Diabolo OnLine manual-E04

Take control of your company !
DIABOLO
OnLine
PARTICIPANT WORKBOOK

The DIABOLO OnLine Business Game was created by IPAJE (Philippe Prévost, Michel Leroy and Gérard Deroulers).
Any reproduction of this document, even partially, without prior authorisation from the authors is strictly forbidden.
I.P.A.J.E. – www.ipaje-business-games.com – [e-mail]
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1 - INTRODUCTION .......................................................................................... 1
1.1 –Educational purpose ................................................................................... 1
1.2 – Global overview of DIABOLO..................................................................... 1
1.3 – DIABOLO in practice.................................................................................. 1
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2 -THE COMPANY ............................................................................................. 2
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3 - THE COMPANY’S RESOURCES ................................................................ 3
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4 - YOUR MANAGEMENT TEAM ...................................................................... 4
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5 -YOUR OPERATIONAL DECISIONS ............................................................. 5
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6 - THE BUSINESS ENVIRONMENT ................................................................ 7
6.1 – Economic outlook..................................................................................................................7
6.2 – Competition............................................................................................... 7
6.3 – Company background................................................................................. 8
6.4 – Income statement for the last quarter........................................................10
6.5 – Current financial situation .........................................................................11
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- DEVELOPMENT PATHS .............................................................................12
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8 - PRACTICAL INFORMATION ......................................................................14
8.1 – Call for tenders..........................................................................................14
8.2 – Investments ..............................................................................................14
8.3 – Loans ........................................................................................................14
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9 - YOUR STRATEGY ......................................................................................15
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10 - MANAGEMENT TEAM DECISIONS …………………………….……. ..........16
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11 – YOUR DECISIONS SCREEN ...................................................................17
V.03/20
SUMMARY…

DIABOLO BUSINESS SIMULATION
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© IPAJE / [email protected]
1.1– EDUCATIONAL PURPOSE
You will form a team to participate in an economic adventure consisting in managing a company through
several years, in a competitive environment.
This experience should allow you to get a “feel” for the strategic management of a business (forecast,
anticipation, risk taking, arbitrations and joint decision-making) to understand the importance of the different
services of the company in order to achieve its strategic goals.
1.2– GLOBAL OVERVIEW OF DIABOLO
During the DIABOLO business simulation, you will be a spring water company, marketing and selling your
production in a variety of forms (still water, sparkling water) in a fierce and competitive environment.
You are part of the management team of this company, which is competing with other companies which
are, at first, exactly identical to yours.
Your mission will consist in leading the company to its next Shareholders’ General Meeting.
1.3– DIABOLO IN PRACTICE
After having analyzed your situation and once your strategic choices are done, your team will take its
operational decisions on the web-based Diabolo Online interface. Our software will simulate the demand,
and will deliver your results and those of your competitors. The « decisions – results » process represents a
period, ie a quarter of activity.
Your company will thus live several quarters until its next Shareholders’ General Meeting.
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1 Introduction

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DIABOLO BUSINESS SIMULATION
© IPAJE / [email protected]
The company, located in the middle of the moutains, will benefit from two water sources: one still water
source and one naturally sparkling water source.
The water is directly taken from deep groundwaters, then sent to your factories to be bottled: one factory
for still water, and one for sparkling water.
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Our spring water is naturally preserved!
Clients enjoy the seriousness of our company and our
products’ quality.
Over the past year, we have been able to build a real
relationship of trust with our clients and local retailers,
who are happy to find a proper alternative to famous
brands, which do not allow them to earn enough money.
Our products are present in several major food
supermarkets in a 150 km area.
Our latest Management Comittee identified several
business ideas, which we will explore very soon.
says the company’s CEO.
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2 The company
‘‘
‘‘

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DIABOLO BUSINESS SIMULATION
© IPAJE / [email protected]
FINANCIAL RESOURCES
Share capital 4 000 000 € (4000 shares of 1000 €)
Bank loans 2 000 000 €
Financial resources, total 6 000 000 €
You have acquired 2 factories estimated at 5 000 000 € total
1 factory (called “Plate1”) dedicated to the
« Still Water » range
1 factory (called “Gaz1”) dedicated to the
« Sparkling Water » range
Worth: 3 000 000 €, depreciated over 10 years Worth: 2 000 000 €, depreciated over 10 years
Production capacity:
20 000 pallets in 3 months
Production capacity:
12 000 pallets in 3 months
STOCKS: As your production system is very specific, you do not store your products. Your just-in-time
based policy with your PET bottle suppliers allows you not to store any raw material.
PRODUCTION: the number of pallets produced depends on the efficiency of your sales team: you only
produce what you will sell.
DISTRIBUTION: distributing your products in supermarkets has a cost:
investment charges, in the form of financial holdings in local stores of 100 000 €.
In case of withdrawal from this distribution network,
only 50% of your investments will be given back to you.
HUMAN RESOURCES
You hired 8 administrative employees, with a long-term contract. These people are “non-productive”.
5 administrative employees working in the
«Still Water Plate1 » factory
3 administrative employees working in the
«Sparkling Water Gaz1 » factory
Production staff has fixed-term contracts,
This production staff is hired depending on your needs (linked to your clients’ demand for your brand).
Today, 11 production employees are working for
the «Still Water Plate1 » factory
Today, 7 production employees are working for the
«Sparkling Water Gaz1 » factory
TECHNICAL RESOURCES
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3 The company’s resources