Capsim Simulation Presentation
The business program capstone course ends with the Capsim Simulation in which students gained the necessary knowledge and experience to operate a chip manufacturing company. Our team will discuss the operations that were encountered. Below is the mission statement and business strategy used during the simulation.
Business Strategy:
A Broad Differentiator strategy maintains a presence in both segments. The company will gain a competitive advantage by distinguishing products with an excellent design, high awareness and easy accessibility. The company will develop an R&D competency that keeps designs fresh and exciting. Products keep pace with the market, offering improved size and performance. Prices will be above average. Capacity will be expanded as higher demand is generated.
Mission Statement:
Premium products for the industry: Our brands withstand the test of time. Our stakeholders are customers, stockholders, management and employees.
Tactics:
Research & Development: We will keep our existing product line, and introduce at least one more line, maintaining a presence in both segments. Our goal is to offer customers products that match their ideal criteria for positioning, age, and reliability.
Marketing:
Our company will spend aggressively in promotion and sales in both segments. We want every customer to know about our superb designs, and we want to make our products easy for customers to find. We will price at a premium.
Production:
We will grow capacity to meet the demand that we generate. After our products are well positioned, we will investigate modest increases in automation levels to improve margins, but never at the expense of our ability to reposition products and keep up with segments as they move across the perceptual map.
Finance:
We will finance our investments primarily through stock issues and cash from operations, supplementing with bond offerings on an as needed basis. When our cash position allows, we will establish a dividend policy and begin to retire stock. We are somewhat adverse to debt, and prefer to avoid interest payments. We expect to keep assets/equity (leverage) between 1.5 and 2.0.
BUS 499, Capstone
Dave Quirk
PFB 103
1:30 – 2:00 PM