Capsim Ppt
The Secret to Capsim Success it’s all about the sweet spot…
Team Andrews
Fall I 2009
BUSN 6200
Presented By Team Andrews: Brad White, Tim Fish, Christina Vance, Stephanie Bogan, & Anthony Vatterott
Team Approach
Vision Statement
To design and manufacture the world’s most cutting edge electronic sensors. To out perform and eliminate the competition in every segment of the market place.
To triumph Team Andrews as the monopolistic company it once was.
Team Andrews
Fall I 2009
BUSN 6200
Team Approach (Cont’d)
Forecasting
&
Production
Critical
Investments
Capital
Acquisition
Team Andrews
Fall I 2009
BUSN 6200
Team Approach (Cont’d)
• Strategy
– Broad Differentiation
• Presence in every segment
• Excellent design
• Highest awareness
• Easiest accessibility
• Cutting edge R&D
• Higher prices
• Capacity expansion
Team Andrews
Fall I 2009
(check)
(5 of 5 segments)
(5 of 5 segments)
(3 of 5 segments)
(3 of 5 segments)
(1 of 5 segments)
(3 of 5 segments)
BUSN 6200
Team Approach (Cont’d)
• Forecasting & Production
– Calculated unit demand by grow rate and multiplied against the leading potential market share leader
– Aggressively added 25% additional inventory against every sales forecast
– Increased capacity referencing previous years demand Team Andrews
Fall I 2009
BUSN 6200
Team Approach (Cont’d)
• Critical Investments
– Plant and Equipment
• Cost YTD = $583M, 121% > competition
– Total Quality Management
• Started out very aggressive
– Leveraging
• Outstanding shares = 4.0M, 19% > competition
• Long Term Debt = $125.7M, 35% > competition
Team Andrews
Fall I 2009
BUSN 6200
Team Approach (Cont’d)
• Capital Acquisition
– Leveraged stock and L-T debt
• Maximized common stock in early years
• Minimized long term debt
– Never utilized current debt
Team Andrews
Fall I 2009
BUSN 6200
What Went Right (Cont’d)
• Maximized capital expenditures by issuing max amount of stock, then investing capital in Plant, Automation & TQM
• Ensured leading edge
Team Andrews
Fall I 2009
BUSN 6200
Presented By Team Andrews: Brad White, Tim Fish, Christina Vance, Stephanie Bogan, & Anthony Vatterott
Team Approach
Vision Statement
To design and manufacture the world’s most cutting edge electronic sensors. To out perform and eliminate the competition in every segment of the market place.
To triumph Team Andrews as the monopolistic company it once was.
Team Andrews
Fall I 2009
BUSN 6200
Team Approach (Cont’d)
Forecasting
&
Production
Critical
Investments
Capital
Acquisition
Team Andrews
Fall I 2009
BUSN 6200
Team Approach (Cont’d)
• Strategy
– Broad Differentiation
• Presence in every segment
• Excellent design
• Highest awareness
• Easiest accessibility
• Cutting edge R&D
• Higher prices
• Capacity expansion
Team Andrews
Fall I 2009
(check)
(5 of 5 segments)
(5 of 5 segments)
(3 of 5 segments)
(3 of 5 segments)
(1 of 5 segments)
(3 of 5 segments)
BUSN 6200
Team Approach (Cont’d)
• Forecasting & Production
– Calculated unit demand by grow rate and multiplied against the leading potential market share leader
– Aggressively added 25% additional inventory against every sales forecast
– Increased capacity referencing previous years demand Team Andrews
Fall I 2009
BUSN 6200
Team Approach (Cont’d)
• Critical Investments
– Plant and Equipment
• Cost YTD = $583M, 121% > competition
– Total Quality Management
• Started out very aggressive
– Leveraging
• Outstanding shares = 4.0M, 19% > competition
• Long Term Debt = $125.7M, 35% > competition
Team Andrews
Fall I 2009
BUSN 6200
Team Approach (Cont’d)
• Capital Acquisition
– Leveraged stock and L-T debt
• Maximized common stock in early years
• Minimized long term debt
– Never utilized current debt
Team Andrews
Fall I 2009
BUSN 6200
What Went Right (Cont’d)
• Maximized capital expenditures by issuing max amount of stock, then investing capital in Plant, Automation & TQM
• Ensured leading edge