PLEASE CHECK … your decisions Year

Corporate Product 1 Product 2 Product 3

Advertising: (€'000) Agents and distributors:
Europe 15 10 10 10 European agents
Nafta 5 5 5 5 Nafta distributors
Internet 10 5 5 5 Internet distributor

Prices (€): Operations:

Europe 325 490 690 Materials to buy ('000) Spot
Nafta 335 490 725 Maintenance hours/machine
Internet 375 585 855 Number of ports operated

Quantities to deliver to: Personnel:

European agents 1000 700 375 Assembly workers to recruit
(Not in full Nafta distributors 100 100 75 Hourly wage rate (€.c)
if starred) Internet distributor 200 150 100 Management budget (€'000)

Quality: Finance:
Take up product improvements 0 1 0 Shares to issue/repurchase
Product development (€'000) 25 15 15 Term loans (€'000)
Assembly times (minutes) 115 165 325 Machines to buy
Premium materials (%) 0 0 0 Factory extension (sq. m.)

Subcontracting: Information:
Components to order (units) 0 0 0 Market shares
2015 Qtr 1

Number Support Commn.

needed (€'000) %
3 10 8
1 8 6
9 5

5 3mth 0 6mth 0
20 Shift level 2
5 Web-site development 15

4 Number to train 0
12.00
80 Staff training (days) 0

10 Dividend (cents/share) 0 *
0 Term deposit (€'000) 0
0 Machines to sell 0
0 Insurance plan 1

0 Corporate activity 1
PHYSICAL RESOURCES: Usage and availability HUMAN RESOURCES:

Space: Sq. m. Production personnel: Assembly

Land owned 1000 At start of last quarter 17
Access/parking etc 200 Recruited 4
Unused land 300 Trained 0
Factory size next quarter 500 Dismissed 0
Circulation and access 125 Left 0
Machining operations 100 Available for next quarter 21
Assembly operations 210
Material and component stocks 7
Available space (overflow if negative) 58 Assembly workers:
Hours available
Machines: Number Absenteeism/sickness (hours)
Number decommissioned 0 Hours worked
Machines in use last quarter 4
Number bought and installed 0 Notice of strike weeks for next quarter
Machines available for next quarter 4

Theoretical hours available 4272

Hours breakdown 54
Hours worked 3873 Agents/distributors: Europe Nafta
Hours planned maintenance 26 Active last quarter 3 1
Average machine efficiency % 95.2 Resigned 0 0
Dismissed 0 0
Materials: Appointed 0 0
Opening stock available 1458 Active next quarter 3 1
Bought spot 5000
Bought default 0
Lost or destroyed 0
Used 4990
Closing stock 1468 Transport: Europe Nafta
For delivery next quarter: Journey length (km) 1381 500
Bought last quarter 0 Number of loads 8 2
Bought quarter before last 0
For delivery quarter after next: 0

Internet statistics:
Number of web-site ports operated 5 Carbon footprint (CO2e): Tonnes
Number of visits to your web-site 6897 Factory heating and lighting 4.75
Estimated level of failed visits (%) 0 Energy used in production 16.41
Number of internet service complaints 56 Total primary CO2e 21.16
 PRODUCT DATA: Product 1 Product 2 Product 3
Quantities:
Machining Scheduled 1300 950 550
31 Produced 1336 978 566
1 Rejected 36 28 16
Lost or destroyed 0 0 0
0
5 Delivered to:
27 European agents 1000 700 375
Nafta distributors 100 100 75
Internet distributor 200 150 100

9792 Orders from:

208 Europe 930 668 379
8314 Nafta 100 120 61
Internet 185 143 75
0
Sold to:
Europe 971 668 379
Nafta 100 100 63
Internet 185 143 75
Internet
1 Backlog of orders:
Europe 0 0 0
0 Nafta 3 10 0
0
1 Warehouse stocks:
Europe 29 32 202
Nafta 0 0 12
Internet 15 7 25

Internet
300 Guarantee services 76 ! 19 12
2

Product improvements Major Minor Minor

Product components:
Assembled last quarter 0 0 0
Ordered last quarter 0 0 0
Closing stock 0 0 0
Available for assembly 0 0 0
FINANCIAL STATEMENTS

ADMINISTRATIVE EXPENSES € INCOME STATEMENT € BALANCE SHEET

Advertising 90000 Sales revenue 1267611 Non-current assets:

