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FOR ALL 8 ROUNDS
TIP 1 - R&D (Round by Round Guide from Round 1 to Round 8)
In order to apply this Round to Round strategy for R&D, we need to create an excel file with your own data from Industry Condition Report and put data in Excel file to get more precise numbers.
Step 1. Download Industry Condition Report (from your game)
Step 2. Download Excel file for automatic calculation strategies and decisions
Step 3. Very important
Open page 2 of Industry Condition Report and get the Table 2, first line for Round 0 and put that numbers in Round 0 in Excel file, then the file will automatically calculate all decisions for 8 rounds, with 4 different strategies
Do NOT use default numbers in the excel file.
Numbers in excel file, are little bit different from YOUR GAME (creator and administrator change the numbers when new industry is created for new class).
Again, this is very important:
- Get Round 0 number from Industry Condition Report
- Put the above numbers into Excel file, Round 0 (only 1 row)
- The Excel file will automatically calculate all the decisions for 4 different strategies
NOTE:
If you have come to this step, you have come half way to win the Simulation Game Simulation!
If you are in Round 1, we can apply this Round to Round Strategy and Win the game.
Again, this Round to Round guides can apply if we start from Round 1. DO NOT use this suggestion if you are already in the middle of the game, having completion several rounds without this guide because you can not R&D with numbers from this guide if not started right from round 1.
Again, the numbers provide here are from my game, you need to use your Excel file, numbers will be a little different.
If you can not create your file, email me, the I can create an Excel file for you for FREE.
TIP FOR PRODUCTION:
- Lower MTBF to the average or minimum of the range (except Performance segment only)
- From Round 1 to Round 8, for all the rounds, when we do R&D, we should lower MTBF to the average or minimum of the range in order to save cost and increase contribution margins.
- The is the key Profit Driving tool since Reliability only accounts for small percentages of the Customer Buying Criteria (see all the 5 segments to see details, in Capstone Courier Report every year, page 5-9).
- Note again, If we want safe strategies, keep MTBF as average.
- Except only Performance segment, we keep that max MTBF at 27.000, for all the other 4 segments, we select minimum MTBF eg. Traditional to 14.000, Low-End to 12.000, High-End to 20.000 and Size to 16.000 or 14.000, 17.000, 20.000 and 23.000 for MTBF
- We set MTBF for Performance to max 27.000 because buying criteria for this segment is 43%. See following figure.
- If we want to compete is 3-4 segments (not all 5), the two most potential and profitable are Low-End and Tradition. They are most potential lucrative.
- We need to read reports for Round 1, Round 2 and Round 3 and then in Round 3 and 4 we will select to leave 1 or 2 least competitive which have least profit.
- We CAN KEPP all 5 segments, with 8 products (add 3 new) to keep control of markets, prevent competitors taking advantages in any segment to sell most.
- Creating 1 new product in Low-End is good (often in Round 1)
- Creating 1 new product in Traditional will provide more Profits in later Round (often in round 2)
- Creating 1 new High-End product or 1 new Performance product (more profitable).
TIP:
- Re-position Low-End sensor for only ONE time in Year 3 and one time in Round 7
- The original Low-End sensor should only be re-positioned once for the entire game, they need seven years to sell well and optimal Pfmn and Size already
- The Traditional segment sweet spot is the same with Ideal, Drift spots because Ideal Offsets is 0-0 for this segment.
- The High End, Performance, and Size segments have sweet spots half way from Drift to Ideal Sport.
NOTE:
- If Sweet spot with half way cost too much and too long time to R&D, we can select strategy 4 with 1/3 way from Drift to Ideal spots.
- Try to R&D close to ideal spots in round 1-2-3, from round 4 it is quite easy to get to ideal spots
- Make sure that R&D projects complete in the same year, before 31st December same year, or we can not sell new products in the year.
- If we can not upgrade products as our plan, we can try as close as possible, it is important that new products are launched in the year, from June to July.
