Competition on net profit: Difference between revisions
Vinkesteijn (talk | contribs) No edit summary |
Vinkesteijn (talk | contribs) No edit summary |
||
| Line 3: | Line 3: | ||
{{Running competition}} | {{Running competition}} | ||
== Competition on | == Competition on creativity ==__NOEDITSECTION__ | ||
In the game | In the game, there are two types of competition: | ||
* [[Competition on net profit]]: based on added-up net profit | |||
* [[Competition on creativity]]: based on how your creativity is assessed by your coach. You will get a higher rank in this competition by being innovative and creative. | |||
Every team will always automatically participate in both game competitions: but of course only if you are really into competing. | Every team will always automatically participate in both game competitions: but of course only if you are really into competing. | ||
| Line 14: | Line 13: | ||
== Do we have to compete? ==__NOEDITSECTION__ | == Do we have to compete? ==__NOEDITSECTION__ | ||
A competition is fun, but some teams choose to run their hotel in a proper way without caring too much about the competition, which is just fine! You can end the management game and earn your study points (ECTS) without winning any competition as long as you meet the requirements we have set for the project. | A competition is fun, but some teams choose to run their hotel in a proper way without caring too much about the competition, which is just fine! You can end the management game and earn your study points (ECTS) without winning any competition as long as you meet the requirements we have set for the project. | ||
And you can do very well | And you can do very well on the game and have a beautiful hotel, a good strategy and a lovely logo etc. and still be number last in your competition and city. So a good ranking contributes to your marks, but a bad ranking doesn't have to be bad news for your evaluation at all. | ||
[[Mark|Your evaluation]] of the total of the game depends on much more | [[Mark|Your evaluation]] of the total of the game depends on much more than just the ranking: the most important thing is consistency and living up to your strategy. | ||
But if you are really in to competing on net profit, you can do this be trying to make the most [[net profit]] or by concentrating on others aspects of the hotel. As stated, your task is to keep (make) the hotel financially healthy and to keep it independent. | But if you are really in to competing on net profit, you can do this be trying to make the most [[net profit]] or by concentrating on others aspects of the hotel. As stated, your task is to keep (make) the hotel financially healthy and to keep it independent. | ||
| Line 22: | Line 21: | ||
== Competition on net profit == __NOEDITSECTION__ | == Competition on net profit == __NOEDITSECTION__ | ||
The competition on | The competition on profit means that a ranking is made every operational year in all of the cities. Of course, you are not alone! If all teams are very creative, you have to be even more creative to be outstanding and to attract the customer in this way (see page on [[competition]])! | ||
The competition on net profit is based on [[net profit]] added up profit over all the years that have been played (cumulative). This realised net profit is stated in your [[Key metrics]], only visible to you. | |||
This means that you can have a very good operating year in year 01, but if your year two was less successful but still acceptable. This could mean that your overall position in the ranking on net profit might not benefit that much because of the second year result. Of course, this also goes the other way around: with just ''one'' year with a high net profit a hotel can | This means that you can have a very good operating year in year 01, but if your year two was less successful but still acceptable. This could mean that your overall position in the ranking on net profit might not benefit that much because of the second year result. Of course, this also goes the other way around: with just ''one'' year with a high net profit a hotel can climb several places in the total ranking. | ||
After each year this top three will be announced by the coaches and will be stated on your Team finances under the tab results in the [[Key metrics]]. The final winner of the competition on net profit in any city is the team with the highest profit after all years have been played. | After each year this top three will be announced by the coaches and will be stated on your Team finances under the tab results in the [[Key metrics]]. The final winner of the competition on net profit in any city is the team with the highest profit after all years have been played. | ||
== Tips on how to win this competition ==__NOEDITSECTION__ | == Tips on how to win this competition ==__NOEDITSECTION__ | ||
The quality of your decisions and explanations has big influence on the number of guests you get allocated that year. The more guests you get, the more turnover, the more possibilities to make profit and get a high ranking. And so good explanations supporting your decisions contribute approx. for 30 - 50% | The quality of your decisions and explanations has a big influence on the number of guests you get allocated that year. The more guests you get, the more turnover, the more possibilities to make a profit and get a high ranking. And so good explanations supporting your decisions contribute approx. for 30 - 50% of the number of customers attracted to your hotel. So having a good strategy and good [[Team file|explanations]] are the first two steps to success. <br> | ||
When you look at the [[operating review]] | When you look at the [[operating review]], private to your own company, you can on the financial management-side basically do two things to get a higher net profit; <br> | ||
* reducing the costs <br> | * reducing the costs <br> | ||
* or trying to get more revenues by | * or trying to get more revenues by | ||
** selling more | |||
** selling at higher prices <br> | |||
Of course there are all kinds of financial and economical logics in this. You can sell more by | Of course, there are all kinds of financial and economical logics in this. You can sell more by | ||
- selling more to new customers or <br> | - selling more to new customers or <br> | ||
- selling more to 'old' customers <br> | - selling more to 'old' customers <br> | ||
| Line 42: | Line 44: | ||
You can try to reduce costs, but this will have its effect on the hotel and on its customers. So, the question is: will the savings you make on the costs outweigh the loss of revenues? And how about your customers, [[staff]] and general image? You can calculate a bit to try to find this out. Remember that most of the [[decisions]] you take lead to extra costs. <br><br> | You can try to reduce costs, but this will have its effect on the hotel and on its customers. So, the question is: will the savings you make on the costs outweigh the loss of revenues? And how about your customers, [[staff]] and general image? You can calculate a bit to try to find this out. Remember that most of the [[decisions]] you take lead to extra costs. <br><br> | ||
