The final term is finally upon us at Lancaster University and I thought this would be the perfect chance to share with you all a module that I enjoyed last term – The Strategy Simulation Challenge, which enables you to manage your very own virtual airline company!
My career ambition is to have a role which involves strategy planning, so I chose the module because I felt that it would be the perfect platform to gain insight into a strategy role. So, after signing up to the module at the end of my second year, I had been particularly excited when last term finally came around so that I could start the challenge.
For me, an appealing element of the module was the module design because it is very different to others I have studied. This is because it comprises of practical activities in a simulated environment which include making weekly strategic decisions for the airline, producing a company shareholder report and delivering a company presentation. The varied activities involved with the challenge made the module interesting and enabled me to learn about the different ways in which a company develops and communicates their strategy to various stakeholders.
At the start of the challenge, participants are split into teams and you can really get into role by allocating team members a management role. For example, within my team we allocated roles including marketing manager, human resource manager and financial manager. Then, one of the first activities to complete is to come up with a company name and catchphrase and design a logo. This was a particularly fun part of the module because it enabled us to apply our creativity whilst also allowing us to consider a brand strategy, such as the brand image we would like to portray.
A key element of the challenge was to choose a positioning for the airline and develop a strategy which would support the company to successfully achieve the chosen positioning. For example, you could choose to enter the market as a low cost airline carrier or a luxury airline carrier. Then throughout the challenge you have to identify the business activities and investments which will support you to achieve the strategy. For my company, we chose to position as a low cost, quality carrier airline and therefore we developed a strategy which would enable us to keep costs down and deliver to customers a good quality service.
The key decisions we had to make each week included expenditure decisions for business activities, including marketing, Corporate Social Responsibility and employee training. This meant that the challenge enabled us to visualise in practice the effect of increasing or decreasing the expenditure on business activities each week. However, the simulation programme also prompted me to consider other factors, such as lower customer demand in winter and the activity of competing teams. Therefore, the challenge also enabled me to learn about responding to competitors and dealing with elements which can influence an airline company.
My team were successfully able to develop a business strategy which led us to achieve a profit. After completing the module I feel more confident making strategic decisions and I have learnt how to create and implement a strategy for a business. I really enjoyed taking part in the module and I would highly recommend it to anyone who is interested in learning more about business management or strategy management.