Basic Financial Planning Page 8
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9CALCULATING COST-VALUES AND
NEGOTIATING TO WIN EXERCISE
The Shiverton Community Enterprise Centre
The Local Authority is opening a Community Enterprise Centre and is inviting
community groups to bid to provide certain services. Each ’concession’ is predicted to
generate a certain amount of profit and is granted for a number of years. Each player
or group of players represents one community group ’bidding’ to run one or more of
the services. The game requires one participant to act as the ’Council’, to organise and
manage the process of bidding and make the awards of the concessions.
After dividing into four players or teams, each is given a card that has their priority and
must-win concession on one side; the six concessions, their cost and duration on the other.
The six concessions are:
Concessions
Profit
Duration
Min. Price
Canteen
£500 pa
5 years
£1,800
Creche
£4,000 pa
1 year
£3,000
Secretarial
£2,000 pa
3 years
£4,000
Cleaning
£800 pa
4 years
£2,000
Training
£3,000 pa
1 year
£2,000
Counselling
£2,000 pa
2 years
£2,400
Team 1
Priority concessions are secretarial, counselling and training;
Must-win concession is the training concession.
Team 2
Priority concessions are canteen, cleaning and secretarial;
Must-win concession is the secretarial concession.
Team 3
Priority concessions are creche, cleaning and training;
Must-win concession is the creche concession.
Team 4
Priority concessions are counselling, canteen and training;
Must-win concession is the counselling concession.
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