is/it for managers
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IS/IT for Managers. Discussion 4: FFTW - Introductions. SIDI-31135. 2010-2011 T3. Overview. First run of the business game, Flowers For The World: An attempt to give everyone a common ground for understanding the business processes that are to be supported - PowerPoint PPT PresentationTRANSCRIPT
IS/IT for ManagersDiscussion 4: FFTW - Introductions
2010-2011 T3SIDI-31135
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Overview•First run of the business game, Flowers
For The World:▫An attempt to give everyone a common
ground for understanding the business processes that are to be supported
▫Each group must work out the information system that will allow the proper flow of information between each group member Probably, you will work it out as you play!
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Experiential Learning•Learning by doing•But, the person must be willing to:
▫Be actively involved▫Be able to reflect on and analyze the
experience▫Use problem solving skills to make the best
use of the new ideas gained
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And …
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Part 1Introducing the Company
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Flowers For The World•Small, horticultural import/export and
distribution company:▫Founded in 1911, headquarters in Cergy▫Flowers bought at auction each week▫Sold directly to customers through a string
of partnerships (flower shops)▫Flowers stored in a refrigerated warehouse
in Cergy (max. 3 weeks)•Since 1994, specializes in the sale of
Roses, Irises, and Daffodils
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Roses, Irises, Daffodils
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Management Structure
CEO
Financial Manager
Sales Manager
Purchasing
Manager
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Aalsmeer Flower Auction999.000m2
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The Flower Auction• Auctions are held in Aalsmeer, Holland, at
04h00 every Monday morning:▫Flowers are offered in varying number of lots,
where each lot is 100 flowers (2 lots of Roses = 200 Roses)
• Bids are made for each set of flowers (2 lots, etc.):▫The auctioneer has a minimum sale price
• Once bought, the flowers cannot be returned:▫Payment is due before the end of the week▫Failure to pay means a one-week suspension
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Sale to Customers•Flower shops open at 09h00:
▫Which is after the auction closes•Our customers (partners) send enquiries
for N number of flowers•FFTW responds with a quotation giving
price per flower:▫Customers will haggle over price▫Default delivery of “within 2 weeks”
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Profit and Loss Statement•By law, a profit/loss statement is required
at the beginning of each week, summarizing the trade for the previous week:▫Failure to submit the statement to the local
bureau commercial will result in a series of fines: First offence, 250 € Second offence, 1.000 € Third offence, suspension of company
activities
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Part 2How We Play the Game
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Timeline of Activities
One “week” = 20 mins
Auctionbegins
Customerorders
P/LStatement
due
Firstbid
Second/third bid
Firstquote
Secondquote
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Example: The Auction•2 lots of Roses:
▫You offer 100 € (Min. price 90 €), you win!•2 lots of Irises:
▫You offer 90 € (Min. price 100 €), you lose!•3 lots of Daffodils:
▫You offer 1.000 € (Min. price 1oo €), you win?
NOTE: It doesn’t matter how many lots there are, matching the minimumauction price is the key. Will not change more than ±10 € a week.
Want to see in this order!
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Be Careful!•Let’s say 2 lots of Roses sold for 90 € at
auction last week•If this week there are 4 lots of Roses for
sale and the market price hasn’t changed, the price will be:
90 €
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Example: Customer Enquiry•Request 85 Roses:
▫1,00 € per Rose (Max. price 1,00 €), you win!
•Request 30 Irises:▫0,10 € per Iris (Max. price 0,05 €), you
lose!•Request 50 Daffodils:
▫0,20 € per Daffodil (Max. price 0,55 €), you win?
NOTE: Max. price will not change more than ±0,50 € a week.
Want to see in this order!
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Delivery Note•A delivery note must be submitted (to me)
before the end of the agreed week:▫Group 1, Delivery in Week 4 from Week 2,
for Customer 1, 85 Roses@1,oo▫No partial deliveries (e.g., 40 of the 85)
•Once the delivery note has been received the money is in your account:▫Failure to submit the delivery note (or on-
time) means the order is cancelled!
