Introduction
“I hear and I forget. I see and I
remember. I do and I understand.”
Confucius
Kelley Fall 2006 Strategic
Management
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Decisions
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Your team makes decisions given
competitor past, current and future
decisions
Your team is responsible for its
decisions and performance measures
Decisions should be an adventure, not a
chore
Kelley Fall 2006 Strategic
Management
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Team Operation
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Each team should select a general
manager, and operations, finance and
market/product managers.
Writing a job description for each
manager will clarify the responsibilities
of each team member
Kelley Fall 2006 Strategic
Management
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Team Operation
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Work out an arrangement to get each
round’s decisions to the general
manager. You may choose to meet in
person initially then use email as the
game progresses and meet as needed.
Specify how each member of the team
will be evaluated.
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Management
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Team Operation
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Keep a record of all discussions,
decisions made and results (Companies
keep minutes of meetings). This record
will come in handy when the team
prepares its annual report in a few
weeks and gives its presentation at the
end of the course. A hardcover lab
notebook works great for this purpose.
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Management
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Team Operation
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You may use any company’s format that
you want to write your annual report.
An outline of what to include in your
team’s presentation at the end of the
semester will be handed out later.
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Management
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Team Operation
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Advice – Don’t let problems fester. Problems
with team members need to be confronted
quickly, honestly and forcefully. Ask the
instructor if you have questions about decisions
or output. You may want to make an
appointment since trying to answer detailed
questions in class isn’t the best forum for this
purpose.
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Management
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Capstone Game
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The product is a sensor.
6 teams in each industry (3 students
per team). Teams only compete with
other firms in their industry.
Start by marketing 5 brands each
targeted toward a different market.
May market 3 new brands.
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Management
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Captsone Game
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Firms control positioning of products.
Over time consumers want smaller, less
expensive sensors.
Market size and growth rates are
different.
Round decisions must be uploaded to
the Capsim website by 11:00 a.m.
(morning class) or 4:00 p.m. (afternoon
class)
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Management
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Marketing Decisions
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Consumer awareness is important.
Promotion expenses increase
awareness. Sales expenses maintain
awareness.
Advanced marketing decisions begin in
round 3.
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Management
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Production Decisions
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You want to produce at 100% capacity
when possible.
You may sell excess capacity or add
capacity.
Generally it is better to utilize over
100% capacity (overtime) rather than
sell capacity.
Watch inventory stock in each market.
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Management
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HR Decisions
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Hourly wage rate starts in Round 3. A
strike is scheduled for Round 6.
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Management
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R&D Decisions
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Total Quality Management begins in Round 3.
R&D revision times take longer if you put
more than one product is being revised.
You want repositioning projects to finish in
less than one year.
It takes 1 to 3 years to launch a new product.
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Management
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Finance Decisions
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You may issue more stock or bonds to
raise capital.
You may choose to pay dividends.
You may pay off existing debt.
Watch your cash flow.
Use the pro forma spreadsheet to analyze
alternative decisions before uploading
decisions.
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Management
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