- There are 2 exceptions to this rule: Creating a new Product can take longer than a year and upgrading Original Low-End sensor for only 1 time in Round 3 will take longer than 1 year.
- Note that, as long as new products are not ready, old versions are still being sold with old specifications. If new product is ready in November 30, we have only 1 month to sell them, so we will not get much profits from this new R&D.
- We can set 1 or 2 or 3 different strategies.
Strategy 1. Increase specifications with Drift Rates
Strategy 2. Increase specifications with Drift Rates and Ideal Offsets.
Strategy 3. Increase specifications with Drift Rates and 1/3 Ideal Offsets (+30%)
Strategy 4. Increase specifications with Drift Rates and 1/2 Ideal Offsets (+50%)
- We can also follow different strategies to win the game, with high Net Profit, high Market share, and other Financial factors including ROE, ROA.
TIP.
- Add or change specification each round depending on Time to launch, should be in June and July same year so we have enough time to sell new products.
- If we find a product with 2-3-4 years of age, we do not have to upgrade every round, so we can upgrade 1 time for a few years ahead, eg. Low-End product, we can upgrade 1-2 times only.
AGAIN, WE NEED TO INPUT FIRST LINE (ROUND 0) WITH SPECIFIC NUMBERS FROM INDUSTRY CONDITION REPORT OF YOUR OWN INDUSTRY (THIS LINE LOOK FAMILIAR BUT THEY ARE DIFFERENT FROM ANY GAME TO GAME, CLASS TO CLASS).
R&D: ROUND BY ROUND DECISIONS FOR 8 ROUNDS
Note: You need to adjust the number of PFMN and SIZE to get new product launch in June or July or even September or October as close to ideal spots as possible.
ROUND 1. R&D
Create a new Low-End sensor PFMN 4.1 - SIZE 16.3 MTBF 12.000 - this is Low-End sweet spot of Year 4
Change original Low-End sensor MTBF to 12.000 (don't re-position original Low End)
Re-position original Traditional sensor to PFMN 6.1 SIZE 14.3 MTBF 14.000 (min)
Re-position original High-End sensor to PFMN 9.2 SIZE 11.2 MTBF 20.000 (min)
Re-position original Performance sensor to PFMN 9.8 SIZE 16.0 MTBF 27.000 (max)
Re-position original Size sensor to PFMN 4.4 SIZE 10.6 MTBF 16.000 (min)
Note:
You need to adjust the number of PFMN and SIZE to get new product launch in June or July.
ROUND 2. R&D
Create a new Traditional sensor PFMN 8.2 - SIZE 12.2 MTBF 14.000 - this is sweet spot for Traditional Year 4
Re-position original Traditional sensor to PFMN 6.8 SIZE 13.6 - Keep 14.000 (min)
Re-position original High-End sensor to PFMN 10.1 SIZE 10.3 - Keep MTBF 20.000 (min)
Re-position original Performance sensor to PFMN 10.8 SIZE 15.3 - Keep MTBF 27.000 (max)
Re-position original Size sensor to PFMN 5.1 SIZE 9.6 MTBF - Keep MTBF 16.000 (min)
Note:
You need to adjust the number of PFMN and SIZE to get new product launch in June or July.
ROUND 3. R&D
Create a new High-End sensor e.g. PFMN 11.9 - SIZE 8.5 - this is High-End sweet spot Year 4
(Optional) Create a new Size or Performance instead of High-End (with round 4 sweet spot specifications)
(Optional) Re-position original Performance and Size sensor ONLY if you plan to continue them (with round 3 sweet spots specification - see above table).
Re-position original High-End sensor to PFMN 11.0 SIZE 9.4 - Keep MTBF 20.000 (min)
Re-position original Low-End sensor to PFMN 4.1 SIZE 16.3 - Keep MTFB 12.0000 (this takes more than a year to complete)
Re-position original Traditional sensor to PFMN 7.5 SIZE 12.9 - Keep MTBF 16.000 (min)
Note:
You need to adjust the number of PFMN and SIZE to get new product launch in June or July.
