The Development of a Business Game for Wholesale

Industrial and Commercial Training The Development of a Business Game for Wholesale Management Jim Freeman Patrick Cauldbeck Kiak Kern Khoo

Article information: To cite this document: Jim Freeman Patrick Cauldbeck Kiak Kern Khoo, (1985),"The Development of a Business Game for Wholesale Management", Industrial and Commercial Training, Vol. 17 Iss 3 pp. 12 - 14 Permanent link to this document: http://dx.doi.org/10.1108/eb004005

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The Development of a Business Game for Wholesale Management by Jim Freeman Lecturer, Department of Management Sciences, UMIST Patrick Cauldbeck Training Manager, MAKRO Self Service Wholesalers Ltd. and Kiak Kern Khoo Postgraduate student, Department of Management Sciences, UMIST

The advent of low-priced, powerful microcomputers has begun to have a revolutionary impact on both the development and application of simulation games used in management training. In the retail trades, where there is a long tradition of games usage, manual games such as the Retail Inventory Management Game[1], 0utlet[2]*, and Shoprofit* * are increasingly coming under pressure from computerbased packages including Co-op[3], Supermarket[4], Stockshow,* * * and Supertrain[5]. In contrast, the use of games by wholesale firms specific to any section of their own business is virtually unknown. In fact, as far as we are able to ascertain, there have been no such games available in the UK until now[6]. In this article, we describe a new game, Wholetrain, developed jointly between UMIST and MAKRO, for use in wholesale (Cash and Carry) junior management and supervisory training. The Wholetrain package was routinely adapted from an existing computer simulation and we outline the process by which this was achieved. "A new version of Outlet, which runs on a BBC microcomputer, was recently launched by Chris Elgood Management Games Ltd., Hawkhurst, Kent TN18 4AR. **Marketed by Management Games Ltd., Methwold, Thetford, Norfolk IP26 4PF. ***The package Stockshow is a simplified version of Outlet and runs on a BBC (Model B) microcomputer.

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Training and Cash and Carry Firms Concern was recently expressed by the head of training services at the food and drinks wholesaler, Lonsdale & Thompson[7], that the wholesaling industry had virtually neglected any form of planned training for staff. At odds with this view, MAKRO has never underestimated the effectiveness of carefully planned training and effort is consistently directed towards improving the organisation and relevance of training at all levels in the company. As with many large Cash and Carry firms, training at MAKRO can be broadly classified in terms of: — induction/orientation training — skills training — development training. Motivation is a key consideration. Though induction training is primarily concerned with giving new staff a sound introduction to the work of the company, an important anticipated benefit is that trained staff will be better motivated towards company goals. With skills training, the emphasis is more on refreshing skills or keeping staff up to date with new techniques and ideas. However, a recurrent feature of this kind of training is the accompanying need for some degree of staff re-motivation.

Motivation and Simulation Games A common characteristic of simulation games is the sense of involvement experienced by participants[8]. Numerous studies support the effect of games in increasing trainee motivation though the underlying mechanism for this is incompletely understood — a contributing factor appears to be the enjoyment that trainees derive from playing games. More generally, games appear to have distinct advantages over conventional methods of instruction in terms of their ability to change attitudes and the interest of trainees[9]. With this problem of motivation in mind, MAKRO and UMIST joined ranks last summer for the development of a wholesale management training game, christened Wholetrain. Where MAKRO's primary interest lay in acquiring a business game tailored to the Cash and Carry sector, attention at UMIST focused on understanding the difficulties of converting established simulation games to packages with new applications.

Steps in the Conversion of a Business Game Acknowledging the parallels that exist between Cash and Carry and supermarket trading, the original game from which the Wholetrain package was adapted was that of Supertrain[5], a training simulation, resulting from a previous joint venture between UMIST and the Co-operative Retail Services (CRS). The Wholetrain model that finally evolved bears little resemblance to the game from which it was developed. In part, this reflects the distinctive features of Cash and Carry trading but perhaps more importantly, priorities at MAKRO's training department. Summarising the work that went into the development of the Wholetrain package, we identified seven separate stages in the rewriting of a business game.

