Case Study #5: Building Better Business Plans Worldwide

Client: Top-5 Motorcycle Manufacturer

Simulation Used: DealerSim™

Specific Business Need: Enhance business-planning and thinking skills, and develop market-specific business plans.

Solution: PriSim® designed and built a customized business simulation around a motorcycle dealership's business dynamics. Decision-making in the simulation involves the following functions and departments:

• Vehicle Sales
• Parts and Accessories
• General Merchandise
• Service
• Finance and Insurance
• Rentals
• Accessorization Department/Chrome Consultant

Teams manage their dealership in a competition comprised of 5 decision rounds (each round representing 6 months of elapsed time). At the beginning of the competition a Situation Analysis is performed and then a 2.5-year plan is developed. Plans must address key concepts such as seasonality, marketplace fluctuations, inventory management, margin management, staff management, and showroom expansion/promotion. At the end of the competition, one team emerges victorious, and the remaining teams reflect on what they could have done differently given more time or another chance at the competition!

During the final half-day of the course, a real-life business planning tool is distributed to the teams and they are asked to begin real-world planning by completing a SWOT analysis of their real dealerships. They are then given a schedule within which they need to use the planning tool to develop their own business plan. District Managers follow up with the dealerships after the course to ensure completion of assignments and implementation of plans.

The solution for this client has been rolled out world-wide and is available in 7 languages (English, Spanish, French, Italian, Portuguese, Germany, and Dutch).

Results:
Dealership management teams have developed market-specific plans to increase sales and enhance profitability. Many regions have run additional exercises so that they can involve intact dealership teams in the exercise and make the enhanced planning processes and skills available to multiple managers within a single dealership.