So, for 3 first Rounds, we create new Low End, Traditional and High-End each Round.
We can also stop Performance and Size (we will do that by lower Promo and Sales budget to 0 in Marketing and Production).
NOTE:
New 2018 – You can KEEP all products to control sales in all segments, even they bring low net profit but can control competitors from dominating Performance and Size with all sales and high net profit.
ROUND 4. R&D
Re-position original Traditional sensor to PFMN 8.2 SIZE 12.2 - Keep MTBF 14.000 (min)
Re-position original High-End sensor to PFMN 11.9 SIZE 8.5 MTBF 20.000 (min)
(Optional) Re-position original Performance and Size sensors only if we plan to continue them (use round 4 sweet sport from above table).
Note:
You need to adjust the number of PFMN and SIZE to get new product launch in June or July.
NOTE:
New 2018 – You can KEEP all products to control sales in all segments, even they bring low net profit but can control competitors from dominating Performance and Size with all sales and high net profit.
ROUND 5. R&D
Re-position both Traditional sensors to PFMN 8.9 SIZE 11.5 - Keep MTBF 14.000 (min)
Re-position both High-End sensors to PFMN 12.8 SIZE 7.6 - Keep MTBF 20.000 (min)
(Optional) Re-position original Performance and Size sensors only if we plan to continue them (use round 5 sweet sport from above table).
Note:
You need to adjust the number of PFMN and SIZE to get new product launch in June or July.
ROUND 6. R&D
Re-position both Traditional sensors to PFMN 9.6 SIZE 10.8 - Keep MTBF 14.000 (min)
Re-position both High-End sensors to PFMN 13.7 SIZE 6.7 - Keep MTBF 20.000 (min)
(Optional) Re-position original Performance and Size sensors only if we plan to continue them (use round 6 sweet sport from above table).
Note:
You need to adjust the number of PFMN and SIZE to get new product launch in June or July.
ROUND 7. R&D
Re-position both Traditional sensors to PFMN 10.3 SIZE 10.1 - Keep MTBF 14.000 (min)
Re-position both High-End sensors to PFMN 14.6 SIZE 5.8 - Keep MTBF 20.000 (min)
(Optional) Re-position original Performance and Size sensors only if we plan to continue them (use round 7 sweet sport from above table).
Note:
You need to adjust the number of PFMN and SIZE to get new product launch in June or July.
ROUND 8. R&D
Re-position both Traditional sensors to PFMN 11.0 SIZE 9.4 - Keep MTBF 14.000 (min)
Re-position both High-End sensors to PFMN 11.5 SIZE 4.9 - Keep MTBF 20.000 (min)
(Optional) Re-position original Performance and Size sensors only if we plan to continue them (use round 8 sweet sport from above table).
Note:
You need to adjust the number of PFMN and SIZE to get new product launch in June or July.
TIP 2 - MARKETING
- Apply $2.000 for promotion and sales budgets for Traditional and Low End, because above this level, diminishing returns are experienced.
- Apply $1.500 for High End, Performance and Size segments.
- Keep this spending from Round 1 to Round 3, until we can decide which segments we will continue. Then, we increase all segments to $2.000 to compete.
- New 2018: If we want to get good sales and some net profit right from round 1, we can spend about 1.400 for all Promo and Sales.
- For segments, we do not want to continue, for example Performance or Size, we reduce budgets for that segment to only $0.
- New 2018 – You can KEEP all products to control sales in all segments, even they bring low net profit but can control competitors from dominating Performance and Size with all sales and high net profit.
- For Promotion, we continue $ 2.000 until we reach 100% awareness. Then we can cut it back to $ 1.400 per round.
- For Sales, we continue $ 2.000 until we reach 100% accessibility. Then we can scale back to $ 1.650 for each sensor
- We can increase much higher, or even max, to see how much awareness and accessibility we can get, just click CALCULATION button to see how much we get for that year. Then we can increase or decrease spending to get 100%.
