MARGA Strategy as part of the General Management Seminar of ESMT Berlin
The General Management Seminar (GMS) of ESMT Berlin is currently taking place for the 60th time. The seminar is aimed at experienced managers who are about to take on a senior executive position or who have recently taken on it. Managers are expected to recognize trends, plan strategically, motivate employees, ensure the financial stability of their company and also think innovatively and act in a socially responsible manner. The seminar prepares the participants to take on this comprehensive responsibility.
Various methods are used in the three presence modules: lectures and plenary discussions, exchange of experiences, outdoor training, strategic business simulation, case studies.
Our strategic business simulation MARGA Strategy has been an integral part of the program for many years. In this complex and realistic business simulation, the participants experience strategic management in time lapse. They manage a diversified holding and make decisions at corporate level as well as decisions on business unit level. Within a team, the participants develop the corporate strategy for a holding with seven business units and convert these operationally. In the systematic process of strategic management, they experience all phases, from target planning to strategic analysis, strategy development and implementation. The focus is on the long-term positioning of the company in the market. At holding level, growth or shrinkage strategies can be realized as part of portfolio management, both organically and through the acquisition or sale of entire business units. At business unit level, diversified competitive strategies are developed and implemented. The company's success is measured by a “Balanced Score Card” with various key figures.
During the teamwork, the participants are intensively accompanied and supported by experienced trainers.
Tel.: +49 2235 406 319
The business simulation MARGA Strategy has been a unique opportunity for me, as a new managing director with a technical background, to learn the coherences of strategic decisions and economic key figures in a practical way. The fact that our team has won gave me additional self-confidence..
Dr. Tanja Lindermeier-Kuhnke, Geschäftsführerin GuS Glass + Safety
Experience Strategic Management - the story of the business simulation
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?
- align the company to long-term success.
- develop corporate and competitive strategies.
- manage the holding with the help of portfolio management.
- make decisions concerning investment and finance on the holding level.
- negotiate acquisitions and sales of entire business units (Mergers & Acquisitions,
M & A).
- operationally implement strategies in all business units.
- are responsible for investment controlling.