the fast and the furious: an experiential approach …...the advantages of the experiential learning...
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THE FAST AND THE FURIOUS: INTRODUCING STRATEGIC MANAGEMENT
USING AN EXPERIENTIAL APPROACH
Theo Lynn*
Malcolm Brady
Paul Davis
Business School
Dublin City University
Dublin
Ireland
* corresponding author
Paper originally published in
International Journal of Teaching and Case Studies 2(1):92-113, 2009.
The authors hereby assert their moral right to be known as the Authors of this Article.
Biographical Notes:
Dr. Theo Lynn is a lecturer in Management at Dublin City University Business School. He
teaches strategic management and his research interest is in the area of teaching technologies
and also in corporate governance. He has extensive industry experience in the area of
teaching technologies and academic and other publishing.
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Dr. Malcolm Brady is a lecturer in Management at Dublin City University Business School.
He teaches strategic management and his research is in the area of strategic interaction and
competitive advantage. He has extensive industry experience as a consultant in business
process improvement and information systems development.
Paul Davis is a lecturer in Management at Dublin City University Business School. He
teaches procurement and supply chain management and his research is in the area of public
sector procurement. He has extensive industry experience as a consultant in business process
improvement and information systems development.
ABSTRACT
This paper outlines an exercise designed to preview primary strategic elements through a
team-based experiential exercise. Designed for delivery in a traditional classroom setting
during a two-hour session, the exercise uses videogame software and a narrative context to
transfer strategic management concepts into a real-world situation. This paper discusses the
outcomes from implementations in postgraduate pre-experience and post-experience classes;
an organisation structure variant presented to an undergraduate class is also described. The
article illustrates how instructors can use the exercise as presented, can adapt the narrative
context to fit their course design and objectives, or indeed design and develop their own
exercise using similar software. In addition to previewing content in the course, the exercise
served as an effective vehicle to begin structured interactions among students, to open a
dialogue between students and the instructor, and to create a participative and interactive
climate. The exercise, instructions, and material lists are presented.
Keywords: Experiential Learning, Strategic Management, Teamwork, Simulation,
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1. INTRODUCTION
Teaching must strike a balance between delivering ‘state of the art knowledge’ and
motivating students ‘to apply their creative thinking and their imagination’ (Lytras, 2007).
This general sentiment remains valid in the teaching of strategic management, the challenges
of which are well documented (Schneider and Lieb, 2004). Those teaching strategic
management are expected to cover and integrate a growing and broad spectrum of knowledge
as well as imbue students with a skill base to enable them to think both strategically and
creatively, work effectively in teams, and communicate clearly (Thomas, 1998; Liedtka and
Rosenblum, 1998). These challenges are further complicated by an increasingly globalised
and changing business environment. In this complex and often contradictory environment
commentators have suggested that students need to develop an ability to deal with paradox
and ambiguity (Lewis and Dehler, 2000), something which traditional business education
may not necessarily be equipped to deliver in a holistic fashion (November, 1993). These
challenges are further exacerbated when teaching strategic management to students who lack
any meaningful work history (we refer to such students as “pre-experience students”; we
refer to students with significant work experience as “post-experience students”) where class-
time is limited in some cases to two to three hours per week for one semester and where
strategic management is being taught as part of a postgraduate business program with a
functional focus. Faced with these challenges, the importance of maximising the
effectiveness of both contact time with students and the first class session have been
emphasised (Thomas, 1999), and greater use of a variety of learning methods in the
classroom is recommended, including experiential exercises (Joshi et al, 2005), integration
with real-world situations (Shaw et al, 2007) and the interaction of students within a social
setting (Deeb, 2007).
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In this article we describe a team-based experiential exercise designed to introduce multiple
concepts in strategic management. Specifically, the exercise, called “The Fast and the
Furious”, has been designed for delivery in a traditional classroom setting in a two-hour
session using freely available videogame software and a narrative context that could be
customised by individual professors. The exercise was successfully conducted in three Master
of Business Studies (MBS) strategic management classes. As well as introducing key
concepts, the exercise has been useful for learning and developing teamwork skills and
improving the relationship between the instructors and the class at the early stage of a course.
The exercise has also been used as a basis for examining organisational structure issues with
an undergraduate business class.
2. CASE STUDIES, GAMES AND LEARNING THEORY
Case studies are the traditional mechanism used in business schools to connect theory to its
application in the workplace. Benefits of case studies include the simulation of situational
constraints, learner socialisation, multi-domain learning, inductive learning, and the
capability to practice adaptation skills (Saunders, 1997). However, cases have their
drawbacks. Kolb (1984) points out the weaknesses of cases in delivering concrete
experiences and abstract conceptualisation while both Cadotte (1992) and Hartman (1992)
emphasise the general inability of cases to provide students with a means to experience the
consequences of the decisions they make. Other concerns raised include limitations in group
interaction, scope, data, and applicability (Fowler and Scott, 1996; Hitt, Ireland and
Hoskisson, 1997).
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Simulations, unlike cases, allow learners to explore how key variables interact and affect
performance (Saunders, 1997). Cruickshank (1980) defines simulations as “the products that
result when one creates the appearance or effect of something else” (p.75). Laurel (1991)
claims that:
Educational simulations (as opposed to tutorial and drill-and-practice forms) excel in that they
represent experience as opposed to information. Learning through direct experience has, in many
contexts, been demonstrated more effective and enjoyable than learning through ‘information
communicated through facts’. Direct, multi-sensory representations have the capacity to engage people
intellectually as well as emotionally, to enhance the contextual aspects of information, and to
encourage integrated holistic responses.
