Round 2 Capsim Assignment Helper
This is the second round in capsim simulations. You have to have already completed capsim round 1 for you to proceed to round 2. In this round you have to complete the following: research and development, human resource, finance, marketing, tqm and production, just like the previously completed rounds. However at times, you may be given additional information to be added into the simulation. We offer quality Round 2 Capsim Assignment help to all our students.
Round 2 Capsim Assignment
To complete this round successfully, you have to analyze the products in the company, how it sold on the previous round 1. See the size of the product, the performance of the product, the units sold, the units that were not sold, and alongside financial situation analysis reports. To complete this round in a successful manner, you have to make sure that the product is not being sold on less units, it has to be higher. This is due in order for profit maximization. Another thing, the company has its own budget to spend every year and the profit that was made must be within a maximum of 50 % of the budget.
The following are the criteria that you have to follow in order for your product to be successful:
- You must make sure that there is a market analysis for your product, see how many people would want to buy it based on the performance of the previous round, how well it was received by its users and what is the estimated price that you can put for your product. You must compare different products based on the market analysis that you have done, make sure it has a higher sale than its competitors.
To be able to understand this criteria better, let me give you an example:
Company A is having a new item which they want to sell, the new item is a food processor. It is called the Food Processor Mark 1
Company B has a product that is better than company A’s product, it is currently selling at $3 million in its first year of sales and it has been receiving good feedback from people who have already used this processor. So Company B decided to improve its product and sell it at $4 million, this is the Food Processor Mark 2
The second thing that you have to make sure is: If there are competitors on the market, make sure that your product will be better than theirs. You can do this by looking at the market analysis reports of other products already in the market and compare them to your product.
- The next thing you have to make sure is the price of your product, see if it will be within the budget that is set by the company .The profit margin should not exceed at least 50% of the maximum budget for R&D. You can do this by comparing different prices from other products in the market.
- The product should be of good quality and durable. You have to make sure that it will last for a specific period of time, as well for its performance after usage. Also see if your product is compatible with different types of users or not because you do not want them to have problems using your products.
- The package of your product should be appealing to the people who will buy it and its pricing has to be competitive with other products in the market. You have to make sure that you can easily make your money back by selling it at a higher price.
- The advertisement strategy for your product should also be appealing to people and make them want to buy your product. You have to make sure that you will be able to convince people why they should spend their money on your product and why it is better than those other brands.
Critical areas in Round 2 Capsim Assignment
In every round, you should aim at improving product characteristics, size and performance. In this round, products start drifting from one segment to another, and it is important to keep positive trend, while optimizing on all resources. Profits and other financial ratios should be always be checked while making every decision. One should always maintain a positive financial position at the end of round.
An individual Capsim round should be closed within 6 months with profits of at least 20% of the total budget. Overall, an average performance for a single round is above 75%.
Below are some examples of how a company would conduct their sales and marketing activities:
The ratios that on need to look at while making decisions are ROA, ROE, Turnover, Leverage and many others.
A balanced scorecard reflects instant results for every decision that you make in each segment. One should always click recalculate (green button, at the top left corner), on the simulation table while making decisions.
In every Capsim round, you should have realistic expectations from the sales department and marketing department.
One of the important skills that you need to develop in order to succeed in Capsim is time management, it requires you to be disciplined and use your time efficiently. Do not spend unnecessary amount of time on mistakes, rather learn from them and move forward. Take decisions based on facts and data instead of assumptions or gut feeling. In Capsim, there is no room for mistakes, because the score you get at the end of each round will reflect your business acumen and decision making abilities.
One must also check the balance sheet, income statement, cashflow reports, and industry reports so as to decide on the amount to invest, the production capacity, the amount of money to allocate to budgeting among other factors. An investor must also check the risk analysis report, and take decisions based on that.
Below is a example of how you can allocate resources for each segment or budget area in Capsim:
The simulation table below shows our profits after resources allocation. The first line indicates the production capacity based on our sales targets, while the second line is the amount of money allocated to marketing. The green numbers indicate profits for each segment and how it affects our overall profit.
Below are some aspects that you have to look at while conducting a revenue/cost analysis report:
Reports that you need to check before making decisions in your company are the internal and external environment analysis reports. These will help you understand your past mistakes, plan for future growth opportunities, increase profits and so on.
One should always keep track of his/her competitors because it helps to know if they are growing or declining, this will make one to adjust the production capacities and allocate more resources in the right budget area (Marketing, R&D). It is very important to monitor competitors because when they change direction of their products, one should switch focus immediately.
It is also important to check consumer trends, inflation rates, interest rates among other economic factors so as to make informed decisions.
Capsim is a great way to develop analytical and decision making skills. An individual will learn how to conduct market research, understand the importance of profitability ratios, analyze reports, manage time efficiently among other skills that one may need in day to day business environment. It also helps in developing leadership qualities as an individual gets used to make decisions on real time basis.
Capsim should be used in schools to teach students how to make decisions on various aspects of business so that they understand the importance of decision making and the correct way of doing it.