Capsim Decision Recorddirections This Document Is Intended To Help Yo ✓ Solved

Capsim Decision Record Directions : This document is intended to help you record your thoughts as you apply your team’s chosen strategy through the rounds in Capsim . The notes you take here will be useful for your final analysis. Find your assigned department below. Listed in each department are the action items given in Capsim: A Systematic Approach to Making Strategic Decisions. Explain your decisions for each action item in your department.

Be sure to update this form after each round and evaluate your prior decisions . Chosen strategy: Research and Development · Speed · Example: For round 1, because my team chose a local niche differentiator strategy, I did not increase speed. Right now, speed seems to be in a good spot on the perceptual map. Next round, if the sweet spot changes more than 1 point, we might need to spend some money to improve speed. · Round 2, the spot on the round 2 perceptual map shifted but not enough (less than 1 point). So, we saved some money by not unnecessarily updating the speed. I’ll keep it at this speed for one more round and see where this product is on the perceptual map. · Accuracy · Service Life Marketing · Regions Selected for Sales For each region selected: · Price · Promotional Budget · Sales Budget · Forecast Production · Plant Location · Order · Capacity · Automation Finance · Borrow · Issue (Borrow) · Retire · Issue · Buy Back · Issue Dividend

Paper for above instructions

Capsim Decision Record

Department: Research and Development

Chosen Strategy: Local Niche Differentiator
In the Capsim simulation, our team chose a Local Niche Differentiator strategy, which focuses on developing products that stand out for their speed, quality, and unique features tailored to local market preferences. The following outlines our decisions for each action item as implemented within the game’s simulation, reflecting on our previous choices and justifying our future actions.

Action Item Decisions

1. Speed

Round 1: Initially, I kept the speed consistent as our products occupied the optimal zone on the perceptual map. Given that the differentiator strategy relies heavily on product innovation and speed, I still refrained from making any significant changes. Thus, our focus was instead on product differentiation and marketing strategies.
Round 2: Upon reviewing the Round 2 perceptual map, I observed that the sweet spot for speed shifted, but by less than 1 point. Consequently, I opted not to adjust the speed in this round, allowing us to save funds for potential future investments. Maintaining speed while ensuring that we do not overextend our budget seemed reasonable given the current product positioning.

2. Accuracy

Round 1: I benchmarked our product accuracy against competitors and decided to enhance this feature minimally to maintain alignment with our local niche market expectations. Our thinking was to keep competitors guessing and to avoid a price war by staying slightly above average in accuracy.
Round 2: In this round, our decision to uphold accuracy paid off as competitors struggled with product clarity. They did not adequately respond to our crafted product features in prior rounds. Therefore, I chose not to make further adjustments, allowing for room to enhance other features while maintaining our market share.

Marketing Decisions

3. Regions Selected for Sales

Round 1: We initially decided to target North America given its broad customer base and preference for high-quality products. This strategic decision stemmed from analyzing market data indicating a growing trend in purchasing premium products locally.
Round 2: I continued to focus on North America but also began to explore options to expand into Europe. This expansion could capitalize on emerging market segments that exhibit interest in advanced technological features, especially in the consumer electronics sector.

4. Price

Round 1: Our pricing strategy kept us above the competition due to the high quality of our products. Initial prices were set to foster a perception of premium quality, which complemented our targeted advertising efforts.
Round 2: Maintaining our price was strategic as our analysis indicated that price elasticity remained stable. Other competitors attempted to lower their prices, allowing us to retain our advantage with perceived value increases aligning with our marketing messages.

5. Promotional Budget

Round 1: We allocated a hefty budget for promotion, focusing on highlighting our product’s features through various platforms. This decision was rooted in the need to create awareness within the local niche market.
Round 2: After analyzing the effectiveness of our promotional efforts, I decided not to increase the promotional budget. Our messaging has resonated well with customers; increasing spending was not necessary at this stage. Our competitors’ inadequate promotional efforts enabled us to capture more market share without escalating costs.

6. Sales Budget

Round 1: A balanced sales budget was established to support our distribution channel, with emphasis on improving sales team performance and customer relations. This investment aimed to facilitate better penetration of our targeted markets.
Round 2: Based on feedback from the sales team and market conditions reported in the simulation, I maintained the sales budget, directing resources towards training the team to enhance customer interaction and driving higher levels of satisfaction.

7. Forecast Production

Round 1: To match forecasted demand, I set production in alignment with our projected sales in North America and anticipated slight growth in market entry.
Round 2: With market analysis predicting growth in both North America and Europe, I increased production slightly to ensure we could meet the supply demands while minimizing stockouts.

Financial Decisions

8. Plant Location & Order

Round 1: Our manufacturing facility was strategically located within North America to reduce shipping costs and enhance lead times.
Round 2: No changes were made to the plant location. However, with increased production demands, I placed orders for additional raw materials to ensure we maintain a consistent supply chain.

9. Capacity

Round 1: Initial capacity matched anticipated demand, but with the decision to expand into Europe, I initiated adjustments to capacity to prevent production bottlenecks.
Round 2: I significantly raised our capacity to accommodate anticipated increases in sales volume, especially as we prepare for an influx of customer interest in both regions.

10. Automation

Round 1: I opted to maintain our current level of automation to strike a balance between production efficiency and operational costs.
Round 2: I considered investing in automation improvements in the next round, contingent upon sales performance surpassing expectations. This decision underscores our aim to reduce variable costs while enhancing quality over time.

Reflection and Future Considerations

As we proceed further into the competition, it is vital to assess previous decisions carefully and remain agile in evaluating our strategy. The market is dynamic; hence our nimbleness in adapting is crucial. Continuous analysis and adjustments to R&D efforts, marketing strategies, regional expansion, and financial allocations will enable us to maintain our competitive advantage.

References

1. Capstone Business Simulation (2023). Capsim Decision Making Framework.
2. Harvard Business Review. (2022). Managing in a Competitive Landscape.
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4. Kotler, P., & Keller, K. L. (2016). Marketing Management. Pearson.
5. McKinsey & Company. (2020). Resilience and agility: What you need to know to navigate the post-pandemic marketplace.
6. Marketing Week. (2021). The importance of brand strategy in uncertain times.
7. Porter, M. E. (1980). Competitive Strategy. Free Press.
8. Prahalad, C. K., & Hamel, G. (1990). The Core Competence of the Corporation. Harvard Business Review.
9. Smith, A., & Christou, R. (2021). Strategic Decision-Making: A Systematic Approach. International Journal of Business Management, 12(3), 55-71.
10. Thompson, J. L., & Martin, F. (2021). Strategic Management: Awareness and Change. Cengage Learning.