So I'm in a Virtual Enterprise class, which is a course where we simulate working a real business. I'm the Chief Financial Officer, answering only to the CEO and our teacher.
A few weeks ago, we had to decide what to do with the business. We decided on selling flights, an airline company. Except, now I've had the numbers crunched, I find that we're likely to have a virtual business be virtually bankrupt in ~4 months. This is because we're a selling a service, not a product. We can only sell to other VE classes, who we also have to buy from. We can only sell up to the number of employees in the company we are selling to, because of the nature of our service. They are most likely to take the cheapest option they can for it.
Now, here's the problem: We never see 50% of that money in our bank accounts. Why? That's the standard operating costs for all businesses, 50% of total sales. Then, we need to pay salaries, taxes, rent, utilities, and all manner of other expenses. Our total salary costs alone are $39,000. We have around $100,000 - $120,000 in our bank, likely slightly over the second figure. We are required to buy from other companies as well, at least 2 transactions a day per employee. Our most expensive ticket is less than $5,000 (Yeah, height of realism there... and we're expected to have realistic prices, so that's subject to major change), and that's first class to Sydney. Nobody is going to buy first class. Hardly anyone is going to want to go to Sydney.
I think ya'll can see the issues here.
So I go to the CEO and tell him that I'm concerned it's not going to work, and why. He proceeds to laugh, and turn towards marketing (who have been attempting to photoshop planes to have our logo and such on them for the website) and says, "Hey, how would you guys like to do what you've done all over again?"
Guess the answer. I'm tempted to pull rank and tell them, "You are in my department, I am your direct superior, I don't care that you want to be lazy and just watch basketball videos or listen to music all day. I want to pass and do well, and I'm not going to let you let this collapse and fail us all."
Also, at least one of the marketing people says he can make it work because, and this is in his own words, "I can sell crack to a Christian."