"Capsim Capstone Simulation Guide – Round 2 Strategy to Win Top Results (999/1000)"

 "Capsim Capstone Simulation Guide – Round 2 Strategy to Win Top Results (999/1000)"

---

Hello and welcome to this detailed guide on Capsim Capstone Simulation – Round 2 Strategy, designed to help you and your team achieve top results (up to 999/1000) in the game. This video is part of a series where we break down each round of the Capsim simulation, and today, we’ll be focusing specifically on Round 2.

We will walk you through decisions in R&D, Marketing, Production, HR, and Finance step by step – and help you understand how to adjust your strategy whether you're competing against computer teams or live classmates.

---

1. Reviewing Round 1 and Preparing for Round 2

Before you begin Round 2, it is crucial to analyze your performance in Round 1. Use the Courier Report and Industry Condition Report to track:

• Unit sales by segment
• Your product positioning (Performance & Size)
• Pricing and customer satisfaction
• Awareness and accessibility
• Your competitors’ performance and product decisions

Create a spreadsheet (Excel) that logs all this data. You’ll use it to guide product updates and forecast Round 2 sales accurately.

---

2. Research & Development (R&D) – Updating Products Strategically

In Round 1, you likely launched an additional product in the Low-End segment. In Round 2, the priority is to further strengthen your portfolio.

Here’s what to do:

• Update the original 4 products based on customer preferences from the Courier Report.
• Keep products close to the ideal Performance and Size for each segment.
• Launch one more product in the Traditional segment (if not yet done). This should be your sixth product in total.
• For any new products, set the launch Performance/Size coordinates based on the segment drift data so the product lands perfectly on the ideal spot at launch.
• Set the launch date to June, July, or August. This ensures the product starts selling in the same year and contributes to your revenue early.

If a product is already optimal (as shown in the Customer Buying Criteria and your Round 1 sales data), you may choose not to update it to avoid unnecessary downtime.

---

3. Marketing – Pricing, Promotion, and Sales Budgets

Marketing is key to competing in Round 2 and establishing long-term dominance. Here's a breakdown:

Pricing Strategy

• Traditional and Low-End segments are price-sensitive.
• In these segments, aim to reduce your prices by $0.50 each round to stay competitive.
• In High-End, Performance, and Size, price is less important. You can afford to maintain a higher price as long as the product positioning and quality meet customer expectations.

Promotion and Sales Budget

• Your goal is to maximize Awareness and Accessibility (A&A).
• In Round 2, spend $1400–1600 for each product’s Promotion and Sales budget.
• Start with $1200 if you want early profit.
• If your competitors are spending more (e.g., $2000), you must match or exceed them to stay competitive.
• Once A&A hits 100%, you can reduce the budget in later rounds and save on costs.

Remember: A&A directly affects how many customers will consider your product before they compare features or prices.

---

4. Sales Forecasting – How Much to Produce

Use this formula to project Round 2 unit demand:

Expected Unit Sales = Last Round's Sales × Segment Growth Rate

• Use the Courier Report to get last round’s unit sales by segment.
• Use the Industry Condition Report to get growth rates.
• Adjust based on how well your product is positioned vs competitors.

Also factor in:

• If your product was not optimal last round and now has improved positioning, expect higher-than-forecasted sales.
• If you add a new product, be conservative – it takes time for awareness to build.

---

5. Production – Capacity, Automation, and Inventory Management

In Round 2, production decisions are critical for efficiency and cost savings.

Capacity Planning

• Add capacity for your new products in the Traditional segment.
• For existing products, increase capacity by 10–15% above your sales forecast to avoid stockouts.
• If playing against computer teams, 12% is a good buffer.
• If competing with aggressive classmates, adjust based on Courier trends.

Automation Decisions

• Automation reduces labor costs and improves margins but increases R&D adjustment time.
• For Traditional and Low-End products, increase automation by 0.5–1.0 points per round.
• For High-End and Performance products, keep automation lower (around 3–4) to allow quicker updates.

Avoid huge jumps (like +3 points) in one round to prevent losing flexibility in future R&D.

---

6. Human Resources (HR) – Productivity and Training

HR training enhances your labor productivity and lowers per-unit labor cost.

• Spend $3,400 per round for training in Round 2.
• If you have excess funds, increase training hours (e.g., 40–80 hours).
• This results in:
• Lower turnover
• Higher productivity
• Long-term cost savings

Keep in mind that HR decisions accumulate over rounds. The earlier you invest, the greater the compounding benefit.

---

7. Finance – Managing Cash, Investment, and Debt

In Round 2, your company still needs heavy investment.

Funding Strategy

• Issue maximum stock and long-term debt to raise capital.
• Target raising around $40 million in new funds.
• Maintain $30 million in cash to cover:
• R&D updates
• New product launches
• Capacity expansion
• Promotion and sales spending

Accounts Payable and Receivable

• Keep AP/AR settings unchanged in Round 2. These are best adjusted in later rounds for cash flow advantages once your operations stabilize.

Avoid issuing short-term debt if possible—it adds financial risk.

---

8. Expected Results – What to Aim for in Round 2

With this strategy, your Round 2 performance should show:

• Higher sales in all 5 segments
• Net profit starting to grow
• Customer awareness and accessibility increasing
• Products moving toward ideal positions
• A solid cash reserve for Round 3–5 investments

Do not worry if net profit is still low or even negative. The real payoff comes from Round 3 onward. Your goal in Round 2 is positioning and investing, not immediate returns.

---

9. Extra Tips for Success

• Always review the Courier Report before finalizing decisions. Look at:
• Segment reports (demand, customer criteria)
• Market share comparison
• Unit sold and inventory
• Price and awareness levels
• Track your competitors. If a team suddenly increases sales or A&A, review their strategy.
• Update your Excel tracking file every round with:
• Actual sales
• Forecast error
• Inventory levels
• Product specs and pricing
• Avoid overproducing. Inventory carries holding costs and lowers contribution margin.

---

10. Conclusion

Round 2 is where your long-term strategy takes shape. By:

• Updating product specs based on customer needs,
• Launching smart new products at the right time,
• Spending wisely on marketing and HR,
• And carefully managing production and finance,

…you set yourself up for dominant performance in Rounds 3–8.

Remember, Capsim is not just about winning one round — it’s about building consistent, sustainable performance across the simulation. With this approach, you’re on track for 999/1000 Capstone scores and a clear lead over competitors.

Thank you for watching. Good luck, and I’ll see you in the next video where we discuss Round 3 strategic upgrades and operational improvements. Let’s win this simulation together!