And spending more has to be earned back by its additional revenues: do additional costs bring enough extra revenues to take this risk and does it eventually | And spending more has to be earned back by its additional revenues: do additional costs bring enough extra revenues to take this risk and does it eventually add up to your profit? Try to calculate this. | ||
But you are not alone out there | But you are not alone out there; there are a lot of competitors (see the page on [[competition]])! So the basic idea is that you don't go over their top with your costs. The best thing would be to spend just that little bit more than the competitor on well-chosen decisions at the right moment. But then again, you do not know in advance what the other hotels will do: a [[prisoners dilemma]]. So nobody can exactly predict this. | ||
So the total of things that are happening in your city will have big effects on the results of your decisions. | So the total of things that are happening in your city will have big effects on the results of your decisions. | ||
== Overall winners on net profit of this game ==__NOEDITSECTION__ | == Overall winners on net profit of this game ==__NOEDITSECTION__ | ||
When all of the hotels have finished their competition there will be one winner | |||
* on net profit: the team with the highest profits reserve after all of the years | * on net profit: the team with the highest profits reserve after all of the years | ||
* on creativity: the most creative team after all of the years. | * on creativity: the most creative team after all of the years. | ||
Revision as of 14:42, 2 March 2018
→ Go! Category:Hotel info
→ Go! Running competition
Competition on creativity
In the game, there are two types of competition:
- Competition on net profit: based on added-up net profit
- Competition on creativity: based on how your creativity is assessed by your coach. You will get a higher rank in this competition by being innovative and creative.
Every team will always automatically participate in both game competitions: but of course only if you are really into competing.
Do we have to compete?
A competition is fun, but some teams choose to run their hotel in a proper way without caring too much about the competition, which is just fine! You can end the management game and earn your study points (ECTS) without winning any competition as long as you meet the requirements we have set for the project. And you can do very well on the game and have a beautiful hotel, a good strategy and a lovely logo etc. and still be number last in your competition and city. So a good ranking contributes to your marks, but a bad ranking doesn't have to be bad news for your evaluation at all. Your evaluation of the total of the game depends on much more than just the ranking: the most important thing is consistency and living up to your strategy.
But if you are really in to competing on net profit, you can do this be trying to make the most net profit or by concentrating on others aspects of the hotel. As stated, your task is to keep (make) the hotel financially healthy and to keep it independent.
Competition on net profit
The competition on profit means that a ranking is made every operational year in all of the cities. Of course, you are not alone! If all teams are very creative, you have to be even more creative to be outstanding and to attract the customer in this way (see page on competition)! The competition on net profit is based on net profit added up profit over all the years that have been played (cumulative). This realised net profit is stated in your Key metrics, only visible to you.
This means that you can have a very good operating year in year 01, but if your year two was less successful but still acceptable. This could mean that your overall position in the ranking on net profit might not benefit that much because of the second year result. Of course, this also goes the other way around: with just one year with a high net profit a hotel can climb several places in the total ranking.
After each year this top three will be announced by the coaches and will be stated on your Team finances under the tab results in the Key metrics. The final winner of the competition on net profit in any city is the team with the highest profit after all years have been played.
Tips on how to win this competition
The quality of your decisions and explanations has a big influence on the number of guests you get allocated that year. The more guests you get, the more turnover, the more possibilities to make a profit and get a high ranking. And so good explanations supporting your decisions contribute approx. for 30 - 50% of the number of customers attracted to your hotel. So having a good strategy and good explanations are the first two steps to success.
When you look at the operating review, private to your own company, you can on the financial management-side basically do two things to get a higher net profit;
- reducing the costs
- or trying to get more revenues by
- selling more
- selling at higher prices
Of course, there are all kinds of financial and economical logics in this. You can sell more by
- selling more to new customers or
- selling more to 'old' customers
- upgrade the sales of existing customers
- less costs
You can try to reduce costs, but this will have its effect on the hotel and on its customers. So, the question is: will the savings you make on the costs outweigh the loss of revenues? And how about your customers, staff and general image? You can calculate a bit to try to find this out. Remember that most of the decisions you take lead to extra costs.
And spending more has to be earned back by its additional revenues: do additional costs bring enough extra revenues to take this risk and does it eventually add up to your profit? Try to calculate this.
But you are not alone out there; there are a lot of competitors (see the page on competition)! So the basic idea is that you don't go over their top with your costs. The best thing would be to spend just that little bit more than the competitor on well-chosen decisions at the right moment. But then again, you do not know in advance what the other hotels will do: a prisoners dilemma. So nobody can exactly predict this. So the total of things that are happening in your city will have big effects on the results of your decisions.
Overall winners on net profit of this game
When all of the hotels have finished their competition there will be one winner
- on net profit: the team with the highest profits reserve after all of the years
- on creativity: the most creative team after all of the years.
All results on both competitions will be announced by your coaches in a presentation and will be, after releasing the results, be visible via your Team file: see the result-tab in your team file for this.
→ GO! Top of this page
