Please note that these are the basic fundamentals behind Capstone.
This guide will help you avoid the kind of mistakes that cost your company a few years to get back good sales and profit
Read this guide for one hour and win the game all eight rounds.
This is step by step guide to help you avoid the kind of mistakes that makes you lose when you start Capsim and also tips to get you win the game.
Good Luck and Success!
You should do before start the Capsim
1 - Log in and read Industry Condition Report (Top menu, report tab, last row)
2 - Read Courier Report of last round (to get Market overview, Pricing, Production and Competitors analysis)
3 - Prepare an Excel file to calculate R&D, Sales Forecast and Production for each round.
You can download free Excel file here - LINK TO ALL EXCEL FILES
or Download Capsim Capstone Excel file here - LINK 2
Or email to: mbahelp2002@gmail.com to get Free support for creating excel file.
Free Personal Support for Rounds 1-2
Email: mbahelp2002@gmail.com
* Traditional to 19000 (17500)
* Low End to 17000 (14000)
* High End to 25000 (23000)
* Performance to 27000 (max 27000 to sell best)
* Size to 21000 (20000)
do not lower MTBF to reduce material costs
MTBF while it might not be the most important criteria;
This is the cheapest way to get Customer Buying Criteria
Keep high MTBF - your product will last longer than competitors and can sell more
Good quality products can sell at higher prices
NOTE
The most common mistake is that students messing up their R&D for not calculating ideal positioning
You need to check your game Report - to find Industry Condition Report and Courier report of each round.
Calculate to set R&D decisions, use the drift rates below:
| Segment | Performance Drift | Size Drift |
|---|---|---|
| Traditional | +0.7 | -0.7 |
| Low End | +0.5 | -0.5 |
| High End | +0.9 | -0.9 |
| Performance | +1.0 | -0.7 |
| Size | +0.7 | -1.0 |
Also calculate drift rates to R&D and update products to the ideal positions
- THE ONLY PRODUCT THAT DOES NOT MOVE, IT’S THE PRODUCT IN LOW END SEGMENT
- LEAVE THIS PRODUCT AT ITS ORIGINAL SPECS UNTIL ROUND 4
- TIP: new products launched from June to Oct is best to sell
**PRICE**
Pricing is tricky
A good way to find that number is to place all your prices at the highest allowed by each segment
Reduce $0.50 each round.
Check your Contribution Margin number
*Recommendation for round 1*
* Traditional at $29.5
* Low End at $21
* High End at $39.50
* Performance and Size at $34.50
After this you can just lower prices by $0.50 every year
**PROMO BUDGET & SALES BUDGET**
- Do not spend more than $2000 on promotion in any product in any give year.
*Recommendation for round 1*
* Traditional at $1400-$1600
* Low End at $2000
* High End, Performance and Size at $1200
*FORECASTING*
- Tip: this is key to win to calculate sales forecast
- Sales forecast = last round sold units x segment growth
- Find sales forecast, and segment growth from courier report
----
This is also key to win
Production = sales forecast - inventory
Can add 10-15% to avoid stock out in case sell well
**AUTOMATION RATING**
* Traditional, increase its automation to 6-7-8 in rounds 1-2-3
* Low End, increase to 6.5 - 8 - 9 - 10 in rounds 1-2-3-4
* High End, increase from round 4 to 4-5-6
* Performance, increase from round 4 to 4-5-6-7
* Size, increase from round 4 to 4-5-6-7
**WORKFORCE COMPLEMENT**
Always at 100%
**BUY/SELL CAPACITY**
* You want to keep 2nd Shift Production % below 80% to score green on your balance scorecard
* If you more than 150% you have to buy capacity
*Recommendation for round 1*
* Traditional: sell 600 keep 1200
* Low End: buy 200
* High End: sell 300 keep 600
* Performance and Size: no change
After this year, can add more from round 2
if add new product in round 1, note to add new capacity for new product
-----
You want to spend as much as possible in human capital, therefore you want to invest the maximum on recruiting and the maximum of training hours.
* Recruiting Spend; $5000 or $3000 in rounds 3-4-5
* Training Hours; 80 Hours or 40 hours in rounds 3-4-5 to save cost
later round increase max to $5000 and $80 hours
----
Keep at least $10,000 and $15,000 Cash Position to avoid Emergency Loan
Can keep $40000 - $60000 in case not selling well next round
We do not really know if some competitors play badly by dumping prices to save their company (actually they can not save but their action can reduce sales for all companies)
*Recommendation for round 1-2 and 3*
You will take that money you need and source it from the 3 ways you can get money
Issue Stock for $10k or MAX
Borrow Current Debt for $10k or MAX
Issue Long Term Debt for $10k or MAX
From Round 5, can :
- Retire stock it’s for when you have a good cash position
- Pay Dividends when you have cash leftover
- Retire Long Term Debt it’s for when you want to pay your debt early
Finance its very tricky if you are focusing in Maximizing your scorecard score
Therefore, it is more simple to keep high sales and profit.
TQM will mostly kick in Round 3 or 4
Make it simple
Spend $1000-$1500 each round for all 10 initiatives
Keep total max $4000
TQM will reduce your costs, increase your demand and decrease your R&D revision dates
NOTE:
- DO NOT GET SCARED IF YOU DO NOT MAKE MONEY ON THE FIRST ROUND.
- THIS IS LONG TERM STRATEGY GAME WITH 8 ROUNDS
- COMPANIES TRY TO KEEP GOOD PROFIT IN EALRY ROUNDS WILL LOSE LATER
- EARLY ROUNDS FOR R&D, PRODUCTION EXPANSION, THEREFORE, RARELY MAKE MONEY
- AGAIN, TAKE EARLY ROUNDS AS INVESTMENT, R&D, PROMO AND SALES, PRODUCTION EXPANSION.
This is step by step guide to help you avoid the kind of mistakes that makes you lose when you start Capsim and also tips to get you win the game.
Good Luck and Success!
You should do before start the Capsim
1 - Log in and read Industry Condition Report (Top menu, report tab, last row)
2 - Read Courier Report of last round (to get Market overview, Pricing, Production and Competitors analysis)
3 - Prepare an Excel file to calculate R&D, Sales Forecast and Production for each round.
You can download free Excel file here - LINK TO ALL EXCEL FILES
or Download Capsim Capstone Excel file here - LINK 2
Or email to: mbahelp2002@gmail.com to get Free support for creating excel file.
Free Personal Support for Rounds 1-2
Email: mbahelp2002@gmail.com
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