Capsim Debrief Paper

952 Words Sep 28th, 2013 4 Pages
We are team Baldwin, and we used two main strategies while playing Capsim. We focused on being broad cost leaders, and we were aggressive. During the practice rounds, we did not do well because of our lack of knowledge of the simulation and also did not really take the time to make appropriate decisions. When the real decisions started, we wanted to be broad cost leaders; dominant in all segments of the market, which included: Baker, Bead, Bid, Bold and Buddy. We were profitable, because we were competing against the other teams in all segments of the market. For this reason, we were able to compete against everyone and had captured 25.75% of the market share at the end of decision six. Additionally, we used an aggressive strategy; one of …show more content…
At the end of decision two, we had acquired $19,098 of the short-term debt. Our strategy seemed to have worked; however because of our investments on R&D, sales and promotions out stock price dropped to $17.11.
During decision three, we continued to capture as much market share by investing on R&D, sales and promotion, and focusing on customers’ criteria. We launched a new product (Bull) in the high-end segment because it had a high growth rate, was not sensitive to price and would have a higher profitability. Because our strategy was profitable, we continued to make similar decisions for round four. Our new product, Bull, began selling in the high-end segment. Additionally after reading the manual, we discovered we could invest in Total Quality Management (TQM), which reduced labor costs, material costs, Selling, General and Administrative (SG&A) cost, and also increased product demand. In the manual, it said not to invest under $500 or over $2000, because those investments would not show profitability. We decided to invest $1,500 in all the different TQM options in the simulation and saw positive results. By the end of round four, our short-term debt was $25,345 and out stock price had increased significantly to $38.65.
During decision five, we knew that the end was coming. We did not want to use any different strategies to try and catch up to the winning team, so we continued

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