The Best Capsim Capstone Guide and Tips - New Winning Strategies for Ca...

The Best Capsim Guide and Tips for Capsim 2022 and Capsim 2023 - Tip 10 Tips To Win All Rounds - Part 6

Capsim Guide - Capsim 2021 - Tip 10 Tips To Win All Rounds - Part 6

------

101

Thank you for updates and information. the only concern is why we need this much of cash? because if we borrow less in both long term and current debt we got more profit and the score in proforma is increase.

Sales show is estimate.

Note that competitors are trying to increase sales too.

In rounds 1-4, we do not have high advantage.

Therefore, keep enough cash to avoid any cases, eg. competitors dump prices of some products (to get other full on inventory)

From rounds 5-8, do not need that much of cash, because all products sell well.

------

102

What was the benefit for selecting positionings in December each year? I was under the impression to choose middle of each year, so the products can start selling in the second half of the same year.

R&D EACH ROUND SO THAT PRODUCTS MEET CUSTOMER DEMANDS

SHOULD BE IN MIDDLE OF THE YEAR TO HAVE ENOUGH TIME TO SELL

OR BEFORE END OF THE YEAR, THEN CAN UPDATE NEXT YEAR TO BETTER POSITION

103

Both the two products, in Core, Nano and Elite segments, had the exact same positionings (round 2, 3 and 4). How come they can sell differently, when they have the exact same specifications (positionings)?

SAME PFMN AND SIZE

BUT DIFFERENT TIME OF LAUNCH, THEN HAVE DIFFERENT TIME IN MARKET TO SELL

104

Were the forecastings the same, for both products in each segment, in each round (referring to point # 2 above)?

MAKE IT SIMPLE FOR PLANNING 

ALSO, NEED TO KEEP SOME INVENTORY FOR EACH

SO, PLAN SAME, SELL DIFFERENT, THEN KEEP SOME SMALL DIFFERENT INVENTORY IS OK

105

Why was product Able, always positioned in the middle of each year (when all the other products were positioned for December of each year)?

IT IS NOT DECEMBER

BECAUSE YOU ASK TWO TIMES

PRODUCTS NEED 2 UPDATES

1. IDEAL SPOTS - IN THE CENTER OF EACH SEGMENT

2. DRIFT  - EACH PRODUCT MOVE PFMN AND SIZE TO BEST POSITION THAT CUSTOMERS NEED

YOU CAN SEE THE GUIDE IN INDUSTRY CONDITION REPORT

111

Capsim 2021 - New Winning Tips 1

https://www.youtube.com/watch?v=2yKRxv--_0o

Capsim 2021 - New Winning Tips 2

https://www.youtube.com/watch?v=bxA0b9Z8bVk

Capsim 2021 - New Winning Tips 3

https://www.youtube.com/watch?v=65t9ebyMt30

Capsim 2021 - New Winning Tips 4

https://www.youtube.com/watch?v=MIYWe2eQNcE&t=335s

Capsim 2021 - New Winning Tips 5

https://www.youtube.com/watch?v=-j3lzaaEses

The Best Capsim Guide and Tips for Capsim 2022 and Capsim 2023 - Tip 10 Tips To Win All Rounds - Part 4

Capsim Guide - Capsim 2021 - Tip 10 Tips To Win All Rounds - Part 4

------

61

Can you elaborate please regarding the order of the segments you chose to add products to? I mean why first low end segment, then traditional and lastly high end?

LOW END - HIGHEST MARKET SHARE, SALES AND ALSO HIGH GROWTH, CHECK COURIER REPORT TO SEE SALES VOLUME

TRADITIONAL - SECOND HIGHEST

ALSO THEY BRING GOOD SALES AND GOOD PROFIT (CONTRIBUTION MARGIN)

HIGH END, SIZE, AND PERFORMANCE ARE SIMILAR - 10% MARKET SHARE, NEED HIGH PRICE TO GET PROFIT

 

62. 

Why we need to take a short debt ? What is the reason ?

