CAPSIM*

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Price ranges in all segments drop by _____ much per year?

$0.50

Every segment has a $_____ price range.

$10

Customer Survey scores drop by _____% half way across the rough cut circle.

50%

Market Segment

A _____ is a group of customers who have similar needs.

Functional Managers

A _____ job is to optimize the efficiency of the assigned function and to coordinate strategy across functional boundaries. They assume responsibility for an entire department (R&D, Marketing, Production, Finance).

Positioning and price change every year. _____ criteria always remain the same.

Age and MTBF

Financial, Internal Business Process, Customer, Learning and Growth

Balance Scorecard allows companies to gauge their performance by assessing measures in these categories.

If _____ discontinues a product, it should notify _____.

Production, R&D

Project Length

- The product's automation level on the production line. - The # of R&D projects underway at the same time. - The proximity of the product's new location to an existing product in your company's line. These factors drive _______________.

Hours

The Mean Time Before Failure is measured in _____.

Ideal Spot

The _____ is the position on the Perceptual Map where demand is highest.

Finance

_____ acts as a watch dog over company expenditures.

High End

_____ market segment seeks cutting-edge technology in size/performance and new designs.

Diminishing returns

As promotional and sales budgets increase, they experience _____.

Outsell

Assuming it does not run out of inventory, a product with a higher customer survey score will _____ a product with a lower score.

Six Basic Strategies

Broad Differentiator Niche Cost Leader Niche Differentiator Cost Leader w/Product Lifecycle Focus Differentiator with Product Lifecycle Focus

7 year

Low end customers give higher scores to sensors in the _____ range.

Mean Time Before Failure

MTBF is _____.

The _____ report of the Capstone Courier can help you diagnose stock outs and their impacts.

Market Share

_____ works with _____ to project revenues for each product and to set the Accounts Receivable policy.

Marketing, Finance

_____ works with _____ to make sure products meet customer expectations.

R&D, Marketing

_____ works with _____ to ensure assembly lines are purchased for new products.

R&D, Production

Performance

Size customers emphasize size over _____.

1.5 year

Size customers prefer sensors in the _____ range.

Segments are moving

Some ideal spots are ahead of the segment centers because _____.

2 year

Traditional customers give higher scores to sensors in the _____ range.

Low end customers prefer inexpensive sensors with _____ performance and _____ size.

slower, larger

Age

The least important buying criteria for the performance segment is _____.

Price

The least important buying criteria for the size segment is _____.

Behind the center

The low end customers give higher position scores to sensors located _____ of the segment circle.

Price

The most important buying criteria for the Low End segment is _____.

Age

The most important buying criteria for the Traditional segment is _____.

MTBF

The most important buying criteria for the performance segment is _____.

Ideal Position

The most important buying criteria for the size segment is _____.

Center

The traditional customers give higher position scores to sensors located in the ______ of the segment circle.

1 year

Performance customers want sensors in the _____ range.

Refuse

Customers will _____ to buy a product positioned outside the circles.

Traditional

___________ market segment seeks proven products at a modest price.

Sensors lose approximately _____% of their customer survey score for each dollar above or below the guideline.

20%

Customer Survey scores drop by _____% just outside of the fine cut circle.

1%

Each month during the year, the segment drifts _____ of the distance from the starting position to the ending position.

1/12th

Customer survey scores are calculated _____ times per year.

12

The radius of the fine cut circle is _____.

2.5 units

Customer survey scores drop by _____% for every 1,000 hours below the MTBF guideline.

20%

The radius of the rough cut circle is _____.

4.0 units

At _____ hours below the range, demand falls to zero.

5,000

Each segment sets a _____ range for MTBF.

5,000 hour

In Capstone, there are _____ basic strategies for starting your own strategy.

6

The prime interest rate in round 1 is _____%.

7.0%

Customer Survey scores drop by _____% for products that are almost to the edge of the rough cut.

99%

Growth rates for each of the segments can be found in the _________.

Capstone Courier

The _____ is an industry newsletter that has an extensive year-end report of the sensor industry.

Capstone Courrier

_____ reflects how well a product meets its segment's buying criteria.

Customer Survey Score

The _____ is a complete trail of all team decisions. It will help you identify your decision making strengths and weaknesses.

