CapSim CapStone 2017 Winning Guides and Tips

 

Capsim Guides and Tips

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New Updates with step by step and round by round guides

 

FREE DOWNLOAD: http://top20mba.com and http://topmbabooks.com

 

 

Table of Contents

TIP 1. Industry Condition Report and Decisions Plan Excel file. 4

TIP 2. Drift Spots, Ideal Spots and Sweet Spots. 6

TIP 3 - Re-position Low End sensor for only ONE time in Year 3. 8

TIP 4 - Lower MTBF to the minimum of the range (except Performance segment only) 9

TIP 5 - R&D 8 Rounds Guides - Round by Round Guide from Round 1 to Round 8. 11

ROUND 1. R&D.. 13

ROUND 2. R&D.. 13

ROUND 3. R&D.. 13

ROUND 4. R&D.. 14

ROUND 5. R&D.. 14

ROUND 6. R&D.. 14

ROUND 7. R&D.. 14

ROUND 8. R&D.. 14

TIPS 6 - MARKETING - 8 Rounds guides - Round by Round Guide from Round 1 to Round 8. 16

PRICING.. 17

SALES FORECASTING.. 18

TIP 7 - MARKETING - 8 Round by Round Guide from Round 1 to Round 8. 21

Round 1 - Marketing. 21

Round 2 - Marketing. 21

Round 3 - Marketing. 21

Round 4 - Marketing. 21

Round 5 - Marketing. 22

Round 6 to 8 - Marketing. 22

TIP 8 - PRODUCTION - 8 Round by Round Guide from Round 1 to Round 8. 23

8.1. SETTING PRODUCTION.. 23

8.2. ADDING MORE CAPACITY.. 23

TIP 9 - PRODUCTION - 8 Round by Round Strategy. 25

Round 1 - Production. 25

Round 2 - Production. 25

Round 3 - Production. 25

Round 4 - Production. 25

Round 5 - Production. 25

Round 6 and 7 - Production. 26

Round 8 - Production. 26

TIP 10 - HUMAN RESOURCES DECISIONS. 27

TIP 11 - TQM/Sustainability RESOURCES DECISIONS. 28

TIP 12 - FINANCE DECISIONS. 29

TIP 13. Check the Income Statement 32

Tip 14. Check the Balanced Scorecard. 32

TIP 15 - DECISIONS TO GET HIGHER GRADES. 32

15.1. Graded on Balance Scorecard. 32

15.2. For Days of Working Capital 32

15.3. Leverage. 33

15.4. Graded on Profit 33

15.5. Graded on Stock Price. 33

TIP 16 - Save Our Companies in the Mid Games. 34

16.1. Find the lease profitable segments, improve them or get rid of them. 34

16.2. Save a company in Lack of Cash. 34

TIP 17. CALCULATION OF FORECAST AND PRODUCTIONS. 34

TIP 18 - FAQ Questions and Answers. 35

1. Not making Profits in first Rounds?. 35

2. Competitors and Computer players. 35

3. Computers are doing well with high quality products and more market shares. 35

4. Compete by PRICE.. 35

5. Compete by PRODUCTION.. 35

6. Compete by SEGMENT.. 36

7. How to exit or remove a sensor?. 36

TIP 19. READING AND DISCUSSION and SEE VIDEO GUIDES. 36

TIP 20. View Samples strategy before start the game. 36

Sample Strategy - Round 8 – R&D.. 37

Sample Strategy - Round 8 – Marketing Price. 37

Sample Strategy - Round 8 – Marketing Ad and Promo budget 37

Sample Strategy - Round 8 – Production. 38

Sample Strategy - Round 8 – Finance. 39

Sample Strategy - Round 8 – Profoma Income Statement 39

Sample Strategy - Round 8 – Balanced Scorecard. 40

FREE DONWLOADS FOR CAPSIM, CAPSTONE, COMPXM AND FOUNDATIONS. 42

1. Free download for CAPSIM CAPSTONE 2017. 42

2. Capsim 2017 - Winning Tips from Champions. 42

3. Personal Online Assistance. 42

4. FREE DOWN LOAD SUN TZU ART OF WAR - EBooks -  LINK.. 42

5. CAPSIM 2017 - WINNING GUIDES AND TIP - FULL COLLECTION 2017. 42

6. FREE ONLINE HELP FOR DECISIONS CHECKING AND REVIEWS FOR ROUND 1, ROUND 2  OR ANY 2 ROUNDS. 43

7. Capsim CapStone 2017 - Winning Guides and Tips (ALL FREE DOWNLOAD) 43

 

 


 

Capsim CapStone, Foundation are really top simulation games for business people and students, we tried the game many rounds and rounds, for long time, besides other games like BSG online for shoes and drones, flying camera. Capsim Capstone and Capsim Foundation use sensors are the key products because of their popularity in all aspects of life and work. To share our finding with players around the world for free, we have collected winning guides and tips from many experienced players and our own findings from the games, many games, to support new players get the most from the game and good lessons from time and efforts.

Thanks for Capsim Creators and Players.

Good Luck and Success!!

 

TIP 1. Industry Condition Report and Decisions Plan Excel file

So, when we start Capsim 2017, we can have 4 options or 4 different strategies.

Option 1. Follow Drift suggested from Industry Condition Report (each Industry is different from others). You can download excel file from http://top20mba.com or http://topmbabooks. for free.