IN EARLY ROUNDS, 1-2-3, NEED INVESTMENT FOR R&D, PRODUCTION CAPACITY INCREASE

NEED INVESTMENT

THEN USE STOCK ISSUE, LONG TERM LOANS

AND ALSO USE SHORT TERM LOANS IN ROUND 1-2-3 TO AVOID SHORTAGE OF CASH (IN CASE OF LOW SALES, EG. COMPETITORS DUMP PRICES) 

62

Why the new products are meant to be ideal for year 4 (why this year?!)? How this connects to our strategy?

NEW PRODUCTS WILL BE AT IDEAL SPOTS AND 1-2 YEARS OLD TO SELL WELL IN ROUND 4

ADD NEW PRODUCTS TO LEAD IN 3 SEGMENTS IS GOOD FOR BROAD DIFFERENTIATION STRATEGY

 

For HR decision- what is the reason for entering 40 h training and 3000 recruitment.

OPTIMAL IS 5000 AND 80 HOURS OF TRAINING

GOOD FOR LONG TERM, GOOD WORKERS, SAVE COST, INCREASE QUALITY

ALSO SAVE COST IN ROUND 1-2-3 THEREFORE USE 3000 AND 40

FROM ROUND 4 USE 5000 AND 80 

62c

QUICK GUIDE & WINNING TIPS FOR ROUND 1

1. R&D add a new product in Low end, will start selling from Round 2, and double sales and profit from round 4-8, leading the game with sales and profit.

2. Marketing: reduce prices by $0.50

3. Promo and sales about 1.200 - keep close to competitors

For Low End use 2.000 to sell best, it has high sales volume

4. Production: If add a new product, NEED To add new CAPACITY for new Low End, about 500 and set automation 5.0

Increase automation of Traditional to 5.0, Low End to 6.50

Can sell surplus capacity of Traditional (-600) and High End (-300)

Can add capacity for old Low End (200)

5. HR use 3000 and 40 to save cost and gain profit, for round 1-2-3, from round 4 use max 5000 and 80 hours

6. Finance: Use 2 sources of investment, Issue stock max and max long term loans, can also use short term borrowing

7. TQM spend for all 10 initiatives, each 1000

Will have top sales and profit from ROUND 4, leading the games all rounds 5-8.

63

QUICK GUIDE & WINNING TIPS FOR ROUND 2

1. R&D add a new product in Traditional, will start selling from Round 3, and double sales and profit from round 4-8, leading the game with sales and profit.

Update 4 old products

Do not need to update Low End and new Low End (if added in Round 1)

2. Marketing: reduce prices by $0.50 0 Eg. Traditional 29.00, Low End: 20.00; High End: 39.00, Performance: 34.00 and Size 34.00

3. Promo and sales about 1.400 - keep close to competitors

For Low End use 2.000 to sell best, it has high sales volume

4. Production: If add a new product, NEED To add new CAPACITY for new Traditional, about 400 and set automation 5.0

Increase automation of Traditional to 6.0, Low End to 8.0 and also for New Low End to 8.0 (if added from Round 1)

Can add capacity for New Low End (300)

5. HR use 3000 and 40 to save cost and gain profit, for round 1-2-3, from round 4 use max 5000 and 80 hours

HR is long term investment

6. Finance: Use 2 sources of investment, Issue stock max and max long term loans

Can also use short term borrowing to avoid Emergency Loan

From Round 6-7-8 can retire stocks and pay dividends, when having high sales, alot of cash and profit.

7. TQM spend for all 10 initiatives, each 1000

Will have top sales and profit from ROUND 4, leading the games all rounds 5-8.

64

Note that this game requires all decisions cooperations.

Only R&D can not sell. R&D can improve products each round to meet customer or market demands.

Price is important for sales and profit. Good price can sell and bring profit. 

Production is important for volume, BEP and cost reduction. Need enough capacity to meet demands and automation to reduce cost.

HR just spend 3000 and 40 in rounds 1-2-3 then increase to 5000 and 80 in rounds 4-8. 

HR is long term investment.

Finance to get enough investment, and avoid emergency loans. Get good funds from stock issue, long term loans and even short term borrowings if needed in round 1-2-3

TQM for high quality and cost reduction. 

