This website uses cookies to ensure you have the best experience. Learn more

Capsim Final Report

3940 words - 16 pages

1. Initial Strategy
The initial strategy was to maintain a competitive presence in each segment by keeping our prices aligned with the average for each target market, while maintaining costs low. Specifically, it was our goal to become the leader in Traditional and low-end segments of the sensor business by allocating significant resources to R&D, marketing and promotions for these products. Our differentiator would be the result of a high investment in R&D to ensure our products were the best available.
The board decided that the company should be judged on its ability to make a profit, gain market share, provide positive ROA and make money for our shareholders with an increasing ...view middle of the document...

This allowed us to see where our product currently was and where it should be. Depending on other teams’ product placement we would adjust accordingly. For instance, in the Low End market, other groups refrained from updating products each year, once this was identified we too, stopped advancing our products to save money. Since the entire market held their products constant sales did not decline.

Once the decision was made to transition our Performance and Size products to Low End and Traditional we had to decide on an approach. We could make gradual changes that were done by December each year and allowed us to update product specifications annually, or we could use the forecast and make the change in one adjustment. The latter would not allow us to revise the product for several years but it also would not allow the other teams to know what we were doing until the products finished their move. We decided that the surprise positioning was the better option as it wouldn’t allow the other competitors time to mimic our decision if it turned out to be successful.

When it comes to pricing we always strived to provide one of the lowest prices in the market. We decreased product prices by $0.50 on each product each year to appeal to consumers. Since providing a low cost product was one of our strategic goals we did not stray from decreasing prices. Looking back, perhaps we shouldn’t have been so loyal to our strategy when we were unable to turn a profit. While a strategy is important to stick to, being a profitable company is the ultimate goal.
 
3.  Discussion of how and why the strategy evolved over time.

Initially, we wanted to focus on being the market leader in Low End and Traditional products while still maintaining a presence in High End, Size and Performance. However, after the first year the products were not placed properly and we lost all competitiveness in High End, Size, and Performance. We made the decision as a team to transition the products to Low End and Traditional to reduce R&D costs while keeping a High End product. We wanted a presence in a sector outside of Low End and Traditional but the strongest presence in those two sectors.

Perhaps our biggest mistake was not evolving our strategy in other areas when we should have. Even when we were struggling to turn a profit we maintained investments in TQM, R&D, and marketing while still decreasing our prices to lead the market as a low cost provider. The strategy seemed like it would work, however, our investments outweighed profits and we kept falling deeper and deeper into debt. Looking back, our strategy should have evolved in one or all of those areas to give our company a shot a succeeding. Our company overcommitted on investments and with our product repositioning we didn’t have the sales to bail us out. As the company took on more and more debt the rates increased and the financial hole got deeper and more difficult to overcome.
 
4.  Discussion of...

Other Papers Like Capsim Final Report

Holidays In Albania Essay

1636 words - 7 pages Have you ever thought about having exciting and incredibly cheap vacations? Albania might be the right choice. According to My Travel Guide, Albania is ranked the fourth among ten places worth visiting in Eastern Europe (“Top 10 Eastern European Destinations”). One can encounter three kinds of vacations in this Mediterranean country: winter, summer, and cultural. The ideal places to spend your winter vacations are the Albanian Alps. They are

A Heart Of Darkness Essay

1748 words - 7 pages In this short story, there are frequent significant subject and ideas that make the story, "A Heart of Darkness," by Joseph Conrad, and haunting novel. The main theme is absolute white power over the natives. The theme validates the corruption, and the dependence caused by the white people as they took over the Congo. White men were giving all the power; they had no self-control, and in the end they did not use wisely. The white men became

The Aspects Of Vulnerability Among The Exploited In Medical Research

2287 words - 10 pages Essentially, everyone is in some state of vulnerability. However, some of us are more susceptible to harm due to our vulnerabilities. The susceptible are the individuals with the greatest risk. These individuals risk the loss of their autonomy, and maybe even their lives. Vulnerable populations can be found in every subset of society. However, as previously mentioned, there are some vulnerable populations that are at an even greater risk than

The Hitchhiker’S Guide To The Galaxy

1171 words - 5 pages The Hitchhiker’s Guide to the Galaxy As the human race makes life-changing discoveries, it is made apparent that there is always more to learn as the universe, instead of becoming familiar, is becoming absurd. The Hitchhiker’s Guide to the Galaxy, written by Douglas Adams, as well as the 2005 film adaption, portrays absurdity to be an all-encompassing system in the universe. Through the introduction and attempt to understand lack of reason, the

The Ford Motor Company Wage Increase Of 1914 And The Theory Of Incentives And Efficiency Wages

