capsimcore

which of the following decisions is not made by the marketing department?

capacity

Marketing policies

conservative (price goods higher than competitors, low investment in sales and promo budget, conservative sales forecast) aggressive (lowest price goods, invest lots into sales and promo budget, large sales forecast)

name two of the scoring methods you will be graded on

contribution margin, sales

How would you change a company's reliability so it more appealing to low tech customers?

decrease reliability

How would you reposition a product to appeal to high tech customers?

increase performance and decrease size

What are you graded on in capsimcore?

sales, profit, margin, stock price and emergency loan

what is the contribution margin defined in the simulation?

sales-variable costs

what kind of goods does your company make?

sensors that can go into elevators and cell phones

before scheduling a production order you should take into consideration inventory from last year?

true

high tech customers want cutting edge new products every year?

true

the four departments in capsimcore are research and design, production, marketing, and finance?

true

to see your updated decisions in the simulation you must click "recalculate"

true

you can produce twice the capacity if you run two shifts?

true

your promo budget gives customer awareness and sales budget gives accessibility?

true

production

-come up with production schedule -capacity number of units produced a year -automation -automation investment will improve your plants machinery and result in lower labor costs -capacity represents how many units you make in one shift, you can double the capacity by running two shifts at the same time -capacity and automation investments take one year to implement

finance

-enough cash to run the business throughout the year -borrowing money from issuing stock, long term debt, and borrowing current debt (adding funds) -subtracting funds: retire stock and debt, and issue dividends -aim for a positive ending cash position to avoid emergency loans -closing cash position is only a projection. if your sales projection is off so will your closing cash position

research and design

-make products that fit the customers demands -newer products will have their age cut in half -positioning expectations impact performance and size which also effect the age of the product -perceptual map outlines the positioning expectations of low and high tech customers. These customers will not purchase outside of the circles

marketing

-sales forecast: how many units we expect to sell -sells products to market -sales budget, promo budget, price -accessibility and awareness -spending on promo budget affects awareness -spending on sales budget affects accessibility

after your company purchases capacity, how long does it take to be able to use that capacity?

1 year

emergency bonds are a good option to finance your company?

false

the higher the reliability of product the less it costs to make?

false

your only goal is to improve sales each year?

false

there are only two ways of getting funds in finance-issuing stock and long term debt

false, you can also borrow current debt

which of the following decisions can help you raise money for your company?

issuing bonds

When a products positioning (performance/size) is updated what happens to the age?

it gets cut in half

what customers does your company sell to?

low tech and high tech customers

What is the difference between low tech and high tech customers?

low tech customers want cheaper products that are not as reliable high tech customers want the highest quality products that are very reliable, price does not matter

Name two expectations of the customer buying criteria

positioning and price

Which decision is not made in the research and design department?

pricing

What are the four parts of capsimcore that you will control?

research and design, marketing, finance, and production