Internet distributor 19856 Land
Internet service provider 11513 Opening inventory values 132744 Buildings
Agents and distributors 116975 Components purchased 0 Machinery
Sales office 12676 Materials purchased 227045 Property, plant and equipment
Guarantee servicing 9675 Machine running costs 72784
Product development 55000 Machinists wages 179974 Current assets:
Web-site development 15000 Assembly wages 106812 Product inventories
Personnel department 9000 Quality control 2880 Component inventories
Machine maintenance 6800 Hired transport 40700 Materials inventory
Purchasing and warehousing 8531 Less closing inventory values 136389 Trade receivables
Business intelligence 7500 Cost of sales 626550 Cash and cash equivalents
Credit control 2684 Gross profit 641061 Current assets
Insurance premiums 9186 Administrative expenses 465242 Total assets
Management salaries 80000 Insurance receipts 1274
Other costs 10846 Depreciation 27458 Liabilities:
Total administrative expenses 465242 Operating profit/loss 149635 Tax due
Finance income 5750 Trade payables
Accumulated taxable profit: Finance expense 3606 Bank overdraft
Profit/loss before tax 151779 Profit/loss before tax 151779 Current liabilities
Previous taxable profit/loss -93552 Tax assessed 0 Term loans
Taxable profit/loss 58227 Profit/loss for the period 151779
Earnings per share (cents) 5.06 Net assets

Dividends paid 0 Equity:

Insurance claimed 2805 Transferred to retained earnings 151779 Share capital
Primary non-insured risk 1531 Previous retained earnings -93552 Share premium account
Retained earnings 58227 Retained earnings
Total equity
BALANCE SHEET € CASH FLOW STATEMENT €

Non-current assets: Operating activities:

50000 Trading receipts 1311528
250000 Insurance receipts 1274
Machinery 1070870 Trading payments 1035012
Property, plant and equipment 1370870 Tax paid 0
Net cash flow from operations 277790
Current assets:
Product inventories 83141 Investing activities:
Component inventories 0 Interest received 5750
Materials inventory 53248 Asset sales 0
Trade receivables 783183 Assets purchased 0
Cash and cash equivalents 1150000 Net cash flow from investing 5750
Current assets 2069572
Total assets 3440442 Financing activities:
Shares issued 0
Shares repurchased 0
0 Dividends paid 0
Trade payables 284228 Additional loans 0
Bank overdraft 97987 Interest paid 3606
Current liabilities 382215 Net cash flow from financing -3606
0
Net cash flow 279934
3058227 Previous cash balance 772079
Cash balance 1052013
(including a term deposit of - 1150000 )
Share capital 3000000
Share premium account 0 Overdraft limit for next quarter 639000
Retained earnings 58227 Borrowing power next quarter 1031000
Total equity 3058227
ECONOMIC INTELLIGENCE Europe Nafta Rest (of developed world)
Gross domestic product (de-seasonalised) 3871 4011 58
% Unemployment rate (de-seasonalised) 7.2 5.3
Balance of external trade 1532 1283

Information about next quarter:

Central Bank base rate (% p.a.) 2.0 0.5 Exchange rate in € per $ (USD)

Building cost (€ per square metre) 500

Component cost (€ per unit) Product 1 Product 2 Product 3

from ( no premium materials) 103 161 249
to (100% premium materials) 124 204 314

Spot price 3 month 6 month

Material prices ($ per '000 units) 47946 45318 44781

BUSINESS REPORT: Excellence in leadership combined with good customer service and
financial expertise are essential if a business wishes to achieve
expansion and increase market share.

FREE INFORMATION Company Company Company Company Company Company

1 2 3 4 5 6
Stock market data:
Share price (cents) 111.32 111.32 111.32 111.32 111.32 111.32
Market valuation (€) 3339600 3339600 3339600 3339600 3339600 3339600

Dividend paid (cents/share) 0 0 0 0 0 0

Investment performance (€) 3339600 3339600 3339600 3339600 3339600 3339600

Business intelligence:
Product prices (€)
Product 1: Europe 325 325 325 325 325 325
Nafta 335 335 335 335 335 335
Internet 375 375 375 375 375 375
Product 2: Europe 490 490 490 490 490 490
Nafta 490 490 490 490 490 490
Internet 585 585 585 585 585 585
Product 3: Europe 690 690 690 690 690 690
 Nafta 725 725 725 725 725 725
Internet 855 855 855 855 855 855

Production employees 49 49 49 49 49 49
Assembly wage rate (cents/hr) 1200 1200 1200 1200 1200 1200
Number of agents/distributors 4 4 4 4 4 4

The Global Management Challenge is a business simulation designed by Edit Systems Ltd. (www.edit515.co.uk)
and organised worldwide by SDG - Simuladores e Modelos de Gestão, S.A. Lisboa, Portugal (www.worldgmc.com)
World Copyright © 2013 - EDIT 515 Ltd, UK and SDG - Simuladores e Modelos de Gestão, S.A.