 

http://top20mba.com/images/2016.taphuan/capsim-guides---004---Strategy-1-table.png

 

We can use the Excel file to calculate Specifications for R&D more easily.

http://top20mba.com/images/2016.taphuan/capsim-guides---004---Strategy-1-table-excel.jpg

WE NEED TO INPUT FIRST LINE (ROUND 0) WITH SPECIFIC NUMBERS FROM INDUSTRY CONDITION REPORT OF YOUR OWN INDUSTRY (THIS LINE LOOK FAMILIAR BUT THEY ARE DIFFERENT FROM ANY GAME TO GAME, CLASS TO CLASS).

The segment circle drift rates are the 2nd bottom line (Note to get data from Your Industry Condition report to Excel file)

The segment Ideal Spot Offset is the bottom line (Note to get from Your Industry Condition report to Excel file)

If we follow this strategy, our products are up to date but not very competitive, because most of competitors try to upgrade toward Ideal Sport which is much better specifications.


 

TIP 2. Drift Spots, Ideal Spots and Sweet Spots

Option 2. Follow Drift Plus Ideal Spot Offsets suggested from Industry Condition Report (each Industry is different from others)

This strategy is the Highest upgrade specification, therefore, it often cost too much and takes too long time for R&D.

Also, this specification is too good, (ideal), so, we often out of stock, we can not produce enough to sell to market. Then, we get less Profit. So, we should select somewhere called sweet spots, which are 50% adjustment between ideal and drift spots. The key is to get higher Pfmn and Size than top selling products, not to produce perfect products at high cost. Just make products better than competitors and also meet customers demands.

 

http://top20mba.com/images/2016.taphuan/capsim-guides---004---Strategy-2-table-excel.jpg

If should not follow strategy 2, it is too much advance in R&D and it cost too much time and money.

 

OPTION 3. Half way from Drift to Ideal Spot Specification.

http://top20mba.com/images/2016.taphuan/capsim-guides---004---Strategy-3-table-excel.JPG

 

OPTION 4. One third way from Drift to Ideal Spot Specification

http://top20mba.com/images/2016.taphuan/capsim-guides---004---Strategy-4-table-excel.JPG

 

We often start with Strategy 4 or 3 above. It is the best way to get Profit and also Competitiveness at the same time.

 

 

 

------

We need to create a base for our strategy, we can use excel file like this - LINK TO FILE 

NOTE: Numbers for the first line is taken from Industry Condition Report. Each Industry has DIFFERENT starting numbers, so, we need to download Industry Condition Report and input these Specification in the excel file to create our own STRATEGIES (page 2 of 8 from report). Only for Round 0 of STRATEGY 1 - then other cells will be automatically updated.

Note to put Specification of your own Industry in to this line in excel files.

 

 


TIP 3 - Re-position Low End sensor for only ONE time in Year 3

The original Low-End sensor should only be re-positioned once for the entire game, not to the Ideal Spot. 

The Traditional segment sweet spot is the same with Ideal, Drift spots because Ideal Offsets is 0-0 for this segment.

The High End, Performance, and Size segments have sweet spots half way from Drift to Ideal Sport. We can use excel file to calculate (download at the end of this article).

Note: If Sweet spot with half way cost too much and too long time to R&D, we can select strategy 4 with 1/3 way from Drift to Ideal spots.

We upgrade original Low End only one time for the entire game, upgrade in Year 3 with specification of Year 4 Sweet Spot (PFMN 4.1 - SIZE 16.3 or PFMN 4.9 - SIZE 15.5) - The new Low End segment will be created in Year 1 with Sweet Spot specification of Year 4.

Note that all figures to input in your game is different from this article, you should get number from Industry report, put 1 line in Excel file and get your own game figures. Just input in only Round 0 - Strategy 1 --> Then all tables will be updated.

For Capstone, we created 3 new products in HE, LE and Traditional and may terminate 2 products Performance and Size.

The Age is important for Low End, because it is 7 years old to sell well, from 6-7-8 is selling well, besides other factors. So, it is quite strange that 1 year new can not sell as well as 7 years old. May be due to long time experience of using this Cheaper, Lower cost product.

So, we can update LE in advance 3 years, then leave it, if necessary, update 1 more time.


 

TIP 4 - Lower MTBF to the minimum of the range (except Performance segment only)

From Round 1 to Round 8, for all the rounds, when we do R&D, we should lower MTBF to the minimum of the range in order to save cost and increase contribution margins.

The is the key Profit Driving tool since Reliability only accounts for small percentages of the Customer Buying Criteria (see all the 5 segments to see details, in Capstone Courier Report every year, page 5-9).

http://top20mba.com/images/2016.taphuan/capsim-guides---004---Tip-4-Minimum-MTBF.jpg

Except only Performance segment, we keep that max MTBF at 27.000, for all the other 4 segments, we select minimum MTBF eg. Traditional to 14.000, Low End to 12.000, High End to 20.000 and Size to 16.000

We set MTBF for Performance to max 27.000 because buying criteria for this segment is 43%. See following figure.

http://top20mba.com/images/2016.taphuan/capsim-guides---004---Tip-4-Max-MTBF-for-Performance.jpg

Again, the numbers for each Industry is changed when game created for different class or group, so we need to check the number from Industry Report and Capstone Courier every round (year).

