Wondering what the easiest strategy is for Capsim and why. A Broad Differentiator strategy … This is a rule of thumb when making a Sales Forecast. These strategies are Broad Cost Leader; Broad Differentiation; Niche Cost Leader (Low Technology); Niche Differentiation (High Technology); Cost Leader with Product Lifecycle Focus and Differentiation with Product Lifecycle Focus. In this simulation there are the following modules: Research and Development; Marketing, Production and Finance. This is a competition and Erie has to adjust to the marketplace. The Digby computer team will adopt a Broad Differentiation strategy, maintaining a presence in every segment. It is best for Erie to price products at a mid-range in order to be competitive. A Differentiation Strategy with a Product Life Cycle Focus seeks to be known far and wide as the top producer of the best performing state-of-the-art products. A final note, this is a competition among teams. Dot - Improve positioning and reduce age. It received a market share 15% within 3 rounds of execution. In the Capsim simulation course at Georgian Court University, Lakewood, NJ in summer session 2012, there are six companies are: Andrews, Baldwin, Chester, Digby, Eire and Ferris (Computer). Nothing personal, chumps! Broad Differentiation Capsim. The Digby computer team will maintain a presence in both segments of the market. CAPSIM PRESENTATION-TEAM FERRIS 1. Our team's original strategy was broad differentiation. Our goal is to offer customers products that match their ideal criteria for positioning, age, and reliability. R&D competency is developed that keeps designs fresh and exciting. There are actual market share units listed in the Capstone Courier. The first customer buying criterion is reliability (measured in hours) as Mean Time Before Failure (MTBF) rated importance of 43%. We measure performance in terms of market share, market cap, ROA, and profits. The industry simulation is the sensor industry. Erie must make a comparison to see what the other companies are promoting. Fire. In the real world companies buy back stock. Daze - Slightly reduce reliability (MTBF) to … CAPSIM ANALYSIS: FERRIS 14 700 by the end of Round 8 with a plant utilization of 184%. When a company pays back bonds the company’s S&P rating will improve. Currently my team is doing Niche Cost Leader (for practice rounds) but finding it very difficult and wondering if we should switch when the real simulation starts. Erie should keep their revision dates before July 1 of the current round. After our products are well positioned, we will investigate modest increases in automation levels to improve margins, but never at the expense of our ability to reposition products and keep up with segments as they move across the perceptual map. Follow the decision guidelines below unless directed otherwise by your instructor. There are six basic team strategies listed on page 24 in the Capstone Team Member Guide 2012. Note that Erie may be able to charge a better price for the High-End, Performance and Size products but the Traditional and Low-End products have to have a more modest price. In the Production Module Schedule the sales forecast carries over to the Unit Sales Forecast. We will grow capacity to meet the demand that we generate, avoiding second shift/overtime when possible. Erie uses this basic calculation for the other product segments. We have six teams in the simulation: Andrews, Baldwin, Chester, Digby, Erie and Ferris. At the end of the round, Erie can do a comparison price check against the other companies’ products in the Capstone Courier. CAPSIM-Team Ferris Nikita Motkur, Howie Hehrer, Cori Porasik, Priscilla Gonzalez & Neha Noonemunthala December 8, 2016- BUS 6990 Strategy Formulation and Org. Firm Profile: Multiple product lines in targeted segments (High End, Traditional, and Low End) Minimum focus in other segments The first round ends December 31, 2013. We shall use team Erie as an example. Hold reliability (MTBF) steady. Executive Summary The Digby team will adopt a Broad Differentiation strategy, maintaining a presence in every segment. Examp… The first round ends December 31, 2013. We simulated developing silicon wafers for 6 rounds representing 6 years. Example: Increase Dixie 's performance by 1.2 and reduce Size by 1.0. SHAREHOLDER MEETING 3. It's a strategy that works better for larger companies than smaller ones. Even though High, Size and Performance sell fewer units these segments sell at higher prices. (During the practice rounds, each company is assigned a different strategy.) A rule of thumb is to keep the contribution margin above 25%. We will keep our existing product line, and introduce at least one more line, maintaining a presence in both segments. We will develop an R&D competency that keeps our designs fresh and exciting. This Broad Differentiation Strategy only works if Erie compares its segment products to the other teams’ products and adjusts pricing, promotion and sales. Erie must adjust the Production Schedule for Traditional-Eat to equal 1,231,161 units. We expect to keep assets/equity (leverage) between 1.5 and 2.0. It may be necessary to increase automation gradually over the rounds of the competition. Not hard to do, since they were incompetent, but it was fun! The Secret to Capsim Success it’s all about the sweet spot… Team Andrews Fall I 2009 BUSN 6200 Presented By Team Andrews: Brad White, Tim Fish, Christina Vance, Stephanie Bogan, & Anthony Vatterott Team Approach Vision Statement To design and manufacture the world’s most cutting edge electronic sensors. Decision guidelines below unless directed otherwise by your instructor, allowing the product can be older enough 1st shift not. Policy and begin to retire stock makes up a percent of the company will gain competitive... 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