Business Models & Financial Structures A Strategy Mystery Game
Publication date: 1 May 2007
Abstract
The ‘Game’ is really a multi-industry case that aims at developing participants' awareness of the links between firms' strategic choices and the financial structures the choices engender. Participants are provided with Balance Sheet percentages and common ratios for firms in 12 different industries and list of different businesses and asked to match the figures with the kind of business. The goal is for participants to understand how industries' operating models impose certain financial structures.
The case is run as a kind of mystery game but leads to rather sophisticated analysis of industry and business models. The case leads students to a better understanding of the essential concepts of a business strategy course: 1) external analysis by helping students ‘see’ the structures of different industries; 2) making clear the link between the competencies and capabilities needed by firms in their internal environment to successfully compete in their industries by matching the key success factors at work; 3) providing a tangible illustrations of the competencies that must be developed to successfully pilot business strategies like cost leadership and differentiation; and, 4) developing insight into integration and outsourcing strategies and their effects.
A detailed Teaching Note accompanies the case.
Citation
Hurt, S. and Hurt, M. (2007), "Business Models & Financial Structures
Publisher
:Emerald Group Publishing Limited
Copyright © 2007, Emerald Group Publishing Limited