Can business simulations for MBA students turn them into fully-fledged business leaders? Here’s a rundown of what they are, how they work, and the value of this unique learning experience.
Business simulations are used in MBA programs to give students an immersive and interactive learning experience. Participants test their skills in realistic scenarios requiring them to respond in real-time to challenges.
Although business simulations are a game of sorts, they’re also a serious test of an individual’s business acumen. They’re based on scenarios that were faced by real-life businesses. How participants tackle these challenges is a good indicator of their business knowledge and leadership skills.
And as a breeding ground for tomorrow’s business leaders, it’s only natural that business schools place a lot of importance on these simulations.
To learn more about how business schools are implementing these simulations within their MBA programs, we spoke to Dr. Jost Sieweke. Dr. Jost is the Program Director of the Executive MBA at Vrije Universiteit Amsterdam (VU). He says the overall idea of the simulation is to “integrate content from other courses.” (01:09)
According to Dr. Jost, the simulation ties in with the aims of the VU Executive MBA as a whole. “This is the focus of an MBA program: to become a leader that rather thinks about the organization instead of just their small silo within the organization,” he explains. (01:27)
VU Amsterdam’s business simulation saw the school’s MBA students taking on the role of top executives at a global car manufacturer. They were tasked with improving the company’s performance in three key indicators:
Whichever team performed the best in these three indicators would win the overall competition. There was no prize on offer, except for a VU trophy and, of course, pride.
A business simulation is supposed to be fun. It’s supposed to be challenging. But what’s most important is what students take away from the experience.
MBA student Ezra de Korte, who was part of the winning team, said understanding each other’s strengths and weaknesses was key to their victory. It’s a skill that could be easily applied to a larger organization. Knowing the strengths and weaknesses of your team will place you in the best position to get the most out of them.
For Trynke Hoesktra, another MBA candidate, the biggest challenge was adapting to new events and changes in the simulation. It showed her that adaptability is a vital skill in business.
Trynke tells us that although they had made ample preparations, unforeseen changes and shifts in the global landscape required her to adapt quickly. (02:31)
Business simulations also give participants a better understanding of how organizations function. MBA candidate Anne Griffioen points out her team’s challenges when they realized how closely aligned different parts of the organization were.
“My key learning was that everything is connected to each other,” she explains. “So first we say: ‘OK, you’re responsible for HR, you’re responsible for R&D.’ But it doesn’t work like that. If somebody is changing something in HR, R&D is involved. So we really have to work together.” (02:43)
The VU Amsterdam business simulation game was structured as a competition. Thus, it was expected for the MBA students’ competitive nature to surface at some point. However, the victorious team wasn’t fixated on winning.
EMBA candidate Marciano Kruithof advises prioritizing the process over the end result when approaching a business simulation game. When learning the process and having fun is the goal, winning becomes a happy bonus. (03:02)
While a business simulation may not be the most well-known aspect of an MBA program, its value for students should not be underestimated. Although classroom case studies might challenge students’ knowledge of business fundamentals, applying those insights in real-time sets true leaders apart from the rest. A business simulation challenges students to do that.
It might even turn you from an MBA student into a fully-fledged business leader.
If you want to learn more about the MBA programs at VU Amsterdam, feel free to contact one of our MBA ambassadors.
