INDIAN INSTITUTE OF MANAGEMENT BANGALORE
Capstone Business Simulation
PGP 2013-15 Batch: Three Credits
Faculty
Faculty
P.D. Jose
MS Narasimhan
Office
NF207
NF108
Phone
3092
3026
Email
jose@iimb.ernet.in
msn@iimb.ernet.in
Course Overview
Managing business in a complex and competitive environment is challenging and calls for a
capacity to view the firm in its totality and in the context of its environment. A key skill required
in this context is the ability to integrate multiple functional areas and align them with the overall
mission of the business. The Capstone business simulation course provides an opportunity for
the students to practice what they have learned in other functional courses and experience the
dynamics of inter-functional impact of their decisions.
This course attempts
 Integrate the skills and knowledge you have acquired in your previous course work and
develop a strong inter-functional perspective of business.
 Creating a formal strategy for their business including a formal document outlining
organization vision, mission and detailed plan.
 Provide an opportunity for role play through heading a function or
 Develop a strong understanding of how firms compete by benchmarking the
performance of the team with other teams and periodically modify their strategies.
Course Structure and Pedagogy
Students are formed into teams and compete against each other in a simulated and highly
competitive environment. The simulation used attempts to recreate, as closely as is possible, the
real world in the classroom. The simulation is complete and effective only when you actively
participate in all aspects of the decision-making and review.
Attendance is not mandatory. But please note that if you are not present during the
presentations, your individual grade may be adjusted accordingly.
Course Materials
All required material would be supplied as a part of the course pack.
Evaluation Scheme



Overall performance in the Game:
Three Presentations 15% each:
Capsim Examination:
25% (Grading for the Group)
45% (Grading for the Group)
30% (individual Grading)
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INDIAN INSTITUTE OF MANAGEMENT BANGALORE
Capstone Business Simulation
Session-wise Schedule
Session Mode
1
Lecture
Topic
Introduction to Capstone
Simulation
Key Learning Objectives
Introduction to the simulation
2
Simulation
Business Simulation: Practice
Round
3
Simulation
Business Simulation Round 1
Teams Play Round 1
4
Lecture
Developing a Competitive
Strategy I
Situation Analysis, Industry Analysis,
Competitor Analysis\
5
Presentation-1
Preparation of Strategy
Roadmap
5
Lecture
Capacity Planning, R&D and
Automation Optimization
6
Lecture
Financing Decisions
7
Lecture
Cash Management
8
Lecture
9
Simulation
Developing a Competitive
Strategy II
Business Simulation Round 2
Teams develop a formal business strategy
plan, which includes mission and vision
statement and present to faculty; each
team get 20 minutes for presentation to
the faculty; other teams stay away.
Discuss inter-linkage between capacity
planning, R&D and Automation on time,
cost and benefit dimensions; Computing
NPV/IRR of long-term investment
decisions.
Evaluating debt and equity options; impact
of emergency loan; dividend and share
buy-back options.
Estimation of working capital in an
uncertain competitive environment
Competitive Dynamics, Value chain
analysis, Business Strategy Analysis
Teams play Round 2
10
Lecture/
Debrief
Financial Analysis of Firms
and Competitors
11
Lecture/
Debrief
Pricing Policy
12-13
Simulation
Business simulation - Rounds
3&4
Using Round 1 and 2 results, this session
will show how to identify areas of
improvement
The inter-relationship between product
position, cost, customer awareness, and
desired profit in pricing decision will be
discussed using Round 1 and Round 2
results
Teams Play Round 3 and Round 4.
1
14
Presentation-2
Rounds 3 & 4 Presentation
15-16
Simulation
17-18
Simulation
19-20
Presentation-3
Business simulation - Rounds
5&6
Business simulation - Rounds
7&8
Present stockholders’ debrief
& Business Plan
Teams apply the learning of Lecture 9 and
give a presentation evaluating the firm’s
performance over four rounds and interfirm comparison; changes in their strategy;
Each team gets 30 minutes presentation;
other teams stay away.
Teams Play Round 5 and Round 6
Teams Play Round 7 and Round 8.
Each team gets 45 minutes for
presentation examining their initial
strategy, execution, mid-course changes in
strategy, their performance, and their
learning. Teams are also expected to
prepare annual report. Other teams are
welcome
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