 

If we want to compete is 3-4 segments (not all 5), the two most potential and profitable are Low End and Tradition.

They are most potential lucrative.

We need to read reports for Round 1, Round 2 and Round 3 and then in Round 3 and 4 we will select to leave 1 or 2 least competitive which have least profit.

Creating 1 new segment, eg. Low End is good (often in Round 1)

Creating 2 new segments, eg. Low End and Traditional will provide more Profits in later Round, eg. 5-6-7 and 8. (Often we create New Traditional in Round 2)

 

In Round 3, we can create new High End segment (more profitable). However, if we see strong competition in High End, we should create new segment in SIZE (better than Performance - high cost).

It is better we flexible with MTBF, do not always leave that lowest, we save cost but lose competitiveness. So, we can add that according to their importance, for example, 20% of purchase, we can set that 17.000 (range from 14.000 to 20.000), we can get both objective, saving cost and maintaining competitiveness. Another important thing is we need to analyze competitors after each round to find top selling products in each segment and update our products close and higher to the best selling products.


 

 

TIP 5 - R&D 8 Rounds Guides - Round by Round Guide from Round 1 to Round 8

Note: 

In order to apply this Round to Round strategy for R&D, we need to create an excel file with your own data from Industry Condition Report and put data in Excel file to get more precise numbers.

Step 1. Download Industry Condition Report (from your game)

http://top20mba.com/images/2016.taphuan/capsim-guides---005---Industry-Conditions-Report.jpg

Step 2. Download Excel file for automatic calculation strategies and decisions

FREE DOWNLOAD - LINK

Back up link - LINK

 

Step 3. Very important

Open page 2 of Industry Condition Report and get the Table 2, first line for Round 0  and put that numbers in Round 0 in Excel file, then the file will automatically calculate all decisions for 8 rounds, with 4 different STRATEGIES.

DO NOT USE THE DEFAULT numbers in excel file, that is a little bit different from YOUR GAME (creator and administrator change the numbers when new industry is created for new class).

--> Get Round 0 number from Industry Condition Report

http://top20mba.com/images/2016.taphuan/capsim-guides---004---Strategy-1-table.png

--> Put into Excel file, Round 0 (only 1 row) --> Then the file will automatically calculate all the decisions

(Check Drift and Ideal Offsets - 2 last rows of table 1 -  they often do not change for all game)

 

We can use the Excel file to calculate Specifications for R&D more easily.

http://top20mba.com/images/2016.taphuan/capsim-guides---004---Strategy-1-table-excel.jpg

If you have come to this Step. We are half way win the Capsim Simulation !!

Again, this Round to Round guides can apply if we start from Round 1.  DO NOT use this suggestion if you are already in the middle of the game, having completion several rounds without this guide. If so, your company may not have enough upgrades and automation to follow this suggested strategy, you can refer to other tips to Rescue Company or Mid Game Tips.

Now, if you are in Round 1, we can apply this Round to Round Strategy and Win the game.

The numbers are from my game, you need to use your Excel file, numbers will be a little different. If you can not create your file, email: wincapstone2012@gmail.com - I can create a file for you for FREE.

We use the following strategy for the guides and winning tips in Round to Round Strategy.

http://top20mba.com/images/2016.taphuan/capsim-guides---004---Strategy-4-table-excel.JPG

 

R&D: Research and Development

Note: You need to adjust the number of PFMN and SIZE to get new product launch in June or July.

The numbers are just for this game, your game can be a little bit different, you can calculate numbers by download free Excel files from http://top20mba.com or http://topmbabooks.com

 

ROUND 1. R&D

  1. Create a new Low End sensor PFMN 4.1 - SIZE 16.3 MTBF 12.000 - this is Low End sweet spot Year 4
  2. Change original Low-End sensor MTBF to 12.000 (don't re-position original Low End)
  3. Re-position original Traditional sensor to PFMN 6.1 SIZE 14.3 MTBF 14.000 (min) or 17.000
  4. Re-position original High End sensor to PFMN 9.2 SIZE 11.2 MTBF 20.000 (min) or 23.000
  5. Re-position original Performance sensor to PFMN 9.8 SIZE 16.0 MTBF 27.000 (max)
  6. Re-position original Size sensor to PFMN 4.4 SIZE 10.6 MTBF 16.000 (min) or 19.000

Check report from Round 1 to see top selling products, we can adjust MTBF to most effective products.

Note: You need to adjust the number of PFMN and SIZE to get new product launch in June or July.

 

ROUND 2. R&D

  1. Create a new Traditional sensor PFMN 8.2 - SIZE 12.2 MTBF 14.000 - this is sweet spot for Traditional Year 4
  2. Re-position original Traditional sensor to PFMN 6.8 SIZE 13.6 - Keep 14.000 (min)
  3. Re-position original High End sensor to PFMN 10.1 SIZE 10.3 - Keep MTBF 20.000 (min)
  4. Re-position original Performance sensor to PFMN 10.8 SIZE 15.3 - Keep MTBF 27.000 (max)
  5. Re-position original Size sensor to PFMN 5.1 SIZE 9.6 MTBF - Keep MTBF 16.000 (min)  

Note: You need to adjust the number of PFMN and SIZE to get new product launch in June or July.

