Globalization and liberalization in the business environment have changed the requirements of types and qualities of human capital needed by the corporate sector. In relation to this, business graduates not only need to have theoretical understanding, but they also need to have creative thinking, communication skills and decision making skills based on multidisciplinary knowledge. Simulation game in business education is suggested to fill the gap by exposing students to real business situations. This study evaluates the effectiveness of business simulation in teaching Strategic Management in Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM). A total of 48 students participated in the business simulation game and answered a survey at the end of the Strategic Management course. The objective of this paper is to present the findings in terms of contextual and processual context of using business simulation as an approach in teaching strategic management. The important findings of this research are the ability of simulation in transferring theory to practice, applying multidisciplinary knowledge, managing team dynamics, making decisions in uncertainties and managing in realistic situation. This study highlights the potential of business simulations in developing competent business graduates that fulfill the requirements of the industry.