1. The Decision Making Process
Capstone®
The Decision Making Process
This presentation shows the
general guidelines of the decision making process in Capstone®
Capsim Management Simulations Inc.

2. Capstone®
School:
Professor:
Class:
Section:

3. The Six Basic Strategies: Link to Six Basic Strategies
Capstone®
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 all these strategies are 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

4. Capstone® Practice or Competition Rounds Double click on: Capstone.xls
Choose: Work on My Company’s Official Decisions
Enter your User ID and Password
Go to Decisions

5. Go to Decisions > R&D Change: Size, Performance & MTBF
Capstone®
R &D
Marketing
Production
Finance
Additional Modules
Go to Decisions > R&D
For Existing products: Change product’s attributes to meet “Customers Buying Criteria”
For New Products: Change product’s attributes to meet “Customers Buying Criteria”
Change: Size, Performance & MTBF
1. Give name to new product
2. Choose: Size, Performance & MTBF
Changes in R&D affect:
1. Age of the product (current age/2)
3. Buy Capacity & Automation (buy it this year, use it next year)
2. Revision Date (when will the product be available for sale)
3. Cost

6. Capstone® R &D Marketing Production Finance Additional Modules
Go to Decisions > Marketing
Enter: Price (Look at Customer Buying Criteria)
Enter: Promo Budget & Sales Budget (Look at Six Basic Strategies + Student Guide)
Enter: Your Sales Forecast (Look at Online Manager Guide or Student Guide > Forecasting)
Link to Sales Forecast
Enter: A/R & A/P (Look at Online Manager Guide)

7. Go to Decisions > Production
Capstone®
R &D
Marketing
Production
Finance
Additional Modules
Go to Decisions > Production
For Existing products:
For New Products:
Discontinue a Product:
Enter Production Schedule
Buy Capacity: Buy/Sell Capacity > enter positive number
1. If no inventory > Sell all capacity (enter negative number in Buy/Sell Capacity)
Buy or sell capacity (if applicable)
In “Buy/Sell Capacity” cell:
- Buy: enter (+) number
- Sell: enter(-) number
Choose automation level: Enter (+) number in: New Autom. Rating.
2. If there is inventory > Sell all but 1 unit of capacity
Change Automation in: New Autom. Rating (if applicable)

8. Capstone® R &D Marketing Production Finance Additional Modules
Go to Decisions > Finance
Your Goal is: Cash Position by the End of Year should be POSITIVE
Borrow Money
Retire Money
Issue 10-year bonds: Long Term Debt
Retire bonds early
Retire stocks
Issue Stocks: selling common stock to the public
Dividends
Borrow 1-year notes: Current Debt
Issue Dividends: give money to Shareholders
Important: these numbers are as good as your FORECASTING. The real numbers might be different.

9. Capstone® R &D Marketing Production Finance Additional Modules
For Additional Modules:
Go to Online Manager Guide Or
Help > Tutorials & Demos > Additional Modules Or
Student Guide
Link to Additional Modules

10. Links to Additional Resources:
Capstone®
Links to Additional Resources:
Student Guide PDF
Spreadsheet Demonstrations:
R&D
Product Invention
Marketing
Production
Finance
Manager Guide

11. Best of Luck!