 

ROUND 3. R&D

  1. Create a new High-End sensor eg. PFMN 11.9 - SIZE 8.5 - this is High End sweet spot Year 4
  2. (Optional) Create a new Size or Performance instead of High End (with round 4 sweet spot specifications)
  3. (Optional) Re-position original Performance and Size sensor ONLY if you plan to continue them (with round 3 sweet spots specification - see above table).
  4. Re-position original High End sensor to PFMN 11.0 SIZE 9.4 - Keep MTBF 20.000 (min)
  5. Re-position original Low End sensor to PFMN 4.1 SIZE 16.3 - Keep MTFB 12.0000 (this takes more than a year to complete)
  6. Re-position original Traditional sensor to PFMN 7.5 SIZE 12.9 - Keep MTBF 16.000 (min)  

Note: You need to adjust the number of PFMN and SIZE to get new product launch in June or July.

So, for 3 first Rounds, we create new Low End, Traditional and High End each Round.

We can also stop Performance and Size (we will do that by lower Promo and Sales budget to 0 in Marketing and Production).

 

ROUND 4. R&D

  1. Re-position original Traditional sensor to PFMN 8.2 SIZE 12.2 - Keep MTBF 14.000 (min)
  2. Re-position original High End sensor to PFMN 11.9 SIZE 8.5 MTBF 20.000 (min)
  3. (Optional) Re-position original Performance and Size sensors only if we plan to continue them (use round 4 sweet sport from above table).  

Note: You need to adjust the number of PFMN and SIZE to get new product launch in June or July.

 

ROUND 5. R&D

  1. Re-position both Traditional sensors to PFMN 8.9 SIZE 11.5 - Keep MTBF 14.000 (min)
  2. Re-position both High End sensors to PFMN 12.8 SIZE 7.6 - Keep MTBF 20.000 (min)
  3. (Optional) Re-position original Performance and Size sensors only if we plan to continue them (use round 5 sweet sport from above table).   

Note: You need to adjust the number of PFMN and SIZE to get new product launch in June or July.

 

ROUND 6. R&D

  1. Re-position both Traditional sensors to PFMN 9.6 SIZE 10.8 - Keep MTBF 14.000 (min)
  2. Re-position both High End sensors to PFMN 13.7 SIZE 6.7 - Keep MTBF 20.000 (min)
  3. (Optional) Re-position original Performance and Size sensors only if we plan to continue them (use round 6 sweet sport from above table).   

Note: You need to adjust the number of PFMN and SIZE to get new product launch in June or July.

 

ROUND 7. R&D

  1. Re-position both Traditional sensors to PFMN 10.3 SIZE 10.1 - Keep MTBF 14.000 (min)
  2. Re-position both High End sensors to PFMN 14.6 SIZE 5.8 - Keep MTBF 20.000 (min)
  3. (Optional) Re-position original Performance and Size sensors only if we plan to continue them (use round 7 sweet sport from above table).   

Note: You need to adjust the number of PFMN and SIZE to get new product launch in June or July.

 

ROUND 8. R&D

  1. Re-position both Traditional sensors to PFMN 11.0 SIZE 9.4 - Keep MTBF 14.000 (min)
  2. Re-position both High End sensors to PFMN 11.5 SIZE 4.9 - Keep MTBF 20.000 (min)
  3. (Optional) Re-position original Performance and Size sensors only if we plan to continue them (use round 8 sweet sport from above table).   

Note: You need to adjust the number of PFMN and SIZE to get new product launch in June or July.

 

See Video Guides for all Rounds - LINK

https://www.youtube.com/channel/UCLkDGeXZmKhW-dHas4yGnNQ

 

TREASURE LYNN WIN CAPSIM TIPS

https://www.youtube.com/channel/UCLkDGeXZmKhW-dHas4yGnNQ

 


 

TIPS 6 - MARKETING - 8 Rounds guides - Round by Round Guide from Round 1 to Round 8

 

Apply $2.000 for promotion and sales budgets for Traditional and Low End, because above this level, diminishing returns are experienced.

Apply $1.500 for High End, Performance and Size segments.

Keep this spending from Round 1 to Round 3, until we can decide which segments we will continue. Then, we increase all segments to $2.000 to compete. 

For segments, we do not want to continue, for example Performance or Size, we reduce budgets for that segment to only $0.

 

For Promotion, we continue $ 2.000 until we reach 100% awareness. Then we can cut it back to $ 1.400 per round.

For Sales, we continue $ 2.000 until we reach 100% accessibility. Then we can scale back to $ 1.650 for each sensor.

TIPS:
We can increase much higher, or even max, to see how much awareness and accessibility we can get, just click CALCULATION button to see how much we get for that year. Then we can increase or decrease spending to get 100%.

NOTE:

Budget for sales, accessibility for multiple sensors in a segment, they are combine together.

See figures in followings:

http://top20mba.com/images/2016.taphuan/capsim-guides---006---Marketing-decisions.JPG

 

http://top20mba.com/images/2016.taphuan/capsim-guides---006---Promo-and-Sales-Budgets.JPG

We can check effectiveness after each round and adjust Sales and Promotion Budgets.

