© 2012 Capsim Management Simulations, Inc.Unforgettable Business Learning

Decision Making Process

Unforgettable Business Learning Unforgettable Business Learning

The Six Basic Strategies

© 2012 Capsim Management Simulations, Inc.

The “Six Basic Strategies” give you a starting point. Make sure before you start making any decisions to go over the strategies and choose one that you feel comfortable using.

Keep in mind that each strategy is proven to work. If you’re not doing well it’s more likely that you’re executing the strategy incorrectly.

Link to Six Basic Strategies

Unforgettable Business Learning Unforgettable Business Learning

R & D Marketing Production Finance Additional Modules

© 2012 Capsim Management Simulations, Inc.

Main Goal: Adjust product’s attributes to meet “Customer Buying Criteria.”

1. Change:1. Size2. Performance3. MTBF

Note: Changes in R&D affect:• Age of Product (current age/2)• Revision Date (date product will be

available for sale)• Cost

1. Enter desired name into a void product space

2. Choose:1. Size2. Performance3. MTBF

3. Purchase Capacity and Automation in Production page• Buy this year, use it the following

year

For Existing Products For New Products

Step 1Go to: Decisions R&D

Unforgettable Business Learning Unforgettable Business Learning © 2012 Capsim Management Simulations, Inc.

Main Goal: Create Price, Promotional Budget, Sales Budget, and Sales Forecast for each product

Step 1Go to: Decisions Marketing

Step 2Enter ‘Price’ for each product

Step 3Enter ‘Promo Budget’ & ‘Sales

Budget’

Step 4Enter your ‘Sales Forecast’

Step 5Enter Credit Policy (A/R & A/P)

Price – Use the segment analyses located in the ‘Capstone Courier.’ A price range will be given in the ‘Customer Buying Criteria.’

Promo Budget – Directly affects ‘Customer Awareness.’ Use student guide and your personal strategy to create a budget.

Sales Budget – Directly affects ‘Customer Accessibility.’ Use student guide and your personal strategy to create a budget.

Forecasting – Link to Forecasting Info

A/R & A/P – Link to Credit Policy Info

Tools for setting Price, Budgets, and Forecasts

R & D Marketing Production Finance Additional Modules

Unforgettable Business Learning Unforgettable Business Learning © 2012 Capsim Management Simulations, Inc.

Main Goal: To determine schedules, capacity, and automation for each product.Step 1

Go to: Decisions Production

• Enter Production Schedule

• Buy or Sell Capacity• Buy: Enter (+)

number• Sell: Enter (-)

number

• Change automation in: ‘New Autom. Rating’ box

• Buy Capacity • Buy: Enter (+)

number

• Choose Automation Level• Enter number in

‘New Autom. Rating’ box

Note: In order to produce a new product, capacity MUST be purchased

• If 0 inventory Sell all capacity• EX: if 1000

capacity, input -1000 in ‘Buy/Sell Capacity’

• If there is excess inventory Sell all but 1 unit of capacity• EX: if 1000

capacity, input -999 in ‘Buy/Sell Capacity’

For Existing Products For New Products To Discontinue a Product

R & D Marketing Production Finance Additional Modules

Unforgettable Business Learning Unforgettable Business Learning © 2012 Capsim Management Simulations, Inc.

Main Goal: To finance the company’s investments and make sure the cash position is positive at the end of the year.

Three Main Functions: Borrowing Money, Retiring Money, and Issuing Dividends

Step 1 Go to: Decisions Finance

• Issue Long Term Debt: 10-year bonds

• Issue Stocks: Selling common stock to the public

• Issue Current Debt: Borrow 1-year notes

• Retire Bonds Early

• Retire Stocks

Issuing dividends = giving money to Shareholders.

*Issuing dividends is not mandatory

Borrowing Money Retiring Money Dividends

Important: These numbers are only as good as your FORECASTING. The actual results will most likely be different. Your goal is to be as

close to the actual results as possible.

R & D Marketing Production Finance Additional Modules

Unforgettable Business Learning Unforgettable Business Learning © 2012 Capsim Management Simulations, Inc.

Go to Online Guide Or

Help > Tutorials & Demos > Optional ModulesOr

Team Member Guide

For Additional Modules:

Link to Additional Modules

R & D Marketing Production Finance Additional Modules

Unforgettable Business Learning Unforgettable Business Learning

Links to Additional Resources

© 2012 Capsim Management Simulations, Inc.

Spreadsheet Video Demonstrations:

Student Guide PDF

Developing a Sales Forecast

Manager Guide

Finance

Production

Marketing

Product Invention

R&D

Additional Material:

Important: To view the spreadsheet demonstrations the Adobe Flash Plug-in is needed