The advantages of the experiential learning approach are echoed by Drinkwater et al (2007)
who have used an electronic case study approach, where students collectively and actively
develop a case study using hypertext, to foster what they term ‘jigsaw’ learning.
Business simulations can be a powerful pedagogical tool to teach students about making
business decisions by exposing students to complex decisions in a simulated realistic setting
(Schumann et al, 2006) and requiring students to manage the consequences of decisions
during the ongoing simulation exercise (Schumann et al, 1997). Springer and Borthick
(2004:3) summarise the rationale for business simulations as:
to give students the opportunities to begin practicing the higher-level thinking the profession demands,
where the learner identifies problems, finds relevant information, acknowledges the influence of
uncertainties on potential solutions, then communicates the findings to target audiences.
Notwithstanding this, business simulations can vary from being too simplistic thereby tending
to be unrealistic or too complex thus providing less structure with which to make
observations (Gunz, 1995). Cadotte (1995) emphasises difficulties with simulations and
games that take place outside the classroom and class times. Similarly, difficulties may be
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encountered with moderated computer-mediated simulations, which may require
management, administrative and technical support, and may be difficult to customise.
Although simulations need not be interactive or depend on technology, students today
undergo an unprecedented exposure to complex media whether as a form of educational
technology, entertainment or otherwise; this may shape student perceptions of an ideal
learning environment and approaches to learning (Snyder and Vaughan, 1998; Gioia and
Brass, 1985; Prensky, 2001). This article focuses on the use of games. There is evidence that
games are the most frequently used ‘interactive media’ (Beentjes, 2001; Feierabend and
Klinger, 2001) with over 70% of children playing computer games every week (Facer, 2001).
This is consistent with recent US statistics from Nielsen Wireless and Interactive Services
who estimated that there are over 45.7 million households with video game consoles
providing approximately 148.4 million persons with access to at least one video game
console system in their home. The same report found that 93.8 million persons (33% of the
US population) used an in-home video game console at least once for a minute or more. This
pervasiveness is driven partly because the games are ‘fun’, but also because they are
challenging, an interactive social experience that can be shared (Entertainment Software
Association, 2001). However a simulation is not necessarily a game. Prensky (2001)
suggests that for a simulation to be characterised as a game it must include additional
elements such as rules, goals, competition, interaction, feedback and fun.
Simulation games are not new: Cruickshank (1980:75) defined a simulation game as one in
which “participants are provided with a simulated environment in which to play”. New
gaming technologies and graphics capabilities allow simulation games to become more
realistic in terms of appearance, plausibility and responsiveness. Theses new technologies
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have additional benefits. Multimedia may boost curiosity, creativity and teamwork
(Reinhardt, 1995), increase effectiveness of learning retention and transfer (Fletcher, 1990;
Strother, 1992; Johne, 2003; Springer and Borthick, 2004), provide more consistent course
delivery (Adams, 1992) and improve attitudes towards learning (Malik and Howard, 2003).
It should be noted that concerns have been raised by both academic researchers and the media
about gender images and violence related to the use of specific genres of digital games
although evidence is inconclusive (Ferguson, 2007; Dill and Dill, 1998; Cassell and Jenkins,
1998).
The growing acceptance that people learn differently and the need to ‘bring to life’
organisational context has led to calls for the emphasis and application of experiential
learning theories in management education (McDaniel, Lamb and Jarboe, 1989; Kayes,
2002). These calls may be particularly relevant for traditional-age undergraduate students or
pre-experience postgraduate students (Joshi et al, 2005). The purported benefits of
experiential learning are widely reported and are not the subject of this article (see Gosenpud,
1990). They include changing cognitive structures, altering attitudes and expanding portfolios
of skills (Johnson and Johnson, 1982). This is typically achieved through students making
key decisions and trade-offs so that they can engage in a rich, reflective observation during
the final feedback phase after the exercise is completed (Kolb, 1984; Wheeler and McLeod,
2002).
Experiential learning shares the same ontological root as active learning or those learning
theories that assume the student is both self reflective and engaged as a participant in his or
her interactions with the world. Kolb (1984) describes learning as an experiential learning
cycle involving experiencing, interpreting, generalising, applying and testing. Simulation
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games, and specifically digital simulation games, have the capacity to support a variety of
learning theories including behaviorist, cognitivist, and humanist models. Studies suggest
that digital games can facilitate social interaction and collaboration between players, new
approaches to learning, active and critical learning skills (Kirriemuir and McFarlane, 2004).
It is in relation to critical learning skills that digital simulation games may have the greatest
impact on teaching strategic management. Gee (2003) argues that video games are a family
of semiotic domains defined by the characteristics of specific genres and shared by groups of
people which he terms ‘affinity groups’. Gee postulates:
The learner needs to learn not only how to understand and produce meanings in a particular semiotic
domain that are recognisable to those affiliated with the domain, but, in addition, how to think about
the domain at a ‘meta’ level…[and] how to produce meanings that, while recognisable, are seen as
somehow novel or unpredictable. (p.23)
As such, the student participating in the game benefits from learning by doing and developing
their comprehension of the internal game but also from developing an understanding of how
principles and patterns within the game can be applied externally, a form of systemic thinking
that case studies may not fully accommodate.
