Business

La Sala de las Decisiones con Propósito

The chief executive of a fictional listed Spanish food company has just published its purpose statement and has one year to show it is real.

4 rounds Executive

Preview

About this simulation

The chief executive of a fictional listed Spanish food company has just published its purpose statement and has one year to show it is real. Stage 1: the price of the staples under a 5% cost rise (pass it on, a held-price basic range, or smaller packs behind a purpose campaign), how the purpose is launched and how executive pay reflects it.

Stage 2: an NGO report on seasonal workers at two supplying farms: supplier standards, what the label claims and what growers are paid. Stage 3: closing a plant that runs at 55% of capacity: the plan, the management team pay and how the news is told. Stage 4: the third-quarter investor call: the story, the future of the basic range and the annual report.

Purpose credibility is a stock: backed decisions raise it at once and it stays; unbacked claims raise it while they are new and cut it by more once they are found out, one stage later (and at the annual results for the last stage). Credibility moves sales, engagement moves the margin and both move investor confidence.

The model is deterministic: fixed effects on credibility, engagement, the margin, investor confidence and one-off costs, evaluated on the decisions taken so far; operating profit over three years is the value.

The score combines the quality of each decision with four outcomes (credibility, engagement, investor confidence, value over three years) and is capped when a decision breaks the law (a generic environmental claim without recognised excellent performance, growers paid below their cost of production). Inspired by published research on corporate purpose. Spanish (primary, peninsular register) and English.

Who it is for

An advanced simulation for participants used to working with the main frameworks and trade-offs of the subject, designed for executive education and experienced professionals.

How a session runs

  1. The instructor creates a session from the Eureka dashboard and invites the participants.
  2. Participants play 4 rounds. In each one they submit their decisions and the simulation calculates the results. The first round opens with: El precio del propósito.
  3. The instructor follows each participant's progress and results from the dashboard, and uses the class results for the debrief.

Decisions participants make

The decisions participants make during the simulation:

  • Los básicos (costes un 5 % más altos)
  • El lanzamiento del propósito
  • La retribución variable de los directivos
  • Los estándares de los proveedores
  • La etiqueta
  • Lo que se paga a los agricultores
  • El plan para Calatayud
  • La retribución del equipo directivo
  • Cómo se cuenta
  • El relato ante los inversores

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