Broad differentiation is a strategy that is applied across an industry, appealing to a broad range of shoppers. Less stock on the open market will increase the price per share of the company’s stock. The Digby computer team will maintain a presence in both segments of the market. Competitive advantage is gained by distinguishing products with an excellent design, high awareness, and easy accessibility. This is a competition and Erie has to adjust to the marketplace. We will keep our existing product line, and introduce at least one more line, maintaining a presence in both segments. We have six teams in the simulation: Andrews, Baldwin, Chester, Digby, Erie and Ferris. 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. Two competitors are pursuing Broad Differentiator strategies. The first round ends December 31, 2013. Competitive advantage is gained by distinguishing products with an excellent design, high awareness, and easy accessibility. If a company overestimates sales or spends too much money, current debt may increase. Differentiation Strategy with a Product Life Cycle Focus. Erie keys off of the Industry Conditions Report Performance and Size Centers for each round listed for the following segments: Traditional-Eat; Low End-Ebb; High End-Echo; Performance-Edge and Size-Eat. CHANGING STRATEGIES TO MAKE BETTER PRODUCTS• Original Strategy: • Cost Leadership • Differentiation Strategy• New Strategy • Focus Cost Leadership Strategy • Differentiation Strategy 4. capsim report 4555 Words | 19 Pages. CAPSIM ANALYSIS: FERRIS 14 700 by the end of Round 8 with a plant utilization of 184%. CAPSIM - Winner Presentation (An example of utter dominance) Here is the presentation of my CAPSIM simulation team (Team Baldwin), in which we mercilessly destroyed, decimated, and demoralized our competitors into oblivion! Daze - Improve positioning and reduce age. 1. Explanation: Broad Differentiation strategy refers to building a business or a brand that differs significantly from that of the competitor. The Digby computer team will maintain a presence in both segments of the market. The only way to improve your company’s performance is to analyze what the other teams are doing each round and make adjustments for all modules. We will use the Digby team for this example. The computer will automatically give a company a BIG AL LOAN and the vig (interest) is 7.5%. In the Production Margins Area we have listed the total unit cost and contribution margins. Ideal Automation Rates and New Products Broad Differentiation Strategy I have read so many different automation strategies and would like to know with reasons which is best. • Strategy – Broad Differentiation • Presence in every segment (check) • Excellent design (5 of 5 segments) ... not what our strategy was. There are actual market share units listed in the Capstone Courier. It is best for Erie to price products at a mid-range in order to be competitive. Executive Summary The Digby team will adopt a Broad Differentiation strategy, maintaining a presence in every segment. A Broad Differentiator strategy … Enjoy! This Broad Differentiation Strategy only works if Erie compares its segment products to the other teams’ products and adjusts pricing, promotion and sales. SHAREHOLDER MEETING 3. Under the Unit Sales Forecast is the Inventory on Hand. In the Traditional and Low End segments the age of the product can be older. Hold reliability (MTBF) steady. Examp… In the High End, Performance and Size segments customers want new and better products. 12.4 Broad Differentiation. After the practice rounds, you are free to pursue any strategy you wish, and can abandon the Broad Differentiation strategy entirely. In the Pro Forma Income Statement make sure each product has a net profit. Broad Differentiation. • Have a pre-grade option that would allow teams to send in their decisions to CAPSIM for a review and recommendations before official submit. In the computer simulation I would recommend not to buy back stock unless your company has a great over surplus of funds. When the round is complete Erie can compare the segment performance and size coordinates with the other companies’ segments in the Capstone Courier. These revisions change the Age at Revision for each segment. Dell - Leave positioning alone, allowing the product to age further. We will develop an R&D competency that keeps our designs fresh and exciting. Choose COMPXM strategy . There are six basic team strategies listed on page 24 in the Capstone Team Member Guide 2012. In the Physical Plant Section, Erie wants to make sure they have enough 1st shift capacity not to pay overtime to employees. In the Workforce complement a second shift is not added until the first shift reaches its needed complement. We simulated developing silicon wafers for 6 rounds representing 6 years. Moreover, the company will gain a competitive advantage by distinguishing products with an excellent design, high awareness and easy accessibility. Daze - Slightly reduce reliability (MTBF) to … Areas we excelled: Standardized and proprietary tools & processes Positioning, forecasting (early rounds) Functional expertise & strong communication Early, aggressive TQM investments - able to lead our segments and achieve higher margins Management Decision Process Cross Fire was able to produce sales for 1,235 units with its capacity of 14. Premium products for the industry: our brands withstand the tests of time. 16.4 Digby - Broad Differentiation. We shall use team Erie as an example. Hold reliability (MTBF) steady. It received a market share 15% within 3 rounds of execution. Erie must make a comparison to see what the other companies are promoting. basic capsim strategies.pptx - cost leadership life cycles product developm ent operating factors differentiation market segment factors size broad cost In the Capsim simulation course at Georgian Court University, Lakewood, NJ in summer session 2012, there are six companies are: Andrews, Baldwin, Chester, Digby, Eire and Ferris (Computer). The Digby team will spend aggressively in promotion and sales in both segments. Erie should keep their revision dates before July 1 of the current round. All five segments: Traditional, Low, High, Performance and Size equals 100%. In the practice rounds the individual companies get an idea of the strategy performed by the other teams and the computer team Ferris. 