Promoting Entrepreneurship
Through Open-distance-
Learning Management Flight
Simulators
($06 Seam tyrants Grow _)
EcoRoll educational package
CARMINE BIANCHI ENZO BIVONA FRANCO LANDRISCINA
Associate Professor of Master Phil. in Research & Development Manager
Business Management System Dynamics Logo 2000 S.p.A.
Universities of Foggia and University of Bergen Roma (Italy)
Palermo (Italy) (Norway)
C.U.S.A. - System DynamicsGroup C.U.S.A. - System Dynamics http:\\www.logo2000.it
Palermo (Italy) Group Palermo (Italy) f.landriscina@ logo2000.it
http: \\www.unipa.it\~bianchi enzo.bivona@libero.it
bianchi@ unipa.it
18th ISCD, Bergen 6-10 August 2000
THE ECOROLL
EDUCATIONAL PACKAGE
¢ Supports small business planning in the
start-up and early growth stages
¢ It includes:
© a tutorial guide to business plan drawing-up
> a case-study
an SD simulation model
© a spreadsheet financial model for business planning
¢ The simulation package can be downloaded via
the internet
18th ISCD, Bergen 6-10 August 2000
AN OVERVIEW
OF ECOROLL
¢ Produces and sales in-line skates
¢ High market innovation & competition
¢ Short product life-cycle (about 1 year)
¢ Critical success factors:
© price/quality ratio
delivery delay
promotion
product portfolio management
18th ISCD, Bergen 6-10 August 2000
vo %
Jadeaeel
-10-5 0 5 10 15 20
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om
aay BA 000 6.000 10.000 ca
50 100 150 200
ccs re
0123456
Components
call [- HIGH [> MEDIUM
WEEK Play»
GRAPHS
1. Marketing
2. Design
PERSONAL ASSETS
1.500.000
1.000.000
— INANCEOOOt—~<“—i=<‘<CO 500,000
E 0
}10% | 0 50 100 150 200
a
investments y } oo | Dividends (%)
£. (:.000)1.854
<>
1. AGGRESSIVE STRATEGY:
AVG. QUALITY; HIGH PDT INNOVATION AND
DELAYED PRODUCTION CAPACITY INCREASE
ECOROLL CUSTOMERS DELIVERY DELAY TOTAL ECOROLL PRODUCTS
NET INCOME
-50.000-
-100.000+
100
WEEKS
AVG. PRODUCT PRICE BANK BALANCES
1.00.00
0.
1.000.000 =r Bank accounts
2.000.001 “2 Available bank
credit
-3.000.000-
0 50 100 150 200
WEEKS
PROMOTION INVESTIMENTS SALESMEN
200.000.
54
150.000 ga
100.000: E 34
a4
50.000 ul
o4 0. + + +
0 50 100 150 200 J | 0 50 100 150
200
DESIGNERS
ASSEMBLY LINE CAPACITY
3.500.
3.000.
2.500.
2.000
1.500.
1.000.
ASSEMBLY LINE STAFF
t t
0 50 100 150
1
200
2. AGGRESSIVE STRATEGY:
AVG. QUALITY; HIGH PDT INNOVATION AND
PROMPT PRODUCTION CAPACITY INCREASE
ECOROLL CUSTOMERS
DELIVERY DELAY
TOTAL ECOROLL PRODUCTS
‘ Jeon
5
0 +t
0 50 100 150 200
WEEKS
0 50 100 150 200
WEEKS
ECOROLL SALES REVENUES
1.500.001
NET INCOME
1.000.001
500.000-
-100.000-
0 100
WEEKS
BANK BALANCES
0-
+ Bank accounts
-5.000.000- Available bank
credit
0 50 100 150 200
WEEKS
=
PROMOTION INVESTIMENTS SALESMEN
200.00 7
6.
