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CHAPTER 1 Introduction Copyright ©2008 The McGraw-Hill Companies, Inc. All rights reserved. Overview bro13556_ch01.indd 1 The primary objective of an experiential learning simulation game, such as FinGame Online 5.0 (FG), comes from learning how to plan, formulate strategies, and make sets of sound decisions sequentially through time. FG provides a decisionmaking setting similar in many respects to the financial management requirements of an actual company. The manager of an FG company has the operating control of an entire company. The manager is the chief financial officer (CFO) who also controls major decisions normally managed by the chief executive officer (CEO) and chief operating officer (COO). The FG decision…show more content…
Use of low-priced stock to rebalance the company’s debt-equity ratio to a more reasonable level would then be very expensive. This interrelationship among decisions both at a point in time and over time adds to the complexity of the decision-making setting. To perform successfully, a strategy must be developed that combines the numerous single-decision solution techniques into an effectively integrated set of multiple-period decisions. 1 6/6/07 6:01:36 PM 2 Chapter 1 The primary objective of FinGame is to learn how to plan, formulate strategies, and make sets of sound decisions sequentially through time. Material differences exist between the game and an actual environment; these differences are reviewed in Chapter 5. The experience gained in the game is not fully transferable to an actual operating company, but most of the specific problem-solving techniques that lead to successful game performance are transferable. Experience is gained in simultaneously considering a large set of interrelated decisions and integrating this set of decisions into a coherent overall firm strategy. The major purpose of FG is to provide a setting where general decision-making skills in solving complex multipleperiod management problems can be experienced and improved. Business simulation games are usually enthusiastically received. The games require an active role, allowing the practical application of knowledge gained

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