The teams played two practice rounds before beginning the actual competition. When you sell stock in the marketplace this will decreases the price per share of your company’s stock. © 1985 - 2011 Capsim Management Simulations, Inc. 16.1 Andrews - Cost Leader with a Product Lifecycle Focus, 16.2 Baldwin - Differentiation with a Product Lifecycle Focus. This makes it easier to adjust to what the other companies are doing. In this simulation there are the following modules: Research and Development; Marketing, Production and Finance. Design 2. Although the Capstone Team Member Guide recommends a 30% contribution margin in each segment, this is very hard to accomplish during competitive rounds. In CapSim, a firm should launch a new product if: The strategy calls for it in the Team Member or On-Line Guide. The number 1,231 is placed in the box. Erie uses this basic calculation for the other product segments. We will gain a competitive advantage by distinguishing our products with an excellent design, high awareness, and easy accessibility. Our team's original strategy was broad differentiation. Our goal is to offer customers products that match their ideal criteria for positioning, age, and reliability. The Digby computer team will maintain a presence in both segments of the market. Dixie - Improve positioning and reduce age. CAPSIM-Team Ferris Nikita Motkur, Howie Hehrer, Cori Porasik, Priscilla Gonzalez & Neha Noonemunthala December 8, 2016- BUS 6990 Strategy Formulation and Org. We simulated developing silicon wafers for 6 rounds representing 6 years. We will gain a competitive advantage by distinguishing our products with an excellent design, high awareness, and easy accessibility. Broad differentiation is a strategy that is applied across an industry, appealing to a broad range of shoppers. A rule of thumb is to keep the contribution margin above 25%. SHAREHOLDER MEETING 3. The Secret to Capsim Success it’s all about the sweet spot… Team Andrews Fall I 2009 BUSN 6200 Presented By Team Andrews: Brad White, Tim Fish, Christina Vance, Stephanie Bogan, & Anthony Vatterott Team Approach Vision Statement To design and manufacture the world’s most cutting edge electronic sensors. Note that the highest to lowest market share in units in the competition is Low End, Traditional, High End, Size and Performance. R & D Round 1 . R&D competency is developed that keeps designs fresh and exciting. (During the practice rounds, each company is assigned a different strategy.) Example: No change required. Premium products for the industry: our brands withstand the tests of time. Two competitors are pursuing Broad Differentiator strategies. We want every customer to know about our superb designs, and we want to make our products easy for customers to find. Example: Increase Daze ' s performance by 0.8 and reduce size by 1.0. Broad Differentiation Capsim. Choose COMPXM strategy . I usually go for broad differentiation because it is more flexible. Erie Company has to implement a plan to upgrade the performance, size and Mean Time before Failure (MTBF) of its products. We are somewhat adverse to debt, and prefer to avoid interest payments. In the Traditional and Low End segments the age of the product can be older. Daze - Improve positioning and reduce age. We expect to keep assets/equity (leverage) between 1.5 and 2.0. When a company pays back bonds the company’s S&P rating will improve. As the game progresses, you can change it to a hybrid of broad differentiation. Under the Unit Sales Forecast is the Inventory on Hand. We will price at a premium. These revisions change the Age at Revision for each segment. In the Workforce complement a second shift is not added until the first shift reaches its needed complement. Areas we excelled: Standardized and proprietary tools & processes Positioning, forecasting (early rounds) Functional expertise & strong communication Early, aggressive TQM investments - able to lead our segments and achieve higher margins Management Decision Process Cross 1. A Broad differentiation strategy maintains a presence in every segment of the market. Ideal Automation Rates and New Products Broad Differentiation Strategy I have read so many different automation strategies and would like to know with reasons which is best. In the practice rounds the individual companies get an idea of the strategy performed by the other teams and the computer team Ferris. In the Capsim simulation course at Georgian Court University, Lakewood, NJ in summer session 2012, there are six companies are: Andrews, Baldwin, Chester, Digby, Eire and Ferris (Computer). After the practice rounds, you are free to pursue any strategy you wish, and can abandon the Broad Differentiation strategy entirely. Fire. Erie makes improvements for each product to beat the competition in all five segments for the next round. Let us begin with the Research and Development Module. In this manner Erie will have a better product then most of the other companies for the second half of each round (year). Hold reliability (MTBF) steady. Andrews has decided to adopt features from several different basic strategies to form our own hybrid strategy. Daze - Slightly reduce reliability (MTBF) to … 16.4 Digby - Broad Differentiation. Best strategy for Capsim? We measure performance in terms of market share, market cap, ROA, and profits. We will grow capacity to meet the demand that we generate, avoiding second shift/overtime when possible. This will help each company develop a strategy for the competition. Hold reliability (MTBF) steady. The industry simulation is the sensor industry. The only way to improve your company’s performance is to analyze what the other teams are doing each round and make adjustments for all modules. The industry simulation is the sensor industry. We will develop an R&D competency that keeps our designs fresh and exciting. If a company overestimates sales or spends too much money, current debt may increase. In the Production Module Schedule the sales forecast carries over to the Unit Sales Forecast. This practice exercise will help you understand the relationships between business strategy, tactics, functional alignment, and the Capstone® simulation. The Digby team will spend aggressively in promotion and sales in both segments. Moreover, the company will gain a competitive advantage by distinguishing products with an excellent design, high awareness and easy accessibility. Less stock on the open market will increase the price per share of the company’s stock. After our products are well positioned, we will investigate modest increases in automation levels to improve margins, but never at the expense of our ability to reposition products and keep up with segments as they move across the perceptual map. In order to achieve the broad differentiator strategy, a new product was introduced in the high segment i.e. Mission Premium products … Even though High, Size and Performance sell fewer units these segments sell at higher prices. 