International Operations Simulation

Hans B. Thorelli is the author of International Operations Simulation, a Free Press book.

• ContentsFOREWORD by Dean George P. ShultzPREFACE1 Of Games and Game Design1. Simulation by Gaming: Purposes of GamesA. EducationB. ResearchC. Business Planning2. Types of GamesA. Specific PurposeB. Level of ManagementC. Individual vs. Group Decision-makingD. Interactive vs. Non-interactive SimulationsE. Manual vs. Computerized Simulations3. Pointers on Design and Selection of SimulationsA. Bias of DesignersB. RealismC. Simplicity Not Necessarily a VirtueD. Complexity vs. PlayabilityE. Degree of DeterminismF. Qualitative vs. Quantitative FactorsG. DynamicsH. Forestalling Dysfunctional Behavior4. Pointers on PlayA. Number of Teams and Members Per TeamB. Emphasis on the Long RangeC. Time Available for Decision-making. Continuous vs. Intermittent PlayD. Evaluation Sessions and Continuous FeedbackE. Enriching the Game Experience5. Effectiveness of Games in EducationA. Problems of MeasurementB. Games Compared to Cases, Etc.C. Functional InsightsD. A Holistic ViewE. Insight into Decision-making Processes6. Role of Games in Education2 INTOP: An Overall Presentation1. Purpose2. Fitting INTOP into Educational Programs3. General Model and Designer BiasesA. General ModelsB. International VariablesC. Common Economies and SpecializationD. Dynamics of the ExerciseE. Designer BiasesF. Summary: Highlights of INTOP4. The Game Structure Detailed. Decisions to Be Made by ParticipantsA. Company Organization and Home OfficeB. Products and Improvements, R & DC. The Management of InnovationD. Area OperationsE. Production ManagementScheduling of plants and production; Plant characteristics; Manufacturing cost characteristicsF. Limit on Number of GradesG. Marketing ManagementCompetitive variables: price, advertising, grade and standard-deluxe models; Channels; Marketing researchH. Shipping and Other Transfer CostsI. InventoryJ. Financial ManagementArea finances; Home office financesK. Marketing Research, Trade Association Gazette and ConsultationL. Inter-company and Intra-company TransactionsPatent licenses; Inter-company (industrial) sales; Intra-company transfer of goodsM. Background Data on Brazil, the EEC and the U.S.Size of market, nature of demand; Product market differences by area; Sensitivity to advertising; Commercial and administrative expense; Cost of production and capital; Government and business relations. International trade policies; Business cycles and economic index5. Additional Standard Information for ParticipantsA. Marketing Research DetailedB. Schedule of Costs, Charges, Time Lags and Marketing Research Services3 Economic Models and ProgrammingApproachesIntroduction1. An Overview of the Economic Aspects of INTOP2. The Economic and Mathematical Aspects of the INTOP SimulationA. The Functional AreasB. Time and ChangeC. The Consumer MarketD. The Marketing Cost FunctionsShipping costs; Sales expediting costs; Commercial and administrative costs; The inventory cost functionE. The Manufacturing FunctionsF. The Financial FunctionsC. The Research and Development FunctionH. The Equilibrium Position of the Firm3. The Simulation from the Computer Viewpoint4 Game AdministrationIntroduction1. Preparatory ConsiderationsA. PurposeB. ResourcesC. Team Number, Size and Structure. Mergers, Subsidiaries, Joint VenturesD. Equal Start or Handicap Play? Predetermined or Discretionary Objectives?2. Administering a Standard Run of INTOPA. Orienting ParticipantsB. Organization and Objectives of TeamsC. Telescoping Initial Decision PeriodsD. A Standard Decision SessionE. Administrative Aide-mémoireF. Programmed Routines vs. Deliberate DecisionsG. Changing Game Parameters. Role of Monitor CompanyH. Processing Cycle and Administrative RoutinesI. Short Runs -- Some ObservationsJ. Accumulating Game History for Control and Evaluation3. Regulating the Flow of Decision-making DataA. Information Systems and Their ManipulationB. Varying the Rate and Types of InformationC. Extending the Time Span of Plans and DecisionsD. Media of RegulationE. Evaluating Comprehension and Processing of Data. Feedback from One Student Cohort to the Next4. Enriching the INTOP ExperienceA. Integration of the Simulation in a Broader Educational ContextB. Means of IntegrationC. Introducing Qualitative FactorsD. Making Use of Outside Experts, Role-playing, In-baskets, etc.E. Adjusting Quantitative Performance of Individual Companies to the Quality of Their Decisions5. Performance EvaluationA. Performance CriteriaB. Objectives and Degree of Goal AchievementC. Quality of Plans and PlayD. Quality of Related AssignmentsE. Indications Inherent in the INTOP ModelF. Mutual Evaluation of Executives Within TeamsG. Management Audit and Review of the Simulation5 Computer Operations and Wonder Cards. Parameter Choice and ChangeIntroduction1. General Overview of Computer OperationsA. The Flow of InformationB. InputsC. OutputsD. Equipment Requirements, Processing TimeE. Changing Number of Companies. Consecutive Processing of Several Periods. Changing Period Numbers and Identification2. Dictionary and Wonder Cards: Instruments of ChangeA. DictionaryB. Wonder Cards3. Parameter Choice and ChangeA. IntroductionB. The Framework of Parameter Selection Area and product variations; Constraints imposed by the model and the decision forms; Financial statements and related parametersC. Additional Considerations in Parameter Selection Elasticities and remaining parameters in the functional management areas; Elimination of parameters; Safety valves6 A Modular Multi-Purpose Simulation1. Modular in Design, Multiple by Purpose2. General Management INTOP SimulationsA. Emphasis on OrganizationB. Emphasis on DiversificationC. Emphasis on Product InterdependenceD. Emphasis on BargainingE. Emphasis on Experimentation. Non-Interactive Settings3. Functional Management INTOP SimulationsA. ProductionB. MarketingC. Finance and Accounting4. SimplificationA. A Domestic Regional Management SimulationB. A Single-product SimulationC. A Multi-product SimulationD. A Single-area SimulationE. A Game for 72 Teams5. A Distribution Systems Simulation6. INTOP-INDUSTRIAL -- An Exercise in FlexibilityAppendicesI Dictionary of Program Parameters and State VariablesII Standard FORTRAN Output of Company Financial and Marketing Research Data, sampleIII Selected Special Outputs for the AdministratorIV Standard Decision Forms and Standing Contract FormsV Standard Operating InstructionsVI Ancillary Documentation for Discretionary UseVII A Note on Organization Simulation by GamingSelect BibliographyIndex