1. Course Intro & Overview
University of Alaska-Anchorage * College of Business & Public Policy
* Marketing Management Simulation *
Course Intro & Overview

2. Professor Ed Forrest ejforrest@alaska.edu Telephone: (cell) 854-8784

3. Review & Begin Situation Analysis/ Strategic Plan
Overview Course
Organize Companies
Review & Begin Situation Analysis/ Strategic Plan
1st set of Deliverables

4. Your “study” of business … piece-meal & in isolation!

5. Marketing
R&D HR
Production
Finance

6. Lecture-Learning

7. Learning & Retention 5%
75+%

9. THE CAPSTONE SIMULATION
Most widely used Business – Simulation Program in the World
Adopted by major Fortune 500 companies
..General Motors, General Electric, Honeywell, Dell, John Deere, Citibank, Alcoa, BP, Allstate, Samsung, Goldman Sachs, Microsoft…

10. Strategic Thinking the ten big ideas
Simulation proffers you opportunity to experience every key dimension of strategic thinking developed to date:
Strategic Thinking the ten big ideas

11. Economic Environment No outside competitors or product substitutes
Moderate growth, Low inflation, Averaged interest rates
No outside competitors or product substitutes
No economic downturns or other surprises ...

12. Sim designed this way for one reason:
Whatever happens will be result of your-tactical execution of strategies… not by external factors!

13. You Da’ Boss
… run a $100M business ….

14. Your Product Line:
SENSORS:

15. YOUR JOB: Make every decision In every Functional Domain
to create, produce & successfully market your products…

16. …success contingent on strategic integration of decisions across all domains:

17. You will Compete against other members of this class –running 5 other Corp’s ….
Andrews
Baldwin
Chester
Digby
Erie
Ferris

18. Plus-- You will Compete Against Everyone Else in the World
...your decisions & performance will be compared against other teams competing at other universities… around the world

19. & How –to date-- have we fared in this World-Wide Competition??

21. Spring 2016 1st & 6th in ROA 3rd & 4th in profit;
8th & 9th cum profit,
5th ROE;
4th & 8th ROS;
5th in Stock Price
4th in Asset Turnover

22. #1 Fall 2014 Profit for Round 8 - Mean - $ 16,856,185
Top Ten Active Teams
Professor
School/Course
Simid
Team
Value 1
Edward Forrest
University of Alaska-Anchorage - Main Management Simulation
C65883
Chester
$ 179,894,270 2
Montchai Pinitjitsamut
Kasetsart University - Main AgStrategy1
C63414
Erie
$ 150,718,034 3
Erin Nelson
DePaul University - Main GSB 599
C66845
$ 117,376,727 4
Veer Mehta
Great Lakes PGPM - Main Great Lakes PGPM
C66539
$ 102,062,415 5
Michael Stoica
Washburn University - Main Strategic Analysis
C66272
Baldwin
$ 100,603,573 6
Vasant Sivaraman
S.P. Jain Institute of Management and Research - Main Decision Analysis (Business Simulation)- C
C65322
$ 99,817,375 7
Igor Gvozdanovic
Zagreb School of Economics and Management - Main Maximizing and Measuring Corporate Value_CAPSTONE
C67613
Andrews
$ 97,578,131 8
IIM Shillong - Main IIM Shillong
C61259
$ 97,216,158 9
$ 96,520,602 10
Dharam Pal
BIMTECH India - Main BIMTECH India
C65546
$ 95,719,172

23. As Well As….previous “Top 10” Finishes :
Spring : th Profit
Spring : th Cum Profit
Fall : st Profit
Spring : th Cum Profit & 8th Profit
Spring : rd Profit
Fall : st Cum Profit & Stock Price
Spring : th Asset Turnover; 1st, 6th & 8th ROE
Fall : th Cum Profit
Spring : rd & 9th ROE; 8th ROS;  9th Cum Profit
Fall :   4 in & # 10 in profit  #5 in Stock Price  #6 in ROE  #3 & #7 in ROA   #8 in Asset Turnover

25. 1st Organize Companies

26. Leaders responsible for assuring strategy links values & vision ...
Strategic Thinking- the ten big ideas
Prof Thomas/ Penn St. able to predict final standings w/in 1 place 90% of time –after observing initial group interaction...
7. Corporate culture &
8. Leadership craft...
Leaders responsible for assuring strategy links values & vision ...

