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Capsim Andrew 1
Capsim Andrew 1
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round 1 round 2 round 3 round 4 round 5 round 6 round 7 round 8 0
ROUND1 ROUND 2 ROUND 3 ROUND 4 ROUND 5 ROUND 6 ROUND 7 ROUND 8
Able ACE Column1
Able ACE Column1
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round 1 round 2 round 3 round 4 round 5 round 6 round 7 round 8 round 1 round 2 round 3 round 4 round 5 round 6 round 7 round 8
PRODUCTION & HR:WE LEARNED THAT THERE WERE 840 LOW-TECH PRODUCTS IN THE ENTIRE
MARKET FROM THE FAST TRACK OF THE PREVIOUS YEAR. IT WILL RISE BY 10% ANNUALLY. DUE TO OUR
CONFIDENCE IN THE ANDREWS AND THE 10% INCREASE IN THE LOW-TECH MARKET, WE THEREFORE
CHOSE TO SCHEDULE THE MANUFACTURE FOR 1.211 UNITS. THAT MANY UNITS COULD BE PRODUCED
BY US. THE ENTIRE MARKET FOR THE HIGH-TECH SECTOR WAS 360. EVERY YEAR, THE HIGH-TECH
SECTOR WOULD GROW BY 20%.
MARKETING:THE TEAM ANDREW DECIDED TO PRICE THE PRODUCT THE ABLE AT THE OF THE $34
WITH A PROMOTIONAL BUDGET OF $1000 WHICH CREATE THE AWARENESS OF 54% OUT OF THE 100.
SECONDLY WE SPEND $1000 ON SALES BUDGET WHICH GAVE US ACCESSIBLE OF 33 PERCENTAGE OF
THE PRODUCT.
ROUND TWO
RESEARCH AND DEVELOPMENT:IN THIS ROUND, AIMED TO CREATE A HIGHER QUALITY PRODUCT SO, WE
MADE A SMALL CHANGE IN PERFORM 6.4 TO 6.5 AND SIZE 13.6 TO 13. WITH INCREASES PERFORM AND SIZE THE
AGE DECREASES TO 2.9.
PRODUCTION & HR:WE ATTEMPT TO MATCH OUR PROCEED UNIT WITH OUR PREDICTED UNIT SALES, AS WE
DID IN THE PREVIOUS ROUND. DUE OF CAPACITY RESTRICTIONS, WE WERE ONLY ABLE TO MAKE 1,451 ABLE
UNITS BY USING THE FULL POTENTIAL OF THE 895. WE INCREASED ABLE'S CAPACITY BY 1.356 BY BUYING
ADDITIONAL.
MARKETING:THE TEAM ANDREW AGAIN DECIDED TO GO WITH THE SAME PRICE AS BEFORE IN THE ROUND
ONE OF $34.WE INCREASE THE BUDGET OF THE PROMOTION BY $300 WHICH MAKES IT $1300. THIS RAISE THE
AWARENESS BY THE 70 PERCENTAGE WHICH IS MORE THAN 17% THEN OF THE FIRST ROUND. SIMILARLY WE
DECIDED TO GO WITH THE SAME BUDGET AS OF THE PROMOTIONAL BUDGET OF $1300 WHICH SHOWS
SLIGHTLY INCREASE IN ACCESSIBLE OF THE PRODUCT.:
ROUND THREE
RESEARCH AND DEVELOPMENT:WE DECIDED TO FOCUS ABLE ON THE LOW-TECH SEGMENT BECAUSE IT IS PERFORMING WELL
IN THE MARKET. THEREFORE, WE DID NOT MAKE A MAJOR IMPROVEMENT IN ABEL BY ONLY INCREASING THE FACTOR OF 0.6 TO
REDUCE THE AGE OF THE PRODUCT. WE ALSO LOWERED MTBF TO 18500. ALSO, THESE CHANGES INCREASED PRICE OUR
PRODUCT. IN THIS ROUND, WE ALSO DECIDED TO RESEARCH AND DEVELOP A PRODUCT WITH MORE ADVANCED TECHNOLOGY
CALLED ACE, WHICH HAS A PERFORMANCE OF 7.5 AND A SIZE OF 11.5 WITH 17500 MTBF.
PRODUCTION & HR:, THE NUMBER OF OUR PRODUCTION UNITS DECREASED TO 1,188, AND DUE TO TAKING A LOAN, THE
PRODUCTION CAPACITY INCREASED TO 2,240, WHICH WAS OUR FIRST WRONG DECISION AND THE FIRST START OF OUR
DOWNWARD TREND.
MARKETING:FOR THE THIRD ROUND WE ONLY INCREASE THE PRICE OF THE PRODUCT BY 50 CENT. WE INCREASE THE BUDGET
OF THE PROMOTIONAL BY 50 WHICH RISE THE AWARENESS OF 79 PERCENTAGE. ALONG WITH THE PROMOTIONAL BUDGET WE
DECIDED TO KEEP SALES BUDGET SAME OF THE $1350. IT GAVE THE ACCESS OF THE 47%. ACE WHICH WE PRICE FOR $40.5. FOR
PROMOTIONAL BUDGET WE GO WITH THE $1000 DOLLAR AS WE HAVE NOT PRODUCE THE PRODUCT MUCH BUT IT PROVIDE THE
AWARENESS OF THE $46 % IN THE MARKET. SIMILARLY FOR THE SALES BUDGET WE DECIDED TO GO WITH THE $1000 WITH GIVE
ACCESS OF 47% TO THE CUSTOMER
ROUND FOUR-SIX
ROUND 7-8
ROUND7: BECAUSE WE HAD A SIGNIFICANT DOWNWARD TREND AND
WE NEED TO SELL MORE OF OUR PRODUCT.
• FOCUSED ON LOW TECH
• REDUCE THE NUMBER OF PRODUCTION UNITS
• MARKETING WE CONSIDER MORE MONEY FOR ADVERTISING
• ROUND8: DID NOT MAKE SIGNIFICANT CHANGES
• KEEP THE MINIMUM CONDITIONS CONSTANT
• LOWER OUR PRICE RANGE IN BOTH OF OUR PRODUCT AS WE HAVE
LOTS OF INVENTORY LEFT
CONCLUSION
• ROUND 1-2: BECAUSE WE MADE GOOD PROGRESS AND ALL THE PRODUCTS WERE
SOLD, WE TOOK A RISK AND TOOK A LOAN BECAUSE WE WANTED TO BE AHEAD
OF OTHER COMPETITORS