MANAGEMENT REPORT - Group Information Pg 2 Group 0 Year

COMPANY BALANCE SHEETS

for Company: 1 2 3 4 5 6
Assets
Property, plant and equipment 1370870 1370870 1370870 1370870 1370870 1370870
Inventories 136389 136389 136389 136389 136389 136389
Trade receivables 783183 783183 783183 783183 783183 783183
Cash and cash equivalents 1150000 1150000 1150000 1150000 1150000 1150000

Liabilities
Tax assessed and due 0 0 0 0 0 0
Trade payables 284228 284228 284228 284228 284228 284228
Bank overdraft 97987 97987 97987 97987 97987 97987

Long term loans 0 0 0 0 0 0

Equity
Ordinary capital 3000000 3000000 3000000 3000000 3000000 3000000
Share premium account 0 0 0 0 0 0
Retained earnings 58227 58227 58227 58227 58227 58227
Net Worth 3058227 3058227 3058227 3058227 3058227 3058227

PURCHASED INFORMATION Not requested

Company number:
Market shares (% by volume sold)
Product 1: Europe
Nafta
Internet
Product 2: Europe
Nafta
Internet
 Product 3: Europe
Nafta
Internet

Competitors' business activity

Company number: 1 2 3 4 5 6
Total advertising expenditure (€) 90000 90000 90000 90000 90000 90000
Total product development (€) 55000 55000 55000 55000 55000 55000
Consumer star ratings:
Product 1 ** ** ** ** ** **
Product 2 *** *** *** *** *** ***
Product 3 ** ** ** ** ** **
Web-site ** ** ** ** ** **
 0.90

Company Company
7 8

111.32 111.32
3339600 3339600

0 0
3339600 3339600

325 325
335 335
375 375
490 490
490 490
585 585
690 690
 725 725
855 855

49 49
1200 1200
4 4

ww.edit515.co.uk)
ww.worldgmc.com)
e Gestão, S.A.

10 Qtr 8

7 8

1370870 1370870
136389 136389
783183 783183
1150000 1150000

0 0
284228 284228
97987 97987

0 0

3000000 3000000
0 0
58227 58227
3058227 3058227

Not requested
 7 8
90000 90000
55000 55000

** **
*** ***
** **
** **
INCOME STATEMENT €

Sales revenue 1267611

Opening inventory values 132744

Components purchased 0
Materials purchased 227045
Machine running costs 72784 Components
Machinists wages 179974 Finished Good
Assembly wages 106812
Quality control 2880
Hired transport 40700
Less closing inventory values 136389
Cost of sales 626550
Gross profit 641061

Administrative expenses 465242

Insurance receipts 1274
Depreciation 27458
Operating profit/loss 149635

Finance income 5750

Finance expense 3606
Profit/loss before tax 151779
Tax assessed 0
Profit/loss for the period 151779
Earnings per share (cents) 5.0593

Dividends paid 0
Transferred to retained earnings 151779
Previous retained earnings -93552
Retained earnings 58227
Materials Purchased: 227049.55

Materials to buy ('000) Spot 5 3mth 0 6mth 0

Material prices ($ per '000 units) Spot 49901 3mth 49258 6mth 48787
Material prices (EUR per '000 units) Spot 45409.91 3mth 44824.78 6mth 44396.17

Machine Running Costs: 72784

Cost of Supervision: 25000

Overheads per Machine: 14000
Machine Running Cost: 30984
Production Planning Cost: 2800

Machinists Wages: 179515

Machine Hours: 3873 Hours / Machine: 484.125
Breakdown Hours: 54 Breakdown/Mach.: 6.75 490.875

Mon - Fri Saturday Sunday

Wage Rate: 7.8 11.7 15.6
Hours Worked: 420 42 28.88
Wages: 3276 491.4 450.528
Total: 4217.928
Shift Premium: 1391.9162
Net Wages: 5609.8442

Total Machinist Wages: 179515

Assembly Wages: 106812.36

Hours Worked: 8314

Hours / Ass. Worker: 489.0588

Mon - Fri Saturday Sunday

Wage Rate: 12 18 24
Hours Worked: 420 69.06 0
Wages: 5040 1243.08 0
Total: 6283.08

