Strategy & Management · Competitive Strategy

The Power of Yes — Commit Atlântico's €220M Digital Bet

A four-round, advanced strategic-leadership simulation set inside Atlântico Distribuição S.A., a Portuguese grocery and general-merchandise retailer (240 supermarkets, 18 hypermarkets, €3.1B revenue, 3.4% EBIT, #3 grocer at 14% share).

4 rounds Executive

Preview

About this simulation

A four-round, advanced strategic-leadership simulation set inside Atlântico Distribuição S.A., a Portuguese grocery and general-merchandise retailer (240 supermarkets, 18 hypermarkets, €3.1B revenue, 3.4% EBIT, #3 grocer at 14% share).

On 2 June 2026 the Chair tables a €220M three-year digital-and-format transformation envelope and demands a committed strategic direction within the first 100 days: "This company has perfected the art of the maybe. We hired you for the power of yes."

Share is bleeding 1.1 points a year to discounters and quick-commerce; on trend Atlântico slips below #4 within 30 months, where supplier terms and scale economics deteriorate. E-commerce is stuck at 3% versus leaders at 9–11% and the online channel burns €18M a year.

The envelope funds roughly TWO of four candidate bets — a full omnichannel/fulfilment rebuild (~€120–130M, strong upside or a €100M+ write-down), a hard-discount banner (~€70M), a data/loyalty + AI personalisation platform (~€50M), and quick-commerce by partner or build (€40–90M) — under a 2.5x net-debt/EBITDA covenant.

Playing the new CEO, you (1) frame the real strategic question before choosing tactics, diagnosing this as a digital-relevance problem rather than re-running the culture of prudence; (2) commit the bet — allocate the €220M to a focused pair, choose a commitment mode for each (full build, partnership, staged real-option pilot, or pass), and name explicitly what you decline; (3) sequence the moves with gated tranches, kill-criteria and a covenant-aware cash trajectory, without letting staging degenerate into a disguised maybe; and (4) defend the yes to a split board — two bold, two prudent, a Chair who wants a defensible decision, and a 35% family block — converting dissent into an aligned, executable mandate.

The math operationalises Santos Silva's "power of yes" and Porter/Rumelt's strategy-as-trade-off: spreading thinly across all four bets, waiting one more year, a bold bet with no diagnosis, pilots with no scale trigger or kill-criteria, and steamrolling the prudent faction all measurably underperform, while a focused, diagnosed, gated, board-aligned commitment scores best.

Final KPIs track Strategic Clarity, Competitive Position, Board Mandate, and Capital Committed against the €220M cap and the 2.5x covenant.

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.
  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:

  • Before choosing any bet, what is Atlântico's REAL strategic question?
  • Where can €220M build DURABLE advantage rather than merely match rivals?
  • Decisiveness: how firmly will you commit a direction inside the 100 days, vs hedge? (%)
  • Allocate the €220M envelope across the four candidate bets (€M — should not exceed 220)
  • How do you commit your lead bet — the mode that operationalises the “yes”?
  • Strategy is what you choose NOT to do. How explicitly do you decline the two bets you didn't fund?
  • Which committed bet goes FIRST in the 36-month sequence?
  • How do you gate the next tranche of capital?
  • When do you communicate the direction to the market and the 35% family block?
  • Covenant discipline: how much headroom do you keep under the 2.5x net-debt/EBITDA test? (%)

What participants track

What participants follow on screen as the rounds go by:

  • Clarity, Position & Mandate Trajectory

Subjects covered

Designed for courses in Competitive Strategy.

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