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

2. 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.

3. 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.

4. 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.

5. 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.

6. 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 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.

7. 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.

8. 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.

9. 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.

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