— 150.00 Q 5:
3 4
= 100.00 3
a 2
50.00
1
o4 R ' ' ' 0+ t t t 1
0 50 100 150 200 0 50 100 150 200
yy,
* 7
IN EQUITY INVESTMENTS DIVIDENDS %
1.000.000. 1,05
800.000. 0,8-
3 600.000. 0,64
~ 400.000 0,44
Q
200.000: 0,25
o ; LU 1 || 00 ;
0 50 100 150 200 0 50 100 150 200
aif S/S
18th ISCD, Bergen 6-10 August 2000
3. AGGRESSIVE STRATEGY:
AVG. QUALITY; LOW SALE PRICE; HIGH PDT INNOVATION
ECOROLL CUSTOMERS
DELIVERY DELAY TOTAL ECOROLL PRODUCTS
ECOROLL SALES REVENUES NET INCOME
-50.000-
-100.000-
-150.000+
0 50 100 150 200
WEEKS
AVG. PRODUCT PRICE QUALITY /PRICE RATIO BANK BALANCES
Bank accounts
T
-5.000.001 Available bank
2 credit
0 50 100 150 200
WEEKS
0 50 100 150 200
WEEKS
0 50 100 150 200
WEEKS
SALE PRICE SALESMEN
6
i
2
| | | o4 |
50 100 150 200 0 50 100 150 200
18th ISCD, Bergen 6-10 August 2000
4, AGGRESSIVE STRATEGY:
AVG. QUALITY; HIGH PDT INNOVATION;
HIGH COMMERCIAL INVESTMENTS
ECOROLL CUSTOMERS
DELIVERY DELAY TOTAL ECOROLL PRODUCTS
30
20
10
0 50 100 150 200
WEEKS
"PRODUCT PORTFOLIO AVG. AGE ECOROLL SALES REVENUES
3
1.000.001
500.001
BANK BALANCES
1.000.00
1,000.00 —z- Bank accounts
2.000.001 Available bank
credit
-3.000.001
0 50 100 150 200
WEEKS
~~ :
SALESMEN PROMOTION INVESTIMENTS
200.000-
_~ 150.0004
=, 100.0004
a
50.000-
0. t
T T 1 T T 1
100 150 200 0 50 100 150 200
Ak J
18th ISCD, Bergen 6-10 August 2000
3. AGGRESSIVE STRATEGY:
AVG. QUALITY; HIGH SALE PRICE; HIGH PDT INNOVATION;
HIGH COMMERCIAL INVESTMENTS
ECOROLL CUSTOMERS
DELIVERY DELAY TOTAL ECOROLL PRODUCTS
ECOROLL SALES REVENUES
2.000.0L-
1.500.00(
1.000.001
500.001
0 50 100 150 200
WEEKS
0 50 100 150 200
WEEKS
QUALITY /PRICE RATIO ~’BANK BALANCES
5.000.001
0-
Bank accounts
-5.000.001
Available bank
credit
-10.000.000-
0 50 100 150 200
WEEKS
0 50 100 150 200
WEEKS
WEEKS
SALESMEN
£. (:.000)
PROMOTION INVESTIMENTS
00.000.
150.000.
100.000:
50.000
200
ASSEMBLY LINE CAPACITY
10.00
9.000
8.000
7.000
6.000:
5.000.
4.000.
ASSEMBLY LINE STAFF
18th ISCD, Bergen 6-10 August 2000
PRODUCT PORTFOLIO
> an
PRODUCTS TO BE
MATURE LAUNCHED Sig,
PRODUCTS
/\ Yr PRODUCT
he - PORTFOLIO
”*REVENUES
ee i
PROMOTION CASH
INVESTMENTS FLOWS
Ne we Be NEW PRODUCT
—»_ INVESTMENTS
we
18th ISCD, Bergen 6-10 August 2000
WHAT SMALL BUSINESS
ENTREPRENEURS CAN LEARN FROM
ECOROLL M.F'S.
¢ How to draw up a business plan in a system
dynamics perspective
¢ Understanding small business peculiar
complexity factors (i.e. personal assets vs.
equity; perceived business solvency by banks)
¢ Balancing the commercial with production
view of the firm
¢ Managing product portfolio
18th ISCD, Bergen 6-10 August 2000
CC BY-NC-SA 4.0