65

Note in advance:

- This is long term strategy game with 8 rounds (Practice may have 4 rounds)

- Round 1-2-3 focus on investment, R&D, new products development, promo and sales, increase production capacity, automation. 

Therefore will have good sales and some profit.

- From Rounds 4-8, will lead the game with top sales and profit.

66

Quick question, why do we not want to issue stock??

Your team has high sales and profit now. Enough cash for investment 

So do not need issuing stocks.Round 7-8 can buy back stocks and pay dividends to get higher stock price and EPS

67

Can you explain the reason for the numbers in buy/ sell capacity 

Most effective production is 150% capacitySell surplus capacity to invest in other productsBecause products are sold independently

68

What strategy for CompXM

We use Broad differentiation strategyFocus on 4 segmentsHigh quality good priceWill have high sales and top profit.

69

Should I quit Buddy (Size) product

My suggestion:- This is long term strategy game.- Zero sum game. It means if you do not sell, competitors will- If you leave or retire a product, competitors will sell more, and push your market share down, and also push your stock price down

* So, keep it, all products will bring good sales and profit all rounds 4-8.

70

------

Note in advance:

- This is long term strategy game with 8 rounds.

Rounds 1-2-3 focus on R&D, Promo and sales, Production expansion... 

therefore will have good sales but some profit

Lead the game all rounds 4-8 with top sales and profit.

71

------

Note in advance:

If you did not do well in round 1. You will Need rounds 2-3 to fix R&D, update products, new products development, promo and 

sales, add new production capacity

Therefore, round 2-3 will have good sales but low net profit (or small loss)

Rounds 4-8, will have both high sales and profit, leading the game.

72

------

OVERVIEW OF STRATEGY

We apply broad differentiation strategy.Focus on all five segments, more on Low end, traditional and Performance segment, because they have higher sales and growth and profit.High products quality and good prices.

73

------

COMPXM OVERVIEW

We apply Broad differentiation strategyFocus on all the four segments

Also add new 4 products in 4 segments to double sales and profit (because products are sold independently)

We use strong promo and sales in round 1-2-3 and back to 1.400 in round 4 when products reached 100% customer awareness and accessibilityFor production, we increase production capacity, update automation to 6-8-10 for Thrift , 8 for Core and maintain 6 for Nano and elite

Gaining high sales and profit in rounds 1-4, top sales and profit in rounds 3 and 4.

------

74

Change MTBF for all our products to the maximum amount we can.

Does that have a low R & D cost, and just boost sales/market share?

The thought is just that it's an extremely cheap demand upgrade. The extra R&D cost is trivial if you're already revising that product (which you must for everything except Low End). And the extra unit cost is cheap: there's only a $1.50 per unit manufacturing cost difference between minimum and maximum MTBF. And for that cost you get 7-53 raw demand points which is a huge bargain in pretty much every segment (less so in traditional and low-end, but even then it's cheaper than cutting prices).

------

75

I'm on round 4 now, what do you suggest doing for TQM and if our awareness is now at 100% should we decrease our promotional budget?

TQM is very straight forward. When TQM comes in you want to invest $1500 the first year, then $1500 the 2nd year and $1000 on the 3rd year and stop investment after that.

Once you reach 100% awareness, tune down your promotion to $1400.

------

78

Will automation affect right the year of update or next year

Automation has a 1-year lag. You don't benefit at all during Round 1, but you benefit a ton during Round 2. You should see contribution margins above 50% for Round 2, provided you don't slash prices.

------

79

How to calculate Sales Forecast

Forecasting: (Last Year Segment demand)(Segments' Growth Rate)(Last years market share) = Forecast for next year

Production Schedule: (Forecast)*(1.15) - Inventory on hand

Buy/Sell Capacity Buy if 2nd Shift production > 50% Sell if 2nd Shift production < 20%

Borrowing Money Borrow in the following order until you reach 2.0 Leverage and 60 Days of working capital Stock issue > Current Debt > Long term debt

The Best Capsim Guide and Tips for Capsim 2022 and Capsim 2023 - Tip 10 Tips To Win All Rounds - Part 5

Capsim Guide - Capsim 2021 - Tip 10 Tips To Win All Rounds - Part 5

------

80

WHAT IS THE BEST AUTOMATION AND FACTORY UTILIZATION?

