Advantages of Business Simulations
Gone are the days where businesses thrive mainly on theoretical practices. The curriculum needs to be merged with practice in order to reap the maximum benefits of concepts and theoretical framework. Learning how to properly apply what has been learned in institutions in real-life business situations is the real deal.
Business simulation has become popular in this dispensation because it bridges the gap between theory and practice. It allows for critical thinking and reasoning. Business simulations allow students to practically run a live business through the help of virtual tools and applications. Students in business simulation class have the rare opportunity of assuming any position in an organization and wearing the individual’s thinking cap.
The first advantage of business simulation would be that it takes abstract ideas and turns them into real-life scenarios. A student gets to understand how the shoe pinches those that occupy certain positions in the real business world. This is not easily felt in a theory-inspired class as most of the things taught in such classrooms are abstract. Moreover, students are mostly passive in such classes. This is because most of the time some of these theories have been regurgitated over and again by their lecturers and have no real-life semblance.
Business simulation is not as easy as it seems but it is one task that prepares all its students for the future. Imagine a fresh school leaver attending a leadership simulations class and he or she is being faced with a real-life leadership problem-based scenario. This would first seem like a heinous task but with guidance from experienced instructors, solutions would arrive.
It’s a very good way to upscale the brain and get it prepared for thinking outside the box. A school of thought believes that in today’s business world, there’s no such thing as a thinking box. This means the sky is large enough to accommodate any creative thinking that produces relevant results.
3. Delves into the Proximate Cause
This is another key merit of business simulation. It allows for the understanding of why certain variables react in a certain way. Most times in theoretical classes vague answers to certain questions are obtained from lecturers, authors, etc. In the world of simulations, it’s very possible to tweak certain situations and understand what the resultant effect would be.
For example, a decrease in production might occur in company A and management would state that the reason for the decrease is as a result of the coronavirus. However, when a curious mind or business researcher digs deeper, the resultant effect might be different.
Other reasons such as the underpayment of staff, obsoleteness of the machines in use and cruelty of a new boss, etc might be some of the factors responsible for the decline in production. All these kinds of scenarios can be understood better using the business simulation method of learning.
4. Test Running
If you’re a business person that hates to take risks then business simulations are a must for you. It avails you the opportunity to test run your real-life business situation. Also, it allows you to objectively determine the result of your business outcomes. Business problems can be easily identified and possible solutions can be generated for the business.
5. Active Participation
Business simulations give students all the right reasons to be vocal and active. Moreover, one of the benefits of participating actively in any given class is that such knowledge gained Is a collective effort and would automatically stick with individuals for a longer period.
Business simulations adopt the flexible approach to learning. It eliminates the rigidity and learners from all works of life can be taught. They can be split into groups, taught through a virtual or physical session. Also, it combines the practicality of various academic courses and theories. This gives the learners hands-on experience on how to function in different capacities in any given business environment.
There’s just something about the various simulations that keep you on your feet and gradually work on the learner’s proactive and reactive skills. These are skills that are required by any future business leader. Most of the time, in theory, the emphasis is laid only on proactive skills.
Business leaders are expected to predict future events and determine the outcomes before it occurs. While this is correct, uncertain situations uncertain events might occur to disrupt business plans. An example can be seen from the pandemic that hit the world and put a hold on all businesses globally. This is why gaining knowledge from business simulations is necessary to sharpen the reactive skills of all prospective business owners.