PRICING TIPS:
- Each round we can lower all prices down at least $ 0.50 from maximum price of the segment to keep up with customer expectation (lower each year)
- We need to check from Capstone Courier Prices (from page 5 to page 9) to see max prices for each segment, in the top product at the end of each page
- If competitors are cutting prices in Traditional and Low-End segments, we need to lower prices to close to their levels.
- However, when competitors lower their prices too much, they will not have enough capacity to sell, also they suffer stock out.
- We can still keep prices higher and get market shares at higher profit level. This is why we need to calculate demands and plan production as precisely as we can.
- We DO NOT have to compete with prices in High End, Size and Performance, because buying criteria is low, only 9 - 19%
SALES FORECASTING TIPS
- Do not trust computer suggestions, they always wrong.
- We have a formula to calculate and forecast sales for next round
- Get Market shares from Page 10 of Courier Report
- Get Total Sales also from Page 10
- Get Market potential growth for each segment from page 5 to 9
NOTE:
Sales forecast = Potential market share % x Segment size x (1 + Segment Growth Rate).
- Page 10 gives us Potential Market share, we use this (do not use actual market share)
- If we think we can sell more, we can just adjust the percentage.
- We can use Excel file to calculate more conveniently. Use 8 sheets for 8 rounds, just copy and paste number from Courier Report Page 10, Page 4 and select market growth rate from page 5-9 into each sheet. We can get Sales Forecast and also Production.
- You can copy and paste into excel file, then it can calculate automatically Sales and Productions.
MARKETING - Round by Round Decisions Guides for 8 Rounds
Round 1 - Marketing
Leave A/R lag (Account Receivable) at 30 days, this will be increased later rounds to get higher demands when we have more profits and more cash available.
Leave A/P lag (Account Payable) at 30 days. This is always stay at 30 days for all 8 rounds
Set Promotion and Sales budgets both for $2.000 for Traditional and Low-End sensors
Set Promotion and Sales budgets all for $1.500 for High End, Performance and Size
Lower all prices at least $0.50 as indicated in the excel table or check from Courier Report for max price for that segment last year
Note in advance:
- Round 1 if we add a new LE product, add new capacity, then we will have good sales but low net profit. From round 4 will have both good sales and net profit.
Round 2 - Marketing
Expect the new Low-End sensor to sell about 0.2 x original Low-End sensor market share
Leave A/P lag (Account Payable) at 30 days. This is always stay at 30 days for all 8 rounds
Set Promotion and Sales budgets both for $2.000 for Traditional and Low-End sensors
Set Promotion and Sales budgets all for $1.500 for High End, Performance and Size
Lower all prices at least $0.50 as indicated in the excel table or check from Courier Report for max price for that segment last year
Note in advance:
- Round 2 if we add a new TR product, add new capacity, then we will have good sales but low net profit. From round 4 will have both good sales and net profit.
Round 3 - Marketing
If we decide to exit a segment, such as Size or Performance, keep the Promotion and Sales budgets at $0.
What ever segments we decide to stay, increase Promotion and Sales to $2.000
Expect new Traditional sensor to sell about 0.3 x original Traditional sensor market share.
Lower all prices at least $0.50 as indicated in the excel table or check from Courier Report for max price for that segment last year
Note in advance:
- Round 3 if we add a new HE or PER product, add new capacity, then we will have good sales but low net profit. From round 4 will have both good sales and net profit.
Round 4 - Marketing
Increase A/R Lag (Account Receivable) to 46 days, this helps to increase demands
Once 100% awareness is reached for a sensor, in any round, we can scale back to $1.400 but need to check if can that budget maintain 100% awareness.
Expect new High-End sensor to sell about 0.75 x original High-End sensor market share.
Lower all prices at least $0.50 as indicated in the excel table or check from Courier Report for max price for that segment last year
Round 5 - Marketing
Increase A/R Lag (Account Receivable) to 61 days, this helps to increase demands
Note to add new market shares for new developed products, check in page 10 simulation Courier.
