Life team means winning business
Representatives of the local unit of insurer Winterthur Life have won the Hong Kong Management Game and will represent the city in the regional finals to be held here later this year.
The champion team's four members, who have backgrounds in marketing, management and actuarial science, held off six other teams in a business-simulation challenge staged on Saturday to capture the South China Morning Post Perpetual Trophy, winning $25,000 cash and air tickets to Singapore.
Using computer simulation software, the seven teams were asked to manage a company that makes and markets a portable music device. The challenge was to return the highest profit. The finalists had to assess the impact of including a battery in the packaging of the music device, which would boost sales but at a higher cost.
'In designing our promotion strategy, we made sure that for every dollar we spent, there must be a return,' said the champion team's leader, Anson Cheng.
Team member Evian Chim said that obtaining the highest profit did not necessarily mean capturing the market's biggest share.
'Many companies nowadays aim at reaching the leading market position,' she said.
'They spend huge amounts of money in marketing. But we found that a mid-level market share returns the highest profit.'
A four-man team led by accountant Ivan Tam was first runner-up with a cash prize of $10,000.
The Hong Kong and China Gas Company team won $5,000 as second runner-up.
'You have to think about allocating your limited resources to your best advantage, remembering that you are competing against other companies, not the computer,' said Russell Morris, developer of the simulation software used in the contest.
More than 40 teams took part in this year's game, which was co-sponsored by Cathay Pacific Airways, CLP Power and the South China Morning Post.
The winning group will compete with four teams from India, Macau, Malaysia and Singapore in December.