For the buy/sell capacity. How do you know how much I should buy/sell?

Lets say my 2nd shift production is at 80%, how much should I buy?

150% is the most effective

You want to have your 2nd shift capacity between 20% and 50%

That's the perfect amount. Only buy capacity to keep up with sales growth, maybe with a little extra for slack.

Invest in automation, not capacity, to lower your labour costs. So if you expect sales to increase by 18% next year, buy 20% more capacity.

180% plant utilization is perfect for points, though 200% is still best for profits.

Capsim Guide - Capsim 2021 - Tip 10 Tips To Win All Rounds - Part 5

------

81

I'm just curious if you or someone can finally answer this question: Speaking of high end specifically, should I meet customer requirements even if it pushes revision date into 2022 (the year now is 2021) or should I go against what the customers want and keep my revision date in this year, 2021

Should keep revision date this year

Then next round update further

Should ALWAYS keep your revision date between the year of the round (2021 in this case), never go over.

Customer buying criteria its a guide for you to move and manage your products but you dont have to match it exaclty

------

81b

What segments are most effective?

Traditional and Low End are by far the most profitable in the early game and the other guys take a long time to catch up.

81c

What general tips/advice should we use to be competitive using this strategy?

Broad differentiation strategy

You can analyze the 5 segments for profitability

Invest in the most profitable segments 

All strategies are doable, Low End segment will give your company high profit, it is too good to let it pass.

Keep Low end and Traditional products

Can launch a new Low End and Traditional

Also can introduce 2 new High end products in the first round, then 1 product in Size the following round and 1 product in Performance in the next.

------

83

Why making the plant utilization in that hight %? (r2 production information report)

Most effective cost is use 150% capacity

84. 

What is the 2nd shift over-time mean?  (r2 production information report)

2nd shift means factories used over time, 50% means workers work 4 hours over time

85

In what reason you enhanced automation?

High tech factories need robots, automation, for higher quality products and save cost

86

What goal and specific things you will focus on in round 3 and what you will expect to do in round 4

Round 3 continue R&D one new products, update other

From rounds 4 will have double sales and profit, leading the game

87

For Global DNA

Can I ask a quick question.  I'm wondering why you decided to buy more capacity to produce everything instead of outsourcing some?  Is it more cost effective to not outsource anything?

This is long term strategy.

Rounds 1-2-3 for investment.

And later rounds will double sales and profit, leading the game.

88

- Each round, can increase capacity

- Most effective is 150% - with 50% outsourcing

- But, need increase capacity for later rounds, so Round 1-2-3 buy max capacity we can. Then later rounds will have much higher capacity than competitors. And also, we have better products to sell.

89

I have a question about the R&D strategy.  I see you started a new product that is in the budget segment and has a regional kit for Asia.  Is the idea to only sell 1 budget and 1 performance product in Asia and sell a different performance and budget product in America / Europe?

- We will add 3 new products in rounds 1-2-3

- Performance and Size will have 2 products for each segment to double sales and profit

(In this game products sell independently, actually they are different product lines, even in same segment)

- And will add kits for all 3 market regions, each round update one region, because it takes time to develop regional kits

90

GLOBAL DNA

Why would we not release 2 products this round and have all 4 of them ready to go in production?

Add 2 products will cost more

And even get good sales this round, can not get some or good profit . It is not good financial statement.

Also, production capacity expansion is not so high each round to support 2 new products 

91

CAPSTONE

My team decided they wanted to make one adjustment to the price.

They wanted the price of Edge the original performance sensor to be $33.50 vs $33.00. Your thoughts?

Also, can you advise on the impact of the demand % increase by increase A/R lag?