Lower all prices at least $0.50 as indicated in the excel table or check from Courier Report for max price for that segment last year
Round 6 to 8 - Marketing
Note to add new market shares for new developed products, check in page 10 simulation Courier.
Once 100% accessibility is reached for a segment (in any round) we can scale back the Sales budget t $1.650 for each segment to maintain 100% accessibility. Note to adjust and then check the graphs at the end of the market table.
Lower all prices at least $0.50 as indicated in the excel table or check from Courier Report for max price for that segment last year
TIP 3 – PRODUCTION (and Round by Round decisions for 8 Rounds)
Note to check Workforce needed and Workforce complement, if the box is editable, make sure to match the needed with This Year to save money. Otherwise we waste money.
We will increase automation every round.
Traditional to 8.0 (4.0 - 5.0 - 6. 0 - 7.0 - 8.0)
Low-End to 10.0 (5.0 - 6.7 - 8.4 - 10)
High-End to 5.0
Performance to 6.0
Size to 6.0
SETTING PRODUCTION
Production amounts should always be 112% of Sales Forecast.
This allow some extra inventory to take advantage of competitors suffer from stock out. This often happens.
When we calculate production, we need to take in to account inventory from previous round.
We can use excel file to calculate PRODUCTION more conveniently
If we see that year we have Stock out, we can increase production more than 112% to 120% or even 125%. If we see some inventory, we can reduce for that segment back to 112%.
ADDING MORE CAPACITY
Our goal is to keep our plant production at 150% (full first shift and 50% second shift).
This allows more flexibility to deal with short term market changes.
Remember that added capacity isn't available until next round. So, if we add capacity in round 2, it will be available in round 3.
If we see any factory with more than 150% capacity, we can add more capacity to that, just simply multiple the excess over 150% with total capacity. For example, 180% of 2.000 factory, we will add 30% surplus = 30% x 2.000 = 600
NOTE:
We do not sell factories, even we are not using 100% at the current round.
We only reduce the segments we want to exit to 1. By doing so, we can still sell the rest of inventories in that segment at full price, not 50% price.
If we can not complete all suggestion, try to come as close as possible.
Try to use all the budget available in the first 3 rounds and more if possible
The KEY to win simulation is to control Automation as early as possible. The more automation is better.
PRODUCTION – Round by Round decisions Guides for 8 Rounds
Round 1 - Production
Upgrade original Low-End sensor from 5.0 to 6.7 automation
Upgrade original Traditional sensor from 4.0 to 5.0 automation
Create 500 capacity with automation 5.0 for the new Low-End sensor
Add extra capacity for original Low-End sensor
NOTE: check the bottom right corner to see if we use close to total available budget.
Round 2 - Production
Upgrade original Low-End sensor from 6.7 to 8.4 automation
Upgrade original Traditional sensor from 5.0 to 6.0 automation
Create 500 capacity with automation 5.0 for the new Traditional sensor
Upgrade new Low-End sensor from 5.0 to right 8.4 automation.
Add extra capacity for original Low-End sensor
NOTE: check the bottom right corner to see if we use close to total available budget.
Round 3 - Production
Upgrade original Low-End sensor from 8.4 to 10.0 automation
Upgrade new Low-End sensor from 8.4 to 10.0 automation.
Upgrade original Traditional sensor from 6.0 to 7.0 automation
Upgrade new Traditional sensor from 5.0 right to 7.0 automation
Create 400 capacity with automation 3.0 for the new High-End sensor
Add extra capacity for new Low-End sensor
Add extra capacity for original Low-End sensor
NOTE: check the bottom right corner to see if we use close to total available budget.
Round 4 - Production
Upgrade original Traditional sensor from 7.0 to 8.0 automation
Upgrade new Traditional sensor from 7.0 to 8.0 automation
(Optional) Reduce Capacity for segments that are being exited, such as Performance and Size
Upgrade original High-End sensor from 3.0 to 4.0 automation
Upgrade new High-End sensor from 3.0 to 4.0 automation
Add extra capacity for all needed sensors
Round 5 - Production
Upgrade original High-End sensor from 4.0 to 5.0 automation
Upgrade new High-End sensor from 4.0 to 5.0 automation
(Optional) Reduce Capacity for segments that are being exited, such as Performance and Size
Add extra capacity for new High-End sensor
Add extra capacity for all needed sensors
Round 6 and 7 - Production
Add extra capacity for all needed sensors
Round 8 - Production
Last round of the game, do not add any capacity or automation.
