Capsim Guide - Capsim 2022 - Tip 10 Tips To Win All Rounds - Part 5
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80
WHAT IS THE BEST AUTOMATION AND FACTORY UTILIZATION?
For the buy/sell capacity. How do you know how much I should buy/sell?
Lets say my 2nd shift production is at 80%, how much should I buy?
150% is the most effective
You want to have your 2nd shift capacity between 20% and 50%
That's the perfect amount. Only buy capacity to keep up with sales growth, maybe with a little extra for slack.
Invest in automation, not capacity, to lower your labour costs. So if you expect sales to increase by 18% next year, buy 20% more capacity.
180% plant utilization is perfect for points, though 200% is still best for profits.
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81
I'm just curious if you or someone can finally answer this question: Speaking of high end specifically, should I meet customer requirements even if it pushes revision date into 2022 (the year now is 2021) or should I go against what the customers want and keep my revision date in this year, 2021
Should keep revision date this year
Then next round update further
Should ALWAYS keep your revision date between the year of the round (2021 in this case), never go over.
Customer buying criteria its a guide for you to move and manage your products but you dont have to match it exaclty
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81b
What segments are most effective?
Traditional and Low End are by far the most profitable in the early game and the other guys take a long time to catch up.
81c
What general tips/advice should we use to be competitive using this strategy?
Broad differentiation strategy
You can analyze the 5 segments for profitability
Invest in the most profitable segments
All strategies are doable, Low End segment will give your company high profit, it is too good to let it pass.
Keep Low end and Traditional products
Can launch a new Low End and Traditional
Also can introduce 2 new High end products in the first round, then 1 product in Size the following round and 1 product in Performance in the next.
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83
Why making the plant utilization in that hight %? (r2 production information report)
Most effective cost is use 150% capacity
84.
What is the 2nd shift over-time mean? (r2 production information report)
2nd shift means factories used over time, 50% means workers work 4 hours over time
85
In what reason you enhanced automation?
High tech factories need robots, automation, for higher quality products and save cost
86
What goal and specific things you will focus on in round 3 and what you will expect to do in round 4
Round 3 continue R&D one new products, update other
From rounds 4 will have double sales and profit, leading the game
87
For Global DNA
Can I ask a quick question. I'm wondering why you decided to buy more capacity to produce everything instead of outsourcing some? Is it more cost effective to not outsource anything?
This is long term strategy.
Rounds 1-2-3 for investment.
And later rounds will double sales and profit, leading the game.
88
- Each round, can increase capacity
- Most effective is 150% - with 50% outsourcing
- But, need increase capacity for later rounds, so Round 1-2-3 buy max capacity we can. Then later rounds will have much higher capacity than competitors. And also, we have better products to sell.
89
I have a question about the R&D strategy. I see you started a new product that is in the budget segment and has a regional kit for Asia. Is the idea to only sell 1 budget and 1 performance product in Asia and sell a different performance and budget product in America / Europe?
- We will add 3 new products in rounds 1-2-3
- Performance and Size will have 2 products for each segment to double sales and profit
(In this game products sell independently, actually they are different product lines, even in same segment)
- And will add kits for all 3 market regions, each round update one region, because it takes time to develop regional kits
90
GLOBAL DNA
Why would we not release 2 products this round and have all 4 of them ready to go in production?
Add 2 products will cost more
And even get good sales this round, can not get some or good profit . It is not good financial statement.
Also, production capacity expansion is not so high each round to support 2 new products
91
CAPSTONE
My team decided they wanted to make one adjustment to the price.
They wanted the price of Edge the original performance sensor to be $33.50 vs $33.00. Your thoughts?
Also, can you advise on the impact of the demand % increase by increase A/R lag?
Can adjust prices for Edge - it is Performance segment, price affect less, $35 or $35.5 is OKA/R = account receivable, days that customers can delay payment. Therefore, increase 30 to 40 days will give longer term for buyers, can sell more (will increase to 46 days, and 61 days in round 4 and 6)
Note in advance:
- This is long term strategy game with 8 rounds
- All team face a problem of agree on Invest in rounds 1-2-3 and later can win
- Members always want good sales and profit all rounds from beginning. Then avoid invest in Rounds 1-2-3. Therefore in later rounds lost market
- If invest in rounds 1-2-3, then have good sales and low profit. Later rounds 4-8 all rounds can lead the game.
- If NOT invest in 1-2-3, will have good sales and good profit, then lose sales in later rounds.
92
May I also know the purpose of setting a new product line?
For new products:
- This game, products are sold independently, therefore, new products will double sales and profit
- Also, new products can save promo and sales cost, more effective, and they are closer to ideal spots and can sell better
93
Just a question, what is the point of having 2 product for traditional, low, and high end products?
Wouldn't that just hurt our own sales, I know at the bottom it says to diversify the product but how would you further diversify each product in low, high and traditional, since it tells you what the market wants out of each product.
For Capsim, in five segments, each product sell independently.(It is like a line of products, not just a product and can sell independently)Therefore can double sales and profit. You will see from Round 4. And control sales and profit in each segment
94
Is the TQM Worst/Best demand increase factored into the sales forecast? If so, how?
