The Capsim simulation is avery engaging way to learn about what makes a company

perform. Working with this software has been a learning experience for all the team members.
There is no doubt that it was a challenge but, with a lot of research, Team Chester was able to
gather enough information to build a strategy that was helpful throughout the rounds. With
information retrieved from the textbook and online tutorial videos we discovered formulas and
helpful tips on how to properly adjust our numbers and manipulate the figures in the game.
Since the team had a great communication system, we decided to work together to complete the
assignments by having regular group discussions via zoom meetings and group chats. In this
paper, we will discuss our strategy, decisions, results, and lessons learned from each practice
rounds of the simulation.

Round one was the most challenging since everyone was in their learning process and
still trying to understand the software. Nevertheless, we established a strategy which was our
greatest strength throughout the entire process. In marketing we were able to adjust our prices to
match our customers’ expectations, however we struggled with the production scheduling and
forecasting sections. Since it was the first round, we decided to be conservative and abstain from
accumulating any Long-Term Debts and therefore made no adjustments to the financial aspect
of the company. Our decisions were successful and as a result the team was able to successfully
complete the round with a high profit margin. Specifically, our team managed to make over 4
million profit and 8.9 million in cumulative profits. Also, our team was able to make the most
sales of any other team, at 137 million.
 Going into the second round, the team members were more confident in the areas that we
struggled with in the first round. We decided it was time to take risks and tamper with our
figures a bit more. We slightly increased our performance and size as well as MTBF in R&D. In
marketing we decreased our product prices by 50 cents and increased our forecast. Our
production numbers were altered based on the sales performance from the previous round and
the automations for each product were increased by 1. We use our max limit in Human
Resources to recruit and train new employees and like the previous round, we made no
alterations to the company`s finances. The idea behind such a decision was we wanted to stay in
front of our competitors so lowered prices, we increased funding in HR to lower turnover and
increase productivity. Since we were the best performing, we thought we would sell more due to
our standing in the last round. Unfortunately, our decisions were not up to standard. The
company`s R&D was not in the ideal offsets, and we also overproduced. As a result, we lost our
profit margins and ended up in the negative. Fortunately, we were able to identify our mistakes
and with more research from online sources, we started planning for the next round.

Practice round three was more interesting since we needed to rebuild our profits. We
revaluated R&D and adjusted Performance and Size but did not change MTBF. Our goal was to
be closer to either the center or ideal offset while also making sure the ages for the products were
still acceptable. Our prices were reduced by 50 cents, and we increased the Promo and Sales
budget by 100 thousand for only Coat and Cure. The forecast was once again adjusted but with
reduced figures from round 1. We increased all numbers for the productions schedule, leaving
the automation as it was. We made no adjustments to Human Resources, however, a total of 5.5
million was issued in long-term dept to help build the profit margin. Once again, our decisions
were successful for this round and our profit margins went up.

The biggest takeaway from the Capsim Simulation is that it is necessary to have a broad
approach to business. Though sometimes everything will not go as planned, risks are necessary
to help a business grow. It is important to have a good understanding of all aspects of the
business and to understand the different tactics and strategies that can be used to increase sales.
It is also crucial to be aware of the current market trends and competition and develop strategies
to stay ahead. Finally, it is important to focus on customer needs and expectations and strive to
meet them to remain successful.