Decision Audit

Increased

Each year, customers demand ___________ performance and decreased size.

Decreased

Each year, customers demand increased performance and ___________ size.

Projects can only begin on _____. Projects that did not finish last year will "lock out" a new project for that product this year.

January 1

Math and Logic

Forecasting sales requires _____ and _____.

High, Small

High end customers demand cutting edge sensors with _____ performance and _____ size.

Newer

High end customers give higher scores to _____ sensors.

The most important buying criteria for the high end segment is _____.

Ideal Position

Drift rates can be found in the _____.

Industry Conditions Report

The Industry Conditions report is published _____.

Once

The _____ is a marketing tool used to track the position of the company's products against those of the competitors.

Perceptual Map

Size

Performance customers emphasize performance over _____.

_____ determines how many units will be manufactured during the year. It is also responsible for buying and selling production lines.

Production

_____ tells _____ if it needs money for additional equipment. If they cannot raise enough money, it can tell them to scale back its requests or perhaps sell idle capacity.

Production, Finance

_____ are projections for the upcoming year. _____ are the results from the previous year.

Proformas, Annual Reports

Buying Criteria

The _____ are Price, Positioning, Age, and MTBF

5 Market Segments

The _____ are Traditional, Low End, High End, Performance and Size.

Capstone Courier

The _____ includes customer buying patterns, product positioning, public financial records and other information that will help you get ahead.

Accounts Receivable Policy

The _____ is the amount of time customers can take to pay for their purchases.

Rough Cut Circle

The _____ is the dashed outer circle that defines the outer limits of the segment. Customers will not purchase products positioned outside this boundary.

Size

The _____ market segment seeks cutting edge size technology and younger designs.

Industry Conditions Report

The _____ outlines the beginning business environment, including customer buying criteria.

Competitive Intelligence Officer

The _____ task is to see the market, and especially their company, through the eyes of the competitor.

Low End

The ______ market segment seek low prices and well proven products.

Low End

The _________ segment has the slowest drift rate.

Traditional and Low End

The __________ and ____________ sell more units than the high technology segments, High End, Performance and Size.

Ahead of the center

The high end customers give higher position scores to sensors located _____ of the segment circle.

MTBF

The least important buying criteria for the Low End segment is _____.

MTBF

The least important buying criteria for the Traditional segment is _____.

Price

The least important buying criteria for the high end segment is _____.

The Perceptual Map measures size on the _____ axis and performance on the _____ axis.

Vertical, Horizontal

At $5 outside the price range, demand for the product is _____.

Zero

Positioning and Price

_____ and _____ change every year. Age and MTBF criteria always remain the same.

Segment Managers

_____ are strategists. They have more freedom than product managers to make strategy and policy recommendations. They present recommendations that set overall strategy.

Research & Development

_____ designs your product lines. The department needs to invent and revise products that appeal to your customers' changing needs.

Age of a Product

_____ is the length of time since a product was revised or invented.

Fine Cut Circle

_____ is the solid inner circle that defines the heart of the segment. Customers prefer products within this circle.

Finance

_____ makes sure your company has the financial resources it needs to run through the year. The department can raise money via one-year bank notes, 10-year bonds or stock issues. They can also issue stock dividends, buy back stock, or retire bonds before their due dates.

Performance

_____ market segment seeks high reliability and cutting edge performance technology.

Product Managers

_____ must ensure their product meets the demand of the intended segment. They concentrate on the specifics of their product and how it relates to the segment. They are not directly involved in Sales and Promotion decisions.

Marketing

_____ prices and promotes your products. It interacts with your customers via its sales force and distribution system. It is also responsible for sales forecasts.

Perfect Customer Survey Score (100)

_____ requires the product be at the ideal position, be priced at the bottom of the expected range, have the ideal age and have an MTBF at the top of the specified range.

Marketing, Production, Production

_____ works with _____ to make sure manufacturing quantities are in line with forecasts. It's market growth projections also help _____ determine appropriate levels of capacity. If it decides to discontinue a product, it tells the other to sell its production line.

The companies are in a _____ market, not a direct-to-consumer market.

business 2 business

The companies that manufacture sensors were created when _____.

government split a monopoly

The Capstone Courier reports _____ year's results.

last

The ___________ segment has the fastest drift rate.

performance


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