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Opening Position•Roses:
▫100 (1 lot), good sales, selling at 1,00 € per flower
•Irises:▫50, poor sales, selling at 0,05 € per flower
•Daffodils:▫50, average sales, selling at 0,55 € per
flower•Bank balance:
▫1.000 €
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Costs•Flowers:
▫Auction price•Storage:
▫25 € per 100 flowers (or part thereof) per week▫Flowers can only be stored up to 3 weeks, and
must be discarded once 4 weeks old Flowers bought and sold in the same week do not
incur any storage costs•Advertising:
▫25 € per week
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Example: P/L Statement•Opening balance: 1.000,00 €
▫Stock: 100 Roses, 50 Irises, 50 Daffodils (all 2 weeks old)
▫Income: 0 €▫Storage cost: (50 €)▫Advertising: (25 €)
•Closing balance: 925,00 €
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Important!•Auction bids and customer enquiries must
list the flowers in order:▫Roses, Irises, Daffodils (create forms?)
•Put your group number on everything you submit:▫Anything that is not readable will be
discarded!•You cannot exceed an overdraft of 250 €:
▫Must declare bankruptcy and withdraw from the game
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Part 3Let’s Play!!
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Week 1 Auction•3 lots of Roses•5 lots of Irises•2 lots of Daffodils
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Week 1 Customer Enquiry•Customer 1:
▫258 Roses▫104 Irises▫130 Daffodils
•Customer 2:▫120 Roses▫111 Irises▫249 Daffodils
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Week 2 Auction•2 lots of Roses•5 lots of Irises•5 lots of Daffodils
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Week 2 Customer Enquiry•Customer 1:
▫309 Roses▫251 Irises▫170 Daffodils
•Customer 2:▫100 Roses▫211 Irises▫142 Daffodils
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Week 3 Auction•0 lots of Roses•9 lots of Irises•3 lots of Daffodils
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Week 3 Customer Enquiry•Customer 1:
▫25 Roses▫155 Irises▫40 Daffodils
•Customer 2:▫80 Roses▫115 Irises▫33 Daffodils
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Week 4 Auction•2 lots of Roses•5 lots of Irises•5 lots of Daffodils
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Week 4 Customer Enquiry•Customer 1:
▫30 Roses▫198 Irises▫20 Daffodils
•Customer 2:▫44 Roses▫222 Irises▫14 Daffodils
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Week 5 Auction•9 lots of Roses•1 lots of Irises•2 lots of Daffodils
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Week 5 Customer Enquiry•Customer 1:
▫222 Roses▫111 Irises▫10 Daffodils
•Customer 2:▫320 Roses▫231 Irises▫200 Daffodils
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Week 6 Auction•9 lots of Roses•1 lots of Irises•2 lots of Daffodils
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Week 6 Customer Enquiry•Customer 1:
▫258 Roses▫104 Irises▫130 Daffodils
•Customer 2:▫120 Roses▫111 Irises▫249 Daffodils
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Week 7 Auction•0 lots of Roses•6 lots of Irises•6 lots of Daffodils
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Week 7 Customer Enquiry•Customer 1:
▫410 Roses▫344 Irises▫50 Daffodils
•Customer 2:▫220 Roses▫25 Irises▫29 Daffodils
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Week 8 Auction•2 lots of Roses•0 lots of Irises•2 lots of Daffodils
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Week 8 Customer Enquiry•Customer 1:
▫28 Roses▫14 Irises▫13 Daffodils
•Customer 2:▫12 Roses▫11 Irises▫29 Daffodils
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Week 9 Auction•3 lots of Roses•5 lots of Irises•2 lots of Daffodils
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Week 9 Customer Enquiry•Customer 1:
▫258 Roses▫104 Irises▫130 Daffodils
•Customer 2:▫120 Roses▫111 Irises▫249 Daffodils
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Week 10 Auction•5 lots of Roses•3 lots of Irises•6 lots of Daffodils
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Week 10 Customer Enquiry•Customer 1:
▫158 Roses▫222 Irises▫111 Daffodils
•Customer 2:▫161 Roses▫233 Irises▫222 Daffodils
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Week 11 Auction•2 lots of Roses•2 lots of Irises•5 lots of Daffodils
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Week 11 Customer Enquiry•Customer 1:
▫52 Roses▫208 Irises▫30 Daffodils
•Customer 2:▫100 Roses▫208 Irises▫90 Daffodils
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Week 12 Auction•3 lots of Roses•5 lots of Irises•2 lots of Daffodils
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Week 12 Customer Enquiry•Customer 1:
▫258 Roses▫104 Irises▫130 Daffodils
•Customer 2:▫120 Roses▫111 Irises▫249 Daffodils
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