27. You are now the Captain…
... How’s your Company doing?

28. The Big Picture Company Consumers Competitors Conditions
Situation/SWOT Analysis
Strategic Planning
Functional Integration
Performance Assessment
Company
Consumers
Competitors
Conditions
PEST
Growth & Competitive Strategies
Finance HR
Production
R&D
Marketing
Functional Integration
Profits
Mrkt Share
ROA
ROS
ROE
Asset T/O
Stock
Mrkt Cap

29. Where are we?

30. Strategic Plan Answers 3 Critical Q’s:
1.Where are we now?
2.Where do we want to go
3.How do we get there?
= Situation Analysis

31. Assignment #1 Company Consumers Competitors Conditions
Situation/SWOT Analysis
Strategic Planning
Functional Integration
Performance Assessment
Assignment #1
Company
Consumers
Competitors
Conditions
PEST
Growth & Competitive Strategies
Finance HR
Production
R&D
Marketing
Functional Integration
Profits
Mrkt Share
ROA
ROS
ROE
Asset T/O
Stock
Mrkt Cap

32. Begin Situation-Analysis
INTERNAL ENVIRONMENT
Your Company's
Strengths & Weaknesses:
Consumer
Company
Competitors
Conditions
EXTERNAL ENVIRONMENT
Opportunities & Threats

33. You are finding answers re:
How the market is segmented & the relevant criteria that influence consumers use in their purchasing decisions
The nature & magnitude of the competition
Existing & emerging Economic & Technological trends that will impact demand, pricing, product design & positioning
Consumers
Competitors
Conditions

34. Strategic Thinking- the ten big ideas
Long-range planning- considers the external factors that affect success & integrates the various functional strategies.
Strategic analysis
Industry structure
Market segmentation
The lifecycle.
SWOT analysis.

35. Market Segments: Big, old & cheap high-reliability & performance
proven sensors w/ current tech
advanced sensors w/ focus on small size
cutting-edge in both size & performance

36. Consumer Buying Criteria

37. 5 SEGMENTS

38. DEMAND ANALYSIS: How Many Sensors / Segment want to buy across next 8 years:
Multiply the Round 0 demand by the growth rate and add the result to the Round 0 demand. This will give you a close approximation of Round 1 demand. Copy this number into the Demand cell for Round 1. If you prefer, you can use the following shortcut. For example, assume the Traditional growth rate is 9.2%. Convert the percentage to a decimal (9.2% = 0.092) and add 1 to it (1.092). Multiply the Round 0 Traditional demand by then round to the nearest whole number. This will give you a close approximation of Total Industry Demand for Round 1.

39. SENSOR INDUSTRY ONGOING GROWTH
..the entire market growing at around % per year.

40. Complete Demand Analysis @ CapSim
Intro |  Perceptual Map 1 |  Perceptual Map 2 |  Demand Analysis |  Capacity Analysis |  Margin Analysis |  Consumer Report

41. Drift Demo Cheaper too-$.50 drop in price/year Cheaper too-$.50 drop

42. MARKET SEGMENT DYNAMICS
Intro |  Perceptual Map 1 |  Perceptual Map 2 |  Demand Analysis |  Capacity Analysis |  Margin Analysis |  Consumer Report
Calculate each Segment's IDEAL SPOT LOCATION -- rounds 1 thru 8 Getting Started/ Complete Online Situation Analysis/ Perceptual Map 2)

43. MARKET SEGMENT VALUE
Herein- is an example of relative dollar value of each segment at present (year 0) and 5 years out.

44. Calculate the relative $-value that each segment could/would generate for your company in Round 4 & 8... based on: 
The Probable $-Contribution margin in each Segment  X  Your projected unit sales based on Fair Share (which is 1/6th of total Demand) 

45. Questions?