Capsim Final Presentation

The little 'red' book of Capsim A supplement to the green 'bible' Performance Management and Reporting Fundamentals: A Global Accounting Perspective Professor Barsky Spring 2010 Villanova University Digby 'Crisis' Management Team Angela Antonini Katherine Majewski Kristyn Kaari Michael Brand Ronald Reese These six basic strategies can be the starting point for your own custom strategy. Cost Leader with Product Lifecycle Focus Differentiation with Product Lifecycle Focus Broad Cost Leader Broad Differentiation Niche Cost Leader Niche Differentiator Undermining the competition is not more important than a positive contribution margin. Acquiring the capital needed to expand assets, particularly plant and equipment can be achieved through: Current debt Stock issues Bond issues Profits The more debt you have relative to your assets, the more risk you present to debt holders and the higher the current debt rates. Even when you're profitable, cash is still king... Promotion and Sales Budgets Strategy Promotion and sales budgets affect sensor appeal. Finance Awareness and accessibility go hand in hand in making the sale. The former is about encouraging the customer to choose your sensor; and the latter about closing the deal via your salespeople and distribution channels. If you build it, they will come... ...or will they? Positioning Conceptually, a segment is defined by customers saying, "I want this, but within limits" The dashed outer circle defines the outer limit of the segment. Customers are saying, "I will not purchase a product outside this boundary." Flying cars just don't sell that well... Capacity can be sold at the beginning of the year for $0.65 on the dollar value of the original investment. If you sell capacity for more than its depreciated value, you make a gain on the sale. This is reflected as a negative write-off on the income statement. Selling capacity pays the bills... ...and Big Al Changing Performance, Size, and MTBF Improving positioning and reliability will make a sensor more appealing to customers. Small revisions have big returns... Evaluating Performance Balanced scorecards allow companies to gauge their performance by assessing measures in four categories. Financial Internal Business Process Customer Learning and Growth Sometimes you have to shrink to grow... comeback kids of capsim?