ALIGNING AN INTEGRATIVE BUSINESS SIMULATION AND AN MBA CURRICULUM AN ONGOING PROCESS

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1 International Journal of Case Method Research & Application (00) XVII, 00 WACRA. All rights reserved ISSN -77 ALIGNING AN INTEGRATIVE BUSINESS SIMULATION AND AN MBA CURRICULUM AN ONGOING PROCESS John Kerrigan Paul O Neill National - Louis University CHICAGO, ILLINOIS, U.S.A. Abstract The purpose of this paper is to discuss how an integrative business simulation and an MBA curriculum can be aligned to ensure that the concepts of both mutually support each another. Specifically, this paper will examine how the two authors, who are members of the College of Management and Business at National Louis University (NLU), are identifying and aligning the major concepts required for the Capstone Business Simulation with the content of its MBA program. The goal of this paper is to provide ideas and methods and for other users of simulations and case studies to engage in similar evaluative efforts. KEY WORDS: Strategic Management, MBA, Evaluation, and Business Simulation INTRODUCTION The College of Management and Business, National Louis University, developed an MBA program in 999. The program s design is based upon NLU s experience in using adult learning principles that appeal to and meet the needs of adult students. The program consists of twelve courses taught in a cohort model. One of the key focuses of the program is the hands-on application of learning. For this reason, a business simulation, Capstone (by Management Simulations of Northfield, Illinois), was selected for the program. The simulation is web based and is designed to be an integrative experience, combining the application of key MBA program concepts with strategic and operational decision making. Classroom teams compete by running rival businesses for five to six sessions during the last course of the program, Strategic Management. The content of the Strategic Management course and the simulation reinforce one another. The use of the Capstone simulation has been found to be both beneficial and challenging to students. Student teams are required to apply previously learned business concepts from courses as disparate as Economics, Finance, Organizational Behavior, and Human Resources. Consequently, student success in the simulation is considered to be a strong indicator of student success in the overall MBA program. To ensure that there is the best fit possible between the MBA program and simulation content, the two authors, as part of the College of Management and Business MBA Program Review Team, are leading an evaluative effort to systematically examine both the simulation and program content. The goal is to ensure that course concepts are being taught with proper emphasis on their use within the simulation. The MBA Program Review Team, in its ongoing review and revision of the program, will use the results to improve the curriculum. The methodologies developed and used by the authors are explained in the next section.

2 International Journal of Case Method Research & Application (00) XVII, 0 RESEARCH STEPS AND METHODOLOGY The ongoing evaluation of the MBA program has indicated that the Capstone simulation has been beneficial in integrating MBA concepts. However, it was determined from student evaluations and feedback from course instructors that there is an opportunity to better align the content of the MBA courses with required simulation concepts. Working with this hypothesis, the following research steps and procedures are being followed.. Identification of key concepts required for effective participation by students in the Capstone simulation.. Development of an instrument (Capstone Concept Grid and MBA Courses) to determine where those concepts are being taught in the MBA curriculum.. Development of an instrument (Capstone Simulation Concepts Student Evaluation) to be used by students to evaluate the importance of the concepts and how well they are being taught.. Evaluation of results and the development of suggestions for improving the teaching of the concepts in the MBA program. IDENTIFICATION OF KEY CONCEPTS A beginning point in identifying key concepts required of students for the simulation has been to contact Management Simulations, the company that owns and services Capstone. The authors interviewed one of the developers of the simulation, Dan Smith, who also has been an instructor for several different groups. In response to the question of what concepts are required of students in order to effectively engage in the simulation, Mr. Smith provided a listing of concepts that should be covered in courses such as Managerial Accounting, Finance, Marketing, Microeconomics, and Operations. DEVELOPMENT OF CONCEPT GRID FOR INSTRUCTORS After developing an initial list of concepts from the above interview, the authors examined the instructor and student support material for Capstone to identify additional required concepts. Other instructors of the Strategic Management course and Capstone simulation were also consulted and their input was added to the previously identified list of required concepts. A total of fifty-eight concepts were identified. With the information from the above sources, a Capstone Concept Grid and MBA Courses was created. A shortened version of this instrument is contained in Appendix A. A full list of concepts is contained in Appendix B. The purpose of this Grid is to identify where in the MBA curriculum the concepts are currently being taught and the amount of time spent on the concepts. The authors will review the information from this Grid and compare it to the information obtained from the student evaluation process described below. With the information from both sources, the authors will work with specific course developers and instructors to determine where best in the program to cover required concepts. In addition, suggestions will be developed as to how best to teach the concepts in order to maximize the learning experience of the Capstone simulation. DEVELOPMENT OF CONCEPT GRID FOR STUDENTS Along with plans to obtain information from MBA program developers and instructors, the authors want to obtain additional information from students on required Capstone concepts as they complete the last course, Strategic Management, and the Capstone simulation. Students normally complete an evaluation of the whole program and each of the courses. After examining the program and course evaluations, the authors determined that a more specific instrument is needed to obtain information on the identified required concepts. In designing an instrument, the authors needed to consider the large number of concepts and the time needed by students to complete the instrument as well as the program and course evaluation forms. For this reason the authors modified the previously mentioned Capstone Concept Grid and MBA Courses into the Capstone Simulation Concepts Student Evaluation. The instrument contains the fifty-eight required concepts and is designed to efficiently capture information from students as to the importance of each Capstone concept, and how well each is being taught/covered