ICT • MAY/JUNE • 1985

STAGE 1: A specification for the proposed business game is drafted. In particular, the specification should identify: (a) the population (or types of trainee) for which the game is intended; (b) the training objectives of the game; (c) the real-life situation to be represented by the game; (d) variables (i.e. factors and decisions) to feature in the game; (e) an outline of how the game is to be played; (f) the role of the instructor/game manager.


(At MAKRO, the specification for Wholetrain was obtained directly by modifying the documentation (the "User Guide") for the original game.)

The "reality" . . . may also be influenced by security (information) constraints STAGE 2: The original game model is broadly compared to the game proposed. Depending on any "mismatches" that arise here, the scope of the original game model may need to be expanded or, alternatively, the application pared down to a more manageable size. In practice, the "reality", on which the new simulation game is based, may also be influenced by security (information) constraints as well as the need to avoid undue complexity in the final model. (MAKRO sell a vast range of food and non-food products. To enable the project to be completed within a three month time-scale, development of the Wholetrain model was tailored entirely towards the food trading side of the business.) STAGE 3: Detailed comparisons are carried out between elements of the existing game and those of the desired application. This should highlight features of the original game structure that may require alteration. Specifically, some variables may now be found to be irrelevant, and require elimination, whilst other, new, variables may have to be introduced and yet others redefined. (For example, where Wholetrain stores each have eight departments, there are only six in the original game. On a different level, the nature of marketing is quite different between the two games.) STAGE 4: Typical operating data are determined for the model. Such data are usually readily available from internal company statistics and should cover both decision inputs for the model as well as output results. To ensure that the new game is as realistic as possible, it is helpful if each of the data items submitted is accompanied by a corresponding "tolerance range", to allow for the variation observed in practice.

provided. Relationships between all variables in the model must be individually (and collectively) determined. Special care should be taken with relationships borrowed from the original model, in case of problems of misrepresentation. (The mathematical model for Wholetrain was progressively refined at UMIST, in line with regular consultations between MAKRO and the university. Particular attention was given to the game's realism throughout this period. MAKRO trainers were pragmatic about the precise mathematics underlying the model and which they left the university to determine.) STAGE 6: Supporting documentation is prepared for the game. This may be based on documentation from the original game or be written from scratch. Either way, it should set out the objectives, requirements and rules of the game. In addition, it will describe the environment being modelled and explain the data processing routines in use, particularly the handling of decision input. Optionally, a historical backdrop to the game may be given. (With Wholetrain, the documentation first drafted was the same for participants and instructor and was customised from the User Guide for the original game.) STAGE 7: Before the new simulation is finalised, it should ideally be given a thorough testing in the field, preferably on one or more of the courses for which it is intended. This will hopefully show up any errors or ambiguities that may have "slipped through the net" in either the game program or supporting documentation. It may also point, for example, to possible improvements in the presentation of results or administration of the game situation. (The game has now been piloted and as a result of feedback from the course, the package has been significantly enhanced. Details follow.)

Piloting the Wholetrain Game A "prototype" version of Wholetrain was tested on a three day course at MAKRO Head Office last October. Entitled "Introduction to Store Operations", the purpose of the course was to give trainees (who had been with the company for some five or six weeks) a basic understanding of management control documents and key systems used in the dayto-day operation of a MAKRO store. Nineteen course members were divided into five teams. After an initial briefing, five decision rounds took place on alternate mornings and afternoons. A review and feedback session was organised for the last day of the course: Day Game Session

Duration (minutes 90 30

1

Briefing and Decision Round 1 Decision Round 2

2

Decision Round 3 Decision Round 4

30 30

(The operating data used to "set" the Wholetrain model were made available from MAKRO at less than a week's notice though this turnaround is probably exceptional.)

