MARGA Strategy is management training with a strategic focus. Within a team you run a holding company comprising of different business units and compete against three other companies.
This strategy business simulation version is only suitable for in-class seminars. During the seminar the participants experience strategic management in time lapse.
- develop and implement competitive strategies for all business units,
- have to make decisions concerning investment and finance on the holding level,
- manage the holding with the help of portfolio management,
- and treat Mergers & Acquisitions actively (M&A).
Experience strategic management
The strategy business simulation MARGA Strategy puts the participants into the position of board members at holding level of a company with altogether seven business units. Consequently, all decisions are made at corporate level with an overall entrepreneurial perspective, as well as decisions on business unit level need to be taken.
A first analysis shows that particular business segments are stuck in a typical strategic trap:they are too small as to enter the market with favorable cost structures and low prices. On the other hand, there is no technological lead which would justify higher prices. This clearly results in continuously decreasing market shares which worsen the situation day by day.
How important are these business areas for us? Is reorganization worth the trouble and if so, how to approach it and reposition ourselves on the market? Or could it even be an option to sell? But then, what is the business section actually worth? And is there possibly a buyer who is ready to pay an additional charge, because through us he could become a market leader?
Fortunately, we also have some sound businesses which we would like to expand. Now it is up to us to decide in favor of organic growth or rather strategic purchase. In any case this implicates that we need money for investments.
How will our financial requirements eventually develop? Especially with regard to possible restructuring costs in other sectors. Will our level of debt run out of control? In that case we would be forced to sell loss-generating business units in order to both get money and to avoid restructuring. What about our owners? Would they agree to support a capital increase or is the income return more important to them?