Transcript Capsim Introduction

Capsim Introduction
• Drop second individual assignment due April 17th or
18th. Total points available for the course is 800.
• Read Capsim FAQs to be posted on my web site.
• Read all manuals – Capstone Student Guide,
Advanced Marketing, TQM, Human Resources, Labor
Negotiation.
• Run five rounds of the rehearsal by 9:00 a.m.
Saturday, Feb. 21st.
Capsim Introduction
• Manuals
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Positioning and product attributes pp. 6-7; 12-13
Marketing decisions pp. 18-19
Ideal spots pp. 13, 28
Demand analysis pp. 28-29
Basic forecasting method pp. 32-33
Six Strategies p. 35
Capsim Introduction
• Sequence of decisions
– Sales forecast
– Marketing decisions (product pricing, R&D)
– Production decisions (amount to produce, level of
automation, buy or sell capacity, labor complement)
– TQM decisions
– HR decisions
– Labor negotiation (only round 6 in first game)
– Check pro forma cash flow statement and then enter
Finance decisions
Capsim Introduction
• Choosing a strategy
• Match performance measures with the strategy
• Interpreting results after each round
– I look at each firm’s average contribution margin using the
benchmark of 30%.
– Next, I look at the ROS
– After that look at the contribution margins of individual
products
• What to learn from the practice rounds?