1252 words - 6 pages ‘It’s not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages’ (Henry Ford, cited in Johnson and Weinstein 2004, p. 2). When the Ford Motor Company announced that it would more than double the wages of its workers in January 1914 to a ‘five-dollar day’ minimum, was this a contradiction to Henry Ford’s statement? If customers are actually the ultimate payers of wages, then more than

Historical Analysis Of The Economical Breakthroughs Of The Industrial Revolution

1396 words - 6 pages A Historical Analysis of the Economical Breakthroughs of the Industrial Revolution During the Industrial Revolution, many elements of society experienced huge breakthroughs that would change the way they functioned forever. Economics were definitely one of them. With many new inventions and many factories appearing, many, many, more resources were being created than ever before. Also, all of the revenue from these resources was being given to

Leadership Portrayed in Monologue from Shakespeare’s Henry V

1214 words - 5 pages Leadership is defined as a socially constructed process and which also affect organizational future outcomes. Leader is someone at high position who have overall duty for an organization, she or he decide what to do and the way how to achieve it. (Carter and Greer, 2013)The role of leader is extremely important for an organization, leader use their own power to influence the followers though many different ways such as motivation in order to

Cuba Civil Rights

1906 words - 8 pages of this, the black market is the main way people get money, according to Corrales. The only people to receive these limited rights include members of the government and military. The final form of abuse the government uses to steal from the people through the courts. “World Report 2013 Cuba” says the police departments in Cuba harasses, assaults, and imprison human rights defenders who attempt to document the abuses. Moreover, if you take money

US Freight System

1273 words - 6 pages General Environment Each American requires the movement of approximately 40 tons of freight per year across the freight network. This includes everything from shirts to lawn mower to orange juice. • As the U.S. population expands, the U.S. freight system will be called upon to meet the demands of a larger population • Between 2010 and 2035, the system will experience a 22 percent increase in the total amount of tonnage it moves • By 2050, with

Democratic Peace Theory

1852 words - 8 pages Goodman Contributed Reporting to This Story from Madrid, Spain. Jake Tapper, Jim Sciutto, Evan Perez, David Simpson, and Jim Acosta Also Contributed to the Report Written by Tom Cohen in Washington. "Top Senator: Obama Didn't Know of U.S. Spying on Germany's Leader." CNN. Cable News Network, 01 Jan. 1970. Web. 08 Nov. 2013. Gleditsch, Nils Petter, and Havard Hegre. "Peace and Democracy: Three Levels of Analysis." The Journal of Conflict Resolution 41.2

Booker T. Washington

1621 words - 7 pages “Success is to be measured not so much by the position that one has reached in life as by the obstacles which he has overcome” –Booker T. Washing. Booker Taliaferro Washington was born in Hale’s Ford, Virginia on April 5th, 1856 to Jane Burroughs and an unknown White man. Washington was married three times. His first wife was Fannie N. Smith from Malden, West Virginia. Booker and Fannie were married in the summer of 1882 and had one child

Related Essays

Capstone Essay

5568 words - 23 pages ® EXAMINATION GUIDE ® Capsim Management Simulations, Inc. Welcome to Comp-XM Your Registration Number If your instructor or school did not give you a Registration Number, you will need to register online using a credit card or checking account. Welcome to Comp-XM® an integrated evaluation tool that will allow , you to demonstrate your business skills. Comp-XM has two sections: 1. A business simulation similar to the one you just

Freedom And Responsibility Essay

2141 words - 9 pages directs the State Department to include in its annual global human right report, information detailing the state of press freedom and the extent to which governments are supporting or tolerating or are actually involved in violations”. Signing the law in an Oval Office ceremony, President Obama said it sends a solid signal about American rights regarding freedom of the press. “The Daniel Pearl Freedom of the Press Act requires the State

Hate Crime Laws Essay

2348 words - 10 pages repeatedly beat him with they’re sticks. A man named George Holliday videotaped the whole thing from his balcony, andthe video got out other officers saw it. One of the officers only got suspended for 66 days in 1987 and the others got charged for filing false report, a mere misdemeanor. Unfortunately, North Carolina has already faced a similar dilemma that ended with the same kind of lax punishments. Laura Schneider, Michelle Smith, Loren Hyman

Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages Rational Emotional Behavior Therapy Case Study of Sarah: A Conceptualization and Treatment Plan Rational emotive behavior therapy, REBT, was developed by Albert Ellis and holds the central belief that the events in our lives do not cause our disturbances but that they are instead caused by our view of the events (Murdock, 2009). Murdock (2009) states that “people are seen as responsible for their behavior” (p. 279) but, because they are