3 06 International Journal of Case Method Research & Application (00) XVII, in the MBA curriculum. Five point scales are used to evaluate each question. The data will be used to identify the most important concepts that are in need of additional teaching support. The Capstone Simulation Concepts Student Evaluation is contained in Appendix B. The results of the Capstone Simulation Concepts Student Evaluation will be compared to the information from the Capstone Concept Grid and MBA Courses to determine if there are required concepts that are high in importance, not well covered in the MBA curriculum, with insufficient or no instructional time being provided by instructors. This information will be summarized and shared initially with the MBA Program Review Team and with the course authors. The results will be used to modify course design and instruction. Subsequent student evaluations of the simulation will be used to determine the degree of improvement in student preparation for the simulation. The ongoing evaluations will also serve as a means of continuing feedback to course instructors and will serve as an important base for continuous improvement of the MBA program. EXAMINATION OF INITIAL RESULTS AND SUGGESTIONS As of this writing, a Capstone Concept Grid and MBA Courses has been completed by course instructors/authors for each of the MBA s thirteen courses. In addition, twenty-three students in two MBA groups have completed the Capstone Simulation Concepts Student Evaluation. Additional evaluations will be added to the data pool as students complete the simulation. Our initial analysis of the evaluations indicated that the majority of concepts required for effective participation are being effectively covered in the MBA courses. We next determined that the greatest opportunity for improvement would be to identify concepts that were rated high in importance ( extremely important or very important ), and rated as inadequately covered in the curriculum ( somewhat or not at all ). These identified concepts were then compared to time spent on them by course authors/instructors. As a result, a group of concepts have been highlighted as needing more emphasis within several courses. These concepts, the percentage of students rating each as high importance yet low coverage, and our initial suggestions for improvement are listed below.. Automation and Automation Versus Labor Costs (both rated high importance/low coverage by 6% of students). Automation is covered briefly in the Human Resources Management course (0 minutes) and in the Operations course (0 minutes). The automation module from Capstone could be used in either course to develop examples that would better explain the financial and human resource implications of automation.. Product Reliability MTBF (rated high importance/low coverage by 6% of students) The Operations course spends 0 minutes on this concept. More time needs to devoted to this concept, perhaps by using an example from Capstone in the Operations course.. Improving Productivity through Human Resource Development and Selection (rated high importance/low coverage by 7% of students). The Human Resources Management course spends minutes on this concept. Course instructors should examine the HR module in Capstone and develop examples on the cost and productivity gains from training, selection, and planned staffing. These examples could also be linked to the automation concept and examples.. Maximizing Plant Utilization and Capacity Analysis (rated high importance/low coverage by 7% of students). The Operations course spends at least an hour on these two concepts. Again, instructors should refocus the concept through specific examples from the Capstone simulation.. Customer Satisfaction Report ; Product Determination Decision ; Perceptual Map ; Number of Products in Segment Product ; and Product Age (all rated high importance/low coverage by % of students). None of these concepts are covered in the detail necessary to effectively participate in the Capstone simulation. Instructors should develop specific examples and include these in the Strategic Marketing course.

