Team Digby BUS499 Capstone Simulation
Mission Statement
The Digby Company is focused on creating a series of both high-tech and low-tech products to suit the needs of all customers.
Strategy
Digby prioritizes investment in research and development to support innovation which exceeds consumer expectations on multiple price levels.
Product Life Cycles
The starting price for our product Diesel was set at 45$ per unit, with specifications regarding performance and size set at 7.4 (performance) and 12.6 (size). The first shift capacity for Diesel was set at 350 units. The investment approach towards marketing regarding promotion and budget were moderate. We have classified Diesel as our secondary product with Daze as the primary product. Diesel would be considered closer to the high-tech end of the industry. Diesel’s positioning was placed slightly ahead on the perceptual map.
The starting price for our product Daze was set at $35 per unit. The starting first shift capacity was set at 800 units. Performance and size were set at a respective 6.4 (performance) and 13.6 (size). We maintained a similar approach as displayed for Diesel regarding our investment in marketing promo and budget. Daze has remained as our main product closer to the low-tech end of the industry. The positioning for Daze relative to the perceptual map was also slightly ahead.
Product Positioning
With the provided debrief rubric, product positioning scores started at relatively satisfactory levels for Diesel, who saw trouble in the following two rounds based on a scoring system of 0-1.5 with 0 being most desirable. Diesel’s score was brought down to a resounding 0 by the end of round five, marking maximum ideal positioning. Daze never exceeded 1.84 and reached a low of 0 in round four.
Success Measures
The Daze contribution margin was consistently exceeding expectations with a maximum of 43.7% compared to the desired 35% and never dipping below its starting rate of 26.2%. Diesel saw steady growth from 27.8% to 33.7%, staying satisfactory despite an initial loss of 4%. Additional benchmarks were stock prices, which took a hit as positioning fell to unsatisfactory levels and rose again upon product fixes.
Human Resources Findings
Our human resources plan has been consistent with gradual adjustments along the way. We began the first few years with only 20 training hours, but we increased to 60 shortly after. The employee recruitment began with $2,500 per employee while increasing to the maximum of $5,000 shortly after. Also, our company’s automation ratings began small but have increased slowly over time.
Future Projections
As we continue to move into the next two years of company development we are lowering prices to better position ourselves. In addition, we are continuing to put money into marketing and promotional budgets to better position ourselves moving forward.
BUS 499, Business Strategy and Policy
Dave Quirk
9 – 11:30 AM