Can adjust prices for Edge -  it is Performance segment, price affect less, $35 or $35.5 is OKA/R = account receivable, days that customers can delay payment. Therefore, increase 30 to 40 days will give longer term for buyers, can sell more (will increase to 46 days, and 61 days in round 4 and 6)

Note in advance:

- This is long term strategy game with 8 rounds

- All team face a problem of agree on Invest in rounds 1-2-3 and later can win

- Members always want good sales and profit all rounds from beginning. Then avoid invest in Rounds 1-2-3. Therefore in later rounds lost market

- If invest in rounds 1-2-3, then have good sales and low profit. Later rounds 4-8 all rounds can lead the game.

- If NOT invest in 1-2-3, will have good sales and good profit, then lose sales in later rounds.

92

May I also know the purpose of setting a new product line?

For new products:

- This game, products are sold independently, therefore, new products will double sales and profit

- Also, new products can save promo and sales cost, more effective, and they are closer to ideal spots and can sell better

93

Just a question, what is the point of having 2 product for traditional, low, and high end products? 

Wouldn't that just hurt our own sales, I know at the bottom it says to diversify the product but how would you further  diversify  each product in low, high and traditional, since it tells you what the market wants out of each product.

For Capsim, in five segments, each product sell independently.(It is like a line of products, not just a product and can sell independently)Therefore can double sales and profit. You will see from Round 4. And control sales and profit in each segment

94

Is the TQM Worst/Best demand increase factored into the sales forecast? If so, how?

- TQM for higher quality and save cost, total spending 4.000, each round spend 1..000 from 4-5-6-7

Now that we have become profitable from sales, will we continue to use short and long term loans as well as issuing stock to as a revenue source?

- Not short term, stock and long term loans from round 6

95

Is there a plan to retire any stock and long term debt and issue dividends? If so, when

  - Round 7 and 8 can retire stocks and pay some dividends, round 8 retire long term loans 

96

How the ROS and stock price increase that much? What did you do to achieve these?

WE FOCUS ON SALES, PROFIT AND MARKET SHARE

OUR STRATEGY IS BROAD DIFFERENTIATION WITH HIGH QUALITY, GOOD PRICE, HIGH SALE VOLUME (AND PROFIT) 

97

Mainly in which part or decision section you focus and how to modify to get this result?

R&D IS MOST IMPORTANT BECAUSE THIS IS HIGH TECH PRODUCTS

PRODUCTION CAPACITY

98

I know you cloned 3 lines in the first 3 rounds, but what is your goal or what is your main achievement in round 4~5? 

NEW PRODUCTS ARE VITAL IN HIGH TECH INDUSTRY

THEY ARE IN THE SAME SEGMENT, BUT DIFFERENT PRODUCTS

CAN SELL INDEPENDENTLY AND GAIN DOUBLE SALES 

99

By my understanding, I think you were depositing something? May I know what you specifically depositing/prepared?

SIMPLE STRATEGY

JUST KEEP INVEST FIRST

THEN GAIN PROFIT IN LATER ROUNDS

NOTE THAT WE HAVE TO PATIENT IN ROUNDS 1-2-3 WHEN HAVING GOOD SALES BUT LOW PROFIT 

100

Would you please explain why your projections end with so much cash and took on the additional stock debt?

For question:

- You set plan based on last round numbers, sold units, pricing, competitor prices

- We do not know what competitors will do this round. They may dump prices or market total demand will go down

- Just for best case, in rounds 1-2-3 when having normal sales, and strong invest, need all 3 sources of investment, stock issue, short and long term loans to support R&D, promo and sales, production expansion, automation increase.

- Again, in early rounds, need investment, then later rounds can retire loans, stocks and pay dividends.

CThe Best Capsim Guide and Tips for Capsim 2022 and Capsim 2023 - Tip 10 Tips To Win All Rounds - Part 1

Capsim Tips - Top 10 Winning Tips to win all 8 rounds - Part 1

Q&A

------

1. What strategy can you suggest?

We apply Broad Differentiation strategy. 

Focus on all the five segments to meet diversified demands of customers (business customers). 

For products, we focus on Traditional, Low End and Performance, with 2 products for each segment, and also keep maintain good product in High End and Size. 