3

Decision Round 5

30

Review and Feedback

90

STAGE 5: Decision inputs are mathematically married up to game outcomes, using to the full any "tolerance" data

During the first decision round, team members were asked to:


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— elect an observer/spokesman and a person to enter decisions into the computer;

tation gains momentum, and "friendly" authoring packages are made available for the non-specialist.

— agree an operating policy for their store. Each team was given thirty minutes to prepare for the review session. At this session they were asked to report to the total group on their operating policy and performance figures. They were also encouraged to comment on the group interaction.


Following post-course feedback . . . the p a c k a g e has u n d e r g o n e various modifications

Following post-course feedback from both trainers and trainees, the package has undergone various modifications. Some of these improve the realism of the game, e.g. by introducing costs for staff recruitment/redundancy and allowing a one week delivery period for stock replenishment. Other changes concern the administration of the game. For example, input procedures are now more flexible so that teams can input decisions out of store number order. Also, the instructor can control the incidence of "random events" that can occur in the game. Following this work, it is thought the program has potential in training where the purpose is to investigate and improve group decision making and teamwork.

An Overview of the Wholetrain Simulation Game The Wholetrain management training aid is written in BBC BASIC and provides a credible model for competitive trading between large wholesale operations. With Wholetrain as many as five Cash and Carry outlets, each represented by a small team of management trainees, compete for a given week's wholesale trade. Trade is assumed to take place in a large conurbation. All stores start off on an equal footing (with the same opening stocks, fixtures, etc.) and teams have to make a variety of decisions reflecting their store's policy on mark-ups, bulk discounts, stock replenishment, marketing, staff deployment and so on. After processing these decisions the computer produces a comprehensive set of operating results, team by team. Teams are able to use these results to judge the success of their policies. With Wholetrain this is measured in terms of satisfying the needs of (a) the business, (b) the retailer, and (c) wholesale staff. The operating statements can also be used as a basis for reaching decisions in a subsequent week's trading. The benefits for trainees participating in the simulation are many. In particular the program assists with: — complex decision uncertainty;

making

in

conditions

of

— setting achievable target levels for future trade; — interpreting a range of conflicting performance data.

Summary The Wholetrain business game project demonstrates the relative ease with which computer-based games can now be tailored to fit individual applications. Unlike the "hard format" of manual games, games packages are "soft" and, as a result, are much more amenable to modification. This property is invaluable either for customising the package to suit particular needs or merely keeping the package upto-date in the face of changing real circumstances. In the future, it is likely there will be a proliferation of computerbased simulation games for training as this process of adap-

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The Wholetrain package is particularly effective as an "icebreaker" on formal courses. However, the real strength of Wholetrain is that it provides a means of training managers in a Cash and Carry environment where experimentation is usually infeasible.

References 1. Greene, J. and Sisson, R.L., Dynamic Management Decision Games, Wiley, 1959. 2. Elgood, C., "Business Games, an Application to Retailing", Retail and Distribution Management, Vol. 3 No. 3, 1975. 3. Dent, F. and Freeman, J., "Technology for Training", Co-operative Marketing and Management, June 1984. 4. Freeman, J., "CAT for Supermarket Management", Training Officer, Vol. 20 No. 8, 1984, pp. 229-32. 5. Freeman, J. and Dent, R., "CAT for Supermarket Management", Retail and Distribution Management, March/April 1984. 6. Elgood, C., The Handbook of Management Games, Gower Press, 1984. 7. McKay, R., "Staff Training: a Vital Part of Successful Wholesaling in the 1980's", Cash & Carry Wholesaler, June 1984. 8. Loveluck, C., "The Construction, Operation, and Evaluation of Management Games", in Taylor, B. and Lippitt, G.L. (Eds.), Management Development & Training Handbook, McGraw-Hill Inc., 1975, pp. 217-19. 9. Pierfy, DA., "Comparative Simulation Game Research — Stumbling Blocks and Stepping Stones", Simulations and Games, Vol. 8, 1977, pp. 255-68.