15.4 Digby - Broad Differentiation. In the High End, Performance and Size segments customers want new and better products. capsim report 4555 Words | 19 Pages. Example: Increase Dixie 's performance by 1.2 and reduce Size by 1.0. Capsim Team Strategy Report Our team decided to choose the “Broad Differentiation” strategy as the basic strategy for our company. The promotion and sales budgets should be in the mid pricing range. CAPSIM SIMULATION WINNERS!BY: MINHEE HUH, MOLLY MCGOWAN, AND KING TAN 2. In the Marketing Module Erie must improve the price of segment products round by round. Erie must adjust the Production Schedule for Traditional-Eat to equal 1,231,161 units. The Human Resources Module will be added in the third round. Dell - Leave positioning alone, allowing the product to age further. Hence an innovative strategy is highly recommended in order to achieve high business growth, in case you are willing to expose you to a higher degree of risk. Our primary stakeholders are customers, stockholders, management, and employees. The main objective of implementing a differentiation strategy is to increase competitive advantage. Explanation: Broad Differentiation strategy refers to building a business or a brand that differs significantly from that of the competitor. CAPSIM ANALYSIS: FERRIS 14 700 by the end of Round 8 with a plant utilization of 184%. Not hard to do, since they were incompetent, but it was fun! The Digby computer team will maintain a presence in both segments of the market. In the Finance Module, as a basic rule of thumb keep accounts receivable at 30 days lag and accounts payable at 30 days lag. Our original strategy had failing results and our team placed last at the end of the first round. The prices of products are reduced by $0.50 each year. Capsim Simulation Broad Differentiation Strategy. Dot - Improve positioning and reduce age. Erie must analyze what the other companies have done with their segments. These strategies are Broad Cost Leader; Broad Differentiation; Niche Cost Leader (Low Technology); Niche Differentiation (High Technology); Cost Leader with Product Lifecycle Focus and Differentiation with Product Lifecycle Focus. This Broad Differentiation Strategy only works if Erie compares its segment products to the other teams’ products and adjusts pricing, promotion and sales. A differentiation strategy is an approach businesses develop by providing customers with something unique, different and distinct from items their competitors may offer in the marketplace. opportunity for success, as they enable a company to create a competitive advantage by having differentiated products, services or business models. Automation costs money but a small increase in automation, 0.3 per year may be enough to stay competitive. • Have a pre-grade option that would allow teams to send in their decisions to CAPSIM for a review and recommendations before official submit. There are actual market share units listed in the Capstone Courier. Erie must make a comparison to see what the other companies are promoting. Chester’s performance product is Coat. Erie may be able to increase the contribution margin in some of the other segments but an average of 25% contribution margin in all segments is pretty good. James Cage (author) from Orlando, FL on November 15, 2013. Broad Differentiation. But more important and effective than this is how Nike makes its customers feel. There are six basic team strategies listed on page 24 in the Capstone Team Member Guide 2012. The computer will automatically give a company a BIG AL LOAN and the vig (interest) is 7.5%. Let’s take the Traditional segment which has industry unit sales of 7,387,000 units or 32.4% of the market in round zero. Products keep pace with the market, offering improved size and performance. Capsim Strategic Management Simulation: First Place. This improves the position of the product, making it more appealing to our customers. A Differentiation Strategy with a Product Life Cycle Focus seeks to be known far and wide as the top producer of the best performing state-of-the-art products. In this case, I mean making adjustments, especially on thrift segment, to sell at a lower price than the industrial average to maximize your market share. In the real world companies buy back stock. The teams will play six rounds in the simulation. One basic strategy is Broad Differentiation. When the round is complete Erie can compare the segment performance and size coordinates with the other companies’ segments in the Capstone Courier. At the end of the round, Erie can do a comparison price check against the other companies’ products in the Capstone Courier. Wondering what the easiest strategy is for Capsim and why. The first round ends December 31, 2013. Erie does this calculation for the rest of the segment products: Low-Ebb, High-Echo, Performance-Ebb and Size-Egg. CAPSIM PRESENTATION-TEAM FERRIS 1. Examp… R&D competency is developed that keeps designs fresh and exciting. Enjoy! We will attempt to differentiate our product line … Erie keys off of the Industry Conditions Report Performance and Size Centers for each round listed for the following segments: Traditional-Eat; Low End-Ebb; High End-Echo; Performance-Edge and Size-Eat. Nothing personal, chumps! All five segments: Traditional, Low, High, Performance and Size equals 100%. It received a market share 15% within 3 rounds of execution. Each Industry segment makes up a percent of the market. Executive Summary The Digby team will adopt a Broad Differentiation strategy, maintaining a presence in every segment. Erie should keep their revision dates before July 1 of the current round. The first round ends December 31, 2013. In the computer simulation I would recommend not to buy back stock unless your company has a great over surplus of funds. The Digby computer team will adopt a Broad Differentiation strategy, maintaining a presence in every segment. It's a strategy that works better for larger companies than smaller ones. Differentiation Strategy with a Product Life Cycle Focus. Note that Erie may be able to charge a better price for the High-End, Performance and Size products but the Traditional and Low-End products have to have a more modest price. We will finance our investments primarily through stock issues and cash from operations, supplementing with bond offerings on an as needed basis. Access The Broad Differentiation Sample. 12.4 Broad Differentiation. We will use the Digby team for this example. In the Production Margins Area we have listed the total unit cost and contribution margins. Broad Differentiation. Firm Profile: Multiple product lines in targeted segments (High End, Traditional, and Low End) Minimum focus in other segments The computer will then calculate the unit Production after Adjustment. Fire was able to produce sales for 1,235 units with its capacity of 14. As a broad differentiator in the market, the performance segment focuses on the reliability and ideal position of the product. This is a rule of thumb when making a Sales Forecast. 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