[MG Blog 4th Term] First MG: Creating a Management Plan.
The second game ended, and it was 4:00 PM when everyone finished their financial statements.
Click here for the previous blog post ↓
The instructor explained, "This will be the last game, so I will talk about management planning. Everyone, please bring your Table 4 MQ Accounting Sheet.".
Once I got the paper, I first wrote down the date, company name, and president's name.
It seems that Table 4 is used to create a management plan.
Although various things are written, the one I used was '4. Management Plan: Management is about working backward' (Sadakazu Ichikura).
"Everyone, first let's decide how much profit (G) you want to make this term. For beginners, please try calculating with G100."
I wrote 100 in the box labeled G.
"Once the profit G you want to make is decided, please decide on your fixed costs (F). You can roughly know in advance how much F will be, such as labor costs, expenses, interest, depreciation, strategy chips, etc. Please write that number in the F box."
I asked the veterans around me and set F to 242.
"Once G and F are decided, you will know the required MQ. Please write the total amount in the MQ box."
I wrote MQ 342. It seems that to achieve G100, I have to earn this 342 in MQ.
"Is everyone okay so far? Now, next, please decide at what price you will sell. Look at the situation of your own company board and the situation of your rivals, think about what price you can sell at, and try setting your P."
My company's situation was: 0 strategy chips, small size, one sales person and one worker each, and 7 units in inventory.
I couldn't really tell by looking at the surrounding company boards, so I decided on P29 for now. (Thinking about it now, a setting of around P27 would have been fine too.)
"Everyone, have you decided on your selling price? Now, next is the cost (V), but in MG, V will be around 14 yen. Then you know the gross profit (M), right?"
P: 29 yen, V: 14 yen, M: 15 yen. This became the structure.
"Since you know both MQ and M, now please calculate the quantity (Q) by doing MQ/M to see how many you need to sell."
342/15 = 22.8 units. I have to sell 23 units.
According to the plan, it became PQ: 667 yen, VQ: 322 yen, MQ: 345 yen, F: 242 yen, G: 103 yen, Q: 23 units.
Looking around, some were calculating with G200, and there were even people with G50.
When I showed my plan to the veteran next to me,
"Q is 23 units, huh? Right now, you're selling 2. You'll have to sell 12 times. That's pretty tough, so what do you think you should do?"
"Um, I'm thinking of hiring one person, training them, and setting up a 5-unit sales system."
"What about the machine?"
"I was able to borrow 100 yen from the bank, so I'm going to try for a medium-sized one!"
"Yeah, I think you can totally do it. Other than that, it's about chips and inventory balance so you don't lose out on sales."
While we were talking about that, the instructor said,
"Alright, is everyone done? Now, please move to your seats and perform the beginning-of-term processing for the 3rd term. We'll start in 5 minutes."
It seems I'm at Table D. (In the game, tables are assigned from Table A for those with high PQ, down to Table D for those with low PQ.)
I moved to my seat and started on the 3rd term (the final game).
Will I be able to manage according to my plan?
Thank you for reading until the end.