FACULTY OF BUSINESS

● TEACHER:

Jaime Enrique Quispe Ramírez

● COURSE:

Financial Analysis and Evaluation

THEME:

Report of the SIMDEF Simulator Manual

● INTEGRANTES:

Erick Alexander CHUGNAS CABRERA

CORONEL BALCAZAR, Cindy Derly

Anthony Manuel LLOVERA LLANOS

Leyli Eliana MEGO CORTEGANA

PEREZ ARANA, Andrea Del Pilar

Katherine Yasmin Salazar Maita

2022
Content

I. INTRODUCTION 1
II. DEVELOPMENT 2
1. Concept 2
2. Importance 2
3. Objective of SIMDEF 3
4. Main Contributions of SIMDEF 3
5. Strategies and General Objectives 4
6. Key Points 5
III. CONCLUSIONS 7
IV. RECOMMENDATIONS 8
I. INTRODUCTION

Currently, we can see how technology has become involved in everything.

aspects of our life, that is why we will always be in touch with it, whether

as a distraction or as tools in our studies or work. A clear example

they would be the technological tools for business learning, such as

also the simulators of the software used in this field.

Business simulators or business games are computer programs that

they allow students to manage a virtual entity putting into practice the

acquired knowledge and in this way develop experience on how to lead a

organization reflecting a supposed reality of it.

That said, this report aims to consolidate our knowledge.

about the SIMDEF simulator manual, considering that this is a tool

fundamental in our academic training because it will prepare us for a

future management along with decision-making for the proper functioning of a

entity.

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II. DEVELOPMENT

1. Concept

The SIMDEF (Financial Decision Making Simulation) was designed for the

development of skill in decision-making in a specific area of management: Finance

in Mexico City, it is actually a broad, dynamic, and contingent case

with its own environment where decision-making skills can be developed

in general and specifically financial, since this simulator has up to 18

managerial decisions required in each simulated period and most of the

decisions are financial.

In addition, the SIMDEF strengthens the participants' skills in accounting.

administrative, production and finance when requiring them a repeated application of the

principles, tools, and procedures of those disciplines.

2. Importance

The SIMDEF is important for decision-making as it allows us to improve.

our knowledge during this professional training process and to be able to apply it

with the design and implementation of strategies to achieve the results obtained.

Show the impact that decisions have on the overall performance of a company.

financial that allows demonstrating the use of sophisticated and modern tools that

involve an economic study.

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3. Objective of SIMDEF

Provide the company with the financial stability that allows for growth.

organizational, through the application of financial strategies that allow it to obtain

the increase in its stock value in the market, where it also competes with

various companies and industries.

4. Main Contributions of SIMDEF

4.1 Reinforcement and Learning:

As the manager of a simulated company, you have to repeatedly apply the

definitions, tools, and financial and accounting techniques, from the preparation of

income statements and balances until the use of project evaluation techniques

investment and the determination of the appropriate cost of capital

4.2 Flexibility in decision-making:

Flexibility in decision-making is required, that is, a structure that produces

ability to change quickly. For a simulated company to be successful, in relation to

the others in the simulation, a conceptual framework for decision-making must be developed.

decisions that simultaneously incorporate smart financial decisions and a

deep understanding of the nature of the company's position in its environment.

4.3 Feedback

Every decision returns with results that allow for the evaluation of consequences. This type

Feedback is very limited when using problems and cases in a course.

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 As the complexity of the case or problem increases, the ability to

verify or deny which is the correct decision

4.5 Motivation:

This role is very rewarding for the vast majority of participants. The interest and the

enthusiasm directly impacts performance. The techniques and tools

financial, furthermore, will be seen in their correct perspective as mechanisms that

improve the performance of a company.

5. Strategies and General Objectives

5.1 General Strategies

Achieve the highest stock price in each period in the assigned group.

Increase production capacity.

Get the best financing.

Reduce production and storage costs.

Meet the demand based on forecasts.

Leave the company at the end of all decisions in the best conditions for

its optimal development

Only the exact amount needed will be purchased.

5.2 General objectives:

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 ● Understand and learn the company's financial statements, analyze them and

interpret them better for correct decision-making.

Enhance our knowledge in the field of financial information and thus

to have the best signature.

