the sales staffing problem. Examines the assumptions that must be associated with this decision. Sick Days-Provides a quantitative method for determining the amount of Overscheduling a factory's manager should employ rather than relying on an empirically-derived rule-of-thumb. Wage Bill-Establishes the basis for discovering the components of a factory's Wage Bill. Wholesalers-Examines the comparative costs and benefits of replacing I-Wholesalers with C-Wholesalers in both the short-term and long-term. Index


Teaching Tip
There are two major teaching points associated with the use of Automatons. One deals with the costs and benefits of replacing Line Workers with any type of Automaton. The second teaching point deals with determining which of the two Automaton types should be installed in any given factory. To analyze the costs and benefits of replacing Line Workers with automated equipment, the concept of the "average" Automaton is employed. By using a generic or average Automaton the costs and benefits associated with the replacement of labor with capital can be explored. Once the issues associated with automatic equipment have been presented the new issues deal with the advantages and disadvantages that exist between Auto1s and Auto2s. In the example shown below an American firm will be purchasing one average Automaton. This means two Line Worker spaces, plus their productivity but minus their costs, will be eliminated. A. Replacing Line Workers with Automatons-Must calculate the cost of an Automaton versus the two Line Workers it will replace. THE AVERAGE AUTOMATON VS. THE AVERAGE LINE WORKER AVERAGE AUTOMATON CALCULATIONS CostsAutomatonAverage

Labor Hours2,0802,6652,373
Auto Technician Salary3,0323,6383,335
Auto Technician Training4,3334,3334,333
Purchase Price250,000400,000325,000
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