3. EXPERIENCING STRATEGY: A MULTI-EXERCISE PROGRAM
Gove, Clark and Boyd (1999) posit that exercises that combine team initiative and business
metaphors provide an active, common experience in which team members learn about
themselves and others while learning how management principles transfer to real-world
scenarios. In their 2005 article, Gove et al present a multi-exercise program designed to
illustrate a core strategic management process, from mission to competition, through four
experiential exercises. As a set, the exercises preview and integrate several primary strategic
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elements: mission statements (defining your organisation), performance assessment and
maximisation (specifying resources and capabilities), mergers and acquisitions (aligning
resources with extra-organisational entities), and competitive rivalry (market forces, decision-
making, and deployment). This multi-exercise program has been presented as a half-day
introduction to courses and seminars with MBA, undergraduate, and executive audiences,
both in the U.S.A. and abroad, since the mid-1990s. Gove et al (2005) report that feedback
from participants indicates that the nature of the exercises makes them a memorable
experience and aids in the comprehension and retention of strategic management concepts.
Whilst the use of business metaphors is a strong concept as it frees the instructor to use
whatever resources are available to fit the narrative context of the exercise presented, there
are a number of drawbacks of many exercises based on team initiative exercises, particularly
those that include outdoor challenge training (“OCT”) approaches. They require (i) greater
space than a typical classroom provides, (ii) non-standard equipment or materials, (iii) more
time than the average session allows and (iv) suitable weather.
The exercise described in this article, The Fast and the Furious, attempts to marry the benefits
of using multimedia resources and a narrative context to address the drawbacks of case
studies, simulations and team initiative exercises discussed above. Specifically, the exercise
is designed to introduce many of the strategic elements presented in the multi-exercise
program presented by Gove et al (2005) but in a shorter timeframe - two hours - with generic
or easily accessible materials and in a conventional classroom. No specialist equipment other
than a computer is needed and no specialist skills other than pedagogic are required. In
addition, the design approach taken for this exercise reduces cost and support overhead, and
at the same time provides instructors with some capacity to customise the context without
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specialised technical skills. It makes use of freely available software; the intellectual effort
by the instructor is invested in understanding the software and developing the narrative
context around the software. Although primarily aimed at pre-experience students, the
exercise was found to be suitable for post-experience students too.
4. THE FAST AND THE FURIOUS: EXERCISE OVERVIEW
The Fast and the Furious is a narrative written around a racing videogame, Racing Academy,
a software prototype developed by Futurelab and Lateral Visions that is based on an
advanced real-time vehicle dynamics system that accurately models in real-time how cars
behave and react. The exercise largely follows LaForge and Busing’s (1998) phases for
experiential learning activities: planning, introduction, activity and feedback. The exercise
previews and integrates a number of strategic concepts: mission statements, coordination and
leadership; firm analysis (resource analysis and allocation, performance measurement and
maximisation); external analysis (competitive intelligence and environmental assessment)
and competitive dynamics (first, second and late mover advantage and game theory). An
organisation structure variant explores the impact of different organisation structures on
performance. It is recommended that instructors present the exercise in the opening session or
soon thereafter. Recommended pre-readings include introductory chapters on strategy and
strategic management.
The exercise involves small groups designing and testing car prototypes to present to a
prospective customer, F2 Racing. The teams use Racing Academy to develop and test their
prototypes, and through monitoring and analysis of data, refine their prototypes. Performance
is based on the components selected (colour, engine, tires, and gear ratios) and the
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completion of specific levels by defeating a computer-controlled rival car in test sessions.
Participants can test their prototype as many times as they want within the time period.
However, each component and test incurs a cost liability that must be recorded. Participants
enact different roles in the exercise which can be used to explore the impact of staffing
constraints and individual skills on performance maximisation. A sense of urgency is created
by frequent reminders of time remaining and by notifying the class of the achievement of
various levels by the different teams.
The overall output from student teams is a product development proposal which is submitted
to the instructors at the end of the exercise. The proposal contains the specification of their
prototype car and a summary of the telemetry data and costs incurred in development. We
keep the proposals short and standardised, only two to three pages, so that they can be
quickly assessed by the instructor at the end of the exercise and used as part of the de-
briefing.
Teams are allocated points in the tender process based on relative completion times,
competitiveness, performance, R&D cost, test comprehensiveness, and final configuration
cost. Following this scoring element, the instructor debriefs the exercise. Students may be
asked to reflect on what they have learnt in their own time and submit their personal
reflections as an additional assignment.
Please note that instructors may choose to (a) place a cap on spending and/or (b) place a limit
on the number of allowable tests. This may introduce more realism to the exercise and make
scoring easier as teams would need to work within resource constraints. It may also be useful
to publicly display the leading team’s instance of Racing Academy or, if a sufficient number
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of data projectors are available, all the teams’ instances of Racing Academy. This has the
effect of enhancing the competitive dynamics within the class and introducing additional
realism. Teams less advanced in the simulation may choose to learn from competitors and
leading teams may lose a competitive advantage or feel increased pressure from their
leadership position.
Instructors may choose to implement an additional variant on the exercise that emphasises the
impact of different organisation structures on performance. In this variant, each team
represents a different type of organisation structure. This variant requires greater supervision
from the instructor to ensure that participants adhere to the additional environmental
constraints.
