The Ferris Company utilized a unique strategy to win the simulation, focusing on satisfying customers and maximizing contribution margins. Their strategy maintained a presence in all market segments by distinguishing products with excellent design and keeping research and development, production, and material costs low. This allowed them to compete on price while increasing automation. In later rounds, they introduced new high-end products, bought more capacity, invested in quality management, and managed finances appropriately, learning that profitability was more important than market share.

1. Consulting Report
Harrison Anastasio & Anthony Fecondo
Ferris Co.

2. Ferris Co.
Executive Summary
Situation
Ferris Co. will construct a map of general guidelines that
will aid future BA 3101 students in how to construct a
successful firm in the sensor industry.
• Deciding on an early strategy
• Rely on available resources
• Early Investments
Hypothesis
The use of the four analytical frameworks will help us better
understand this situation.

3. Ferris Co.
P.E.S.T Analysis of 2015-2023 of Capsimlandia
Political
Technological
Economic
Social
• Anti-monopoly
• Growing expectations • Higher performance
• Smaller size
• Automated production
• Steady gazelle growth

4. Ferris Co.
Porter’s Six Force Analysis of Sensor Industry
Threat of Entry
Industry Rivals: High
Supplier Power: Low / Medium Substitutes
ComplementsBuying Power: High
• None
• Traditional
Andrews, Baldwin, Chester, Digby,
Erie, Ferris
• Low End
Andrews, Baldwin, Chester, Digby,
Erie, Ferris
• High End
Andrews, Baldwin, Chester, Digby,
Erie, Ferris
• No buyer loyalty
• No switching costs
• None
• None
• Materials
• Labor
• Size
Andrews, Baldwin, Chester, Digby,
Erie, Ferris
• Performance
Andrews, Baldwin, Chester, Digby,
Erie, Ferris

5. Ferris Co.
S.W.O.T. Analysis of a Prototypical Capsim Team
Strengths
Threats
Weaknesses
Opportunities
• In class time to meet
• Product in every segment
• Different fields of study
• Time conflicts
• Unfamiliar software
• Scheduling conflicts
• Balance Scorecard
• Practice Rounds
• 13% market growth
• Competition
• Labor negotiations
• No buyer loyalty

6. Ferris Co.
Problem Statement
Problem Statement Achieve a perfect Balance Scorecard
Strategies
• Max out automation in Traditional and Low End
• Invest in TQM
• Take out long-term debt
• Satisfy customer wants
• Satisfy worker demands

7. Ferris Co.
Force Field Analysis
Propelling Restraining
Situation: Perfect Balance Scorecard
• Understanding the
Balance Scorecard
results from the Capsim
decisions
• Commit to company
strategy
• Team communication
• Big Al Loans
• Competition within
segments

8. Ferris Co.
Tracking Methods

9. Ferris Co.
Recommandations
Low End / Traditional R&D - Pay close attention to age and price
High End / Size / Performance R&D - Position your product further in front of the suggested spot if
affordable
Marketing - Forecast effectively to prevent stock outs and excess inventory. Also invest 2 million in
promotions and sales for each segment.
Production - Buy capacity and automation early
TQM - Invest $2 million in rounds 3 and 4
Finances - Always have 3.5% cash on hand and take out long-term debt

10. Experience Report
Harrison Anastasio & Anthony Fecondo
Ferris Co.

11. Ferris Co.
Executive Summary
The Ferris Company won the simulation by utilizing a
unique strategy tailored specifically to the rules of the
simulation. Our company focused on satisfying customers
and maximizing contribution margins.

12. Ferris Co.
P.E.S.T Analysis of 2015-2023 of Capsimlandia
Political
Technological
Economic
Social
• Anti-monopoly
• Growing expectations • Higher performance
• Smaller size
• Automated production
• Steady gazelle growth

13. Ferris Co.
Porter’s Six Force Analysis of Sensor Industry
(Round 0)
Threat of Entry
Industry Rivals: High
Supplier Power: Low / Medium Substitutes
ComplementsBuying Power: High
• None
• Traditional
Andrews, Baldwin, Chester, Digby,
Erie, Ferris
• Low End
Andrews, Baldwin, Chester, Digby,
Erie, Ferris
• High End
Andrews, Baldwin, Chester, Digby,
Erie, Ferris
• No buyer loyalty
• No switching costs
• None
• None
• Materials
• Labor
• Size
Andrews, Baldwin, Chester, Digby,
Erie, Ferris
• Performance
Andrews, Baldwin, Chester, Digby,
Erie, Ferris