15.4 Digby - Broad Differentiation. At the end of the round, Erie can do a comparison price check against the other companies’ products in the Capstone Courier. Let’s take the Traditional segment which has industry unit sales of 7,387,000 units or 32.4% of the market in round zero. Best strategy for Capsim? We will attempt to differentiate our product line … Erie should divide the 7,387,000 units by 6 and make a prediction that Erie will sell approximately 1,231,167 units. Even though High, Size and Performance sell fewer units these segments sell at higher prices. Wondering what the easiest strategy is for Capsim and why. In the Capsim simulation course at Georgian Court University, Lakewood, NJ in summer session 2012, there are six companies are: Andrews, Baldwin, Chester, Digby, Eire and Ferris (Computer). Mission Premium products … Each Industry segment makes up a percent of the market. I usually go for broad differentiation because it is more flexible. Automation costs money but a small increase in automation, 0.3 per year may be enough to stay competitive. This is a rule of thumb when making a Sales Forecast. Our goal is to offer customers products that match their ideal criteria for positioning, age, and reliability. Erie must analyze what the other companies have done with their segments. In the real world companies buy back stock. Note that Erie may be able to charge a better price for the High-End, Performance and Size products but the Traditional and Low-End products have to have a more modest price. It's a strategy that works better for larger companies than smaller ones. Broad Differentiation Strategy is quite unique and brings about many Examples. Capacity is expanded as higher demand is generated. CAPSIM SIMULATION WINNERS!BY: MINHEE HUH, MOLLY MCGOWAN, AND KING TAN 2. Follow the decision guidelines below unless directed otherwise by your instructor. The Human Resources Module will be added in the third round. Dixie - Improve positioning and reduce age. We will grow capacity to meet the demand that we generate, avoiding second shift/overtime when possible. We will gain a competitive advantage by distinguishing our products with an excellent design, high awareness, and easy accessibility. Chester’s performance product is Coat. When a company pays back bonds the company’s S&P rating will improve. In CapSim, a firm should launch a new product if: The strategy calls for it in the Team Member or On-Line Guide. In order for this strategy to work a company has to be aware of what the competition is doing every round. Hence an innovative strategy is highly recommended in order to achieve high business growth, in case you are willing to expose you to a higher degree of risk. As a broad differentiator in the market, the performance segment focuses on the reliability and ideal position of the product. This makes it easier to adjust to what the other companies are doing. Erie uses this basic calculation for the other product segments. Broad Differentiation Capsim. We measure performance in terms of market share, market cap, ROA, and profits. The first customer buying criterion is reliability (measured in hours) as Mean Time Before Failure (MTBF) rated importance of 43%. Our team's original strategy was broad differentiation. Erie makes improvements for each product to beat the competition in all five segments for the next round. Broad Differentiation. A differentiation strategy is an approach businesses develop by providing customers with something unique, different and distinct from items their competitors may offer in the marketplace. The industry simulation is the sensor industry. R&D competency is developed that keeps designs fresh and exciting. The number 1,231 is placed in the box. Erie must check in the Capstone Courier to see which teams are automating. This will help each company develop a strategy for the competition. The teams played two practice rounds before beginning the actual competition. The main objective of implementing a differentiation strategy is to increase competitive advantage. Erie does this calculation for the rest of the segment products: Low-Ebb, High-Echo, Performance-Ebb and Size-Egg. Capsim Strategic Management Simulation: First Place. Example: Increase Daze ' s performance by 0.8 and reduce size by 1.0. In this manner Erie will have a better product then most of the other companies for the second half of each round (year). We want every customer to know about our superb designs, and we want to make our products easy for customers to find. But more important and effective than this is how Nike makes its customers feel. This improves the position of the product, making it more appealing to our customers. Our original strategy