4 International Journal of Case Method Research & Application (00) XVII, 07 ANTICIPATED IMPROVEMENTS IN THE MBA PROGRAM As a result of this ongoing evaluation and feedback, the following improvements are expected to be made in the MBA Program generally, and the Capstone simulation specifically:. The MBA curriculum will be more complete.. The MBA curriculum will be more cohesive.. Students will be better prepared for the simulation.. Students will be better able to use the case study to integrate the MBA course concepts.. Students will be better able to transfer the learnings derived from the simulation to their own organizations. CONCLUSION This paper has demonstrated that simulations can do far more than aid in the teaching of specific course content. only can they be used to integrate several disciplines, but they can also be effectively used as a form of ongoing evaluation to ensure that individual courses, as well as an entire curriculum, are being well presented to students. The authors hope that the methodology and instruments used in this evaluation will inspire other course developers and instructors to evaluate and integrate simulations and program materials.

5 08 International Journal of Case Method Research & Application (00) XVII, APPENDIX A: Name of Course Reviewer Name and Number of Course Reviewed: CAPSTONE CONCEPT GRID AND MBA COURSES Please indicate the amount of time you spend on any of the following concepts in the course you have been asked to review. The possible time amounts are listed below Please indicate the number that correspond to the appropriate time spent (For example if you spent minutes on a concept, you would place a. in the appropriate cell. If you would spend minutes you would place a. in the appropriate cell). 0 to 0 minutes. minutes to 60 minutes. 6 minutes or more

6 International Journal of Case Method Research & Application (00) XVII, 09 MBA Financial Statements (BS, Income Stmt) Working Capital Loans and debt management Financial Ratios Corporate strategy on wealth distribution Capital Acquisition Dividend Policy Credit Practices Financial Structure Debt/Equity Cash Flow Four P s of Marketing Marketing Segmentation Forecasting Supply, demand, and price Product distinction Price, size, reliability, positioning, age Customer purchasing decision Intro 00 OB 0 HRM 0 Ethics 06 Mgr. Econ 08 Macro 0 Intl Mgr Acct Fin. Mkts 6 Fin. Mgt. 8 Ops Mgt 0 Strategic Market Strategic Mgt

7 0 International Journal of Case Method Research & Application (00) XVII, APPENDIX B: CAPSTONE SIMULATION CONCEPTS EVALUATION Contained below are major concepts that have been identified as important for effectively engaging in the Capstone Business Simulation. Would you please indicate the importance of each of these concepts and how well the concepts have been covered in the MBA program. Please do so by placing checks in the appropriate boxes for each concept. The information that you and other students provide will be used for future improvements in the program. IMPORTANCE HOW WELL COVERED IN PROGRAM Financial Statements (BS, Income Stmt) Working Capital Loans and debt management Financial Ratios Corporate strategy on wealth distribution Capital Acquisition Dividend Policy Credit Practices Financial Structure Debt/Equity Aver. Somewhat Avg. Somewhat.

8 International Journal of Case Method Research & Application (00) XVII, Cash Flow Four P s of Marketing Marketing Segmentation Forecasting Supply, demand, and price Product distinction Price, size, reliability, positioning, age Customer purchasing decision Consumer Satisfaction Report Aver. Somewhat Avg. Somewhat. Margin Analysis Breakeven Analysis Capacity Analysis & Utilization Inventory Costs Fixed costs Maximizing plant utilization Labor Costs Automation

9 International Journal of Case Method Research & Application (00) XVII, Product Termination Decision Aver. Somewhat Avg. Somewhat. Perceptual Map # Products in Segment Product Age Product Reliability MTBF Cost of Material New Facilities Automation vrs labor Cost Types of R&D Projects (repositioning, inventing, & reliability adjustment) Material Costs Project management Cycle Completion Times Improving Productivity Through HR Development & Selection

10 International Journal of Case Method Research & Application (00) XVII, Needed Complement of workers HR Impact: Costs and Savings due to Automation Staffing Costs: Recruiting & Training Budget Factors Impacting Employee Turnover Aver. Somewhat Avg. Somewhat. Labor Negotiations TQM Process Management Industry Analysis Competitor Analysis Industry Capacity Analysis Corporate Strategies Business Strategies Strategy/Functional Area Alignment Market Positioning

11 International Journal of Case Method Research & Application (00) XVII, Organizational Planning& Communication Mission/Vision Formation SWOT Analysis Business Success Indicators Aver. Somewhat Avg. Somewhat. Completed Capstone Simulation Concepts Evaluations should be sent to: