Business Acumen

Business Acumen Today is a discovery learning EXPERIENCE that is centred on a TRADING business simulation. The simulation allows teams of participants to manage a simulated but realistic business, in competition with other teams, and to DISCOVER how the everyday business decisions that they make, shape the financial results.

Participants will gain a greater understanding of their real business and an appreciation of how their individual efforts contribute towards the overall success of their organisation. The Business Acumen Today simulation allows various strategic and operational business decisions, such as how big an operation they want to manage, which customer segments to target, their desired product mix, optimal procurement, how many employees should be hired/trained, and what margin they need to achieve to cover costs. Also, Working Capital management, Cash Flow and more customer understanding and accurate forecasting, are key learnings. The simulation runs over 3- 5 repetitive cycles. This allows participants to analyse their results, learn from their mistakes and apply their new understandings immediately. This analysis is conducted both on simulation results, and then on real company business results, allowing complete transference of learning to the workplace. An effective business simulation requires a minimum group size of 12 delegates (4 teams of 3) with an maximum group size of 24 delegates.

Key learning “discoveries” during our simulation training

Calculating and analysing gross and net margins – by product, region, customer (both in the simulation and in your company)

Experiencing and understanding the interdependence of the sales department and production and procurement

Understanding the trade-offs whilst making decisions around marketing, penetration, pricing, sales mix and calculating the effects on margins.

Analysing your company financial statements, and how decisions made by the sales force impact on these

Product mix – why it is important to focus time and effort in proportion to gross margin, and not just ease of sale

Evaluating customer service and its impact on profitability

Analysing debtors and bad debt. The necessity of assessing which customers are high risks and what damage this can cause to cash flow and profits

Managing cash flow

Making and implementing decisions and assessing results within the broader business context in terms of cross-functional dependencies, allocation of limited resources, competitor activity and business performance.