 

PRICING

Each round we can lower all prices down at least $ 0.50 from maximum price of the segment to keep up with customer expectation (lower each year)

We can create in excel file a table for Prices to keep track of lowering prices every year - LINK

We need to check from Capstone Courier Prices (from page 5 to page 9) to see max prices for each segment, in the top product at the end of each page.

http://top20mba.com/images/2016.taphuan/capsim-guides---006---Prices-Base.jpg

http://top20mba.com/images/2016.taphuan/capsim-guides---006---Prices.JPG

If competitors are cutting prices in Traditional and Low End segments, we need to lower prices to close to their levels.

However, when competitors lower their prices too much, they will not have enough capacity to sell, also they suffer stock out.

We can still keep prices higher and get market shares at higher profit level. This is why we need to calculate demands and plan production as precisely as we can.

NOTE

We DO NOT have to compete with prices in High End, Size and Performance, because buying criteria is low, only 9 - 19%

 

SALES FORECASTING

Do not trust computer suggestions, they always wrong.

We have a formula to calculate and forecast sales for next round

1. Get Market shares from Page 10 of Courier Report

2. Get Total Sales also from Page 10 

3. Get Market potential growth for each segment from page 5 to 9 

Sales forecast = Potential market share % x Segment size x (1 + Segment Growth Rate).

Note:

Page 10 gives us Potential Market share, we use this (do not use actual market share)

If we think we can sell more, we can just adjust the percentage.

Note:

We can use Excel file to calculate more conveniently. Use 8 sheets for 8 round, just copy and paste number from Courier Report Page 10, Page 4 and select market growth rate from page 5-9 into each sheet. We can get Sales Forecast and also Production.

Download the Excel file from here - LINK

If you need help, we can create a file for you for FREE - email: wincapstone2012@gmail.com

See figure

http://top20mba.com/images/2016.taphuan/capsim-guides---006---Marketing-Sales-Forecast-2.JPG

NOTE: Use potential market share (RIGHT Column) to calculate and forecast sales.

 

http://top20mba.com/images/2016.taphuan/capsim-guides---006---Marketing-Sales-Forecast-1.JPG

NOTE

You can copy and paste into excel file, then it can calculate automatically Sales and Productions. You can adjust the percentage if we think we can sell more or less.


 

TIP 7 - MARKETING - 8 Round by Round Guide from Round 1 to Round 8

Round 1 - Marketing

Leave A/R lag (Account Receivable) at 30 days, this will be increased later rounds to get higher demands when we have more profits and more cash available.

Leave A/P lag (Account Payable) at 30 days. This is always stay at 30 days for all 8 rounds

Set Promotion and Sales budgets both for $2.000 for Traditional and Low End sensors

Set Promotion and Sales budgets all for $1.500 for High End, Performance and Size

Lower all prices at least $0.50 as indicated in the excel table or check from Courier Report for max price for that segment last year

USE THE SALE FORMULA or EXCEL FILE to calculate sales forecast and production - LINK 

(Note: This round we create a new Low End sensor in R&D)

 

Round 2 - Marketing

Expect the new Low End sensor to sell about 0.2 x original Low End sensor market share

Leave A/P lag (Account Payable) at 30 days. This is always stay at 30 days for all 8 rounds

Set Promotion and Sales budgets both for $2.000 for Traditional and Low End sensors

Set Promotion and Sales budgets all for $1.500 for High End, Performance and Size

Lower all prices at least $0.50 as indicated in the excel table or check from Courier Report for max price for that segment last year

USE THE SALE FORMULA or EXCEL FILE to calculate sales forecast and production - LINK 

(Note: This round we create a new Traditional sensor in R&D)

 

Round 3 - Marketing

If we decide to exit a segment, such as Size or Performance, keep the Promotion and Sales budgets at $0.

What ever segments we decide to stay, increase Promotion and Sales to $2.000

Expect new Traditional sensor to sell about 0.3 x original Traditional sensor market share.

Lower all prices at least $0.50 as indicated in the excel table or check from Courier Report for max price for that segment last year

USE THE SALE FORMULA or EXCEL FILE to calculate sales forecast and production - LINK 

(Note: This round we create a new High End sensor in R&D)

 

Round 4 - Marketing

Increase A/R Lag (Account Receivable) to 46 days, this helps to increase demands

Once 100% awareness is reached for a sensor, in any round, we can scale back to $1.400 but need to check if can that budget maintain 100% awareness.

Expect new High End sensor to sell about 0.75 x original High End sensor market share.

Lower all prices at least $0.50 as indicated in the excel table or check from Courier Report for max price for that segment last year

USE THE SALE FORMULA or EXCEL FILE to calculate sales forecast and production - LINK 

(Note: This round we exit segments because we have reduced Promo and Sales budgets to $0 also we have reduce Production capacity to only 1)

 

Round 5 - Marketing

Increase A/R Lag (Account Receivable) to 61 days, this helps to increase demands

Note to add new market shares for new developed products, check in page 10 Capstone Courier.

Lower all prices at least $0.50 as indicated in the excel table or check from Courier Report for max price for that segment last year

USE THE SALE FORMULA or EXCEL FILE to calculate sales forecast and production - LINK 

 

Round 6 to 8 - Marketing

Note to add new market shares for new developed products, check in page 10 Capstone Courier.

Once 100% accessibility is reached for a segment (in any round) we can scale back the Sales budget t $1.650 for each segment to maintain 100% accessibility. Note to adjust and then check the graphs at the end of the market table.

