Capstone Discussion

600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions with your classmates. Be substantive and clear, and use examples to reinforce your ideas.

Review the Industry Conditions Report and CapStone Courier found in the Reports section of the left hand menu in the CapSim simulation. Also, review the CapStone Team Member Guide.  Based on your initial review of the CAPSIM Capstone Business Simulation, what have you have identified as the key business issues that will impact your company? Prepare to discuss this issue with the other members of your team.

Your discussion should include the following:

  • Discuss the current situation in the CapSim simulation and the recent changes to the industry and competitive environment.
  • What competitive challenge is faced by your company? What are the opportunities and threats (Pettus, Ch. 4)?
  • Applying the business level strategies discussed in Pettus, Chapter 4, and market segment strategies discussed on page 24 of the Team Member Guide, explore possible strategic directions for your company and various sensor products. Reading and responding to the posts of your teammates is highly recommended.

Responses to Other Students: Respond to at least 2 of your fellow classmates with at least a 100-word reply about their Primary Task Response regarding important concepts to further explore. To help you with your discussion, please consider the following questions:

  • What additional insights or alternative perspectives can you offer your colleague?
  • What additional questions do you have after reading the posting?
  • What differences or similarities do you see between your posting and other classmates’ postings?


Section 1:   Situation Analysis

A       large monopoly has been divided into smaller companies, with equal       cash flow and number of products, in market segments of       traditional, low end, high end, performance, and size (CAPSIM Team Member Guide, 2014). In each team, VPs will manage their       products from Research and Development, Marketing, Production, and       Financial perspectives. By managing       these companies, MBA candidates will understand how to run a       company by making decisions, learning from failure as well as       success, and working together as a team. After each round, results are posted in the Capstone       Courier, a newsletter analysis of sales and performance, showing       each department’s position in each “year” of business.

Section         2: Competitive Challenge, Opportunities, and Threats

Though Company Andrews is at an equal         place with the other Capsim companies at the outset, the other         companies will be fighting for the market share with the same         tenacity with which we will. To         create a competitive challenge, we will need to decide where we         will improve our products, how we will market them, streamline         our production processes, and price them so that our customers         will want to buy from us, but ensure we do not go bankrupt.            Opportunities and threats are the         external forces that affect a company. Opportunities are seen as “favorable       conditions in the environment that could produce rewards for the       organization if acted on properly” (Pettus,         2012). By researching the       market and our customers’ needs, we can see where our       improvements will help to position us favorably. Threats consist of those market forces       that could do our company harm, whether they by conditions in the       market or obstacles along the way.

Section         3: Strategic Direction

Business       level strategies help companies to gain and maintain market       competitiveness and include criteria known as key success factors         (Pettus, 2012). Our strategy will adapt over time based on the decisions we       make regarding our products. The six       basic business level strategies one can use for the Capsim are       Broad Cost Leader, Broad Differentiator, Niche Cost Leader (Low       Technology), Niche Differentiator (High Technology), Cost Leader       with Product Lifecycle Focus, and Differentiator with Product       Lifecycle Focus (CAPSIM Team Member Guide,         2014). The Lifecycle focus       strategies may take a decade or more to manifest and would take       several rounds to see any real change. Due to the nature of this class being short-term as opposed       to long-term, we are unable to use the strategies with a lifecycle       focus (Bowman, 2018). I think the best strategies to employ are Niche Cost Leader       and Niche Differentiator. Because Team       Andrews has products in all market segments, it is important to       treat each one a bit differently. Low       technology sensors will have very little costs within research and       development (R&D), whereas high technology sensors will need       to keep up with the market, especially in terms of product         age. Our customers care about       product age more than anything else. They will spend more money on the newer technologies. On the Perceptual Map, we wish for all       our products to end on the lower right-hand side. This can mean smaller size and higher         performance. Those products already       starting on the lower-right will move very little, whereas those       on the higher left-hand side will move the most. So combining strategies for our products       will be the best over-all option for company success.

