The 'Really Nice Fashion Company' ‘Live’ Simulation and the Economics of Business Transformation: Playful Learning and Knowledge Co-Creation for an Environmentally Safe, Socially Just World

Abstract

Throughout much of their history, business schools around the world have been primarily focused on the development of cognitive skills. In recent times, however, it has become increasingly clear that, with escalating social inequalities and environmental problems, business school graduates are in need of a more holistic education that encourages the development of a different skill set (Shinn, 2022). The aim of the PRME ‘Impactful Five’ (i5) program is to pave the way for pedagogical innovation in business schools that fosters creative, social, physical, and emotional skill development, in addition to the cognitive. In so doing, future business leaders cultivate a mindset better able to manage the increasing frequency of ‘wicked problems’ that require novel, innovative, and interdisciplinary solutions. The essence of the i5 program is ‘playful learning’ which can be defined as learning that is “driven by student inquiry and needs, is meaningfully connected to students’ lives, and fosters experimentation and social interaction” (Brookings Institution, 2019). Playful pedagogical practices make learning meaningful, foster joy and well-being, facilitate active engagement, support social interaction, and can be designed for iteration. These are the i5 characteristics.

This paper reports on an i5 experiment conducted at Zayed University, Dubai, in the United Arab Emirates, in an introductory economics class comprising 13 undergraduate students all of whom are majoring in Business Transformation. The experiment centered around an evolving simulation called the “Really Nice Fashion Company” (RNFC) that took place each week in the third of three 1-hour classes (two online, and one on-campus). The first two sessions provided some theoretical context and introduced key tools and concepts, and the third session (online) was entirely devoted to the simulation, which ran over a period of four months (Spring semester, 2023). Each week, teams of students (comprising 3-4 individuals) had 'management meetings' to discuss how best to deal with new developments impacting RNFC, a family business that they (the adult children of the founders) have just taken control of. The company is losing money and operating near the bottom of the supply chain within the 'fast-fashion' industry, and the ultimate objective of the simulation is the development of a business plan that will transform RNFC into something that is both economically viable and environmentally and socially responsible. Significantly, while RNFC is a fictional company it ‘operates’ in the real world, dealing – among other things – with higher energy prices and subsequent inflationary pressures caused by the Russian invasion of Ukraine, supply chain problems brought on by the increasing frequency of extreme weather events, and a marketplace increasingly disenchanted with 'fast fashion' because of growing criticism over its unsustainable business practices.

The findings from post-course student surveys and interviews indicate that the level of engagement was high, with each of the student teams ‘taking ownership' of their respective versions of the company as it evolved over the semester. The paper concludes that playful learning can be an effective vehicle for knowledge co-creation in higher education settings (Bovill, 2019), providing opportunities for enhanced learning outcomes.

Keywords: economics education, business simulation, UNPRME, responsible management education, education for sustainable development, sustainable business, educational innovation

JEL Classification: A10, A22, A23, A12, A13, M14, M21, Q01, Q56, Q57