REVIEW CAPSTONE BUSINESS SIMULATION PERFORMANCE MEASURES

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REVIEW CAPSTONE BUSINESS SIMULATION PERFORMANCE
MEASURES
MGMT 430 D Business Policy Ralph Heidl
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SENSOR INDUSTRY OVERVIEW
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The Marketplace
In our industry we track the changing customer
demand on a perceptual map
Low Tech
Performance
Traditional
High Tech
Size
Over 8 years the customers will demand much
faster and smaller sensors
Market Segments will continue to diverge
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SENSOR INDUSTRY ANALYST PROJECT ONGOING GROWTH
Sees the next 8 years as consistent growth. All
market segments increase at a nice clip,
according to market analyst.
I see the entire market growing at around 14 or
15 per year. The High Tech market alone will be
growing at a whopping 16. I hope those
companies out there are ready for that kind of
expansion!
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COMPANY OVERVIEW
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The Competition
ANDREWS
DIGBY
6 Companies
100 Million in Sales
BALDWIN
ERIE
5 Product Lines
Closed Marketplace
CHESTER
FERRIS
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Functional Areas
Production
RD
Finance
Marketing
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Research Development

• Establish the specification of the products to
  meet customer demand
• Build the quality and reliability (MTBF) into the
  products
• Ensure the perceived age of the product meets
  customer demands
• Create new products to meet the changing
  marketplace

Our products are not well positioned in the
marketplace.
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Marketing

• Set the price of our products in the marketplace
• Build customer awareness through promotion
• Establish a sales force and distribution
  channels
• Set the sales forecast for our products
• Set Credit Policies AR/AP

Our products are not pricedoptimally. And many
of our customers dont even know our product
exists.
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Production

• Purchase machinery to automate our facilities
• Buy or sell capacity of product lines
• Schedule production for each line
• Manage the majority of the companies fixed
  assets
• Establish your workforce complement

We are payingtoo much forlabor costs. Very
soon we will run outof capacity to meet demand.
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Finance

• Acquire capital to fund capital expansions
• Issue Stock
• Short Term Debt
• Issue Long Term Bonds
• Issue dividend to our shareholders
• Balance our debt portfolio
• Manage our proformas

We have poorcash flow and substandardfinancial
ratios. We have nofinancial policystatement.
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Proformas
A great management tool driven by forecasts and
projections. Allows What if Scenarios by the
company.

• Balance Sheet
• Profit Loss
• Cash Flow
• Financial Ratios

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Scoring the Game

• Select a minimum of two criteria to be measured
  by
• ROE
• ROS
• ROA
• CUM PROFIT
• STOCK PRICE
• MARKET CAPITALIZATION
• ASSET TURNOVER
• MARKET SHARE
• Weight each selection.

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Cumulative Profits
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Market Share ()
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Return on Equity (ROE)
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Return on Assets (ROA)
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Return on Sales (ROS)
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Asset Turnover (T/O)
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Stock Price
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Market Capitalization
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Good Luck and Enjoy!