4.1 Exercise Objectives
The objectives of the exercise are:
to begin structured interactions among students and groups of students and to help
students think about teamwork and the importance of group dynamics,
to open a dialogue between students and the instructor to create a participative and
interactive climate that can be enhanced throughout the course,
to preview multiple strategic management concepts and help students to reflect about
these concepts, and
to help students deal with uncertainty, paradox and ambiguity.
In addition, the organisation structure variant enables students to experience and reflect on
the impact of different organisation structures on performance.
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4.2 Class Size
The optimal class size is 20 students with an optimal team size of 4 students. The exercise has
been used for a class of 35 students. One supervisor is required.
4.3 Required Materials
Each team requires access to a personal computer or notebook computer operating on
Windows 98 or better, as well as DirectX 9.0c or better, together with CD-ROM and USB
capabilities. Typically students provide their own notebook computers for use in the
exercise. The Racing Academy software is a prototype that can be downloaded by instructors
from the Futurelab website (http://www.futurelab.org.uk/projects/racing_academy) prior to
the classroom session and stored on a CD-ROM or a USB memory stick. The software can
then easily be made available to students at the beginning of the class without dependence on
network or Internet access. At the time of writing the software was available free of charge
to download (registration is required) and, in line with Futurelab’s organisational remit, it
will remain freely available for academic use for the foreseeable future. The software is
approximately 11Mb in size and should be loaded and installed on to each computer prior to
commencement. The software installation procedure sets up the software and creates a
shortcut on the computer desktop. Clicking on the shortcut icon launches the software
application. Each group should create a profile by entering their team name or number in the
text box displayed. It is unlikely that students will be familiar with the software as it is not
commercially available and therefore instructors should not be concerned about students
having prior experience of the software.
Each team will also need a copy of the student instructions and a proposal template to record
telemetry data and tally costs. This proposal template takes the form of a spreadsheet that can
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be provided in printed form or as an electronic spreadsheet. If provided in paper format,
students will need multiple copies to allow for mistakes or a large number of tests. Please
note that the Racing Academy software only records a limited number of tests and therefore
instructors should monitor that teams are recording all tests. Student instructions, a sample
proposal template, and possible solutions for completing each level are provided as
appendices to this paper.
As discussed, instructors may choose to provide access to data projectors to the leading team
or all teams to enhance the competitive environment.
4.4 Timing
To set up, run, and debrief the game takes approximately 120 minutes:
5 minutes to explain the purpose of the exercise and organise students into small
groups,
5 minutes to distribute the materials and install the software,
10 minutes for teams to read the instructions,
60 minutes for teams to complete the exercise,
10 minutes to score the exercise, and
30 minutes for debriefing.
4.5 Scoring the Exercise
While scoring can be based on a scale of the instructor’s choice, we recommend that the
teams are allocated points for the exercise according to table 1.
[INSERT TABLE 1]
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5. POST-EXERCISE DEBRIEFING
The debriefing starts by collecting the data sheets (proposals) and scoring the exercise. This
activity allows students experience the importance of understanding goals and how different
goals contribute to achievement of the mission. It also visibly demonstrates the advantages of
early mover advantage; the first and second teams to complete all three levels get additional
points. This scoring is followed by a discussion of individual and team experiences and
approaches. The structure, based on Dennehy et al’s approach (1998) combined with specific
strategic concepts as presented by Gove et al (2005), proved useful as a basis for establishing
a clear link between the exercise, future lectures, and the course-learning objectives. We now
consider the main concepts discussed in the debriefings.
5.1 Strategic Coordination and Leadership
Questions typically asked of teams are: What is the team’s mission? What are the goals? Is
there a leader? If so, how was the leader selected? What role did the leader play? Was it
necessary? Few teams consider agreeing the mission and the goals that they need to achieve
to win. The team needs to accomplish a mission: to win the customer contract. Some goals
are more important than others. It is important that the team takes into account and prioritises
the various tasks required and data available. Effective leadership may ensure that resources
are not squandered on distractors, such as colour, and that the appropriate resources are
allocated to each task and that goals are being met.
5.2 Equifinality
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Equifinality suggests that similar results may be achieved in different ways. There is more
than one way for teams to beat the benchmark racer and other teams in the class. Students
often assume that there is only one way to success. The instructor may point out to students
that teams achieved success in a variety of ways and configurations.
5.3 Resource and Capability Assessment
Similar to the multi-exercise program described by Gove at al (2005), a primary metaphor for
this exercise is the designation of performance roles. Depending on whether a leader is
appointed (even by self-appointment), members may be selected or select themselves into
positions without assessment of relative capabilities or skills. Teams may redesign their
approach to identify who is the best driver. However, in some instances teams did so only
after successive failures by the original appointee. In a number of instances the student that
owned the computer on which the software was being run assumed control of the simulation
regardless of aptitude with the software program. The student effectively appointed
themselves driver and leader. This provided a basis for a fruitful discussion on the impact of
resource control on task allocation and leadership. The debriefing often segued into a
discussion of whether or not companies can assess resources prior to attempting a task or if
this is only possible after operations are underway.
5.4 Performance Measurement and Effectiveness
Under this heading the instructor can pose questions such as: What measures predict success
in the exercise? How do the measures relate to one another? Who is responsible for how
measures are taken? Who decides whether the team is operating effectively? Teams have a
clear mission and goals; however their strategy for obtaining these goals may be unknown or
only become clear or evolve during the exercise. The exercise illustrates how goals may
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conflict. For example, a low R&D cost results in a higher score as cost recovery is lower.