For Pricing, we apply good price for high quality, strong promo and sales.

------

2. How to set prices for five segments?

Prices are based on: Production cost, Competitors prices and also last round prices.

So, as high as possible to get good contribution margins.

Also, need to lower than competitors to sell better, control market share

And, consider production cost, actually looking at contribution margins is better, because it shows not only production cost, but also other cost, such as admin, sales, promo...

------

3. What is the principal strategy for each module? We know is a long term strategy but what implies that for the modules?( R&D, Finance, etc)

WE APPLY BROAD DIFFERENTIATION STRATEGY

R&D:

ADD NEW PRODUCTS (IN THIS HIGH TECH INDUSTRY, NEED NEW PRODUCTS)

MARKETING

Use 1200, then increase to 1400, 1600, then 2000. 

Reduce back to 1400 when reaching customer awareness and accessibility of 100%

PRODUCTION

Add new capacity for new products

Increase Automation

Low end to 10

Traditional to 8

Other products to 6

FINANCE

Use all three sources of investment in early rounds, including stock issue, short and long term loans.

In later rounds, eg. 7-8 can retire stock, pay dividends and pay back long term loans

TQM: 

We use $ 1000 in each item for each round.

TOTAL 4000 WILL GET MAX BENEFIT (FROM THE GUIDES)

EACH ROUND 1000 FOR 4 ROUNDS

HR:   We use  $5000 in recruiting expenses and 80 hrs of training. For early rounds, can use $3000 and 40 hours to save cost.

THIS IS ALSO FROM THE GUIDES

MAX 5000 - MAX 80

FOR LONG TERM BENEFIT

GOOD WORKERS, HIGHER QUALITY OF PRODUCTS

 

4. Production: How much more of our installed capacity can we produce? We always saw that we produced a lot more that the capacity we had?

WE CAN PRODUCE MAX 200% FOR 2 SHIFT, MEANING THAT WORKERS HAVE TO WORK 2 SHIFTS (16 HOURS)

SHOULD USE 150%

 

5. Accounts Receivable: Why did you decide to change the AR from 30 to 46 days? In which round did you change it?

TO GIVE CUSTOMER LONGER TIME TO PAY

SO THEY WILL BUY MORE OR CAN SELL MORE

 

 

6. Age: Have you ever change the Age of the products? where did you set that?

CAN NOT CHANGE AGE DIRECTLY.

ONLY CHANGE IN R&D TABLE

JUST CHANGE PFMN AND SIZE --> Then Age change!

Tips: For Low End Products, they require 7 years old to sell best. 

Therefore, do not have to update every round. Only one time in round 3, and one time in round 7.

Other products require update regularly

 

7. Promo & Sales Budget: How did you decide how much we have to set as promo & sales budget? 

When did you decide to change the amounts of your 1st decision?

INCREASE FROM 1000 TO 1200 - 1400 - 1600 - 2000 AND BACK TO 1400 WHEN REACHING 100% CUSTOMER AWARENESS AND ACCESSIBILITY

Note: 

Round 1-2-3 can use 1.200, then 1.400 and then 1.600 to save cost and get good profit

Round 4 can use 2.000 then from round 5-8 back to 1.400 when reaching 100% customer awareness.

 

8. Revision Date: can you decide the date on which your new product comes out? (Or the simulator just give you the date?) 

On the 1st round, you created a new perfect product for round 4, you decided the date? where did you set that?

SET IN R&D

NEW PRODUCT WILL SELL WELL FROM ROUND 4 AFTER 2-3 ROUNDS OF LAUCHING

Note: for new products, they can sell from next round. Note to add new capacity for new product so we can start production from next round (set new capacity in Production tab) and also have to set automation for new product.

 

9. How do you decide to have loans / issue stocks (how long?)

NEED STRONG INVESTMENTS IN ROUNDS 1-2-3 TO SELL WELL IN LATER ROUNDS

THIS IS LONG TERM STRATEGY GAME

ROUNDS 1-2-3 FOR INVESTMENT

ROUNDS 4-8 WILL LEAD THE GAME.

