Business game

Not to be confused with Business simulation game. For other uses, see Business game (disambiguation).

Business game (also called business simulation game) refers to simulation games that are used as an educational tool for teaching business. Business games may be carried out for various business training such as: general management, finance, organizational behavior, human resources, etc. Often, the term "business simulation" is used with the same meaning.

A business game is defined as "a game with a business environment that can lead to one or both of the following results: the training of players in business skills (hard and/or soft), or the evaluation of players' performances (quantitatively and/or qualitatively)".

Business games are used as a teaching method in universities, and more particularly in business schools, but also for executive education.

Simulation are considered to be an innovative learning method, and are often computer-based.

History

Computer-supported business simulation originated from military war games, and came into existence during the late 1950s. Business simulation games, including non-computer-based board games and experiential activities, have since been used as a learning tool for teaching management (Jackson 1959) (Andlinger 1958). It is regularly in use at universities, and in particularly by major business schools. As an example, the University of Washington has been using business simulation game in classes since 1957 (Saunders 1996, p. 49).

The INTOP tool was developed at the University of Chicago in 1963, and was employed for teaching in 160 institutions worldwide from 1963 until 2005. Its successor INTOPIA was first released in 1995, and it has been used by universities in over 55 countries around the world, including 18 in the U.S.

Business games are also used within companies for management training and development (Faria 1990).

Pedagogy

Business games are based on a pedagogical approach of learning by doing. Pedagogical models like David Kolb’s Experiential Learning Cycle emphasize the importance of giving students concrete experiences, allow them to reflect on and learn from that experience, and giving them the chance to actively experiment with what they’ve learned. These phases are known in Kolb’s model as concrete experience, reflective observation, abstract conceptualization, and active experimentation.

Well-structured business games naturally meet the demands of each stage as follows:

• Concrete Experience: Students build a business or take on certain aspects of running a business in a realistic, simulated environment. This provides them actual experience applying business theory, strategies, and tactics.
• Reflective Observation: As students progress through the business game, students are prompted to reflect on their concrete experience. This often comes naturally as students seek to improve their strategies for the next round of the game. Instructors can also prompt further reflection through individual coaching, group discussions, and written assignments.
• Abstract Conceptualization: As they reflect on their experiences, students move into a phase of ideation and modification of their existing ideas. They deepen their understanding of business theory and adjust misconceptions they held before the business game.
• Active Experimentation: Students move into the next round of the game with new ideas and deeper understanding that will guide their strategies and tactics. They will pivot where necessary to improve performance in the simulated market.

Use in Academia

Business games can be used to teach a wide variety of business disciplines, including entrepreneurship, marketing, supply chain management, financial management, business policy, societal impact management, and more.

While some business games focus on a specific discipline, many take a cross-functional approach, allowing students to experience the full business enterprise. Business simulation author Dr. Ernest Cadotte explained, “Too often, our educational system follows a piecemeal approach in which students learn about many aspects of business but never have a holistic experience that pulls all the elements together.”

Depending on the business game, students may play individually or on teams. Individual player games provide flexibility to instructors, especially in large classes. They can also help in pinpointing each individual’s contribution to their success. On the other hand, team-based games provide lessons in leadership and collaboration.

Addressing Societal Issues in Business Games

Serious business game authors are increasingly turning their attention to societal issues, such as diversity, sustainability, health impacts, and employee welfare. These new business games challenge students to consider not only profit but also how their businesses affect the world around them. Examples include The Triple Connection, The Green Business Lab, the Conscious Capitalism Simulation, CELEMI Sustainability, and others.

See also

• Beer distribution game
• Friday Night at the ER
• Military simulation
• Project management simulation
• Roleplay simulation
• Serious game
• Simulations and games in economics education
• Training simulation

References

• Andlinger, G.R. (1958), "Business Games-Play One!", Harvard Business Review, 28: 115–25
• Faria, Anthony J. (1990), "4. Business Simulation Games after Thirty Years: Current Usage Levels in the United States" (PDF), in Gentry, J.W. (ed.), Guide to Business Gaming and Experiential Learning, London: Nichols/GP, pp. 36–47, ISBN 978-0-89397-369-8, archived from the original (PDF) on 20 May 2014, retrieved 12 March 2014
• Jackson, James R. (1959), "Learning from Experience in Business Decision Games", California Management Review, 1 (2), University of California Press Journals: 92–107, doi:10.2307/41165351, JSTOR 41165351, S2CID 154648799
• Saunders, Danny (1996), Games and Simulations to Enhance Quality Learning; Volume 4 of International Simulation and Gaming Yearbook, Psychology Press, ISBN 978-0-7494-1866-3