Business simulation game

Business simulation game
See also
Knowledge and understanding Knowledge and experience Knowledge and information Knowledge Concept of knowledge Complex problem solving Training and development Model of entrepreneurship Marketing information system

A business simulation game is an interactive, computer-based program that allows participants to experience the complexities of running a business in a risk-free environment. It models the activities, decisions, and consequences of a real-life business, providing an experiential learning platform for participants to understand the impact of their decisions on profitability and other outcomes. Business simulation games typically use a combination of graphical user interfaces and quantitative models to create realistic scenarios and to allow participants to experiment and develop business strategies.

Example of business simulation game

• RollerCoaster Tycoon: RollerCoaster Tycoon is an example of a business simulation game that allows players to design, build, and manage an amusement park. Players must manage the budget, build new attractions, hire staff, and market the park to attract customers. The game also includes scenarios which provide specific goals to be achieved such as reaching a certain monthly income.
• SimCity: SimCity is another popular business simulation game in which players are tasked with developing a city from scratch. Players must manage the city’s population, infrastructure, services, and resources, as well as consider the needs of the citizens. The game also includes disasters, such as floods and fires, which can cause significant damage to the city and make it necessary for the player to rebuild.
• Lemonade Stand: Lemonade Stand is a classic business simulation game in which players must manage a lemonade stand. Players must make decisions about pricing, advertising, and supplies, while also monitoring the weather and customer demand. The game also includes a variety of mini-games which require players to make decisions about how to allocate their resources.
• Theme Park Tycoon: Theme Park Tycoon is a business simulation game that allows players to design, build, and manage theme parks. Players must manage finances, select rides, hire staff, market the park, and manage customer satisfaction. The game includes a wide variety of scenarios and objectives, such as building a successful park or reaching a certain number of visitors.

When to use business simulation game

Business simulation games are a great tool for teaching and learning about business and can be used in a variety of contexts. They are ideal for use in business education courses, executive training programs, corporate team-building activities, and in-house professional development programs. Here are some of the applications for business simulation games:

• To teach business students the basics of running a business: Business simulation games are a great way for students to learn about business operations, strategies, and processes in a fun and engaging way.
• To train executives and managers: Business simulations are an effective way for executives and managers to learn and practice strategic decision-making and problem-solving.
• To develop team-building skills: Business simulations can be used to help teams develop and hone their communication, coordination, and collaboration skills.
• To promote creative problem-solving: Business simulations can encourage participants to think outside the box and come up with creative solutions to problems and challenges.
• To assess business knowledge and skills: Business simulations can help assess the business knowledge and skills of employees, providing important data for HR professionals.

Types of business simulation game

A business simulation game is an interactive, computer-based program that allows participants to experience the complexities of running a business in a risk-free environment. There are a variety of types of business simulations, each providing a unique experience to players looking to learn the skills necessary to become a successful businessperson. These include:

• Market simulations, which allow players to simulate the buying and selling of a variety of assets, such as stocks, commodities, and currencies, to develop an understanding of the principles of supply and demand.
• Business process simulations, which allow players to experience the complexities of running a business, from managing employees and resources to making decisions based on market conditions.
• Strategic simulations, which allow players to develop competitive strategies and simulate the outcomes of their decisions.
• Entrepreneurial simulations, which allow players to create and manage a business from the ground up, including developing products and services, marketing, and financial planning.
• Management simulations, which allow players to experience the challenges of managing an organization, from setting budgets and hiring employees to dealing with customer relationships.

Advantages of business simulation game

Business simulation games offer a number of advantages to users, including:

• Enhanced Knowledge Retention: By allowing users to experience the consequences of their decisions, business simulation games help them to better understand and retain business concepts.
• Increased Engagement: By providing a fun and interactive platform, business simulation games encourage users to take an active role in their learning process.
• Real-World Experiences: Business simulation games provide users with a realistic representation of how businesses operate, allowing them to build experience in a safe environment.
• Improved Decision-Making: By allowing users to explore different scenarios and make decisions in a risk-free environment, business simulation games can help them improve their decision-making skills.
• Enhanced Collaboration: By allowing users to collaborate with peers and learn from each other, business simulation games can help them to develop their teamwork skills.

Limitations of business simulation game

Business simulation games have a number of limitations that can affect their effectiveness. These include:

• Limited user engagement: Business simulation games are designed to simulate a real-life business, but they lack the ability to create an interactive, immersive experience for participants. As a result, users may not be as engaged with the game as they would be in a real-world business environment.
• Limited realism: Business simulations can be limited in the level of realism they can provide. For example, they cannot accurately model all the complexities of the real-world business environment, which can affect the accuracy of the results.
• Lack of feedback: Business simulations can lack the ability to provide timely feedback to participants about their decisions and their consequences. This can limit the learning experience for participants.
• Cost: Business simulations can be expensive to develop and maintain, which can limit their use in educational settings.
• Limited scalability: Business simulations are designed to be used with a limited number of participants. This can limit their effectiveness in larger learning environments.

Other approaches related to business simulation game

Business simulation games provide a great platform for learning and experimentation. Other approaches related to business simulation games include:

• Experiential learning – Experiential learning is a method of learning through direct experience and reflection, where participants actively engage in problem-solving and decision-making activities. Experiential learning activities can be used in conjunction with business simulation games to create a more realistic and engaging learning experience.
• Business analytics – Business analytics is the use of quantitative models and data analysis techniques to gain insights into business activities. Business analytics tools can be used to improve decision-making and identify trends in the data.
• Business process modeling – Business process modeling is the use of graphical notations to represent the activities, inputs, and outputs of an organization. This technique helps participants to understand the complexities of their organization and to identify areas of improvement.

In summary, business simulation games provide a great platform for experiential learning, but other approaches such as business analytics, business process modeling, and experiential learning can also be used to supplement and enhance the learning experience.

Suggested literature

• Faria, A. J. (1998). Business simulation games: Current usage levels—An update. Simulation & Gaming, 29(3), 295-308.
• Faria, A. J. (2001). The changing nature of business simulation/gaming research: A brief history. Simulation & gaming, 32(1), 97-110.
• Seethamraju, R. (2011). Enhancing student learning of enterprise integration and business process orientation through an Erp business simulation game. Journal of Information Systems Education, 22(1), 19.