However, greater testing results in a more stable product but at higher cost. As increased
testing tends to drive better performance and greater likelihood of early mover advantage,
teams have to prioritise seemingly conflicting goals to achieve the mission.
5.5 Data Analysis and Management Information Systems
The instructor can pose these questions: Who receives and analyzes the data? Who is
responsible for changing how the team operates based on the data? Information is an
important source of power and how a team deals with information is critical for success. The
simulation makes evident the importance of good management information. A great deal of
management information is provided to students who usually readily appreciate the value of
this graphical information. Initially, the amount of information may overwhelm students but
after a number of runs students focus in on key indicators. The instructor can lead the
students into a discussion of the main characteristics of good information systems using the
TRACE anagram (i.e. timely, relevant, accurate, clear and concise, and highlighting
exceptions). The amount of available information builds up as the student progresses through
the various levels of the exercise. Initially students can absorb all the information and
consider all the available possibilities. However as the game progresses, and the number of
possibilities increases combinatorially, students must resort to heuristics to reduce the number
of options to consider. The debriefing may develop into a discussion on ‘paralysis by
analysis’ if a group spends too long in discussion; success in this exercise often relates to
‘doing’.
5.6 Cost of Rework
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The exercise highlights the cost of rework and reconfiguration, and organisational
performance lost due to rework and organisational learning. Successful teams typically
undertook a relatively high numbers of tests, often over twenty, and tried out various
configurations of components to maximise performance. Although these teams achieved
greater performance, they did suffer some penalty on scoring due to high R&D costs.
5.7 Uncertainty, Ambiguity and Requisite Knowledge
Questions to discuss with students under this heading are: What is the relationship between
different variables? What is torque? What impact do gear ratios have on performance?
Initially, students may feel overwhelmed by the lack of information in the exercise.
Typically, students are uneasy about lack of knowledge and uncertainty and assume that
knowledge of engines and mechanics is needed to succeed. They do not know what will face
them at each subsequent level. This exercise provides an illustration of the notion of requisite
knowledge or capabilities necessary for different markets. It emphasises knowledge
acquisition and problem solving skills. It also emphasises the difference between knowledge
and capabilities. There is no single solution to the exercise. Different configurations can
succeed.
5.8 Invention vs. Innovation
Invention is the creation of a novel product, in this case a new drag racing car. However mere
creation of a product does not satisfy the needs of the customer, the product needs to be
delivered and meet various criteria. Achieving level 3 testing and delivering the presentation
is analogous to innovation or appropriation of value from an invention. Invention alone is
insufficient to capitalise on performance for the organisation; innovation is required. At each
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level, the team is required to modify and refine their prototype. In some instances, this means
a total redesign to ensure competitiveness.
5.9 Competitive Dynamics and First, Second and Late Mover Advantage
Does being first to market guarantee success? What is the relationship to first mover
advantage and other key success criteria in the exercise? First movers can generate superior
financial returns. However, absence of market barriers may negate any first mover
advantage. Some firms may progress through levels 1 and 2 but may stall at level 3 or
continue testing to maximise performance. This is crucial: students often forget that they are
competing against the other teams in the class and not the computer. The computer-
generated rival car used in the Racing Academy test races represents the minimum quality
product the market will accept. Beating competitors requires not only reaching this minimum
standard but also surpassing the competitors – teams with excess time should continue to try
and maximise performance. Please note however that others may appropriate knowledge by
scanning the environment, seeing what the competition is doing and quickly imitate their
configuration to reduce testing and move to the next level more quickly. Such teams may
beat the first mover to the customer. First movers may not succeed in winning the overall
exercise if they do not succeed across a number of criteria. As discussed earlier, learning
related to competitive dynamics can be enhanced through the use of one or more data
projectors which display either the leading team or all teams’ performance. This variant can
be used to emphasise that competitors are not static but also evolve and adapt.
5.10 Competitive Advantage and Game Theory
In the simulation, students may perceive that the rival computer-generated cars also improve
over time. Often students carry on forging their own strategy forgetting that the competitor
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does not stand still. Students are sharply reminded of this when they improve their own
performance and anticipate winning the race only to find that the competitor car has also
improved its performance and continues to win. This is further emphasised by the progress of
other teams in the class. In-class team progress can be emphasised by constant reminders by
the instructor or the use of data projectors. Game theory stresses the interdependency of
decision making: each party must consider the actions of the other party and the overall result
depends on the combination of the two independent decision processes. For example,
selecting and testing out a new engine makes that selection public and therefore imitable.
The choice about when and how to make a decision public is an important consideration for
strategists. The exercise provides a good basis for a discussion on the nature of competition.
Students can review the rival computer-generated car’s performance in races and identify
exactly when and where their car was under-performing.
5.11 Cost of Resources
The exercise highlights the sunk cost of resources purchased and then not used. This is
analogous to failed R&D spending and the scoring reinforces this. High R&D costs are
penalised as the customer has to recover this cost. However, the importance of cost can be
overemphasised by students to the detriment of the achievement of other goals. The exercise
also serves to highlight the impact of fixed and variable costing, the difference between R&D
cost and configuration cost and the relationship between R&D expenditure and performance.
