Capsim Tips - Top 10 Winning Tips to win all 8 rounds - Part 2

 Capsim Tips - Top 10 Winning Tips to win all 8 rounds - Part 2

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21. For Finance, how much should the projected cash at least be?

Use max three sources of investment in round 1-2-3

Use max short and long term loans in round 4-5

Use max long term in round 6

Round 7-8 will retire stocks and long term loans

22. Quick question, about the Issue Stock, recommended that start to retire stock since the company has "enough money". Is this something you would recommend? I see that you issued stock (I would assume, in an effort to have more cash available)

It is good to retire stocks, but only from round 7-8 of this game. When having very high sales and cash in hand.

If you do now, cash will be shortage when competitors reduce prices to compete.

So, again, do that in round 7 and 8 to increase EPS (earning per share)

24. Can we change the MTBF of Low End to 12000 and of the Traditional to 14000 (also in the new product)? 

If we apply MTBF 12000 (<14000) for Low end

14000 (<17000) for Traditional

Will sell much less (because competitors new often use 17000 and 14000)

So, keep 17000 and 14000 (a bit higher cost, but sell much better)

25. Is it possible to get a brief summary of the strategies plan ? because I need to explain this decision. the strategy (cost leader, differentiator etc) Furthermore, how do you come up with the forecasting, production and financing numbers?

- Apply broad differentiation strategy with 8 products in 5 segments, focus more on Low End, Traditional and Performance, and keep good market share in High End and Size

- Calculate sales forecast = last round sold x segment growth rate (check courier report)

- Calculate production = sales forecast - inventory then x 110%

26. What strategy we are doing?

USE BROAD DIFFERENTIATION STRATEGY

USE 8 PRODUCT IN 5 SEGMENTS

LOW END, TRADITIONAL AND PERFORMANCE WILL HAVE 2 PRODUCTS TO CONTROL THE SEGMENT

HIGH END AND SIZE 1 PRODUCT, KEEP GOOD MARKET SHARE 

27. Why we add 10% to production?

2 REASONS

- R&D BETTER NOW

- BETTER INVENTORY THAN STOCK OUT

- ALSO GOOD PRICE AND PROMO, SALES BUDGET

 

28. When is the best time to sell and buy capacity or how can you calculate it?

150% CAPACITY IS OPTIMAL

SELL THE SURPLUS

SALES FORECAST X 110%

AGAIN, KEEP SOME INVENTORY IS BETTER THAN STOCK OUT (COMPETITORS WILL SELL) 

29. Why we have good sales in round 1-2 but still low net profit?

AGAIN, ROUND 1-2-3 (AND  4 IN THIS CASE) FOR INVESTMENT, R&D, PROMO AND SALES

WILL HAVE GOOD SALES BUT LOW NET PROFIT

BUT NEED INVESTMENT FOR LATER ROUNDS

ROUNDS 5-6-7-8 WILL LEAD THE GAME WHEN 8 PRODUCTS SELL WELL, BOTH HIGH SALES AND PROFIT 

30. Changes in strategy (2019):

- We apply broad differentiation strategy

- High quality for value, good prices, high volume of production and sales

- Therefore, round 1-2-3 need strong investment, good sales but low net profit

- Rounds 4-5 good sales, some profit and all rounds 6-7-8 lead the game with top sales and profit

- For 4 rounds practice, use 5 products, for 8 rounds game, use 8 products and add 3 new products in round 1-2-3 to double sales and profit in from round 4-8

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YOUTUBE

31. 

Thank you .What mistakes should we avoid in round 1

R&D

Need to update R&D right from round 1 to keep up with customer demands

And also need to update every round to keep selling.

32

Thank you .How to set R&D for Round 1 for Broad differentiation strategy?

Use Excel file and Industry Condition report

33

Thank you .Should we start adding new products right from round 1?

Yes. Low End or Traditional

34

Thank you .How to calculate Pfmn and Size for round 1 and later rounds?

Use Excel file and Industry Condition Report (download from Top menu, Report tab, last row)

35

Thank you .How can we set prices for products in round 1 and later rounds? What are the basis for pricing?

Based on Courier report

and Competitor pricing

36

Thank you .How to set promo and sales in round 1. Do we need to set different promo and sales for different products?

Yes

2000 for Low End and other products 1.200 for Round 1, 1.400 for Round 2 and then 1.600 for Round 3

Upto 2000 in round 4 and back to 1.400 when reaching customer awareness 100%

37

Thank you .How to set decisions for Production in round 1. What products should we increase Automation first?

Round 1 use 6.5 for Low end, then to 8.0 and 10.0

For Traditional, round 1 to 5.0 then 6.0 and 7.0 and 8.0 next rounds

38

Thank you .How to increase Pfmn and Size over rounds?

Based on Industry Condition report and Courier report 

39

Thank you .How can we add new products when CompXM has only 4 rounds?

We can add 2-3-4 new products and can win CompXM

Nano and Elite products sell better than Thrift and Core

And bring better profit margins

40

Thank you .How can we set prices for products in round 1. And CompXM has only 4 rounds, how can we add new products?

We can add 2 more products or 3 or 4 new products in round 1

They will start selling from round 2

And double sales and profit in round 3-4