BTS • Overview I Business Acumen

www.bts.com • Copyright © 2015 BTS

The retail industry is shifting. To address today’s retail challenges and pursue future opportunities, industry understanding is more critical than ever.

BTS has developed The Retail Business Simulation, a dynamic experiential learning program designed to provide a holistic perspective of the industry, increase understanding of the profitability drivers and build the fundamental knowledge to be effective.

The Program at a Glance

In the Retail Business Simulation, participating employees assume the role of the senior leadership at a simulated retail company characterized by: a conglomeration of retail stores and distribution centers, multiple product lines, national and private-label brands, and a range of goods. Confronting macroeconomic and microeconomic challenges, participants are challenged to manage the enterprise and grow revenues over three simulated years.

Key Issues Covered in the Simulation

In a one-day board- based simulation, participants compete in teams, draw on their experience, and confront macroeconomic and microeconomic challenges facing the retail industry. Participants practice real-world decision-making in a risk-free environment.

The following key topics and tradeoffs are covered within the business simulation:

• Purchasing products from suppliers• Manufacturing its own private labels

The Retail Business SimulationThe Trends and Challenges of Maximizing Profitable Growth at a Retailer

BTS • Overview I Business Acumen

www.bts.com • Copyright © 2015 BTS

• Forecasting order to match customer demand• Delivery customer satisfaction• Driving lower supply chain costs without compromising quality • Competitor pricing and market positioning• Partnering, co-branding and supply chain management• Discounts, markdowns and margin management

Through the three-round program, small teams collaborate, build fundamental capabilities, and practice real-world decision making in a risk-free environment as they reason through each scenario. In the end, participants receive feedback and analysis of their decisions and strategies and form action plans to apply back on the job.

Target Audience

The Retail Business Simulation is intended for two primary audiences:

• Individual contributor to Director-Level employees within the retail business

• Organizations with major clients operating in the industry Workshop Objectives

As a result of the high-impact experience, participants are able to gain a deep understanding of the retail industry dynamics, general trends and business challenges; how these factors relate to individual roles, day-to-day operations and the company’s success; and the relating decisions that drive results.

Through The Retail Business Simulation, participants:

• Improve financial performance through developing understanding of the key value drivers in the retail value chain

• Develop a market orientation and build customer awareness• Enhance cross-functional and cross-business effectiveness through

increasing collaboration and communication• Engage in problem-solving dialogue around the major trends and

challenges facing retailers

Implementation and Customization

The Retail Business Simulation includes know-how sessions, debriefs, group discussions, problem solving exercises and action-oriented team activities for further reinforcement. To maximize relevance and ensure application, the simulation can be highly customized to meet a client’s specific business objectives and strategic priorities. Customization includes nearly all aspects of the simulation: terminology, business structure and issues, key performance indicators, and learning objectives.

The Retail Business Simulation can be used as a standalone program or supplemented with additional solutions to reinforce the skills most critical to a company’s specific needs. To achieve the full impact of the design, the recommended implementation process includes pre-work, a pre-meeting with managers, the core workshop, and rigorous post-program coaching.

BTS • Overview I Business Acumen

www.bts.com • Copyright © 2015 BTS

Experiential Learning that Delivers Key Results

Through the Retail Business Simulation, participating employees recognize the drivers of key performance indicators and have an overall big picture understanding of the industry, the company and the critical interrelationships. The best practice is for participant’s managers to meet with the participants ahead of the session, so they can draw a line of sight to the intended outcomes and manage accountability for application on the job. Armed with improved capabilities and actionable items, participants accelerate results once back on the job.

About BTS

BTS focuses on the people side of strategy, working with leaders at all levels to help them make better decisions, convert those decisions to actions and deliver results. At our core, we believe people learn best by doing. For 30 years, we’ve been designing fun, powerful experiences™ that have profound and lasting impact on people and their careers. We inspire new ways of thinking, build critical capabilities and unleash business success. It’s strategy made personal.

For more information, please visit www.bts.com.

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Revenues - CostsAssets

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Cash Operating Costs

Lease & Occupancy

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Suburban /Rural NB

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Liabilities and EquityAccounts PayableLong-term debtStockholders’ Equity

Retail Industry

EventCards

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Retail Industry

OptionA Cards

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OptionB Cards

Retail Industry

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Retail IndustryRetail Industry

Retail Simulation