ISB | September 15-16, 2012

Roadmap

1. STRATOS – A Snapshot

2. What’s Up for Grabs

3. Who can Participate

4. How to Participate

5. Timelines

6. STRATOS – More Details

• Simulation
• Financial
• Market Positioning
 STRATOS – A Snapshot
• STRATOS is Aditya Birla Group’s Flagship Competition on Campus

• Since its inception in 2010, over 1200 students have participated in STRATOS

• It is a Business Simulation Team Competition

• This Simulation will take place in the “European Car Market”. The Market will be defined by data
given by ABG only.

• Each team will be a new entrant into the European Car Market. So you will not only compete with
the other new entrants (other teams) but also with the existing car manufactures in the market

• Your task is to start and build a profitable & sustainable business (on your laptop) that rewards its
shareholders for their investment over a 6 year period.

• The Business will sell cars into the European market only

The Winning Team will be the one which generates the maximum
“ECONOMIC VALUE ADDED (EVA)”
 What's up for Grabs

Each member of the Winning team gets an “ iPad”

 Who Can Participate

• This competition will be held individually on the following campuses

only: IIMA, IIMB, IIMC, IIML, XLRI & ISB.
• Only students of the PGP Program can participate
• Teams of exactly 4 members each from the same college can apply

• It will be played in 3 Stages.

• Stage1: Registration – Register your team members and team name
• Stage 2: Online Round – Strategy Presentations
• Stage 3: Final Round – Seven Teams from each campus
will be able to play STRATOS at their Campus
 How to Participate – Stage 1 & 2
• Go through the Market Research PDF Document in detail. (www.abglp.com)
• Form a team of 4 members from your college and register your team name and
members
• Go through slides 8-11 in detail

Post that, each team will have to email a 5 Slide Strategy PPT containing:

1.Team Name and Vision Statement (you can even make a logo)
2.Where to Play (Deciding on which segment and age-group will you target
3.Key Focus Areas (what your company stands for and why)
4.Financial Predictions at the end of the 6 years: (Return on Equity, Market share,
key ratios, brand etc.)
5.Brief Profile of Team Members
 Timelines
• All entries / queries must be emailed to abg.stratos@adityabirla.com

• Deadlines:
 Registrations: Sept 6, 2012
 Strategy PPT Submission: Sept 13,2012
 Final Round: Sept 15-16, 2012 @ Hyderabad

• The subject line of your emails needs to be CollegeName_Team Name.

eg. ISB_Mercedes_Registration / ISB_Mercedes_Strategy PPT

• The seven teams that have qualified to play STRATOS will be informed of the
same at least 2-3 days prior to the event on their respective campus.

• For any queries / clarifications, please feel free to get in touch

with Vinay Choudhary - +91 9820170115 or write to the
above email.
 STRATOS – Simulation Details
• Each team will be a new entrant into the European Car Market. You will
compete with the other new entrants (other participating teams from your
college) but also with the existing car manufacturers in the sector.

• Each team has the opportunity to build and run its own company on their
laptop !!

• The decisions to be made involve a wide range of business skills, from

strategy, finance, Marketing, HR, Operations, etc.

• Teams enter a set of decisions which the master system analyzes; the results
are then printed for every round in the form of an annual report showing
company trading and accounts.

• The simulation is fully interactive so participants are working

in a live marketplace which will change every year /round
 STRATOS – Financial Details

• The starting position is a green field site and £500 million in the bank raised from
the issue of 5 million £100 shares.
• There are no production facilities and no workforce.
• The current economic environment as per the Market Research Document prevails.

To support the funding of this enterprise £500 million will be insufficient when the
following costs are taken into consideration : (ie you will have to take on debt)
 Cost of new Factory : £650 million (all factories will be in the UK)
 Cost of R&D for New Car Model (after year 1): £300 million
Cost of wages, raw material, designs and options, R&D, etc

•A long-term loan from the bank can be negotiated to cover

any cash shortfall
 STRATOS – Market Positioning Details
• The marketplace is Western Europe and market research informs us that the car market is
divided statistically into the following car sizes and age groups:

• In the first year of operation two different models of car must be produced.
• A maximum of five models is allowed but only one new model can be introduced each year.
• Each model may be targeted at one of these 16 sectors.
• The car sizes are categorized by selling price ranges as follows :
 City : up to £14,500; Medium : £12,000-£21,000;
 Large : £15,000-£45,000; Luxury : £40,000- £100,000+
Remember,

Even though you are a new entrant in a difficult

sector to enter and make a mark,

the simulation is designed in such a way that

if your cars are designed, marketed, priced well,

they will sell and will not suffer due to

the goodwill and reputation of the existing players
 Best of Luck !!

For any queries / clarifications, get in touch

with Vinay Choudhary:+91 9820170115 or write to abg.stratos@adityabirla.com