Swot Analysis Of Capsim

Register to read the introduction… Simultaneously, the company will invest on capacity and automation gradually for all segments. This will bring to Erie a competitive advantage over other competitors in terms of long-term cost savings. In addition, maximum second shift capacity may be run as much as possible and a significant amount of money will also be spent on promotion and sales budgets so as to capture the highest possible percentage of market shares. Furthermore, Erie is willing to make losses at least in the first two years because in the remaining years of the simulation, when higher capacity and automation are ready as well as Human Resources and Total Quality Management functions are applied, Erie will become more competitive in the market and hence can make profit as the production costs will be …show more content…
Marketing Department 1. Objectives * Increase sales of 5 segments by 10% each year * Increase demand over 10% each year * Reach above 25% of market shares for Traditional and Low End segments, and above 20% for High End, Performance and Size segments at the end of year 3 * Keep the sales forecast error of 5 segments fluctuate between 5% - 10% during three years

2. KPIs * Keep the price of products of Traditional and Low End segments lower than the average price of their price ranges; the ones of High End, Performance and Size higher than the average price * Remain the same prices of all products for the first three years, then slightly decrease all prices from $0.1 to $1 after year 3 * Maintain customer awareness and accessibility of 5 segments from 95% to 100% * Keep the forecast errors for 5 segments not higher than 200,000 units for Traditional and Low End segments; 50,000 units for High End, Performance and Size segments every year

3. Strategies a. Pricing Strategies * Traditional & Low …show more content…
Cash Flow Statement PROFORMA CASH FLOW STATEMENT | Cash Flows from Operating Activities | | Net Income (Loss) | (13274) | Adjustment for non-cash items | | | Depreciation & Writeoff | 9693 | Change in Current Assets and Liabilities | | | Accounts Payable | 1116 | | Inventory | 7562 | | Accounts Receivable | (1933) | Net cash from operations | 3165 | | Cash Flows From Investing Activities | | Plant Improvements | (31600) | | Cash Flows from Financing Activities | | Dividends Paid | | Sales of Common Stock | 13,700 | Purchase of Common Stock | | Cash from long term debt | 18994 | Retirement of long term debt | | Change in current debt (net) | 20341 | | Net change in cash position | 24600 | | Starting cash position | 3,434 | Closing cash position | 28034 |

c. Income Statement PROFORMA INCOME STATEMENT | Product Name | EAT | EBB | ECHO | EDGE | EGG | Total | Sales | 42385 | 39600 | 16770 | 12075 | 13757 | 124587