had failing results and our team placed last at the end of the first round. Firm Profile: Multiple product lines in targeted segments (High End, Traditional, and Low End) Minimum focus in other segments These strategies are Broad Cost Leader; Broad Differentiation; Niche Cost Leader (Low Technology); Niche Differentiation (High Technology); Cost Leader with Product Lifecycle Focus and Differentiation with Product Lifecycle Focus. Improve reliability (MTBF) to enhance demand. © 1985 - 2011 Capsim Management Simulations, Inc. 16.1 Andrews - Cost Leader with a Product Lifecycle Focus, 16.2 Baldwin - Differentiation with a Product Lifecycle Focus. In order to achieve the broad differentiator strategy, a new product was introduced in the high segment i.e. Note that the highest to lowest market share in units in the competition is Low End, Traditional, High End, Size and Performance. The first round ends December 31, 2013. opportunity for success, as they enable a company to create a competitive advantage by having differentiated products, services or business models. It is essential in most companies and have exemplary impact on consumers, thus a good remedy for the Capsim. Products keep pace with the market, offering improved size and performance. (During the practice rounds, each company is assigned a different strategy.) Let us begin with the Research and Development Module. Design 2. In this case, I mean making adjustments, especially on thrift segment, to sell at a lower price than the industrial average to maximize your market share. As the game progresses, you can change it to a hybrid of broad differentiation. It may be necessary to increase automation gradually over the rounds of the competition. Hold reliability (MTBF) steady. A Broad differentiation strategy maintains a presence in every segment of the market. Erie must adjust the Production Schedule for Traditional-Eat to equal 1,231,161 units. Example: No change required. Nothing personal, chumps! Our primary stakeholders are customers, stockholders, management, and employees. R&D competency is developed that keeps designs fresh and exciting. A final note, this is a competition among teams. Although the Capstone Team Member Guide recommends a 30% contribution margin in each segment, this is very hard to accomplish during competitive rounds. Access The Broad Differentiation Sample. The prices of products are reduced by $0.50 each year. We chose broad differentiation as a a strategy. Currently my team is doing Niche Cost Leader (for practice rounds) but finding it very difficult and wondering if we should switch when the real simulation starts. The industry simulation is the sensor industry. A Differentiation Strategy with a Product Life Cycle Focus seeks to be known far and wide as the top producer of the best performing state-of-the-art products. One basic strategy is Broad Differentiation. When our cash position allows, we will establish a dividend policy and begin to retire stock. Capsim Simulation Broad Differentiation Strategy. We are somewhat adverse to debt, and prefer to avoid interest payments. The computer will then calculate the unit Production after Adjustment. A rule of thumb is to keep the contribution margin above 25%. In this simulation there are the following modules: Research and Development; Marketing, Production and Finance. James Cage (author) from Orlando, FL on November 15, 2013. Capsim Team Strategy Report Our team decided to choose the “Broad Differentiation” strategy as the basic strategy for our company. When you sell stock in the marketplace this will decreases the price per share of your company’s stock. In the Production Module Schedule the sales forecast carries over to the Unit Sales Forecast. Example: Increase Dixie 's performance by 1.2 and reduce Size by 1.0. Erie Company has to implement a plan to upgrade the performance, size and Mean Time before Failure (MTBF) of its products. Andrews has decided to adopt features from several different basic strategies to form our own hybrid strategy. Fire. In the Finance Module, as a basic rule of thumb keep accounts receivable at 30 days lag and accounts payable at 30 days lag. CAPSIM PRESENTATION-TEAM FERRIS 1. Dot - Improve positioning and reduce age. We will finance our investments primarily through stock issues and cash from operations, supplementing with bond offerings on an as needed basis. R & D Round 1 . The promotion and sales budgets should be in the mid pricing range. We will gain a competitive advantage by distinguishing our products with an excellent design, high awareness, and easy accessibility. After our products are well positioned, we will investigate modest increases in automation levels to improve margins, but never at the expense of our ability to reposition products and keep up with segments as they move across the perceptual map. We will price at a premium. The teams will play six rounds in the simulation. In the Marketing Module Erie must improve the price of segment products round by round. CAPSIM-Team Ferris Nikita Motkur, Howie Hehrer, Cori Porasik, Priscilla Gonzalez & Neha Noonemunthala December 8, 2016- BUS 6990 Strategy Formulation and Org. Not hard to do, since they were incompetent, but it was fun! This practice exercise will help you understand the relationships between business strategy, tactics, functional alignment, and the Capstone® simulation. The Digby computer team will adopt a Broad Differentiation strategy, maintaining a presence in every segment. 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