Exercise: Building A Strategy: One Story Houses
Exercise: Building A Strategy: One Story Houses
Exercise: Building A Strategy: One Story Houses
Your group will be organized into a construction company producing residential housing.
Houses will be constructed from 3 x 5 cards, fastened with cellophane tape and decorated with
felt-tip markers. You will be competing with other companies to attain the highest levels of
profitability. You will work in two phases:
Phase I: Planning.
Your team will (a) develop a design for the houses you will produce and (b) plan how you
will organize and manage production of houses during Phase II. Whenever you are ready to begin
production, inform the instructor, who will give you a starting signal and keep time.
The market will absorb all houses built (so long as they meet the specifications below) at the
following prices:
Bonuses
1. The company whose houses are judged to be most attractive, durable and appealing to
the customer will receive a quality bonus of 20% of revenues.
2. The first company to bring houses to market (that is, the company that produces
houses first) will received a bonus of 20% of revenues.