1. © 2012 Capsim Management Simulations, Inc.Unforgettable Business Learning Decision Making Process

2. Unforgettable Business Learning The Six Basic Strategies © 2012 Capsim Management Simulations, Inc. 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 Link to Six Basic Strategies

3. Unforgettable Business Learning R & DMarketingProductionFinance Additional Modules © 2012 Capsim Management Simulations, Inc. Main Goal: Adjust product’s attributes to meet “Customer Buying Criteria.” 1.Change: 1.Size 2.Performance 3.MTBF Note: Changes in R&D affect: Age of Product (current age/2) Revision Date (date product will be available for sale) Cost 1.Enter desired name into a void product space 2.Choose: 1.Size 2.Performance 3.MTBF 3.Purchase Capacity and Automation in Production page Buy this year, use it the following year For Existing Products For New Products Step 1 Go to: Decisions  R&D

4. Unforgettable Business Learning © 2012 Capsim Management Simulations, Inc. Main Goal: Create Price, Promotional Budget, Sales Budget, and Sales Forecast for each product Step 1 Go to: Decisions  Marketing 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) 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 InfoLink to Forecasting Info A/R & A/P – Link to Credit Policy InfoLink to Credit Policy Info Tools for setting Price, Budgets, and Forecasts R & DMarketingProductionFinance Additional Modules

5. Unforgettable Business Learning © 2012 Capsim Management Simulations, Inc. Main Goal: To determine schedules, capacity, and automation for each product. Step 1 Go to: Decisions  Production 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’ For Existing Products For New Products To Discontinue a Product R & DMarketingProductionFinance Additional Modules

6. Unforgettable Business Learning © 2012 Capsim Management Simulations, Inc. 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 Issue Long Term Debt: 10-year bonds Issue Stocks: Selling common stock to the public Issue Current Debt: Borrow 1-year notes Retire Bonds Early Retire Stocks Issuing dividends = giving money to Shareholders. *Issuing dividends is not mandatory Borrowing Money Retiring Money Dividends 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. R & DMarketingProductionFinance Additional Modules

7. Unforgettable Business Learning © 2012 Capsim Management Simulations, Inc. Go to Online Guide Or Help > Tutorials & Demos > Optional Modules Or Team Member Guide For Additional Modules: Link to Additional Modules Link to Additional Modules R & DMarketingProductionFinance Additional Modules

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