Companies in the Value-Win simulation are small and medium public enterprises whose clear objective is to create value for shareholders. In order to do so they have to seduce the financial community and present them with strategies, market and financial results which clearly indicate a potential for profitable growth.
Participants should assess the value creation potential of their different activities while using an holistic approach to the firm as to ensure the general coherence of the different decisions. Confronted to a turbulent environment and facing products and markets in different stages of maturity participants will have to combine "strategic flair" and operational rigour and cost awareness.
Also, participants will have to trace the origin of their company's results and thus to be able to read and understand the most commonly used financial statements. Though, no prior knowledge of accounting or finance is necessary to participate into the Value-Win simulation.
More generally, although value creation is the assigned goal for companies in Value-Win, the simulation also stresses:
- optimal allocation of corporate assets,
- risk management and strategic flexibility,
- the necessity to select essential data and to gather business intelligence from them,
- short term/long term trade-off.
The decisions taken by participants in the Value-Win simulation involve the different corporate functions of the firm.
They address more specifically:
- output level, salaries, procurement and fixed asset management,
- investment in fixed assets, R&D and quality improvement,
- product positioning in the different markets (prices, sales force management, commissions, advertising),
- financial policy and arbitrage between the different sources of funds (loan, new equity issue, dividends),
that is, 28 decisions per period.