WELCOME TO CAPSTONE BUSINESS SIMULATION. Dr. Shook. Auburn University. Objectives. Demonstrate effectiveness of multi-discipline teams working together. Use strategic thinking to an advantage. Test your business acumen.
WELCOME TO CAPSTONE BUSINESS SIMULATION
Customers (OEMs) need sensors for their products
Initially one segment, now breaking into five
Very different customer demands developing between the segments
Diversification in the use and utility of the sensors
In our industry we track the changing customer demand on a perceptual map
Over 8 years the customers will demand much faster and smaller sensors
Market Segments will continue to diverge
Low Tech & Traditional Customers
not giving me what I want
“I want these sensors to be cheap”
“I want them to have been around for a while – no Beta Testing!”
“They have to be moderately reliable.”
“The technology doesn’t have to be cutting edge.”
High Tech, Size & Performance Customers
And I’m not getting what I want!
“These sensors have to be small, like micro, and fast”
“I need them to be right out of R&D, I’m talking ZERO years on the market”
“I’ll pay more to get what I want.”
“I like a pretty high reliability.”
SENSOR INDUSTRY ANALYST PROJECT ONGOING GROWTH
Sees the next 8 years as consistent growth. All market segments increase at a nice “clip,” according to market analyst.
“I see the entire market growing at around 14% or 15% per year. The High Tech market alone will be growing at a whopping 16%.”
I hope those companies out there are ready for that kind of expansion!”
SEC ANNOUNCES BREAKUP OF MONOPLOY
FOR IMMEDIATE RELEASE
William Donaldson, Chairman of the SEC, took dramatic action today by breaking up the monolithic corporation Sensors, Inc.
In a statement to the press Chairman Donaldson outlined the reason and the outcome of this move.
“We cannot allow monopolies of this sort to impact an entire industry!” stated Donaldson. “The customers that utilize these sensors are being held hostage.
“Effective immediately Sensors, Inc will be dissolved into the Andrews, Baldwin, Chester, Digby, Erie and Ferris companies.”
$100 Million in Sales
5 Product Lines
SHAKE UP IN SENSOR INDUSTRY
Company Fires Management Team
After poor results, lackluster sales and angry customer reports, the Chairman of the Board of Directors has announced the immediate termination of the Management Team.
“This is a black day for our company,” said Chairman Shook, “We need to hire a dynamic leadership group who will be able to take this company into the future!”
“Due to this immediate need I have hired the Dream Team to start on January 1st. I expect to see great things from this Executive Team!
WELCOME TO YOUR NEW COMPANY!
are not well
are not pricedoptimally.
And many of our
even know our
“We are payingtoo much forlabor costs.
Very soon we
will run outof capacity to
“We have poorcash flow and
We have nofinancial policystatement.”
A great management tool driven by forecasts and projections. Allows “What if” Scenarios by the company.
RUNNING YOUR COMPANY
THINGS TO DO ON AN ANNUAL BASIS
Good Luck and Enjoy!