Quality Control: 2800

 Product 1 Product 2 Product 3

Spot Purchase: 45.41 90.82 136.23

3 month Advance Purchase: 44.82 89.65 134.47
6 month Advance Purchase: 44.40 88.79 133.19

Cost of Supervision (Shift 1): 5.43 6.78 10.85 3.62 4.52

Cost of Supervision (Shift 2&3): 5.87 7.34 11.75
Overheads / Machine (Shift 1): 6.08 7.60 12.15
Overheads / Machine (Shift 2): 3.28 4.10 6.55 1 machine
Overheads / Machine (Shift 3): 2.18 2.73 4.37
Machine Running Cost: 8.00 10.00 16.00 Shift 1
Production Planning Cost: 1.00 1.00 1.00 576
Shift 1: 20.50 25.38 40.00 6.076389
Shift 2: 18.15 22.44 35.30
Shift 3: 17.06 21.07 33.12

Maximum Wages: 5382.00 9.34

4890.60 9.19

Production at Shift 1 37.38 46.72 74.75

Production at Shift 2 48.91 61.13 97.81
Production at Shift 3 61.41 76.76 122.82

Cost of Component: Component cost (€ per unit)

Shift 1 103.29 162.92 250.98
Shift 2 112.47 174.39 269.34 from ( no premium materials
Shift 3 123.88 188.65 292.16 to (100% premium materials
Maximum Wages: 8280.00 14.38

Assembly Wages: 27.55 39.53 77.86

Quality Contol: 1.00 1.00 1.00

Cost of Finished Good:

Shift 1 131.84 203.45 329.85
Shift 2 141.02 214.92 348.21
Shift 3 152.43 229.18 371.03
 7.23

2 3
1068 1602
3.277154 2.184769

cost (€ per unit) Product 1 Product 2 Product 3

emium materials) 105 165 256
emium materials) 128 211 324
INCOME STATEMENT €

Sales revenue 1267611

Opening inventory values 132744

Components purchased 0
Materials purchased 227045
Machine running costs 72784
Machinists wages 179974
Assembly wages 106812 Europe: Factory -->
Quality control 2880 NAFTA: Factory -->
Hired transport 40700 Internet: Factory -->
Less closing inventory values 136389
Cost of sales 626550 Logistics Involved
Gross profit 641061 Europe: Distance Unknown (More Agents --> M
NAFTA: 250 km X 2 + Container Cost
Administrative expenses 465242 Internet: 150 km X 2
Insurance receipts 1274
Depreciation 27458 Load Container
Operating profit/loss 149635
Container Capacity 500 units
Finance income 5750
Finance expense 3606
Profit/loss before tax 151779
Tax assessed 0 Quantities to Deliver: Product 1
Profit/loss for the period 151779 Europe 1000
Earnings per share (cents) 5.0593 NAFTA 100
Internet 200
Dividends paid 0
Transferred to retained earnings 151779 Cost of Logistics:
Previous retained earnings -93552 Europe 20800
Retained earnings 58227 NAFTA 18600
Internet 1300
40700
 Agents
EU Port --> NAFTA Port
Distributors

Unknown (More Agents --> More Journey Length)

2 + Container Cost

1 unit = 1 - Product 1
2 unit = 1 - Product 2
4 unit = 1 - Product 3

Product 2 Product 3 Space Required Container Required Journey Length

700 375 3900 7.8 8 1381
100 75 600 1.2 2 500
150 100 900 1.8 2 300

Cost / Container Cost / Space Unit Product 1 Product 2 Product 3

2600 5.2 5.2 10.4 20.8
9300 18.6 18.6 37.2 74.4
650 1.3 1.3 2.6 5.2
ourney Length Conatainer Days
32
4
2
Space: Sq. m. Sq. m. Sq. m. Sq. m.
Land owned 1000 1000 1000 1000
Access/parking etc 200 200 200 200
Unused land 300 300 200 0
Factory size next quarter 500 500 600 800
Circulation and access 125 125 150 200
Machining operations 100 100 100 100
Assembly operations 210 270 350 500
Material and component stocks 7 0 0 0
Available space (overflow if negative) 58 5 0 0

Maximum Assembly Workers: 27 35 50

If you ordered components last quarter, an allowance is made for the the space required for
 Sq. m. Sq. m.
1000 1000
200 200
0 0
800 800
200 200
150 50
450 550
0 0
0 0

