Decision Making Process
This presentation shows the
general guidelines of the decision
making process in Foundation®
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© 2012 Capsim Management Simulations, Inc.
School: CSU - Global
Professor: Briana DeBoskey, MBA
Class: MGT 451
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© 2012 Capsim Management Simulations, Inc.
The Six Basic Strategies
The “Six Basic Strategies” give you a starting
point. Make sure before you start making any
decisions to go over the strategies and choose
one that you feel comfortable using.
Keep in mind that each strategy is proven to
work. If you’re not doing well it’s more likely
that you’re executing the strategy incorrectly.
Link to Six Basic Strategies
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© 2012 Capsim Management Simulations, Inc.
R&D
Marketing
Production
Finance
Additional
Modules
Main Goal: Adjust product’s attributes to meet “Customer Buying Criteria.”
Step 1
Go to: Decisions  R&D
For Existing Products
1. Change:
1. Size
2. Performance
3. MTBF
Note Changes in R&D affect:
• Age of Product (current age/2)
• Revision Date (Date product will be
available for sale)
• Cost
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For New Products
1. Enter desired name into a void product
space
2. Choose:
1. Size
2. Performance
3. MTBF
3. Purchase Capacity and Automation in
Production page
• Buy this year, use it the following
year
© 2012 Capsim Management Simulations, Inc.
R&D
Marketing
Production
Finance
Additional
Modules
Main Goal: Create Price, Promotional Budget, Sales Budget, and Sales Forecast for
each product
Step 1
Go to: Decisions  Marketing
Step 2
Enter ‘Price’ for each product
Step 3
Enter ‘Promo Budget’ & ‘Sales
Budget’
Step 4
Enter your ‘Sales Forecast’
Step 5
Enter Credit Policy (A/R & A/P)
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Tools for setting Price, Budgets, and Forecasts
Price – Use the segment analyses located in the
‘Capstone Courier.’ A price range will be given in the
‘Customer Buying Criteria.’
Promo Budget – Directly affects ‘Customer
Awareness.’ Use student guide and your personal
strategy to create a budget.
Sales Budget – Directly affects ‘Customer Accessibility.’
Use student guide and your personal strategy to create
a budget.
Forecasting – Link to Forecasting Info
A/R & A/P – Link to Credit Policy Info
© 2012 Capsim Management Simulations, Inc.
R&D
Marketing
Production
Finance
Additional
Modules
Main Goal: To determine schedules, capacity, and automation for each product.
Step 1
Go to: Decisions  Production
For Existing Products
• Enter Production
Schedule
• Buy or Sell Capacity
• Buy: Enter (+)
number
• Sell: Enter (-)
number
• Change automation in:
‘New Autom. Rating’
box
For New Products
• Buy Capacity
• Buy: Enter (+)
number
• Choose Automation
Level
• Enter number in
‘New Autom.
Rating’ box
Note: In order to
produce a new
product, capacity
MUST be purchased
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To Discontinue a Product
• If 0 inventory  Sell
all capacity
• EX: if 1000
capacity, input 1000 in ‘Buy/Sell
Capacity’
•If there is excess
inventory  Sell all but
1 unit of capacity
•EX: if 1000
capacity, input 999 in ‘Buy/Sell
Capacity’
© 2012 Capsim Management Simulations, Inc.
R&D
Marketing
Production
Additional
Modules
Finance
Main Goal: To finance the company’s investments and make sure the cash position
is positive at the end of the year.
Three Main Functions: Borrowing Money, Retiring Money, and Issuing Dividends
Step 1
Go to: Decisions  Finance
Borrowing Money
• Issue Long Term Debt:
10-year bonds
• Issue Stocks: Selling
common stock to the
public
• Issue Current Debt:
Borrow 1-year notes
Retiring Money
• Retire Bonds Early
• Retire Stocks
Dividends
Issuing dividends = giving
money to Shareholders
*Issuing dividends is not
mandatory
Important: These numbers are only as good as your FORECASTING.
The actual results will most likely be different. Your goal is to be as
close to the actual results as possible.
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© 2012 Capsim Management Simulations, Inc.
R&D
Marketing
Production
Finance
For Additional Modules:
Go to Online Guide
Or
Help > Tutorials & Demos > Optional Modules
Or
Team Member Guide
Link to Additional Modules
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© 2012 Capsim Management Simulations, Inc.
Additional
Modules
Links to Additional Resources
Video Demonstrations:
R&D
Additional Material:
Student Guide PDF
Product Invention
Marketing
Online Guide
Developing a Sales Forecast
Production
Finance
Important: To view the spreadsheet demonstrations the Adobe Flash Plug-in is
needed
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© 2012 Capsim Management Simulations, Inc.
Best of Luck!
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