Lower all prices at least $0.50 as indicated in the excel table or check from Courier Report for max price for that segment last year

USE THE SALE FORMULA or EXCEL FILE to calculate sales forecast and production - LINK 

 


 

TIP 8 - PRODUCTION - 8 Round by Round Guide from Round 1 to Round 8

Note to check Workforce needed and Workforce complement, if the box is editable, make sure to match the needed with This Year to save money. Otherwise we waste money.

We will increase automation every round.

Traditional to              8.0                   (4.0 - 5.0 - 6. 0 - 7.0 - 8.0)

Low End to                 10.0                 (5.0 - 6.7 - 8.4 - 10)

High End to                 5.0

Performance to           6.0

Size to                                     6.0

 

8.1. SETTING PRODUCTION 

Production amounts should always be 112% of Sales Forecast.

This allow some extra inventory to take advantage of competitors suffer from stock out. This often happens.

When we calculate production, we need to take in to account inventory from previous round. 

We can use excel file to calculate PRODUCTION more conveniently - LINK

If we see that year we have Stock out, we can increase production more than 112% to 120% or even 125%. If we see some inventory, we can reduce for that segment back to 112%.

http://top20mba.com/images/2016.taphuan/capsim-guides---006---Marketing-Sales-Forecast-1.JPG

8.2. ADDING MORE CAPACITY

Our goal is to keep our plant production at 150% (full first shift and 50% second shift).

This allows more flexibility to deal with short term market changes.

Remember that added capacity isn't available until next round. So if we add capacity in round 2, it will be available in round 3.

If we see any factory with more than 150% capacity, we can add more capacity to that, just simply multiple the excess over 150% with total capacity. For example 180% of 2.000 factory, we will add 30% surplus = 30% x 2.000 = 600

NOTE:

We do not sell factories, even we are not using 100% at the current round.

NOTE:

We only reduce the segments we want to exit to 1. By doing so, we can still sell the rest of inventories in that segment at full price, not 50% price.

 

  

http://top20mba.com/images/2016.taphuan/capsim-guides---007---Production-1.png

 

 

 

 


TIP 9 - PRODUCTION - 8 Round by Round Strategy

If we can not complete all suggestion, try to come as close as possible.

Try to use all the budget available in the first 3 rounds and more if possible

The KEY to win Capsim is to control Automation as early as possible. The more automation is better.

Round 1 - Production

  1. Upgrade original Low End sensor from 5.0 to 6.7 automation
  2. Upgrade original Traditional sensor from 4.0 to 5.0 automation
  3. Create 500 capacity with automation 5.0 for the new Low End sensor
  4. Add extra capacity for original Low End sensor

NOTE: check the bottom right corner to see if we use close to total available budget.

 

Round 2 - Production

  1. Upgrade original Low End sensor from 6.7 to 8.4 automation
  2. Upgrade original Traditional sensor from 5.0 to 6.0 automation
  3. Create 500 capacity with automation 5.0 for the new Traditional sensor
  4. Upgrade new Low End sensor from 5.0 to right 8.4 automation.
  5. Add extra capacity for original Low End sensor

NOTE: check the bottom right corner to see if we use close to total available budget.

 

Round 3 - Production

  1. Upgrade original Low End sensor from 8.4 to 10.0 automation
  2. Upgrade new Low End sensor from 8.4 to 10.0 automation.
  3. Upgrade original Traditional sensor from 6.0 to 7.0 automation
  4. Upgrade new Traditional sensor from 5.0 right to 7.0 automation
  5. Create 400 capacity with automation 3.0 for the new High End sensor
  6. Add extra capacity for new Low End sensor
  7. Add extra capacity for original Low End sensor

NOTE: check the bottom right corner to see if we use close to total available budget.

 

Round 4 - Production

  1. Upgrade original Traditional sensor from 7.0 to 8.0 automation
  2. Upgrade new Traditional sensor from 7.0 to 8.0 automation
  3. (Optional) Reduce Capacity for segments that are being exited, such as Performance and Size
  4. Upgrade original High End sensor from 3.0 to 4.0 automation
  5. Upgrade new High End sensor from 3.0 to 4.0 automation
  6. Add extra capacity for all needed sensors

NOTE: check the bottom right corner to see if we use close to total available budget.

 

Round 5 - Production

  1. Upgrade original High End sensor from 4.0 to 5.0 automation
  2. Upgrade new High End sensor from 4.0 to 5.0 automation
  3. (Optional) Reduce Capacity for segments that are being exited, such as Performance and Size
  4. Add extra capacity for new High End sensor
  5. Add extra capacity for all needed sensors

NOTE: check the bottom right corner to see if we use close to total available budget.

 

Round 6 and 7 - Production

  1. Add extra capacity for all needed sensors

 

Round 8 - Production

  1. Last round of the game, do not add any capacity or automation !!

 

TIP 10 - HUMAN RESOURCES DECISIONS

It is important to invest in HR because productivity is measured in the Balanced Score Card and also this investment will reduce labor costs.

Usually HR has a few options available are Recruiting Spending, Training Hours 

Aim for the maximum of $5.000 recruitment spending and 80 hours training every round.

If you have limited funds, try $2.000 and 40 hours training.

If the Labor negotiations are available, we can use half way, win - win strategy, between demanded and current contract. 

NOTE:

when input number here, double check to make sure correct numbers and avoid labor strikes.

http://top20mba.com/images/2016.taphuan/capsim-guides---008---HR-1.png

We often use half way for negotiations, average of current contract and labor demands.