TIP 4. HUMAN RESOURCES DECISIONS
It is important to invest in HR because productivity is measured in the Balanced Score Card and also this investment will reduce labor costs.
Usually HR has a few options available are Recruiting Spending, Training Hours
Aim for the maximum of $5.000 recruitment spending and 80 hours training every round.
If you have limited funds, try $2.000 and 40 hours training.
If the Labor negotiations are available, we can use half way, win - win strategy, between demanded and current contract.
NOTE:
when input number here, double check to make sure correct numbers and avoid labor strikes.
We often use half way for negotiations, average of current contract and labor demands.
TIP 5. TQM
In TQM focus on setting $1.500 to $2.000 per round for each item, select the most useful initiatives first. Continue this for three round and then stop spending money into that initiatives, because it will no longer make any significant changes. We can see this from graphs at the end of screen.
NOTE
$5.000 is the maximum budget for each initiative for the whole game.
Optimal way to add money is $2.000 - $2.000 and $1.000 or $1.500 - $1.500 and $1.000 depends on maximum allowed for each round.
Priority order for TQM initiative benefits:
Reduce material costs
Reduce labor costs
Reduce R&D costs
Increase demands
Reduce SG&A expense
There are generally the best initiatives to put money in first:
CCE/6 Sigma Training
GEMI TQEM Sustainability
CPI Systems
Vendor /JIT
QIT
QFDE
We can apply try with different initiatives to see which one will bring more effects or most effective. Then in later rounds, we spend money in less effective initiatives when we have more extra money.
We can see the suggestions in the following tables.
TIP 6. FINANCE
Finance should always be the last decision we make after all the other section decisions have been made.
How we make decisions in Finance depends on How the game will be graded.
Most groups are graded on the Balanced Scorecard.
Some groups are graded on Profit or Stock Price.
FOR ALL GRADING METRICS.
We can keep at least $16.000 (000) cash for a round to avoid emergency loans.
We can keep more cash, it is always better than lack of cash.
We need to keep right amount of cash to get MAX Days of Working Capital (not too much, not too little).
When we have much Cash and Net Profit, we need to pay off dividends and retire stocks to increase Leverage and also get max points for Days of Working Capital.
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ReplyDeleteOne of the Lowest Loans Rates over €10k at 3%^ with Atlas Current Account. Apply Online. Make An Appointment. Locations: Baltimore Md ,Marryland USA Info :
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Thank you for your Guide. It is great and helpful. Pls upload more. TKS
ReplyDeleteWhat strategy can you suggest?
ReplyDeleteWe apply Broad Differentiation strategy.
Focus on all the five segments to meet diversified demands of customers (business customers).
For products, we focus on Traditional, Low End and Performance, with 2 products for each segment, and also keep maintain good product in High End and Size.
For Pricing, we apply good price for high quality, strong promo and sales.
How to set prices for five segments?
ReplyDeletePrices are based on: Production cost, Competitors prices and also last round prices.
So, as high as possible to get good contribution margins.
Also, need to lower than competitors to sell better, control market share
And, consider production cost, actually looking at contribution margins is better, because it shows not only production cost, but also other cost, such as admin, sales,
promo...
What is the principal strategy for each module? We know is a long term strategy but what implies that for the modules?( R&D, Finance, etc)
ReplyDeleteWE APPLY BROAD DIFFERENTIATION STRATEGY
R&D:
ADD NEW PRODUCTS (IN THIS HIGH TECH INDUSTRY, NEED NEW PRODUCTS)
MARKETING
Use 1200, then increase to 1400, 1600, then 2000.
