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Majority posts profits in Game

Air China

UNDER a favourable economic climate, most teams taking part in the Hong Kong Management Game were able to post a profit in Period 4.

A star team achieved an after-tax profit of $6.73 million and five others exceeded $4 million, while the average profit made by teams amounted to $81,506.

The average order by teams was 83,128 units of Product AW, 267,217 units of Product AI and 42,904 units of Product DI.

Fifty-two companies were left with no stocks, while five others sold out of either one or more products.

As the demand for products was so high, teams reduced their investments in marketing and product development by 40 per cent and 30 per cent respectively.

In anticipation the market would grow, teams invested heavily to expand capacity.

Forty-four teams bought a total of 817 plants in Period 4. All except six teams applied for an extension of their loan limit to seek the extra funds.

The Hong Kong Management Game is one of the most sophisticated and challenging computer-simulated management exercises available.

With the new facilities of the SINEW 4 program, the game offers a realistic simulation of business in which contestants can practise specific skills in risk-taking, decision-making and negotiating.

The game is sponsored by Arthur Andersen & Co, ICL (HK), Cathay Pacific and the South China Morning Post.