 

 

 


 

TIP 11 - TQM/Sustainability RESOURCES DECISIONS

In TQM focus on setting $1.500 to $2.000 per round for each item, select the most useful initiatives first. Continue this for three round and then stop spending money into that initiatives, because it will no longer make any significant changes. We can see this from graphs at the end of screen.

NOTE

$5.000 is the maximum budget for each initiative for the whole game.

Optimal way to add money is $2.000 - $2.000 and $1.000 or $1.500 - $1.500 and $1.000 depends on maximum allowed for each round.

Priority order for TQM initiative benefits:

  1. Reduce material costs
  2. Reduce labor costs
  3. Reduce R&D costs
  4. Increase demands
  5. Reduce SG&A expense

There are generally the best initiatives to put money in first:

  1. CCE/6 Sigma Training
  2. GEMI TQEM Sustainability
  3. CPI Systems
  4. Vendor /JIT
  5. QIT
  6. QFDE

We can apply try with different initiatives to see which one will bring more effects or most effective. Then in later rounds, we spend money in less effective initiatives when we have more extra money.

We can see the suggestions in the following tables.

http://top20mba.com/images/2016.taphuan/capsim-guides---008---TQM-1.JPG

 

 

 

 


 

TIP 12 - FINANCE DECISIONS

Finance should always be the last decision we make after all the other section decisions have been made.

How we make decisions in Finance depends on How the game will be graded.

Most groups are graded on the Balanced Scorecard.

Some groups are graded on Profit or Stock Price.

FOR ALL GRADING METRICS.

We can keep at least $16.000 (000) cash for a round to avoid emergency loans.

We can keep more cash, it is always better than lack of cash.

We need to keep right amount of cash to get MAX   Days of Working Capital (not too much, not too little).

http://top20mba.com/images/2016.taphuan/capsim-guides---009---Finance-1.png

When we have much Cash and Net Profit, we need to pay off dividends and retire stocks to increase Leverage and also get max points for Days of Working Capital.

 

http://top20mba.com/images/2016.taphuan/capsim-guides---009---Finance-3.png

 

 

 

 

http://top20mba.com/images/2016.taphuan/capsim-guides---009---Finance-4.png

 

 

http://top20mba.com/images/2016.taphuan/capsim-guides---009---Finance-5.JPG

 

 

 

 

 http://top20mba.com/images/2016.taphuan/capsim-guides---009---Finance-6.JPG

 

 

 


 

TIP 13. Check the Income Statement

We check to find estimated Sales, Contribution Margins, Net Profit compared that with previous year, if that increase 15%-20% we are doing well.

We can see that if we spend more on TQM, total Net Profit will reduce.

Also, we can see that if we spend more on adding new capacity, upgrade automation, cost will increase, cash in hand will reduce. We need more investment from long term loans and issuing stocks.

 

Tip 14. Check the Balanced Scorecard

Keep track of Profit, Working capitals and Leverage.

We can adjust decisions to make these Ratios as high as possible.

Also keep enough Cash in hand to avoide Emergency loans.

 

TIP 15 - DECISIONS TO GET HIGHER GRADES

15.1. Graded on Balance Scorecard

For each year, we need to have enough cash, ending cash.

We need to raise funds for business, factory investments.

It is likely that for first 4 Rounds, we always lack of money, we need to raise funds in this order:

1. Issue Long Term Debts (max this first)

2. Issue Stocks (max this 2nd)

3. Issue Current Debts (if still need cash)

 

After Round 5, we may have much cash in hand. 

At this time, we need to check Ratio (from Proforma --> Ratio) to maintain highest possible results in Balanced Scorecard.

We need to do some trials to get higher points in Balanced Scorecard.

We need to switch between Finance and Proforma Ratios to get right points.

 

15.2. For Days of Working Capital

This ratio is very important and frequently misunderstood.

Basically this ratio is how many days your company could survive if no sales were made.

To check this ratio go to the Proforma Ratios Statement.

Every round you want this  ratio to be between 60-80 days

This gives you a safety cushion if your sales projections are off.

Closer to 80 is better but not over 80 because you may start losing points on the Balanced Scorecard.

To Increase Days of Working Capital:

- Issue Long-Term-Debt (max this first)

- Issue Stock

Neutral: Current Debt has no impact on Days of Working Capital

To Decrease Days of Working Capital:

- Retire stock (max this first)

- Issue dividends

 15.3. Leverage

Leverage is basically the ratio of how much money your company is borrowing compared to your company's stock equity.

If your leverage ratio is 2.0x that means half of your company assets are paid for with debt

To cheek this debt/equity ratio go to the Proforma Ratios Statement.

Make sure your leverage ratio is between 2.0 and 3.0

In later rounds you may have to issue dividends or debt to maintain your leverage as Profits increase.

To Increase Leverage:

- Retire stock (max this first)

- Issue dividend

- Issue Long-term-debt (only if more funding needs to be raised)

 

To Decrease Leverage (not usually needed):

- Don't borrow any Current Debt

- Issue stock

- Retire Long-Term Debt (last resort )

 

 

15.4. Graded on Profit


Plan to get the highest profit basically follows that of the Balanced Scorecard Plan for the first 4 rounds
But in the second half of the game you will be retiring debt first in order to save money on interest payments.