45 55

e the space required for their initial delivery (assumed to be one sixth of your total order).
Internet statistics:
Number of web-site ports operated 5 Theoretical Capacity:
Number of visits to your web-site 6897 Effective Capacity:
Estimated level of failed visits (%) 0.1
Number of internet service complaints 56

Total Website Hours: 2160

Visitors / Hour: 3.19

Failed Visits: 6.897 7

Max. Visitors per Hour: 66.897

Required Theoretical Capacity: 67

60
31
Your investment performance reflects the value of your compan
This is not just the market valuation of your company but includ
or any shares repurchased from, your investors less the cost of

Investment
Performance : Market Valuation + Shares Issued (-ive) / Shares Re

Share Price * Share Capital + (Shares Issued (-ive) /

Quarter 3
Company Company Company Company Company Company
1 2 3 4 5 6
Stock market data:
Share price (cents) 132.06 139.61 104.6 100.84 128.42 117.38
Market valuation (€) 3957838 3769470 3138000 3025200 3852600 3521400

Dividend paid (cents/share) 1 3 0 0 1 1

Investment performance (€) 3991287 4187660 3138000 3025200 3912974 3581774

COMPANY BALANCE SHEETS

for Company: 1 2 3 4 5 6
Assets
Property, plant and equipment 1432998 1367998 1603186 1744408 1628186 1653186
Inventories 953885 633085 392872 279252 507282 531065
Trade receivables 959122 1195762 652300 638883 861305 873992
Cash and cash equivalents 1175000 900000 1250000 1156000 1150000 1350000

Liabilities
Tax assessed and due 0 0 0 0 0 0
Trade payables 728013 473221 358793 365399 471158 525065
Bank overdraft 178172 395650 395023 194416 194760 697144

Long term loans 0 0 0 200000 0 100000

Equity
Ordinary capital 2997000 2700000 3000000 3000000 3000000 3000000
Share premium account 0 0 0 0 0 0
Retained earnings 617820 527974 144542 58728 480855 86034
Net Worth 3614820 3227974 3144542 3058728 3480855 3086034
 of your company to its investors.
mpany but includes the value of any dividends paid to,
less the cost of any new shares issued to them.

d (-ive) / Shares Repurchased (+ive) + Dividends Paid

ares Issued (-ive) / Shares Repurchased (+ive)) + Dividends Paid

Quarter 4
Company Company Company Company Company Company
1 2 3 4 5 6
Stock market data:
Share price (cents) 132.89 152.51 107.59 110.79 134.13 116.07
Market valuation (€) 3916268 4133021 3227700 3323700 4023900 3482100

Dividend paid (cents/share) 2 4 0 1 3 1

Investment performance (€) 4076284 4647170 3227700 3353812 4174837 3572812

COMPANY BALANCE SHEETS

for Company: 1 2 3 4 5 6
Assets
Property, plant and equipment 1432548 1342548 1570606 1760798 1645606 1620606
Inventories 1169704 681952 385446 272073 444221 628165
Trade receivables 904815 1464066 695936 632839 993439 1474689
Cash and cash equivalents 1175000 816046 1250000 1122885 1150000 1350000

Liabilities
Tax assessed and due 323898 353910 72693 56378 284683 68515
Trade payables 618686 633910 229950 430668 352997 629719
Bank overdraft 143000 0 429726 0 81325 1005356

Long term loans 0 0 0 200000 0 300000

Equity
Ordinary capital 2947000 2710000 3000000 3000000 3000000 3000000
Share premium account 0 3961 0 0 0 0
Retained earnings 649483 602831 169619 101549 514261 69870
Net Worth 3596483 3316792 3169619 3101549 3514261 3069870
Quarter 4
Company Company Company Company Company Company
1 2 3 4 5 6
Stock market data:
Share price (cents) 132.89 152.51 107.59 110.79 134.13 116.07
Market valuation (€) 3916268 4133021 3227700 3323700 4023900 3482100

Dividend Paid 2 4 0 1 3 1
Dividend Value 59940 108000 0 30000 90000 30000

Share Capital Q3 2997000 2700000 3000000 3000000 3000000 3000000

Share Capital Q4 2947000 2710000 3000000 3000000 3000000 3000000

Difference 50000 -10000 0 0 0 0

Market Value 66445 -15251 0 0 0 0

Investment Performance 4042653 4225770 3227700 3353700 4113900 3512100

33630.7 421400 0 112 60937 60712