ERPsim Planning & Budgeting

Overview

ERPSim Planning & Budgeting Assignment

In this assignment, you will focus on creating 1) a strategy statement, 2) a detailed master budget and a projected income statement for your team within the ERPsim game, 3) key strategic decisions you need to make before the game begins and how to collect and utilize information during the game to optimize your team's performance. This assignment will help you and your team prepare for the real game.

1. A strategy statement is an integrative set of choices in the value chain that positions your team in a specific market in a way that you can achieve your goal. It is the guiding principle in your business processes or value chain (R&D, Design of Products & Processes, Production, Sales and Marketing, Distribution and Customer Service). In this in-class activity, you and your teammates will work on a preliminary strategy statement and present it in class.Your strategy statement should include:a) A statement explaining your team's objective (for example: create the highest company valuation) and how you will achieve your goal (what competitive advantages you plan to develop in your business processes.b) Briefly describe your strategic plan in each of these areas: a) product mix, b) procurement, c) production, d) sales and marketing, and e) accounting and finance.
2. Prepare a detailed master budget and projected income statement for your team. We provide a templateDownload template with built-in formulas to help you with this process.
   1. Begin by choosing your product mix and updating the budgeted selling price of your products in the “Prices & CM” sheet.
   2. Update the “Production Schedule” sheet based on your team's strategic plan and product mix.
   3. Review the “Production & Quantity Sold” sheet for any necessary adjustments in the “Production Schedule” sheet.
   4. Revise the “Distribution Channels and Store” based on your market understanding.
   5. Analyze the “Sales Models” sheet and decide if updates are required for previous sheets.
   6. Finally, examine the projected income statement and evaluate if adjustments are needed to enhance your income projections.
3. Based on your team’s strategy and your role (Planning, Procurement, Production, Sales, or Accounting/Finance), prepare a PowerPoint slide deck to discuss the following 2 topics in your presentation.

• What are the major decisions you need to make in the game?
• What information would you like to collect during the game? How do you plan to use this information to update your decisions?

Submission Requirements:

Submit the following to Canvas Strategy before your presentation: 1. Statement (Word document); 2. Master Budget and Projected Income Statement (Excel workbook); 3. PowerPoint Slides for Product Mix, Procurement, Production, Sales & Marketing, Accounting & Finance.