- TQM for higher quality and save cost, total spending 4.000, each round spend 1..000 from 4-5-6-7
Now that we have become profitable from sales, will we continue to use short and long term loans as well as issuing stock to as a revenue source?
- Not short term, stock and long term loans from round 6
95
Is there a plan to retire any stock and long term debt and issue dividends? If so, when
- Round 7 and 8 can retire stocks and pay some dividends, round 8 retire long term loans
96
How the ROS and stock price increase that much? What did you do to achieve these?
WE FOCUS ON SALES, PROFIT AND MARKET SHARE
OUR STRATEGY IS BROAD DIFFERENTIATION WITH HIGH QUALITY, GOOD PRICE, HIGH SALE VOLUME (AND PROFIT)
97
Mainly in which part or decision section you focus and how to modify to get this result?
R&D IS MOST IMPORTANT BECAUSE THIS IS HIGH TECH PRODUCTS
PRODUCTION CAPACITY
98
I know you cloned 3 lines in the first 3 rounds, but what is your goal or what is your main achievement in round 4~5?
NEW PRODUCTS ARE VITAL IN HIGH TECH INDUSTRY
THEY ARE IN THE SAME SEGMENT, BUT DIFFERENT PRODUCTS
CAN SELL INDEPENDENTLY AND GAIN DOUBLE SALES
99
By my understanding, I think you were depositing something? May I know what you specifically depositing/prepared?
SIMPLE STRATEGY
JUST KEEP INVEST FIRST
THEN GAIN PROFIT IN LATER ROUNDS
NOTE THAT WE HAVE TO PATIENT IN ROUNDS 1-2-3 WHEN HAVING GOOD SALES BUT LOW PROFIT
100
Would you please explain why your projections end with so much cash and took on the additional stock debt?
For question:
- You set plan based on last round numbers, sold units, pricing, competitor prices
- We do not know what competitors will do this round. They may dump prices or market total demand will go down
- Just for best case, in rounds 1-2-3 when having normal sales, and strong invest, need all 3 sources of investment, stock issue, short and long term loans to support R&D, promo and sales, production expansion, automation increase.
- Again, in early rounds, need investment, then later rounds can retire loans, stocks and pay dividends.
101
Thank you for updates and information. the only concern is why we need this much of cash? because if we borrow less in both long term and current debt we got more profit and the score in proforma is increase.
Sales show is estimate.
Note that competitors are trying to increase sales too.
In rounds 1-4, we do not have high advantage.
Therefore, keep enough cash to avoid any cases, eg. competitors dump prices of some products (to get other full on inventory)
From rounds 5-8, do not need that much of cash, because all products sell well.
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102
What was the benefit for selecting positionings in December each year? I was under the impression to choose middle of each year, so the products can start selling in the second half of the same year.
R&D EACH ROUND SO THAT PRODUCTS MEET CUSTOMER DEMANDS
SHOULD BE IN MIDDLE OF THE YEAR TO HAVE ENOUGH TIME TO SELL
OR BEFORE END OF THE YEAR, THEN CAN UPDATE NEXT YEAR TO BETTER POSITION
103
Both the two products, in Core, Nano and Elite segments, had the exact same positionings (round 2, 3 and 4). How come they can sell differently, when they have the exact same specifications (positionings)?
SAME PFMN AND SIZE
BUT DIFFERENT TIME OF LAUNCH, THEN HAVE DIFFERENT TIME IN MARKET TO SELL
104
Were the forecastings the same, for both products in each segment, in each round (referring to point # 2 above)?
MAKE IT SIMPLE FOR PLANNING
ALSO, NEED TO KEEP SOME INVENTORY FOR EACH
SO, PLAN SAME, SELL DIFFERENT, THEN KEEP SOME SMALL DIFFERENT INVENTORY IS OK
105
Why was product Able, always positioned in the middle of each year (when all the other products were positioned for December of each year)?
IT IS NOT DECEMBER
BECAUSE YOU ASK TWO TIMES
PRODUCTS NEED 2 UPDATES
1. IDEAL SPOTS - IN THE CENTER OF EACH SEGMENT
2. DRIFT - EACH PRODUCT MOVE PFMN AND SIZE TO BEST POSITION THAT CUSTOMERS NEED
YOU CAN SEE THE GUIDE IN INDUSTRY CONDITION REPORT
111
Capsim 2021 - New Winning Tips 1
https://www.youtube.com/watch?v=2yKRxv--_0o
Capsim 2021 - New Winning Tips 2
https://www.youtube.com/watch?v=bxA0b9Z8bVk
Capsim 2021 - New Winning Tips 3
https://www.youtube.com/watch?v=65t9ebyMt30
Capsim 2021 - New Winning Tips 4
https://www.youtube.com/watch?v=MIYWe2eQNcE&t=335s
Capsim 2021 - New Winning Tips 5
https://www.youtube.com/watch?v=-j3lzaaEses
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