The     Industry Conditions Report and CapStone Courier found to be     essential informative data for imminent company. The data retrieved     will allow the company to market its sensor products for competitive     advantage. Based on my initial     evaluation of the CAPSIM Capstone Business Simulation, found     innovation, marketing, production, finance, and industry conditions,     such as consumer segments that influence buying power of consumers     (Capsim, 1985-2012), and (CapStone, 2018).

The         Current Situation in the Capsim simulation and the recent         changes to the industry.

The     current situation in the CapSim simulation of firm’s sensor     market segment indicates their customers fall into five markets     consisting of traditional, low end, high end, performance and size.     These five market segments tend to overlap based on consumers     perception of the product that overlaps based on perception of size     and performance. This can be illustrated in round (one year) on the       y-axis, size, and x-axis,     performance, where lower end overlaps both performance and     traditional, that drifts to the left; where traditional overlaps     both size, and high end, which also overlaps in the upper left     corner of the graph (CapStone, 2018 , 1). The current changes to Capsim simulation     was due to position of each five segments where traditional     performance grew 0.7% and size declined     by 0.7%. Low end grew 0.5% where sized decreased 0.5%. High end grew     0.9% opposed to size that decreased 0.9%. Thus, performance grew     1.0% where sized decreased 1.0% (CapStone, 2018, 2). Other changes     that affected the industry’s simulation consists of growth     rate and buying criteria (i.e. price, age, mean time before failing     (MTBF), and ideal positioning). For example, buying power of     traditional consumer found importance of price was 23%, age group,     47%, importance of positioning 21% (performance, 5.0; and size,     15.0), and MTBF, 9% (Capsim, 1985-2012, 4).

What       competitive challenge is faced by your company? What are the       opportunities and threats?

The     competitive challenge the imminent firm will face is product     differentiation and positioning attractive product that consumers     are willing to purchase. To address these challenges is to implement     focused differentiation strategy. Within the strategy, the firm must     place importance of producing unique cost-efficient products     attractive for each market segment (Pettus, 2012, 85).

Based     on SWOT Analysis, the firm must assess its opportunities and threats     opposed to their strengths and weaknesses. The imminent firm should     review opportunities that can be improved. Example, the company can     implement just-in-time shipping to logistic location of the consumer     that will reduce distribution costs. Threats can involve obstacles     preventing the company to meet its operational objectives (Pettus, 2012, 88).

Explore       possible strategic directions for the company and various sensor products.

There     are several strategic directions for our imminent company. First, it     is imperative to have a mission statement that defines our goals and     objectives for all stakeholders. Our company will implement     broad-differentiations strategy, niche differentiation, with broad     cost leader as well as cost leader with product focus (Capsim     Management Simulations, 1985-2012, 24). The various sensor products     plan to product consists of appliance sensors, such as washer and     dryers, television remotes, tire O2 sensors, and mobile     hydraulic sensors for electronic parts (MTS Sensors, 2006-2018).

Hence,     it is essential for an imminent company to possess knowledge or its     industry, innovative techniques to differentiate its     products/services, marketing and sales techniques with honing on     creating cash flows to develop their production and delivers     services for competitive edge. Also, found reviewing internal     opportunities and addressing threats can enhance the company’s     performance with implementing business strategies, such as broad     differentiator strategy (Capsim  Management     Simulations, 1985-2012, 24), and (Pettus, 2012, 88). Lastly, found     my initial evaluation of the CAPSIM Capstone Business Simulation,     found innovation, marketing, production, finance, and industry     conditions, such as consumer segments that influence buying power of     consumers (Capsim, 1985-2012), and (CapStone, 2018).


CapStone  (2018).       Capstone® Industry Conditions Report For Industry       C97745. Retrieved from\conditionsReport

Capsim       Management Simulations, Inc     (1985-2012). Capstone Team Member Guide. Retrieved from

MTS     Sensors (2006-2018). Mobile Hydraulic Sensors. Retrieved from

Pettus,     M. L. (2012) .  Strategic     Management for the Capstone Business Stimulation ® and Comp-SM     ®: Analysis and Assessment. Retrieved from

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