2. By using the Capstone Courier and the Industry Report
we were able to position our products
We developed two new products
◦ 1st product – introduced at the beginning of the simulation
◦ 2nd product – development began in round 4 due to research
estimation error in Round 3
We wish to continue making new innovative products in
the future to replace outdated segments
3. The under allocation of funds led to decreased sales and
increased inventory.
◦ Competitor’s marketing strategy also led to decrease in sales
due to aggressively high sales budget and marketing expenses
Allocation of funds were important in determining promo and
sales budgets between segments
◦ Emphasis was placed on new products to enhance their
customer awareness and accessibility
Prices had to decrease in order to remain competitive in the later
rounds
We strive to take advantage of all the market segments using a
broad cost leader strategy
4. Through the ability to add sales positions and choose
media outlets, we were able to centralize our marketing
and sales budgets
Allowed to concentrate on target markets that were
highly competitive
Broaden scope of customers through different sales
positions and promo outlets
5. There is a fine line between overproduction and
underproduction
◦ Overproduction – led to excessive inventory and carryover costs
◦ Underproduction – led to lower competitiveness and loss of
revenue
◦ Producing the optimal quantity of each segment to not stock out
or carry excessive inventory after each round
Determine which segments to automate and which to
simply increase or decrease capacity
For enhancement, increase capacity and production for
new products and take advantage of the second shift
6. Decrease employee turnover through the human
resources budget and recruiting
Increase employee productivity through increased
training hours
In the future, we would like to increase employee wages
and provide production incentives to employees
7. One advantage is the reduced R&D development times
for each segment
Other advantages include decreased material and labor
costs
Green incentives were included for production and
aided in sales
Continuation of TQM is very beneficial but investments
need to follow an S-curve
8. R&D issues led to increased borrowing in both debt and
equity starting in Round 4
Borrowing at a lower interest rate was key
In the future, we would decrease long-term borrowing
and manage our finance decisions in a more timely
fashion.
Dividends are useful when you have the excess earnings
and we would establish a corporate dividend policy
9. We are great innovators
◦ Our new products emerged ahead of their target
market segments and were quite competitive
We are seasoned
◦ We have overcome diversity and intense
competition