Reduce back to 1400 when reaching customer awareness and accessibility of 100%
PRODUCTION
Add new capacity for new products
Increase Automation
Low end to 10
Traditional to 8
Other products to 6
FINANCE
Use all three sources of investment in early rounds, including stock issue, short and long term loans.
In later rounds, eg. 7-8 can retire stock, pay dividends and pay back long term loans
TQM:
We use $ 1000 in each item for each round.
TOTAL 4000 WILL GET MAX BENEFIT (FROM THE GUIDES)
EACH ROUND 1000 FOR 4 ROUNDS
HR: We use $5000 in recruiting expenses and 80 hrs of training. For early rounds, can use $3000 and 40 hours to save cost.
THIS IS ALSO FROM THE GUIDES
MAX 5000 - MAX 80
FOR LONG TERM BENEFIT
GOOD WORKERS, HIGHER QUALITY OF PRODUCTS
Production: How much more of our installed capacity can we produce? We always saw that we produced a lot more that the capacity we had?
ReplyDeleteWE CAN PRODUCE MAX 200% FOR 2 SHIFT, MEANING THAT WORKERS HAVE TO WORK 2 SHIFTS (16 HOURS)
SHOULD USE 150%
Accounts Receivable: Why did you decide to change the AR from 30 to 46 days? In which round did you change it?
ReplyDeleteTO GIVE CUSTOMER LONGER TIME TO PAY
SO THEY WILL BUY MORE OR CAN SELL MORE
Age: Have you ever change the Age of the products? where did you set that?
ReplyDeleteCAN NOT CHANGE AGE DIRECTLY.
ONLY CHANGE IN R&D TABLE
JUST CHANGE PFMN AND SIZE --> Then Age change!
Tips: For Low End Products, they require 7 years old to sell best.
Therefore, do not have to update every round. Only one time in round 3, and one time in round 7.
Other products require update regularly
Promo & Sales Budget: How did you decide how much we have to set as promo & sales budget?
ReplyDeleteWhen did you decide to change the amounts of your 1st decision?
INCREASE FROM 1000 TO 1200 - 1400 - 1600 - 2000 AND BACK TO 1400 WHEN REACHING 100% CUSTOMER AWARENESS AND ACCESSIBILITY
Note:
Round 1-2-3 can use 1.200, then 1.400 and then 1.600 to save cost and get good profit
Round 4 can use 2.000 then from round 5-8 back to 1.400 when reaching 100% customer awareness.
Revision Date: can you decide the date on which your new product comes out? (Or the simulator just give you the date?)
ReplyDeleteOn the 1st round, you created a new perfect product for round 4, you decided the date? where did you set that?
SET IN R&D
NEW PRODUCT WILL SELL WELL FROM ROUND 4 AFTER 2-3 ROUNDS OF LAUCHING
Note: for new products, they can sell from next round. Note to add new capacity for new product so we can start production from next round (set new capacity in
Production tab) and also have to set automation for new product.
YOUTUBE
ReplyDeleteCapsim 2020 - STEP BY STEP GUIDE AND WINNING TIPS
https://www.youtube.com/watch?v=-j3lzaaEses
https://www.youtube.com/watch?v=r2LfY0sfLP0
https://www.youtube.com/watch?v=bJl8CkldgUs
41
ReplyDeleteThank you .How can we set decisions for TQM in round 3 or 4?
We can use 1.000 for each round. For all the 10 initiatives
42
Thank you .How can we set decisions for HR, and why?
Use 3000 and 40 hours for rounds 1-2-3 and then increase to 5.000 and 80 hours
43
Thank you .How can we set decisions in Finance, should we issue stocks and use short and long term loans? When can we retire stocks and pay dividends?
This is long term strategy game with 8 Rounds
Rounds 1-2-3 for investment, needs all three sources of investment, short term, long term loans and stock issue.
44
Thank you .How much should we spend for TQM each round and why?
TQM reach most effective investment at 4.000
We can spend each round 1.000 for 4 rounds or 1000 then 1.500 and 1.500
45
How can we calculate sales forecast for each round? What are the basis for demands?