5.12 Exercise Variant - Organisation Structure
Each team represents a different type of organisation structure and can be analyzed by
configuration, specialisation, hierarchy of authority, and centralisation. Teams can discuss the
differences in their organisations. The exercise can be used to illustrate some of the
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differences between mechanistic and organic organisation forms, and the impact of these
forms on performance. In the exercise, teams organised around more mechanistic forms
tended to perform worse than organic forms. It should be noted that participants in these
teams were unengaged and rated the exercise lower that teams in more organic forms. The
impact of the environmental parameters should not be underestimated.
Instructors may also ask students to conduct a SWOT analysis on their own team and on the
winning team in an effort to illustrate that linking mission, with internal resources and
weaknesses, and external opportunities and threats leads to success.
6. EXERCISE OUTCOMES
The authors have presented this exercise in three discrete MBS strategic management classes.
These three classes represented 35 students from three functional specialisms – accounting,
marketing and human resource management. The marketing class comprised pre-experience
postgraduate students; the accounting and human resource management class comprised post-
experience postgraduate students. Student profiles are given in table 2. While the authors
would have liked to carry the experiment with multifunctional teams the classes available to
the authors during this academic year consisted of functionally homogeneous student groups.
[INSERT TABLE 2 HERE]
In addition to instructor reflections and feedback during the debriefing, students were
provided with an evaluation questionnaire, the results of which were supplemented with data
on student characteristics (i.e. age, gender, nationality, and functional background). The
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questionnaire comprised of six questions that asked students to discuss whether they found
the exercise valuable, what they learnt, whether they would recommend continuing the
exercise and how it might be improved. In addition, students were asked to rate the
effectiveness of the exercise on a 1 to 10 Likert-type scale based on value, amount learned
and contribution to understanding of the topic area. Of 34 valid responses, all students rated
the exercise as valuable. The overall mean was 7.49 with a range of 2 to 10. No evidence on
learning achievement was possible as it would be difficult to isolate specific attributes of the
class exercise versus the ensuing lectures and case study exercises. Although the debriefing
can serve to bias responses, feedback from students indicated that they gained significant
value in the areas of group dynamics, team work, communication and analytical skills.
One concern expressed during one class but subsequently withdrawn was that the exercise
might be gender or age biased towards younger male students or those with knowledge of
driving. This concern was driven primarily by the subject of the simulation, a motor racing
videogame, but was not borne out. Even in this small sample, gender and age were not
statistically significant factors in ratings. Having driving skills or game playing skills did not
provide any advantage.
The only independent factor identified that had a significant impact on performance was
functional discipline. Students with an accounting background were more successful than
students of other functional disciplines in completing the exercise. Students with a human
resource management background made significantly less progress in working their way
through the test levels. Firstly, these students spent significantly longer discussing the
exercise and were slower to make decisions. For example, one group spent 45% of the
available time discussing the exercise before commencing the first test. This provided the
23
basis for a fruitful discussion on the importance of data analysis but also ‘paralysis by
analysis’. Secondly, the HRM students ignored the instructions and did not appoint a leader
or assign people to roles. Thirdly, by their own admission they did not communicate well.
The HRM cohort undertook significantly fewer tests and spent less money on tests than did
other cohorts. This segued into a discussion on the decision-making context of HR managers
and how that may impact on their approach to more general strategic decision-making.
6.1 Exercise Variant: Organisation Structure
The Organisation Structure variant was implemented mid-semester as part of a final year
undergraduate module on Organisation Theory and Practice. The class had 27 international
business students from four colleges – one each from the USA, Spain, Germany and France.
The class was divided into five teams representing 4 companies. Each group comprised
between 4 and 6 students. As per the instructions each team represented a different type of
organisation structure. Student profiles are given in table 3.
[INSERT TABLE 3 HERE]
The experience of company A emphasised the importance of communication and
coordination in multinational projects. The two groups in this company could have
maximised performance by sharing information. For example, if one group achieved a level
before the other, the configuration could be shared with the other group so that both groups
could move through the exercise faster. Although the groups in Company A shared
information in earlier stages, a 15-minute delay in sharing the successful configuration for
obtaining level 3 resulted in sub-optimal performance. Company A did not plan their
communication nor did they use the communication opportunities fully. Company D
24
operated relatively successfully although no leader was appointed. Company D achieved
level 3 but did not beat Company A in any category.
Company B was presented with a mechanistic organisational form. The intention was to
illustrate the limitations of this organisational form and the importance of strong leadership.
Unfortunately, the constraints of the additional instructions served to demotivate or disengage
students. This is worthy of attention. It may be that more mature students would appreciate
this nuance which may be lost on younger students. Alternatively, either rotating
organisational form or introducing variants throughout the exercise may have been more
effective.
Although a more organic structure, Company C was presented with a scenario that brought
consensus and group participation to another extreme. The net result was that as there was no
opportunity for specialisation, appropriate resources could not be allocated to achieve the
goals. Once again, this was demotivating for students.
Again, students were provided with an evaluation questionnaire which was supplemented
with data on student characteristics. Over 85% of students rated the exercise as valuable.
Four students did not rate the exercise as valuable. Students were asked to rate the
effectiveness of the exercise on a 1 to 10 Likert-type scale based on value, amount learned,
and contribution to understanding of the topic area. The overall mean was 6.19 with a range
from 3 to 10. The ratings were skewed by four students who neither considered the exercise
valuable nor effective. These students were all German and could be considered as high
achievers. This poses interesting questions on the impact of specific cultures or pedagogies
of home institutions on pedagogical approaches and learning styles. It is something worth
25
considering before undertaking The Fast and the Furious exercise and/or similar exercises as
it may skew performance and satisfaction with the exercise. It is recommended to present the
exercise at the beginning of the semester rather than mid-semester so that concepts can be
previewed and the benefits associated with group engagement realised.
