Capsim Introduction

1
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 900 a.m.
  Saturday, Feb. 21st.

2
Capsim Introduction

• Manuals
• 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

3
Capsim Introduction

• Sequence of decisions
• Sales forecast
• Marketing decisions (product pricing, RD)
• 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

4
Capsim Introduction

• Choosing a strategy
• Match performance measures with the strategy
• Interpreting results after each round
• I look at each firms 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?