Simulation Edge: An Online Future of the Business World Student Explores How to ‘Pivot or Perish’
What would you do if you were CEO for a day and were given a virtual budget to invest in corporate growth? The challenge of evaluating and appropriating limited resources to satisfy your company’s needs requires strategic planning. How well do you think a group of high school kids could manage?
During Wharton Global Youth’s online Future of the Business World program, students across the globe (including me!) got to learn how to make data-driven decisions based on informed predictions about what the business world would look like in 10 or 20 years. This two-week immersive program takes you through the framework of design thinking, the business aspects of scenario planning and the strategies for working well in a team.
My virtual team and I participated in the Pivot or Perish simulation, taking control of Getchell’s, a fictitious retail chain. Through the experience, we used real-world scenarios to help teach us how to make choices for our retail business and gain an edge by focusing on customers and optimizing business strengths. These possible decisions ranged from updating our company’s technology to investing in better training for our employees.
Seeking Competitive Advantage
The Pivot or Perish simulation studied the four segments of customer value and strategies to encourage data-driven growth: product brand (quality products and brand reputation); experiential (enhancing customer experience); low price (supply chain management and solid designs for competitive market pricing); and frictionless (knowing your target market and customer experience).
Professor Scott Romeika, our program manager, explained that organizations leverage one or two of the four segments to achieve a competitive advantage in the market.
We had to select a target segment and use our limited financial resources to improve Getchell’s positioning in the market. Our team achieved the highest return on investment in this challenging activity!
I learned four strategies from Pivot or Perish that I believe will guide my future business decisions:
1️⃣ Invest big.
Our team learned that the amount of investment needed to produce a significant change in a company’s positioning is proportionate. If we wanted to achieve a massive change, we needed to bet big. While a million dollars initially seemed like an enormous amount of money, our team quickly realized that to achieve the large shifts we wanted for Getchell’s positioning, we needed to invest significantly more. While you need to know the risks involved, true progress can only be made with full dedication.
2️⃣ The pivot is real.
The differentiator for success came down to our team’s ability to let go of our underperforming strategy. At the start of the simulation, our team had a well-researched plan to prioritize frictionless investment. However, after the first couple of rounds in the simulation, we found that the frictionless segment was only resulting in a slight increase in market value. One of my teammates suggested switching to branding. At first, I was hesitant. We eventually pivoted, leading us to gain more than a million dollars in market value from that one decision.
3️⃣ Play to your strengths.
We achieved our best return on investment when we focused on strengthening areas where we already had an advantage — and investing just enough so that our weaknesses weren’t a hindrance. We illuminated our strengths, rather than eliminating our weaknesses. Once we invested enough in our strengths, we focused on bringing our weaknesses up to fair value.
4️⃣ Focus on the facts.
Financial decisions are complicated and time-consuming, and most decisions can never be reversed. Emotions can be misleading, especially when you grow attached to your vision. When in doubt, research and evidence-based conclusions are crucial.
While studying at the Wharton School from my own home in Washington state, I learned to make informed decisions, not just in business, but in life. With the mindset of a CEO, I began to understand evolving markets and prepare myself for a career in the future of the business world.
In this first-person essay, Tanvi I., a high school junior from Washington, U.S., recounted highlights from her time with Wharton Global Youth’s online Future of the Business World program. Tanvi detailed her experience and takeaways during the business simulation Pivot or Perish, designed by Wharton School professor, Barbara E. Kahn.
Conversation Starters
Have you ever learned about business with the help of a simulation? Describe what you liked or didn’t like about the experience in the Comment section of this article.
What does it mean to pivot in business and why is it so important?
Tanvi talks a few times about the power of data and evidence-based decisions. How do solid numbers support decision-making? Why is this critical in the business world?