As a variant, the exercise was deemed successful. The key learnings emphasised by the
students focussed on organisation structure and practice and specifically the impact of
organisation structure on performance, group dynamics, and communications. To assess the
suitability and effectiveness of both the software and the exercise as a whole in other
generalised subject domains, the narrative context was modified to emphasise the impact of
different organisation structures. These are all directly attributable to minor changes in the
narrative through the use of additional instructions that an instructor can easily undertake
without any technical knowledge and as such acted to validate the design approach of the
exercise.
From the authors’ perspective, the exercise helped to ‘break the ice’ with a new class and
create a positive atmosphere. The exercise was effective in that it helped to open a dialogue
between students and the instructors to create a participative and interactive climate that was
maintained throughout the course which in the view of the authors was enhanced as a result
of the exercise.
7. CONCLUSION
This article presented The Fast and the Furious, an experiential learning activity designed to
introduce strategic management concepts in a conventional classroom session and setting.
26
The exercise introduced primary strategic management concepts to students in an engaging
way and through a shared experience that developed higher levels of learning. The exercise
outcomes were found to be positive when measured by student feedback and instructor
observation. Similar to earlier findings the use of software provided a more consistent
delivery experience across different groups (Adams, 1992).
From a design perspective, the narrative context helped to connect software, developed for an
unrelated purpose, to a real world situation. The organisation structure variant illustrated that
the most important design contribution is the careful development of the narrative context to
exploit the chosen software and to support the learning outcomes through the debriefing. This
is something that most instructors can do easily. By focusing on the narrative context, the
selection of accompanying software becomes less of a barrier. The authors chose a small
piece of software requiring little technical or administrative support and which was freely
available but relatively unknown. Other instructors may choose to base their exercise on more
well known software game titles for popular gaming platforms such as those offered by Sony,
Nintendo or Microsoft. Whilst these games are easily accessible, students may be more
familiar with them giving some students an advantage over others.
The exercise also illustrates that there is still much to be learnt about the impact of functional
disciplines and educational background (including pedagogical experience and learning
styles) on the effectiveness of experiential learning activities. It may be that at postgraduate
level, where a student’s learning style is more defined, these factors have a more significant
impact on how these students approach team exercises. The experience with this exercise
suggests that in some instances functional disciplines (e.g. accounting and human resource
management) and educational backgrounds may impact on team performance, achievement
27
and satisfaction. It may be that the impact of exercises such as The Fast and the Furious
would be enhanced by combining students from multiple functional disciplines but also from
different educational backgrounds.
The wheel does not need to be reinvented. Instructors can experiment and implement
multimedia-rich experiential exercises by adapting existing resources, such as videogames,
and making them relevant by using narrative contexts. Success does not depend on
technology or technical skills but rather on an understanding of the learning outcomes, the
learning process and the learning styles and expectations of the exercise participants.
28
APPENDIX A
THE FAST AND THE FURIOUS EXERCISE
STUDENT INSTRUCTIONS
You represent a high performance motor-sport design and production company. There is a
major opportunity to acquire a new customer, F2 Racing, but only for those companies who
can develop an acceptable prototype in a timely fashion that can outperform F2 Racing’s
existing street drag racing configuration. The final design of the product has not been fully
determined by the customer. Your company has been invited to compete for this lucrative
contract because it is believed that your company can bring together a combination of the
right resources to bring a tested prototype to market including people, process and
technology. Components are valuable and cost of each component is given in table A1. Each
purchase of a component should be recorded only once i.e. once a component has been
purchased, budget does not need to be allocated again if a team decides to switch components
to a previously purchased component.
The combination of these components impacts on performance. A workshop has been made
available to you and the Racing Academy is available for you to test your prototypes. There
are three levels of tests. To be competitive, the performance of your prototype must exceed
F2 Racing’s current product offering in each test. You will have access to telemetry data
which can be used to reconfigure your prototype and calculate your research and
development costs, which will be covered by F2 Racing if your company is successful. As
well as the cost of components, each test at Level 1 costs €10,000, each test at Level 2 costs
€20,000 and each test at Level 3 costs €30,000. The customer must have a demonstrable
29
prototype and proposal within 60 minutes. The customer will want to review telemetry data.
Logging out of the Racing Academy will forfeit the contract.
There are three positions which must be staffed at all times: Engineers, Administrators, and
Test Drivers. Engineers monitor and analyse telemetry data and make recommendations on
configuration to test drivers. Administrators record data and prepare the proposal. Test
Drivers test the prototype. You may staff any position with more than one person.
The initial task is for each company to get to the Racing Academy. Once there, you may
assess your workshop and resources, design the prototype, and deliver the product to the
customer’s test track where, with a proposal, it will be evaluated by the customer. But be
aware, your competition may be watching every move. The proposal should consist of a
summary of key data points including specification, performance, testing, detailed R&D
costing, and configuration cost in the proposal template provided. Proposals grading details
are given on table A2.