Raise Funding in this order of priority (mostly first 4 rounds):
I. Issue stock
2 Issue current debt
3, Issue long term debt

Use excess cash in this Order of priority (mostly Last 4 rounds):
L Retire long term debt
2. Retire stock
3. Issue dividend  

 

15.5. Graded on Stock Price

The plan for having high stock price is only to issue debt and never to issue more stock.

We should start retiring as much stocks as soon as we can when we have extra cash. 

Continue retiring stock to the end of the game.

If we still have much cash in hand in last round of the game, pay dividends to increase stock price.

Raise funding in this order of priority (mostly first 4 rounds)

- Issue long term debts (max this first)

- Issue current debts

Use excess cash in this order of priority (all of the rounds)

- Retire Stocks (max this first)

- Issue dividends


TIP 16 - Save Our Companies in the Mid Games

The key to save a company is create more profit.

It is better to invest in Automation - TQM - Sales Budgets, give cumulative benefits each round after, so, earlier investments are always better.

Do not worry about getting Debts or Issue Stocks, we are doing business so that is investments.

16.1. Find the lease profitable segments, improve them or get rid of them. 

If the margin contribution is lower than 25%, something needs to be significantly improved.

Try to improve automation.

Try to improve pricing.

If we want to exit a segment, cut promotion and sales budget to 0 and DON'T re-position that products.

Selling off capacity, keep only 1 to maintain products in inventory to be sold at full price.

 

16.2. Save a company in Lack of Cash

Reduce marketing budgets to $1.500 without too much impact

Automation for Low End first

Automation for Traditional second.

Do automation one point at a time if we can not afford that.

Automation in High End, Performance and Size is not so much important. Do that later is OK.

In HR can reduce recruitment to $2.000 and training to 40 hours with minimal impact.

In TQM try to spend only $1.500 for the initiative that have biggest impact.

Then, try to increase when we have more funds next rounds.

 

TIP 17. CALCULATION OF FORECAST AND PRODUCTIONS

 

 


 

TIP 18 - FAQ Questions and Answers

 

1. Not making Profits in first Rounds?

In rounds 1 to 4, we are building factories, investments for future productions, we spend a lot in R&D for new products, automation, marketing to increase awareness and accessibility, and HR, and TQM because all these things add cumulative effects. 

It is necessary to borrow money and issue stocks to fund all the investments.

We will have low profits for first 4 rounds.

Any way, keep Profit just higher not negative.

From round 5-8, we will fly up with higher profits. 

The new products are finished, automation upgraded, HR, TQM are cutting costs, all these make company more profitable.

At this point, your company can earn huge profits. With excess money, we retire or buy back stocks or pay dividends.

 

2. Competitors and Computer players

We do not have to sell more than competitors to win. See video guides to see - LINK

We need to have more Profits, higher EPS more effective to win.

When competitors sell more, lower price, lower profit margins, they can suffer from Stock Out. We can still get market shares with higher prices and higher profit margins.

Some time, we face strong competitors, we need to adjust strategies to compete !!

 

3. Computers are doing well with high quality products and more market shares.

We can increase MTBF to top of High End and Size (we already max that for Performance)

R&D to re-position High End, Performance and Size over sweet points, toward Ideal spots.

Never waste money to increase MTBF for Traditional and Low End, they are already optimal.

 

4. Compete by PRICE

If competitors and computers are setting very low prices on Low End, we need to reduce price close to them but still higher than average.

We do not have to compete by Price in High End, Size and Performance because that is low effect (9-19%) - we can set their prices at Top Price Range. Just reduce $0.50 each round to meet customer expectations.

 

5. Compete by PRODUCTION

If we are stock out or see competitors stock out, we are in good position. We can expand production.

- Increase Sales forecast or projections.

- Increase Production by 120% or even 130%, until we can still meet the surplus demands.

Also, raise price in that segment up to Top in that Price Range.

 

6. Compete by SEGMENT

If we see one team leave a segment that is Good.

If we see two teams leave a segment that is Great.

If we see three teams leave a segment that is very attractive and lucrative.

If they do not drop or exit any segment, we need to create new product in to the segment that is making most profit. Eg. Low End, then Traditional then High End (we can check by looking at the Income Statement).

 

7. How to exit or remove a sensor?

Check Proforma and Income Statement, as long as they are bringing Net Profit, there is no reason to remove sensor.

If that sensor is losing money for two rounds, it is time to discontinue that sensor.

In the case we like to exit a sensor, we can:

- Do not R&D, do not re-position that sensor any more

- Drop promotion and sales to $0

- Stop producing units

- Sell of capacity and keep only 1

- Wait until all the inventory is sold (could take a few rounds)

- Sell off the capacity to 0./.

 

TIP 19. READING AND DISCUSSION and SEE VIDEO GUIDES

 

TIP 20. View Samples strategy before start the game

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Sample Strategy - Round 8 – R&D

Sample Strategy - Round 8 – Marketing Price

 

Sample Strategy - Round 8 – Marketing Ad and Promo budget

 

Sample Strategy - Round 8 – Production

 

 

 

Sample Strategy - Round 8 – Finance

Sample Strategy - Round 8 – Profoma Income Statement

 

Sample Strategy - Round 8 – Balanced Scorecard



 

 

 

 

 

 

 

 

 

 


 

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