IF WE DO NOT INVEST EARLY, COMPETITORS STILL DO, AND THEY WILL ACQUIRE MARKET SHARES FROM ROUND 4-8. AT THAT TIME, STARTING INVEST IS TOO LATE.

SO, INVEST IN R&D NEW PRODUCTS EARLY IS THE RIGHT STRATEGY TO WIN THE GAME.

 

10. Why do you recommend us to increase only 10% in production each round.

IN CASE OF SELLING WELL DO NOT RUN OUT OF STOCK

IT IS NOT GOOD TO STOCK OUT

BECAUSE, IF WE DO NOT SUPPLY, CUSTOMERS WILL BUY FROM COMPETITORS THEN DEMANDS FOR OUR PRODUCTS NEXT ROUND WILL BE REDUCED.

ALSO, IF COMPETITORS CAN SELL MORE, NEXT ROUNDS THEY CAN SELL MORE, AND LOWER PRODUCTION COST, THEN THEY CAN SET LOWER PRICES, IN THAT CASE WE WILL SELL LESS.

THEREFORE, KEEP 5%-10% OF INVENTORY IS BETTER THAN RUNNING OUT OF STOCK

11. In Production module there is a part for Workforce settings, what is complenent stand for? why do we assign 100% value to it 

JUST KEEP IT AS DEFAULT 100%

 

13. What strategy is the most potential winning strategy?

- R&D is most important

- 2 LOW END, AND 2 budged and 2 performance products will always win from round 5-6-7-8

- Invest in round 1-2-3 and gain winning from round 4

14. Marketing, how to set the price for different products?

Keep price as high as possible to gain good profit margin

Reduce 50 cent from top price each round

15. Should the price of Performance product be as high as possible but not beyond the ceiling price of custome expected? 

No

Keep track of prices for each segment, each round

Also keep track of prices from competitors

16. Should we adjust R&D every round?

Adjust Pfmn and Size each round

Keep launching date from Jun to Oct to have enough time to sell

Again, need to update product every round (out of date products can not sell)

17. How many contribution margin should we maintain for each product? 

Is it ok to maintain 30% for budget product and 40%

Keep top sales and profit can always win the game

Contribution margins depends on each competitive situation.

18. Contribution will increase to 30% 40% from round 4 to 8

Early round 1-2-3 only focus in invest to have good products by R&D, Marketing, promo and sales

Keep update to have good selling products in round 1-2-3

Add new products, they will double sales and profit from round 4

19. How to do promotion? How many percent should awearness and accessbility be respectively?

Just keep 8-10% estimated sales for promo and sales

Or spend 1.000 - 1.200 - 1.400 - 2.000 until reach 100% customer awareness then back to 1.400, can spend 2.000 for one or two products from round 1

20. Finance, what accounting policy should it be? (A/P. A/R)

Keep 30 days in round 1-2-3

Increase AR to 46 days in rounds 4-5-6

Increase AR to 61 days to sell more when leading the game

CThe Best Capsim Guide and Tips for Capsim 2022 and Capsim 2023 - Tip 10 Tips To Win All Rounds - Part 2

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

------

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

------

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

CThe Best Capsim Guide and Tips for Capsim 2022 and Capsim 2023 - Tip 10 Tips To Win All Rounds - Part 3

Capsim Tips - Top 10 Winning Tips to win all 8 rounds - Part 3

------

41

Thank you .How can we set decisions for TQM in round 3 or 4?

We can use 1.000 for each round. For all the 10 initiatives

42

Thank you .How can we set decisions for HR, and why?

Use 3000 and 40 hours for rounds 1-2-3 and then increase to 5.000 and 80 hours

43

Thank you .How can we set decisions in Finance, should we issue stocks and use short and long term loans? When can we retire stocks and pay dividends?

This is long term strategy game with 8 Rounds

Rounds 1-2-3 for investment, needs all three sources of investment, short term, long term loans and stock issue.

44

Thank you .How much should we spend for TQM each round and why?

