Analysis Of The Capstone Business Simulation

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Introduction The Capstone Business Simulation is a useful tool when it comes to experiencing a competitive industry that is not only dynamic and interconnected, but is also affected by the ethical implications of specific strategic business decisions. Two major areas where this sophisticated business simulation needs improvement, however, is 1) in regards to the limitations on decision-making parameters and 2) the “people” aspect of business. The business simulation is unable to find a means of measuring the value of business relationships; with investors, suppliers, customers, retailers etc. As much as the neoclassical economic theory would state otherwise, us humans are driven by our emotions, motivations and self-interests. This is where …show more content…
Lastly, an analysis on the key stakeholders in the context of stakeholder prioritization will be addressed.
Part One: Analyzing CAPSIM Results
Round 6 Results: Adam Production on Halt Team Andrews has been on the edge of bankruptcy from the get go. The team, for the most part, had now become risk-averse and would always make decisions to stay afloat for just another round. This ultimately meant that instead of becoming aggressive, team Andrews had now moved towards the defensive decision-making style. Round 5 results were a wake-up call for the team where the resulting return on equity was (-8.2) percent. So therefore, when making decisions for round 6, it became completely obvious that something needed to be done regarding Adam (the old high-end product), and Ancnda (the new high-end product). The thing was that Adam was nowhere close to being the product that Ancnda was. Even after moderately investing in R&D specifications, Adam had a later revision date than Ancnda, which not only had a higher market share, but also better R&D specifications. Logically, there was no incentive for customers to buy Adam when there was the option of purchasing Ancnda instead. This was when the team came up with the idea of holding off production of Adam until the round after, while just trying to sell off Ancnda instead. This decision was justified by investing heavily in R&D for Adam, thereby receiving a revision date in the year after. The results of this decision were as follows: Ancnda sold 503 units, while Adam sold only 169 of the existing inventory from the last round. Since production costs were reduced for Adam, the extra cash was allocated to promotion and sales budgets for other

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