Business Policy/Strategy Case Extension Using Pro-Forma Planning: A Computer-Based Model

Abstract

The paper describes the outcome of a two and one-half year project to develop instructional software for use in undergraduate business policy/strategy courses. The project was initiated because the department felt that the relative advantages of the case-analysis instructional format for the course outweighed the business game/simulation format. Nevertheless, there, was concern that students may develop a somewhat “static, one-time” conceptualization of business planning as a result of a case analysis format rather than the more forward-looking, obviously “time-period-to-time-period” orientation of the business game/simulation format. The overall goals of the project were to develop an instructional tool that (1) suggested the dynamic movement of company operations over time, (2) enhanced students’ financial analytical skills, (3) was generic rather than case-specific (4) required minimal time to learn and use, and (5) could be used as a basis for a series of follow-up exercises based on the initial case analysis and a series of additional scenarios that would be provided users, and would be used to simulate a series of company planning periods.