Decision Making Process This presentation shows the general guidelines of the decision making process in Foundation® Unforgettable Business Learning © 2012 Capsim Management Simulations, Inc.

Professor: Briana DeBoskey, MBA Class: MGT 451 School: CSU - Global Professor: Briana DeBoskey, MBA Class: MGT 451 Unforgettable Business Learning © 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 © 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 For New Products Change: Size Performance MTBF Note Changes in R&D affect: Age of Product (current age/2) Revision Date (Date product will be available for sale) Cost Enter desired name into a void product space Choose: Size Performance MTBF Purchase Capacity and Automation in Production page Buy this year, use it the following year © 2012 Capsim Management Simulations, Inc.

Tools for setting Price, Budgets, and Forecasts 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 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 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) © 2012 Capsim Management Simulations, Inc.

To Discontinue a Product 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 For New Products To Discontinue a Product Enter Production Schedule Buy or Sell Capacity Buy: Enter (+) number Sell: Enter (-) number Change automation in: ‘New Autom. Rating’ box 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 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.

Go to: Decisions  Finance R & D Marketing Production Finance Additional Modules 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 Retiring Money Dividends Issue Long Term Debt: 10-year bonds Issue Stocks: Selling common stock to the public Issue Current Debt: Borrow 1-year notes Issuing dividends = giving money to Shareholders *Issuing dividends is not mandatory Retire Bonds Early Retire Stocks 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. © 2012 Capsim Management Simulations, Inc.

For Additional Modules: R & D Marketing Production Finance Additional Modules Go to Online Guide Or Help > Tutorials & Demos > Optional Modules Team Member Guide For Additional Modules: Link to Additional Modules © 2012 Capsim Management Simulations, Inc.

Links to Additional Resources Video Demonstrations: Additional Material: R&D Student Guide PDF Product Invention Online Guide Marketing Developing a Sales Forecast Production Finance Important: To view the spreadsheet demonstrations the Adobe Flash Plug-in is needed © 2012 Capsim Management Simulations, Inc.

Best of Luck! Unforgettable Business Learning © 2012 Capsim Management Simulations, Inc.