The context
This industrial SME with 36 employees generates a turnover of over 5 million euros in the manufacturing sector. The company operates in a competitive environment where cost control and cash flow management are crucial to maintain competitiveness.
Under the leadership of an experienced general manager, supported by a rigorous deputy director, the company must navigate between operational constraints and development opportunities. This management structure allows students to understand decision-making dynamics in a medium-sized organization.
The problem
The company faces a series of financial challenges that test its resilience. A major payment delay representing 20% of turnover creates immediate cash flow tension, while a 15% increase in raw material costs dangerously erodes margins.
Simultaneously, an exceptional order of 500,000 euros and a reduced-price industrial investment opportunity present themselves. This succession of events forces the management team to rethink its financial strategy and management tools to maintain the balance between growth and stability.
The challenges
The stakes of this business simulation go beyond simple crisis management to explore the fundamentals of corporate financial management. Students must learn to anticipate cash flow tensions, evaluate the impact of cost variations on profitability, and structure investment decisions.
The use of tools such as factoring, functional balance sheet analysis, and financing plan development becomes concrete and operational. This approach helps understand how financial decisions align with the company's overall strategy and impact its sustainability.
Skills developed
Financial analysis
Master key financial performance indicators and identify warning signals
Cash flow management
Anticipate financial flows and optimize short-term financing solutions
Investment evaluation
Structure profitability analysis and develop appropriate financing plans
Strategic decision-making
Integrate financial constraints into development choices
Learning progression
Round 1
Financial diagnosis facing client payment delay and implementation of monitoring tools
Round 2
Building functional balance sheet to analyze the impact of cost increases on financial balance
Round 3
Evaluating factoring solutions to finance growth related to exceptional order
Round 4
Developing a comprehensive financing plan to seize the industrial investment opportunity
Target audience
This business simulation is designed for higher-level management and business administration programs. It is particularly suitable for master's students, executive education for managers, and executive programs developing financial management skills.
The progressive complexity of situations allows adaptation according to learners' levels. Instructors can adjust guidance and expected deliverables to meet the specific educational objectives of their program.
Key takeaways
Cash flow management requires constant anticipation and appropriate management tools
Financial analysis must integrate operational dimensions to inform strategic decisions
Growth opportunities must be evaluated in light of the company's financial capabilities
Want to use this case study with your students?
MEτiS turns every case study into an interactive simulation. Students interview characters, analyze data and produce deliverables — all powered by AI.
Related case studies
Ready to transform your teaching?
Create interactive simulations in minutes. Your students learn by doing, not reading.