Registration: 8:30 a.m.

- UALR School of Business

Rules, Tips & Strategies

The AT&T Youth Business Challenge is a terrific learning experience that is competitive and exciting. The competition
challenges participants to apply their management skills and knowledge of economics. The computer simulation, JA Titan,
allows "companies" of students to compete against one another as they manufacture and market the Holo-Generator.
The Product
The product produced and sold is a Holo-Generator. This is a revolutionary product that displays 3-D, holographic music
videos in the palm of your hand. Roughly the size of a portable electronic device, the Holo-Generator uses state of the art
surround sound to give the videos a life-like look and sound.
Current Market Conditions
1 The market is excited about this product.
2 Many companies are eager to fill the demand for the product.
3 No one company has a patent on the product.
Decisions
There will be two rounds of competition, plus a final Championship Round during the JA Business Challenge. Each quarter
company managers (i.e. students) will have the ability to change: Price, Production, Marketing, Capital Investment, Research &
Development, and Charitable Giving expenditures.
Primary Concepts - Goal
Scoring for the event is calculated using a computer-based Performance Index (PI). This index starts at 100 for all companies.
The PI will change based upon decisions made for each company in relation to decisions made by other companies in the
industry. The simulation rewards companies that reach a balance of supply and demand at an efficient cost of production. All
companies in an industry begin with equal levels of cash, inventory and manufacturing capacity.
PI is based on retained earnings (50%), demand potential (10%), supply potential (10%), productivity (10%), market share
(10%), and growth (10%) (Note: charitable giving is a part of the market share).
Price is the most important factor influencing total market demand and quantity demanded from a particular company.
Companies compete to obtain market share and build retained earnings. Choosing an efficient production level helps keep
costs down. The team with the highest Performance Index (PI) in each industry at the end of each Round will advance as the
leading team in their industry.

Reports
Industry Report: Summarizes the performance of the entire Holo-Generator industry. It is the best report to learn about the
competition.
Company Report: Contains private information about the internal operations of the company and should be analyzed

between rounds to help make strategic decisions.

Rules
1. All decisions and reports must be kept confidential.
2. A maximum of 8 companies will compete in each Industry.
3. Each company will initially be assigned to an Industry for Round I of the competition.
4. Mentors are to advise the student teams, not make final quarterly decisions throughout the competition.
5. Communication with teachers, chaperones, and parents will not be permitted with students while the competition
is in progress.
6. No electronic devices.
7. Only the supplied calculators are permitted during the competition.

Determining the Winner

The competition is designed with a Round I and a final Championship Round. Team scores are based on the Performance
Index (PI).
In the Championship Round the eight teams with the highest total points from Round I will compete for the top
scholarships. All remaining teams will compete in the consolation bracket. Teams in the consolation bracket will compete for
gift cards and other prizes.
Scholarships
First Place (The team with the highest overall points for the competition.) $2,000 scholarship for each team member to be
used for postsecondary education.
Second Place (The team with the second highest overall points for the competition.) $500 scholarship for each team
member.

Ties will be determined by Retained Earnings in all rounds of competition.

Tips
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Recommended strategies will be generated by the computer and reported on the Company Report.
All companies begin in an equal position.
Industry capacity is divided equally at the beginning and may change as each company builds its capacity.
All companies begin producing at 75% of capacity. Production at 80% of capacity will be the most cost efficient level
of production.
Investments in marketing will shift the demand curve to the right.
An overabundance of cash will indicate a company is not taking advantage of its potential. A large inventory may lead
to a great loss if held.
When the simulation begins, one employee is required to produce five Holo-Generators.
If a company reduces employment from one period to the next, it is assessed a layoff charge of $10 for each
employee. The simulation will determine employment based on decisions made by the company.
One unit of production capacity costs $40. The depreciation rate is 5% per period.

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