CAPSIM Quiz
Contribution margin needed for profitability
30% or higher for a nice profit, 20% or higher to make sure you are not losing money
Capstone Courier (Foundation FastTrack)
The industry newsletter, which is an extensive year-end report of the sensor industry This report includes: - Customers Buying Patterns - Product Positioning - Public Financial Records - This is where your team will evaluate their company's performance or analyze their competitors
Finance is where you:
- Ensure your company has the funds it needs to grow - Issue stock or borrow money (short or long term)
Industry Conditions Report
- Helps you to understand your customers - Lists market segment sales percentage and projected growth rates unique to your simulation - Published ONCE at beginning of simulation
R&D is where you:
- Invent and revise products - Decide how to improve existing products
Production is where you:
- Schedule manufacturing runs - Manage the size of the plant and its automation levels - Create/sell off production lines
Marketing is where you:
- Set your price - Determine sales and promo budgets - Forecast sales for the coming year
The Proformas are dynamic financial statements that recalculate based on your decisions. - True - False
True
Which of these investments is not a function of the Production department? - Increasing Automation - Wage Increases - Creating new production lines
Wage Increases
Every dollar above price range will result in:
10% loss of demand
4 main departments
1. R&D 2. Marketing 3. Production 4. Finance
You produce and sell:
Electronic sensors
What are your company's options for raising money? - Borrowing Long-term debt - Borrowing Short-term debt - Issuing Stock - A and C only - A, B and C
A, B and C
Best place to start strategy-wise:
Analysis - breaking down the industry and the company - strengths and weaknesses - potential of the market
Cost of an R&D project
Based on how long the project will take to complete (1 year = $1m, 6 mo. = $500k, etc.)
Dotted circles on marketing page
Boundary of sales - outside of the dots, there will be 0 sales
What is the industry newsletter called? - Foundation FastTrack - Foundation Quarterly - Foundation Formula
Foundation FastTrack
Drift rate in industry conditions report
How fast each market segment is moving across the perceptual map
Solid circles on marketing page
Market segment of customers with similar preferences
What to review before making marketing decisions
Market segment pages in the report (5-6)
Prices are established by the: - Finance Department - Marketing Department - Production Department - R&D Department
Marketing Department
Products are invented and revised by which department? - Marketing - Production - Research and Development - Finance
Research and Development
Situation Analysis
Series of tables that help determine the size of the market, how fast it is growing and what kind of products different customers are looking for
When to add capacity/automation
When your 2nd shift percentage is very high, you will need more capacity/automation to keep up with demand - they are added after a year
Scheduling based on 1st shift capacity
You can schedule up to 2x the 1st shift capacity - 2nd shift workers are paid time and a half