14. Ferris Co.
Porter’s Six Force Analysis of Sensor Industry
(Round 9)
Threat of Entry
Industry Rivals: High
Supplier Power: Low / Medium Substitutes
ComplementsBuying Power: High
• None
• Traditional
Andrews, Baldwin, Chester, Digby,
Erie, Ferris
• Low End
Andrews, Baldwin, Chester, Digby,
Erie, Ferris
• High End
Andrews, Baldwin, Chester, Digby,
Erie, Ferris
• No buyer loyalty
• No switching costs
• None
• None
• Materials
• Labor
• Size
Andrews, Chester, Digby, Erie, Ferris
• Performance
Andrews, Chester, Digby, Erie, Ferris

15. Ferris Co.
Company Strategy
Broad Differentiator A Broad Differentiator strategy maintains a presence in every
segment of the market. The company will gain a competitive advantage by distinguishing
products with an excellent design, high awareness and easy accessibility. The company
will develop an R&D competency that keeps designs fresh and exciting. Products keep
pace with the market, offering improved size and performance.
Broad Cost Leader A Broad Cost Leader strategy maintains a presence in all segments
of the market. The company will gain a competitive advantage by keeping R&D,
production and material costs to a minimum, enabling the company to compete on the
basis of price, which will be below average. Automation levels will be increased to improve
margins and to offset second shift/overtime costs.
Mission Statement Our mission is to provide products that are tailored specifically to the
needs of each segment while also offering the lowest price possible, for our consumers, in
the Low End segment and the Tradition segment.

16. Ferris Co.
K.P.I for our Company Strategy

17. Ferris Co.
K.P.I for our Company Strategy

18. Ferris Co.
K.P.I for our Company Strategy

19. Ferris Co.
S.W.O.T. Analysis of a Prototypical Capsim Team
(Round 0)
Strengths
Threats
Weaknesses
Opportunities
• Cash on hand
• Equal Market Share
• Low contribution margins
• Insufficient marketing budget
• 13% market growth
• No customer loyalty
• Competition
• No customer loyalty
• No Big Al loans

20. Ferris Co.
S.W.O.T. Analysis of a Prototypical Capsim Team
(Round 9)
Strengths
Threats
Weaknesses
Opportunities
• High automation
• High contribution margins
• High profits
• Highest stock price
• Product count
• Employee turnover
• Capacity
• 13% market growth
• No customer loyalty
• Competition
• No customer loyalty
• No Big Al loans

21. Ferris Co.
Action Plan for Rounds 9 - 12
Year 9 Year 10 Year 11 Year 12
1.Introduce new
products in High-
End, Performance,
and Size
2.Buy More Capacity
3.Issue Dividends
1.Buy More Capacity
2.Manage Finances
Accordingly
3.Invest in TQM
1.Buy More Capacity
2.Manage Finances
Accordingly
3.Invest in TQM
1.Buy More Capacity
2.Manage Finances
Accordingly

22. Ferris Co.
Force Field Analysis
Propelling Restraining
Situation: Company Strategy
• No Customer Loyalty
• No Switching Costs
• High Buyer Power
• High End, Size, and
Performance: Expensive
R&D
• Low End, Traditional: Lower
prices results in lower
contribution margins

23. Ferris Co.
Key Challenges
Ferris Co.
Recovering from Low-Scores
Projecting Sales Forecast
Buying enough Capacity & Automation
Our Industry
Competitively Pricing High-End,
Performance, & Size
Inflated Worker’s Wages
High-Level of Competition

24. Ferris Co.
Performance Overview
What We Learned Where We Succeeded Where to Improve
1.Profitability > Market Share
2.Understanding of Various
KPIs/Ratios
3.Appreciation for Complexity
of Business
1.Accommodating
Consumers
2.High Automation for Low-
end / Traditional
3.Playing Our Strengths
(Inflating Worker’s Wages)
1.Introduce More Products
2.Buy Capacity Earlier
3.Spend More on Marketing

25. Thank You
Harrison Anastasio & Anthony Fecondo
Ferris Co.