TQM reach most effective investment at 4.000

We can spend each round 1.000 for 4 rounds or 1000 then 1.500 and 1.500

45

How can we calculate sales forecast for each round? What are the basis for demands?

Sales forecast = last round sold units x segment growth

Production = sales forecast - inventory then can multiple by 110%

To get some reservation or inventory, and avoid stock out.

46

Thank you .How can we calculate production for each round? How can we increase automation over rounds?

Sales forecast = last round sold units x segment growth

Production = sales forecast - inventory then can multiple by 110%

To get some reservation or inventory, and avoid stock out.

47

Thank you .What are the best automation for each product segment?

For Low End, it should increase from 5.0 to 6.5, then 8.0 then 10.0 (from Round 1)

For Traditional, it should increase from 4.0 to 5.0, then 6.0, 7.0 and 8.0 (from Round 1)

For High End, Performance and Size, automation should increase from 3.0 to 4.0, 5.0 and 6.0 (from round 4)

48

Thank you .How to calculate sales forecast for GlobalDNA?

For GlobalDNA

Round 1 sales forecast = total segment demand/6 (having 6 companies in the industry)

From round 2, sales forcast = last round sold units x segment growth rate

49

Thank you .How to add new products for CompXM? Should we add 1-2 or 3-4 new products? And from Round 1?

CompXM has 4 product segments, Thrift, Core, Nano and Elit

Nano and Elite bring better profit

Thrift and Core has higher sales

Can add 2-3-4 products from Round 1

Start selling from round 2

Round 3-4 will double sales and profit.

50

Thank you . How can we set promo and sales for CompXM over rounds?

CompXM has only 4 rounds

Round 1 spend 1.200

Round 2 spend 1.400

Round 3 spend 2.000

and Round 4 can back to 1.400 for promo and keep 2.000 for sales 

------

51

Thank you .Can we win if use 5 products?

Yes

Just keep updating every round

Will still lead the game if competitors do not add new products in all the five segments

52

Thank you .How can we add new products and when?

This is long term strategy game with 8 rounds

Rounds 1-2-3 for investment

Round 4-8 will have high sales and profit

New products need 2 rounds to start selling well to double sales and profit in each segment

Should start add new products from Round 1-2-3 

Each round add one new product, and new capacity, increase automation to save cost and increase quality

53

Thank you .Where can we find information about sold units of last round?

We can check this information from Courier report of last round

You can find report in Top menu of the game, Report tab

54

Thank you .Why rounds 1-2-3 have good sales but not very high net profit?

This is long term strategy game with 8 rounds

Rounds 1-2-3 for investment, update products, new products development

Rounds 1-2-3 have to invest in new products, R&D, new production capacity expansion

Therefore will have good sales but low net profit.

55

Thank you .Should we leave segments if products can not bring good profit? Eg. Size and Performance or High end?

You can, but should not

Because competitors will see the segment

then they can utilize by increase to  max prices of the segment and gain huge profit

and lower prices in other segments

Then they can win with top sales and profit.

56

Thank you .Where can we find information to know which factors affect customer buying decisions?

You can find this information in the Courier Report

There are five pages for five segments

Each segment has their information for customer perference, Prices, Size, Pfmn, MTBF

57

Thank you .How to set prices for Global DNA?

You can check Marketing tab

Each screen will show customer preference for Prices, Size, Performance, MTBF

58

Thank you .How to set decisions for HR in 4 rounds for CompXM?

You can use 3.000 and 40 for round 1

And then 5.000 and 80 (max) for Rounds 2-3-4

59

Thank you for your video? How and when should we pay dividends and retire stock in CompXM?

You can pay dividends, retire stocks and retire (pay back) long term loans in round 4

CompXM has only 4 rounds

Rounds 1-2 for investment 

Rounds 3-4 will have top sales and profit

60

Thank you . Where can we get funds for investment in early rounds for R&D and new production capacity?

Capstone is a long term strategy game with 8 rounds

Rounds 1-2-3 for investment

Rounds 4-5-6-7-8 will have double sales and profit

For investment in rounds 1-2-3, can use max three sources of investment, stock issue, short term and long term loans