Sales forecast = last round sold units x segment growth
Production = sales forecast - inventory then can multiple by 110%
To get some reservation or inventory, and avoid stock out.
46
Thank you .How can we calculate production for each round? How can we increase automation over rounds?
Sales forecast = last round sold units x segment growth
Production = sales forecast - inventory then can multiple by 110%
To get some reservation or inventory, and avoid stock out.
47
Thank you .What are the best automation for each product segment?
For Low End, it should increase from 5.0 to 6.5, then 8.0 then 10.0 (from Round 1)
For Traditional, it should increase from 4.0 to 5.0, then 6.0, 7.0 and 8.0 (from Round 1)
For High End, Performance and Size, automation should increase from 3.0 to 4.0, 5.0 and 6.0 (from round 4)
48
Thank you .How to calculate sales forecast for GlobalDNA?
For GlobalDNA
Round 1 sales forecast = total segment demand/6 (having 6 companies in the industry)
From round 2, sales forcast = last round sold units x segment growth rate
49
Thank you .How to add new products for CompXM? Should we add 1-2 or 3-4 new products? And from Round 1?
CompXM has 4 product segments, Thrift, Core, Nano and Elit
Nano and Elite bring better profit
Thrift and Core has higher sales
Can add 2-3-4 products from Round 1
Start selling from round 2
Round 3-4 will double sales and profit.
50
Thank you . How can we set promo and sales for CompXM over rounds?
CompXM has only 4 rounds
Round 1 spend 1.200
Round 2 spend 1.400
Round 3 spend 2.000
and Round 4 can back to 1.400 for promo and keep 2.000 for sales
51
ReplyDeleteThank you .Can we win if use 5 products?
Yes
Just keep updating every round
Will still lead the game if competitors do not add new products in all the five segments
52
Thank you .How can we add new products and when?
This is long term strategy game with 8 rounds
Rounds 1-2-3 for investment
Round 4-8 will have high sales and profit
New products need 2 rounds to start selling well to double sales and profit in each segment
Should start add new products from Round 1-2-3
Each round add one new product, and new capacity, increase automation to save cost and increase quality
53
Thank you .Where can we find information about sold units of last round?
We can check this information from Courier report of last round
You can find report in Top menu of the game, Report tab
54
Thank you .Why rounds 1-2-3 have good sales but not very high net profit?
This is long term strategy game with 8 rounds
Rounds 1-2-3 for investment, update products, new products development
Rounds 1-2-3 have to invest in new products, R&D, new production capacity expansion
Therefore will have good sales but low net profit.
55
Thank you .Should we leave segments if products can not bring good profit? Eg. Size and Performance or High end?
You can, but should not
Because competitors will see the segment
then they can utilize by increase to max prices of the segment and gain huge profit
and lower prices in other segments
Then they can win with top sales and profit.
56
Thank you .Where can we find information to know which factors affect customer buying decisions?
You can find this information in the Courier Report
There are five pages for five segments
Each segment has their information for customer perference, Prices, Size, Pfmn, MTBF
57
Thank you .How to set prices for Global DNA?
You can check Marketing tab
Each screen will show customer preference for Prices, Size, Performance, MTBF
58
Thank you .How to set decisions for HR in 4 rounds for CompXM?
You can use 3.000 and 40 for round 1
And then 5.000 and 80 (max) for Rounds 2-3-4
59
Thank you for your video? How and when should we pay dividends and retire stock in CompXM?
You can pay dividends, retire stocks and retire (pay back) long term loans in round 4
CompXM has only 4 rounds
Rounds 1-2 for investment
Rounds 3-4 will have top sales and profit
60
Thank you . Where can we get funds for investment in early rounds for R&D and new production capacity?
Capstone is a long term strategy game with 8 rounds
Rounds 1-2-3 for investment
Rounds 4-5-6-7-8 will have double sales and profit
For investment in rounds 1-2-3, can use max three sources of investment, stock issue, short term and long term loans