Matching a Strategy Simulation to the Business Policy Literature: A Black Box Approach to Simulation Development

Business policy and strategy classes that use a simulation experience select from one of several alternatives in experiential exercises designed to aid in the application of management, marketing, and economic theory. The benefits of each pedagogy have been the subject of numerous articles. An underlying assumption of both methods is that the student will he able to apply the textbook, periodical literature, or lecture material. Thus, the case or materiel selected should conform to theoretically-derived models of industry structure (Porter, 1980 for example) and strategy (e.g. Buzzell, Gale and Sultan, 1975; Hatten and flatten, 1977). This paper will describe the development of an industry specific strategy game in which the algorithm was developed using a black-box method to generate outputs that conform to the generally accepted principals of business policy as represented in most textbooks that use a content approach to strategic management (Examples: Hatten and Fatten, 1986; Thompson and Strickland, 1987; Pearce and Robinson, 1985)