30
Table A1 Summary of components
Component Option Cost (€)
Colour Standard Red 0
Colour New Colour 5,000 per colour
Engine 4 Cylinder 1 Litre 10,000 per engine
Engine 4 Cylinder 2 Litre Turbo 15,000 per engine
Engine Rotary 2.6 Litre 20,000 per engine
Engine V6 3 Litre 25,000 per engine
Engine V8 4 Litre 30,000 per engine
Engine 4 Litre Diesel Turbo 35,000 per engine
Engine V8 Twin Turbo* 50,000 per engine
Tires 185/70 R15 Road Tyre 4,000 per set
Tires 205/50R16 Road Tyre 8,000 per set
Tires 205/50R16 Shaved 12,000 per set
Tires 225/40 2R17 x Slick 20,000 per set
Gears Automatic/Manual 5,000 per set
* Only available after Level 2 tests have been passed
31
Table A2: Proposal grading details
Unit Description Points
Early mover advantage Points allocated to first and second teams to
complete all three levels
1st – 50 pts
2nd – 25pts
Competitiveness Points allocated to each team on
completion of each level
Level 1 – 10pts
Level 2 – 15pts
Level 3 – 25pts
Performance Points allocated to the teams with the
fastest race times
1st – 25pts
2nd – 15pts
3rd – 10pts
R&D Cost Points allocated to the teams with lowest
R&D costs
1st – 25pts
2nd – 15pts
3rd – 10pts
Test Comprehensiveness Points allocated to the teams with the
highest number of tests
1st – 25pts
2nd – 15pts
3rd – 10pts
Final Configuration Cost Points allocated to the teams with the
lowest configuration cost
1st – 25pts
2nd- 15pts
3rd – 10pts
32
APPENDIX B
THE FAST AND THE FURIOUS EXERCISE
ORGANISATION STRUCTURE VARIANT
ADDITIONAL STUDENT INSTRUCTIONS
COMPANIES ARE NOT PERMITTED TO COMMUNICATE WITH EACH OTHER
COMPANY A
You are a multinational corporation and comprise of two groups. Although you have greater
resources, half your company is located in a different country. Due to time differences and
schedules, you can only communicate with each other four times during the exercise. Only
two people can communicate at any one point in time. Due to your size advantage, you suffer
a cost penalty of 10%.
COMPANY B
You are the owner of your company. This is an important contract. You are responsible for
all decisions and instructing all employees about what, how and when different activities will
be undertaken. You may not delegate. Once assigned to a role, you may not change an
employee’s role. Employees can only communicate to you through data provided by
Administrators.
COMPANY C
In your company, you do not have specified roles. Every person contributes to each task. As
such, tests will rotate through the team. For example,
33
Test 1 = Employee 1
Test 2 = Employee 2
Test 3 = Employee 3
Test 4 = Employee 4
Test 5 = Employee 1
Test 6 = Employee 2 and so on.
COMPANY D
No additional instructions.
34
APPENDIX C
THE FAST AND THE FURIOUS EXERCISE
SAMPLE PROPOSAL TEMPLATE
Team No.: _______________________
Engineers: Level 1 Completion Time:
Administrators: Level 2 Completion Time:
Test Drivers: Level 3 Completion Time:
Test No. Level Colour Engine Tires Gears Time Win/Lose Configuration Cost Total Cost
1
2
3
4
5
35
APPENDIX D
THE FAST AND THE FURIOUS EXERCISE
POSSIBLE SOLUTION FOR LEVELS 1 to 3 OF RACING ACADEMY
Parameter Level 1 Level 2 Level 3
Target Time 16.094 13.695 13.338
Engine Rotary 2.6 liter Rotary 2.6 liter Rotary 2.6 liter
Tires Default 225/40 ZR17 x
Slick
225/40 ZR17 x Slick
Gears Default Default 3.59:2.30:1.40:1.15:1.03:0.91
OR
4.11:2.34:1.83:1.31:1.03:0.98
Steering
Assistance
On On On
Transmission Auto Auto Auto
Colour Default Default Default
Notes None Seems to perform
better if ease of
accelerator at start
to reduce skid –
pay attention to
audio and visual
cues
None
36
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Table 1 Scoring Unit Description Points
Early mover advantage Points allocated to first and second teams to
complete all three levels
1st – 50 pts
2nd – 25pts
Competitiveness Points allocated to each team on
completion of each level
Level 1 – 10pts
Level 2 – 15pts
Level 3 – 25pts
Performance Points allocated to the teams with the
fastest race times
1st – 25pts
2nd – 15pts
3rd – 10pts
R&D Cost Points allocated to the teams with lowest
R&D costs
1st – 25pts
2nd – 15pts
3rd – 10pts
Test Comprehensiveness Points allocated to the teams with the
highest number of tests
1st – 25pts
2nd – 15pts
3rd – 10pts
Final Configuration Cost Points allocated to the teams with the
lowest configuration cost
1st – 25pts
2nd- 15pts
3rd – 10pts
44
Table 2 Strategic management student characteristics Frequencies Percent
Age
20-25 16 45.7
25+ 19 54.3
Gender
Male 20 57.1
Female 15 42.9
Nationality
Irish 30 85.7
Other 5 14.3
Functional Background
Marketing 16 45.7
Accounting 12 34.3
Human Resource Management 7 20.0
45
Table 3 Organisation theory and practice student characteristics Frequencies Percent
Gender
Male 20 57.1
Female 15 42.9
Nationality
American 8 29.6
French 7 25.9
German 6 22.2
Spanish 5 18.5
Polish 1 3.7