Capstone Computer Based Simulation The Playing Field • $100M electronic sensor manufacturer. • Market dominated by handful of firms. • No outside competitors or substitutes. • Benign environment.
Download ReportTranscript Capstone Computer Based Simulation The Playing Field • $100M electronic sensor manufacturer. • Market dominated by handful of firms. • No outside competitors or substitutes. • Benign environment.
Capstone Computer Based Simulation The Playing Field • $100M electronic sensor manufacturer. • Market dominated by handful of firms. • No outside competitors or substitutes. • Benign environment. Strategic Map Large Size Small Slow Performance Fast Product Segments Large LowEnd Performance Traditional Size Size High-End Small Slow Performance Fast Perceptual Map Each Segment has a Sweet Spot Low Large 2 4 1 Size 5 Size Perf Trad Sweet Spot 3 High Small Slow Performance Fast Perceptual Map Segments drift over time Large Low Perf Size Trad Size High Small Slow Performance Fast Perceptual Map Two Stage Purchase Decision Stage 1 - Match Product to Market 1. Product must plot within the segment. Able Size Able 2. Product must fall within Price price guidelines. Performance Able Segments Quality 3. Product must fall within quality guidelines Segments Two Stage Purchase Decision Stage 2 - Rank Best Product Position Quality 1. Positioning 3 AB 2. Age Age 0 Yrs Sweet Spot 1 3. Quality Price HIGH END 20000 25000 4. Price $30 $40 Segment Criteria Ranking Traditional Low End High End Pfmn Size Age Price Position Quality Position Price Age Age Position Age Position Position Quality Price Quality Quality Quality Price Age Price Functional Areas Production R&D Marketing Finance HR Research & Development • Set Product coordinates (Position) AB AB • Set MTBF rating (Quality) High • Drives Perceived age (Age) High Eight < < < • Drives breadth of product line Low Quality Low One Age Breadth R & D Factors on Existing Products • Cycle time affected by: – Automation level of production line – Number of projects underway – Distance moved on perceptual map High High < High < Low Low Automation Number of Level Projects Long < < Low Distance moved Short Cycle Time Marketing • Price • Promotion Budget • Sales Budget • Set Sales Forecast • Set Credit Policies AR/AP Production • Set automation level • Buy or sell capacity • Schedule production • One year lag to add capacity or automate Finance • Acquire Capital – Issue Stock – Short Term Debt – Issue Long Term Bonds • • • • Set Dividend Retire Long Term Bonds Retire Stock Emergency Loan CAPSTONE STRATEGIES STRATEGY Mission Statement Goals PERFORMANCE ASSESSMENT Success Measurements Ratios Statistics • Business-level strategy: ANALYSIS S.W.O.T Analysis – Overall Cost Leader Competitor Analysis – Cost Leader with Competitive Analysis Focus (Low Tech or Product Life-Cycle) – Differentiator – Differentiator with Focus (High-Tech or Product Life-Cycle) FUNCTIONAL PLANNING Marketing Production Finance R&D HR Success Measurements • Choose at least TWO prior to Round 3 • Ending Stock Price must be weighted no less than 20% • Others: – Cumulative Profit – Avg. Market Share – Asset Turnover – Avg. ROA – Avg. ROE – Avg. ROS • Criteria and Weights will remain proprietary throughout the simulation Situation Analysis • Perceptual Map • Demand Analysis • Capacity Analysis • Margin Analysis Pre-Game Strategy Memo • Intended Strategy – Corporate: In which segments will you compete? – Business: How will you compete in each segment? • Situation Analysis • Specific Goals • Strategies and Tactics – R&D actions – Marketing actions – Production actions • One (1) page of text; one (1) page of exhibits • Due: Monday Nov. 4 @ 2:00 p.m. Capstone Schedule Monday 11/4: Wednesday 11/6: Year 2000 Decisions 12:00 p.m. Year 2001 Decisions 9:00 p.m. Monday 11/11: Thursday 11/14: Year 2002 Decisions 12:00 p.m. Year 2003 Decisions 12:00 p.m. Monday 11/18: Wednesday 11/6: Year 2004 Decisions 12:00 p.m. Year 2005 Decisions 9:00 p.m. Monday 11/25: Year 2006 Decisions 12:00 p.m.