Capsim Simulation Presentation – Digby
Mission Statement
Low-priced products for the industry: Our brands offer solid value. Our stakeholders are bondholders, customers, stockholders and management.
Tactics
Research & Development: We will keep our existing product line and introduce at least one new line, maintaining a presence in both segments. We’ll work to keep our products up to date in each segment despite high automation levels, without sacrificing our cost/price advantage.
Marketing: Our Company will spend modestly on promoting and selling products in our industry. Our prices will be lower than average. After we establish our cost leadership position, we will revisit our situation to explore options to improve awareness and accessibility.
Production: We will significantly increase automation levels on all products. However, because automation sets limits upon our ability to reposition products with R&D, we automate more in the slower moving Low End segments than in the fast moving High End. We will prefer second shift/overtime to capacity expansions.
Finance: We will finance our investments primarily through long-term bond issues, supplementing with stock offerings on an as needed basis. When our cash position allows, we will establish a dividend policy and begin to retire stock. We are not adverse to leverage, and expect to keep assets/equity between 2.0 and 3.0.
BUS 499, Business Strategy and Policy
Dave Quirk
P103
1 – 3 PM