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Business Essentials Simulation:
​COFFEE SHOP INC
In the Business Essentials Simulation: Coffee Shop Inc., students manage and grow their own coffee shop business in the face of a changing external environment and competitive landscape. The simulation takes students through three levels of play, with increasing levels of complexity and the introduction of new business concepts as learners develop their skills.

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Play

In Coffee Shop Inc learners manage a coffee shop business for 5 years. In Levels 1 and 2, they begin by choosing a location for the store (city center, suburbs, university campus). Each year, they review developments in the business environment, see what competitors are up to and make key business decisions in the areas of Marketing (Product, Price, Promotion), Human Resources (Salaries, Training, Recruitment) and Operations.

Level 2 includes decisions on vertical integration and ethical marketing.

In Level 3, learners expand their business internationally into mature and emerging markets, by opening their own stores and through franchising. 
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Succeed

Each year, after entering decisions, learners get feedback on their results, and review their performance by analyzing dashboards and financial statements.

In Levels 1 and 2 of the game, the
 target is a cumulative profit of $500,000 after 5 years. For Level 3, the target for the entire global portfolio of stores is a cumulative profit of $ 5 million.

Instructors may also set their own performance targets if they wish. These can include other financial measures (e.g. revenues, productivity) or non-financial objectives (e.g. employee satisfaction, customer satisfaction).
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Learn

By playing Coffee Shop Inc., students learn that:
  • Developing a successful company is enjoyable but requires a clear strategy and sound decision making.
  • Different strategies can lead to success, if they are well executed.
  • Employee satisfaction leads to customer satisfaction, which in turn impacts sales and profits.
  • Changing environmental and competitive conditions have a major impact on a company's operations.
  • Applying key business concepts and tools (e.g. PESTLE analysis, competitive analysis, product differentiation, vertical integration) improves company performance.
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"I used this simulation game in my year 1 management undergraduate class, in both face-to-face and online teaching environments. The students enjoyed this exercise very much and were strongly engaged to play all three levels. This game is very suitable for junior business/management students and in a large class size. The instructor and student resources and materials are clear and useful, and various topics in relation to business/management (for example, PESTLE analysis, entrepreneurship, globalization, vertical integration and different business functions) are suitably introduced. The students were eager to play, make improvements, gain profits (in the first round, many students were frustrated after noting their losses) and compete against each other. During the whole process of learning by doing as well as briefings and debriefings, students were able to understand all the important concepts. I’ll definitely reuse it in the near future and introduce the game to my colleagues "

Anna Tsui, CUHK Business School

Overview Video

Buy or Try

Get in touch if you are interested to try or buy the Business Essentials Simulation: Coffee Shop Inc.
​Instructors at institutes of Higher Education
(universities & colleges) can get the simulation through Harvard Business Publishing (click below).
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Individuals can buy a personal license and obtain immediate, unlimited access for three months for a single payment of US$ 15. Payment can be made by credit card or PayPal. After purchase, click "Return to Merchant" to generate your user id and password.

Related Learning Resources

​The Sim Institute YouTube channel includes explainer videos on key concepts used in the simulation, including the Balanced Scorecard, Vertical Integration, the PESTLE Analysis and the Five Forces Analysis.
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