BISCUITS    

BISCUITS is the latest in our range of highly realistic business simulations. BISCUITS demonstrates the importance of management decision-making  in the context of a competitive marketing, production and distribution scenario. These decisions cover the areas of purchase of raw materials, production and packaging, allocation of stock, promotion, selling, finance and planning.

BISCUITS is an interactive computer model, which has been developed by Andy Clayton of Challenge Training Partners to provide a stimulating simulation for use in longer, more challenging events or on a weekly basis. A salient feature of the model is its realism with regard to: the product being produced and sold, the background to the business and the magnitude of the amounts of money involved. The concept of a small specialist "British" biscuit manufacturer that has taken the exciting step to expand production and to export to three European countries is one that students readily assimilate.

A salient feature of BISCUITS is the model's response to individual company decisions and actions and, in particular, to the specific requirements and idiosyncrasies of individual markets. All these affect not only individual companies, but all interact to affect the performance of all the companies and the specialist biscuits market as a whole.

In the model an existing small biscuit company has decided to expand its business. It is to start marketing its products, with financial help from the local development agency, in three European countries. The company produces "home-made" style biscuits from quality ingredients in a small factory. It employs a small number of local people, mainly on a part time basis, to team to bake, package and dispatch its products. It sells its biscuits through local agents. These agents are not direct employees of the company but are self-employed people who work for a number of specialist food manufacturers. The company buys sales effort from these agents by the man-day. 

Normally each company (team) is in competition with 5 other similar companies for the available market.  Typically the teams run their companies for between 6 and 9 "months" in a two day event.

Objective

Each company tries maximise its rate of return on its assets employed. It does this by achieving the best prices for its biscuits; by matching supply and demand; and by targeting its marketing to recognise and meet the requirements of different European countries. The most successful company is deemed to be the one that has the highest rate of return and which has paid off its loan in a timely fashion.

To win, a company must have its business still in a viable state, with sufficient stock to continue trading.

Decision-making

Each company makes its decisions each "month" by filling in a decision-form. Depending upon the situation this will either be either completed by hand or electronically. During the time allotted for the decision the companies may send a representative to the BISCUITS Team to seek advice or negotiate terms.

The results of the companies' decisions are returned at the beginning of the next "month" on a pair of readily understandable print-outs. Results include sales information, cash flow, costs incurred and profit made.

Messages, some cryptic, are sent out. These might be for invitations to tender for the supply of biscuits, important Health and Safety issues, changes in trading conditions etc. It is important that the teams look out for these.

Every team member is given a concise, but detailed manual, which includes help and advice on the decision-making process and the associated rules.

The BISCUITS Team

The BISCUITS Team plays a very important role. Typically this team will be formed of either designated students or staff from the schools or colleges involved. Whilst being members of the overall team responsible for the efficient operation of the simulation, the Team has specific responsibility for a market of 6 companies. The Team has three roles:

1. To run the simulation by processing the company decisions and having the results ready to a tight schedule.
   
2. To help on any technical points.
   
3. To act as a negotiator: