1 / 20

Capstone

Capstone. Computer Based Simulation. The Playing Field. $100M electronic sensor manufacturer. Market dominated by handful of firms. No outside competitors or substitutes. Benign environment. Strategic Map. Large. Size. Small. Fast. Slow. Performance. Product Segments. Large.

marjorie
Download Presentation

Capstone

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Capstone Computer Based Simulation

  2. The Playing Field • $100M electronic sensor manufacturer. • Market dominated by handful of firms. • No outside competitors or substitutes. • Benign environment.

  3. Strategic Map Large Size Small Fast Slow Performance

  4. Product Segments Large Low-End Performance Traditional Size High-End Size Small Fast Slow Performance Perceptual Map

  5. Each Segment has a Sweet Spot Low Large 2 4 Perf 1 Trad Size Sweet Spot 3 5 Size High Small Fast Slow Performance Perceptual Map

  6. Segments drift over time Large Low Perf Size Trad Size High Small Fast Slow Performance Perceptual Map

  7. Able Price Segments Two Stage Purchase Decision Stage 1 - Match Product to Market Size 1. Product must plot within the segment. Able 2. Product must fall within price guidelines. Performance Able Quality 3. Product must fall within quality guidelines Segments

  8. Two Stage Purchase Decision Stage 2 - Rank Best Product Quality 1. Positioning 2. Age 3. Quality 4. Price Position 3 Sweet Spot AB 0 Yrs 1 Age Price 20000 25000 HIGH END $30 $40

  9. Segment Criteria Ranking Traditional Low End High End Pfmn Size Age Price Position Quality Price Age Position Quality Position Age Quality Price Quality Position Price Age Position Age Quality Price

  10. Functional Areas Production R&D HR Marketing Finance

  11. Research & Development AB • Set Product coordinates (Position) • Set MTBF rating (Quality) • Drives Perceived age (Age) • Drives breadth of product line AB High High Eight < < < Low Low One Quality Age Breadth

  12. R & D Factors on Existing Products • Cycle time affected by: • Automation level of production line • Number of projects underway • Distance moved on perceptual map High High High Long < < < < Low Low Low Short Automation Level Number of Projects Distance moved Cycle Time

  13. Marketing • Price • Promotion Budget • Sales Budget • Set Sales Forecast • Set Credit Policies AR/AP

  14. Production • Set automation level • Buy or sell capacity • Schedule production • One year lag to add capacity or automate

  15. Finance • Acquire Capital • Issue Stock • Short Term Debt • Issue Long Term Bonds • Set Dividend • Retire Long Term Bonds • Retire Stock • Emergency Loan

  16. CAPSTONE STRATEGIES ANALYSIS S.W.O.T Analysis Competitor Analysis Competitive Analysis STRATEGY Mission Statement Goals • Business-level strategy: • Overall Cost Leader • Cost Leader with Focus (Low Tech or Product Life-Cycle) • Differentiator • Differentiator with Focus (High-Tech or Product Life-Cycle) FUNCTIONAL PLANNING Marketing Production Finance R&D HR PERFORMANCE ASSESSMENT Success Measurements Ratios Statistics

  17. Success Measurements • Choose at least TWO prior to Round 3 • Ending Stock Price must be weighted no less than 20% • Others: • Cumulative Profit • Avg. Market Share • Asset Turnover • Avg. ROA • Avg. ROE • Avg. ROS • Criteria and Weights will remain proprietary throughout the simulation

  18. Situation Analysis • Perceptual Map • Demand Analysis • Capacity Analysis • Margin Analysis

  19. Pre-Game Strategy Memo • Intended Strategy • Corporate: In which segments will you compete? • Business: How will you compete in each segment? • Situation Analysis • Specific Goals • Strategies and Tactics • R&D actions • Marketing actions • Production actions • One (1) page of text; one (1) page of exhibits • Due: Monday Nov. 4 @ 2:00 p.m.

  20. Capstone Schedule • Monday 11/4: Year 2000 Decisions 12:00 p.m. Wednesday 11/6: Year 2001 Decisions 9:00 p.m. • Monday 11/11:  Year 2002 Decisions 12:00 p.m. • Thursday 11/14:  Year 2003 Decisions 12:00 p.m. • Monday 11/18: Year 2004 Decisions 12:00 p.m. Wednesday 11/6: Year 2005 Decisions 9:00 p.m. • Monday 11/25:  Year 2006 Decisions 12:00 p.m.

More Related