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 • 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?