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Ref No: 1397

1.0 Abstract

Key account management (KAM) can earlier be traced to portfolio managements and has risen as separate function owing to more sophisticated and complex procurement needs of a customer.

The discipline now is strongly linked to strategic management in most companies although there is a lack of complete KAM knowledge and skilled managers to deliver KAM. This report derives from this need. The simulator experience is a substantial capping to the class room learning during the course.

I feel that it has trained to me to think critically as a key account manager, whilst I decide how and where to invest. I now know how my KAM decision effects the company’s position and profitability. Moreover working in a team during the simulator facilitated me with active learning of team dynamics through participation, interaction and management of team members.

It was a hands on business experience. The simulator I believe is an effective tool equip students with the essential skills in strategic management, problem solving and decision making.

2.0 Introduction

As products diversify and competition intensifies, companies have moved from transactional selling towards more strategic relational selling (Macdonald, Rogers, Woodburn, 2000). On the other hand customer consolidation and increased bargaining power has resulted in more professional and sophisticated company procurement practices (Ralf, Hughes and Cox, 1995). Key account management (KAM) has emerged as a response to these customer practices by the supplier.

KAM is defined “as an approach which includes developing long term relationships with strategic customers whose need you understand in department and for whom you develop a specific offer with a differential the company” (Mcdonald, Millman and Rogers, 1996).

Efficient KAM practices are a significant component of leadership and management. It’s imperative for a good manager to analyze market factors before planning and allocation of resources. The Mark2win simulator is a game tool for students to provide this experience.

Simulators as a teaching tool has emerged as a more fruitful method compared to the traditional lecture based teaching (Hense and Mandl, 2009; Lepper and Henderlong, 2000).

Simulation game provides you with a real life business situation, exposing us to the different dynamics and problems one might face in decision making (Salas, Wildman and Piccolo, 2009). We practiced all these possibilities in the simulator- developing our own strategies, boosted decision making confidence and enabled us to reflect on the outcomes of our decisions.

2.1 Academic Perceptions

Key account management has long been associated with strategic management in business to business relations and thus can yield sustained earnings. Else (1973) emphasizes the role of key account management (KAM) in developing strategies by stating that “Strategies for an account or territory can and should be identified”.

A company’s key account is basically a bigger, more powerful and complex customer (business) that holds a strong bargaining power in the supplier- buyer relationship (Kalwani and Narayandas, 1995).

Their management and satisfaction, therefore, is a priority in the strategic orientation and planning of a supplier. In this particular case Globalman plc. and its divisions are the key accounts for Staff Solutions….