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Capsim Presentation

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Danielle Castillo

on 12 May 2011

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Transcript of Capsim Presentation

Industry 2: Digby Round 1 Round 2 Round 3 Round 4 Round 5 Round 6 Round 7 Gaze & Daze size & performance Performance:
13.6 Sales Stock Low Tech: Perf 5.8 Size 14.2
High Tech: Perf 7.4 Size 12.6 High Customer Awareness Positive Profits - Low Daze:
Decreased both promo and sales budget Gaze:
increased promo and sales budget Capacity significantly increased from 21 to 400 Stocks increased by $1466 Daze: top of low segment chart Gaze: improved quality Increase
Capacity Kept R&D same Increase Sales and Promo Budgets Stocks fall Problem from last round:
Leftover inventory prevents payment of expenses Solution
reduce product price to 2nd lowest
keep marketing budgets same
increase sales budget
establish new improvements to prepare for next round
cease production Loss moves from ($21,949) to ($12,258) good sign! Move of not improving Daze and inserting $10,000 into short term debt in round 5 was the killer for next rounds. New Daze and Gaze ready GOOD
most Daze inventory gone
loss is reduced

lower pricing causes Gaze to have negative profit Steps for this round:
increase price to improve contribution margin
reduce marketing budget but increase sales budget Issue Bonds? BIG TROUBLE
Debt increased from ($12,258) to ($18,507) Two Things Went Well...
1. Sales remained highest
2. Loss and Debt are LEGEN...wait for it...DARY Daze Performance:
12.5 Gaze
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