Critical Success Ratios: A Comparison of Two Business Simulations in a Multi-Year Environment

Abstract

"In this study, two simulations were compared two ways. They were related to each other for similarities and differences and then examined for their external validity features. It was discovered that both games were useful, yet emphasized different factors that might ultimately influence their use. Rockart (1979) identified ‘critical success factors’ which serve as verbal descriptions a firm’s actions in the most important areas of business performance. Financial and operating ratios are widely used for performance measurement, and permit performance comparisons among companies or operating units for a given time period by adjusting time and scale differences. Key performance ratios can also be determined to show successful or unsuccessful performance in a given industry. "