The objective in SIMDEF for each participant should be to maximize extensively.

the cost of the organization for regular activities is due. This is received

making good and correct financial choices repeatedly.

case study can illustrate this point. Suppose that organization A takes the

same elections as company B except that A accepts an investment plan

from capital that should have been rejected and that the firm B rejected. The firm B will have

operated in the best interest of its shareholders and will show a better

functioning.

6. Key Points

The simulator has 3 key points, on which the decisions to be made are based in each

one of the quarters and they have a determining factor, if they are neglected or omitted

it could affect the stock value when validating the data.

FORECASTS: Forecasts provide us with the necessary information to

to be able to make the most appropriate decision regarding the balance between price and demand, the

knowing how to use this help will determine the income of the period based on

approaches or will prepare us for quarters where the demand is higher than

what can be produced.

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 DEPRECIATION OF MACHINERY AND PLANT: A very critical point in the

decision-making and more when the first crisis begins is the machinery and plant,

From the first decision, one must be aware of how depreciation behaves.

in the following quarters to maintain production and be able to respond to

the forecasted demand.

FINANCING: After analyzing the forecasts, the depreciation of

machinery and plant, there remains a third point that completes the interconnection of the key bases

for good decisions "financing" when we entered the first crisis the

the lack of cash is evident and one must resort to income through debt and

it is where one must assess which funding method is the most convenient for the

company, not only at the moment, but also in the future to avoid affecting the cash flow of

negative way with excessively high interest.

7. Preparation for the SIMDEF

Specifically, a company requires:

Understanding of current financial and economic theory.

Knowledge of financial statements and their construction.

Ability to apply current financial methods to the solution of

problems in finance. For example, in capital investments, the executive

you should know how to apply the present value method or the internal rate method

returning.

Ability to understand and communicate financial information.

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 A fundamental prerequisite of SIMDEF is the understanding of the content and

financial statement construction. There will be skepticism from a doctor who is not familiar.

anatomy for the same reason.

The environment and financial statements are quite complex. Therefore, in the Manual

Advanced allows you to overcome the difficulty in constructing financial statements and to

same time explains for the first time and in detail in the Operating Instructions of

Basic Manual. These instructions are applied to a hypothetical state game.

proforma in the Advanced Manual

III. CONCLUSIONS

The Business Simulator (SIMDEF) is a tool that is definitely

very useful in the development of our academic abilities in the

different areas that make up the great planet of business. The

the implementation of a plan is essential for the success of any organization,

therefore, it is of utmost importance that organizations and the

individuals who lead an organization pay attention to this area that

Although it seemingly is simple, it requires knowledge and skills.

concrete.

Having said that, we can satisfactorily say that SIMDEF allows for expansion

our knowledge in finance giving us an overview of the job market

of an accountant in front of a company.

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 Because it helps us with the financial statements which are useful tools.

for the idealization and control of the company, allowing for proper

business administration.

As a result of this, we conclude that it is of utmost importance that they dedicate themselves to attending

to that area for proper financial management we must constantly

consider our cash flow, in this way also the plant capacity and

machine that maintains a balance and does not raise prices of

production.

IV. RECOMMENDATIONS

1.- We recommend as a group to inform ourselves well about this simulator since with the

experience we had with another similar simulator like SIMPRO we were able to

realize that if we do not analyze the variables well, our company will have results

very negative since these simulators are very similar to the cases that we can

face in real life.

It is equally important not to overlook, when making the decision the

tres puntos clave que nos dice el manual que son: PRONÓSTICOS, DEPRECIACIÓN

OF MACHINERY AND PLANT and FINANCING, because if we overlook any of these

three key points we understand that the decisions we may make would not be

the most suitable ones and could cause us problems with our future decisions

regarding our company.

3.- We also recommend getting to know and informing ourselves about the principles, tools

and procedures of management accounting because as it tells us in the manual 'The

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SIMDEF strengthens the participants' skills in managerial accounting,

Well, if we are not prepared and we are unaware of this topic, then it will be difficult for us.

very complicated to be able to develop this simulator.

4.- Finally, we recommend working as a team, in order to analyze in a more

detailed financial statements that the simulator provides us so that in this way

let's make the best decisions and thus obtain the best results. And by no means

They must forget that teamwork is fundamental for the good management of a

company, everyone must be aware of their roles and meet their deadlines

delivery. It's a team, if one fails, they all fail.