In the first few rounds of Andrews Capsim Simulation, our best resource in terms of highest market share was Adam- which was positioned in the high end segment. Adam had the highest price of any human group which we were competing against, and we also had the highest level of awareness of any company that had market share. Due to how high our level of awareness and price were for Adam, we attempted to focus our efforts on this segment. Our strategy was originally one of value, competing in the high end market, and it worked well for the first two rounds but our capacity increased unexpectedly in the second round and we were forced to take out emergency loans to cover our surplus of capacity. We then changed our strategy to focus more on price, …show more content…
As mentioned above, neglecting the other segments because a ridiculous amount of capacity to be produced that we were forced to sell for a fraction of what we had invested. At the end of the seven rounds that we participated in, our most profitable resource was our low end segment specifically Acre. The resources were our most important resources based on the market share that they hold in their specific segment or simply based on how much they sold. The best capabilities of our group were really our group itself. We faced trouble in the first rounds because we were not able to calculate the capacity correctly but we eliminated products that were detrimental for us and really only focused on what was making us money.
Our most prolific resource by the end of round seven was definitely Acre, which was one of our two products that were positioned in the low end segment. Originally, we were producing far too much capacity and without positioning our product effectively we were left with surplus inventory at the end of each round. In order to add value to our resources, we readjusted our product line and eliminated the excess inventory that we had and could not sell. By doing this, we added value to Acre and increased our plant utilization
1.3. In order to estimate the peso discount rate, assume that the International Fisher Effect (IFE) holds. Groupe Ariel's Euro hurdle rate for a project of this type was 8%. Assume that inflation rates are expected to be 7% in Mexico and 3% in France.
Thompson, Arthur A. , Gamble, John E. , & Strickland, A. J. (2006). Strategy: w
The team’s unique reasoning behind the choice of strategy that we executed throughout the simulation played a significant role and set the tone toward the effort and attitude that each team member maintained during the process. The strategy of the broad differentiator was the teams choice, because we thought that it would be the most difficult to accomplish, would take the most time, and provide us all with a well rounded learning experience because we would be able to learn how to be successful in both the low and high tech segment with our products instead of just one of the segments. With our previous knowledge about running a business we all were in agreement that if we could sacrifice and work harder to participate in both segments it would lead to some great competitive advantages. As mentioned by Lui, (2013), “the only competitive global business strategies would be based on differentiation by unique specialization in terms of quality, product, service technology, or cost leadership” (p.2824). The great execution of the strategy by our team enabled us to find success and gain different competitive advantages with each of our sensors, in turn accomplishing our goal of meeting the needs and expectations of both the low and high tech segment.
H Company finished the simulation in the second to last position. I believe that is a strong indicator that my competitive intelligence level was low for this simulation. H Company’s Earnings Per Share report increases for year 12 and 13 followed by decreases for years 14-18. My ability to predict the competition was below par. In fact, because I spent more money on the private label brand, I may have ended up putting myself in a worse position. My ability to predict my competitions next move was not good. Every year D Company was able to achieve more market share, while H Company gained less, and less.
We adjusted focus to our niche market, sold off capacity in the low end and traditional markets, and proceeded to decrease our production going into the next round. While selling capacity was the correct financial decision to combat our emergency loan, we were then left with stock outs in all of our product lines. As a result, we continued to struggle with overproduction and avoiding stock outs, but made improvements resulting in less drastic inventory swings in the later
I believe that the fundamentals and criteria of my strategic approach were pointing in the right direction. I assumed that the high growth potential market was for
In order to stay competitive in an industry with an increasing number of players, companies have to be
I believe that this simulation was a great tool in helping us as MBA candidates to see just how companies succeed and/or fail to achieve their growth targets in revenue and profitability. However, an organization heightens the probability of achieving profitable growth whenever it has a clear expansion strategy and a strong execution infrastructure. One without the other impairs the probability of success. I conclude that there are two main reasons for such: 1) inadequate consideration of opportunities within the core business, adjacent to the core business or within new customer sub-segments; 2) an organizational infrastructure that cannot support successful execution.
Since quarter one was the first quarter of this simulation, I was unaware of how difficult it was going to be to make all the different decisions. Firstly, I had to choose a Company name. Because I was selling computers, I thought that the name “Dev-Tech” was a perfect fit being that this simulation was about development and technology. Next, I had to choose a target segment. I knew going into this simulation that it would be better to invest in the more expensive goods as it would benefit me in the end. The segment that didn’t care about price was Mercedes, so that is the segment that I made my first priority.
During weeks 7 and 8, the group learned that any strategy could win the game as long as our costs are low. As a matter of fact, it 's about maximizing profits, and we should have focused on our market share as well as advertising. For example, if we would have kept our cost down and used that money for publicity, then it would have increased our profits.
Tanya is a 21-year-old African American female who was referred by Southern Psychiatric Unit after she called 911 as a result of beings annoyed with her family and co-workers. She complained that her employer puts her in places to do paperwork and not giving her 70 hours a week. They were cutting her hours from 10 to 6 a day. She reported that she was feeling suicidal when she called 911. Prior to calling 911, Tanya reported that her baby father Derrick is in her brain singing and rapping all of the time. She reported that Derrick works at Taco Bell. She reports that she had to have sex with Derrick in order to quiet down his voice; however, if she has sex with others, the voices would get louder.
As I get further and further along in this simulation, I have noticed that I am beginning to understand what it takes as a marketing manager in order to be successful. Careful considerations must be made to be sure that the right decisions benefit both Minnesota Micromotors, Inc., and our customers. Our success comes from our customers’ success and loyalty that they have with this company. In finding ways to incorporate the important factors that matter most to our customers is what will bring in new customers and keep our existing ones around for the long hall.
The highest priority was building effective and successful team environments along with communication techniques. Excellent communication skills are essential in virtual teams, which is why this should always be a crucial area of personal development for team members (Manktelow, J., 2012). The second instrument in understanding the Capsim simulation strategy was having knowledge of the market growth rate and the key four customer expectations
The customer simulation exercise of Minnesota Micromotors Inc, was a very intriguing one. It exposed me to a variety of moving pieces that enable a successful business performance across different objectives and parameters.
Mr. Alfaro Burgos, the vice president for sales of Dyners Corporation. It is a family firm that manufactures stainless steel and silver plated tableware. After some time, the inventory of the company showed a shortage. He discovered some mispacking of silver plated tableware in the warehouse of the corporation. He hired an industrial security firm to investigate the deprivation in the warehouse. It did not take long for the agent to discover the truth. Karlo Deles, the warehouse supervisor was the man behind the internal