how to play - amazon s3 · 2017-07-26 · million. the nutraceutical distribution business is...

How to PlayUSER GUIDE

Sunflower Nutraceuticals & the Nutraceutical IndustryYou are the CEO of Sunflower Nutraceuticals (SNC), a privately-held Miami, Florida based nutraceuticals distributor

Sunflower is essentially breaking-even with flat annual sales growth on total revenues of $10 million. The nutraceutical distribution business is working capital intensive and margins are generally thin.

◦ Sunflower Nutraceuticals started in 2006 as an Internet-based direct to consumer distributor and retailer of dietary supplements

◦ Product offering spans 100 SKUs from 50 third-party brands◦ Experienced ambitious growth including expansion into new retail outlets and private label production

The nutraceutical industry is a relatively new sector with strong growth potential ◦ In 2010, the global nutraceuticals market was worth approximately $128.6 billion. ◦ The global market is forecasted to grow at a compound annual growth rate (CAGR) of 4.9% and reach

$180.1 billion by 2017.

COPYRIGHT © 2014 BY HARVARD BUSINESS SCHOOL PUBLISHING. 2

How to Play1. Prepare – Review the Prepare tab for an introduction to the company, How to Play, and

download the terminology primer.

2. Analyze reports – The financial statements report the company's historical and current financial picture and how the financial condition of Sunflower Nutraceuticals has changed over time

3. Enter decisions – Click on the Decide tab to enter financing options (pending class settings) and investment decisions for the next phase. You can choose to invest in or reject any or all of the opportunities available to you in the 3-year phase. When you have finished entering your investment decisions, click the Submit Decision button to advance to the next phase.

4. Review – Look at the Synopsis page and your financial statements to see how each opportunity you selected impacted Sunflower Nutraceuticals’ performance.

Continue until you have completed all phases of the simulation.


PrepareThis section gives information on your role, a company overview, and provides basic steps for How to Play.

The Terminology Primer PDFdownloadable from the “How to Play” introduces key concepts relevant to the simulation.


ANALYZE: Dashboard Overview This page provides a visual summary of the current status of the simulation based on the most recent phase completed. The sim begins in Phase 1, with the Dashboard presenting historical data for years 2010-2012.

1. Equity Value and Total Firm Value2. Annual Sales3. Annual EBITDA4. Annual Net Income5. Annual Free Cash Flow6. Cumulative Free Cash Flow7. Cash Surplus/Shortfall8. Total Value Created; and for each Phase9. Incremental Credit Available10. Total Value Created11. Time Line – indicates

your progress through the simulation

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ANALYZE: Balance SheetThe Balance Sheet depicts 3 years of data for the current phase of the simulation.

As you progress through the simulation, a toggle at the top will allow you to view historical data.

This screen includes three bar charts illustrating each phase’s

◦ Cash and Cash Equivalents values

◦ Total Current Assets

◦ Credit Line Availability

On this screen, like most others in the simulation, you can use Copy to Clipboard functionality to paste the data into a spreadsheet program of your choice for further analysis.


ANALYZE: Income StatementThe Income Statement depicts 3 years of data for the current phase of the simulation.


This screen includes three line graphs illustrating each phase’s

◦ Sales

◦ EBITDA

◦ Net Income


ANALYZE: Cash FlowThe Cash Flow Statement depicts 3 years of data for the current phase of the simulation.


This screen includes two bar charts illustrating each phase’s

◦ Cash Flow from Operations

◦ Ending Cash and Cash Equivalents


ANALYZE: Credit Line and RatiosThe Credit Line and Ratios statement shows a table with financials for the company’s credit line statement depicting 3 years of data for the current phase of the simulation.

• As you progress through the simulation, a toggle at the top will allow you to view historical data.

• This screen includes a graphical illustration of the Cash Conversion Cycle that updates based on opportunities selected.


DECIDE: Financing OptionIf your instructor assigns the Financing Options Decisions, you’ll need to review a memo from Sunflower Nutraceuticals’ Board of Directors, evaluate the three financing options, and select the best financing option for your company.

NOTE: Depending on your class settings, you may not have this decision available to you.


DECIDE: DecisionsThis is where all Decisions are entered. Each opportunity includes a detailed description and initial assumptions. You must decide to accept or decline each opportunity.


A green check indicates an opportunity has been selected.

Accepted Opportunities are listed.

Your selections will not be final until you click “Submit Decisions”.

how to play - amazon s3 · 2017-07-26 · million. the nutraceutical distribution business is...

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