Make decisions for the product for which you are VP.

Here are your team’s instructions for the practice round. This should help augment what we covered in the Chat yesterday.


  1. Register for CapSim. Go to, find our class, register. I think most of you have completed this step.
  2. I have already assigned you to your CapSim team.
  3. Complete the Rehearsal tutorial; try making decisions for more than one round.
  4. The decisions audit tab will show current status.
  5. Click on the decisions tab – use Web or Excel – your choice.
  6. Make decisions for the product for which you are VP; you worked with your team to determine roles. Your products have names that start with the same letter as your company name.
  7. As an example, for the Traditional product:
    1. Select R&D display.
  1. Your product is presently positioned at (5.5, 14.5) on the perceptual map. Move your product by changing its performance to something between 5.0 and 6.5, and its size to something between 15.0 and 13.5.
  2. Change its reliability or MTBF from its present value of 17,500 hours by plus or minus 1000 hours.
    1. Select the Marketing display.
  1. Your product is currently priced at $28.00. Change the price by up to plus or minus $1.50. ($26.50 to $29.50.)
  2. Your promotion budget is currently $1000. Change the promotion budget by up to plus or minus $500. This relates to customer awareness of your product.
  • Your sales budget is currently $1000. Change the sales budget by plus or minus $500. This relates to how much access customers have to purchase your product.
  1. Last year you sold about 1000 (actually 1,000,000 since most numbers are presented in thousands) units of your product. The Traditional segment is growing at 9.2%. If nothing else changed in the market, you might expect to sell 1092 units this year. Let’s be pessimistic. If you think your sales this year will be worse than average, enter a number between 800 and 1092 in the “Your Sales Forecast” column. If you think your sales will be average or better, enter 1092 in column.
    1. Select the Production display.
  1. The first row contains your sales forecast for your product. Multiply your sales forecast by 125% and enter this value in the “Production Schedule” row. If your marketing display contained your pessimistic “worst case scenario” forecast, you are now planning to make enough units to meet demand 25% above that worst case. Note that you already have “inventory on hand”, too. If demand is really high you hope to sell these units, too.
  2. In the Buy/Sell Capacity row, leave at its present value of 0.
  • In the “New Autom. Rating” row, enter a new automation rating value between 4.5 and 5.5.
  1. Financial structure.
    1. Select the Finance display.
    2. Match your “Total Investments” with financing that is split between a stock issue and a bond issue. For example, if your total investments are $20,000 ($20 million), you might issue $10,000 ($10 million) of stock and $10,000 of long term debt.
    3. After matching Total Investments, if your projected cash position is negative, “Borrow ($000)” enough current debt to bring the cash position to a positive value.
  2. Additional product changes.
    1. Repeat #5 for your four remaining products, making reasonable decisions for the product. Continue until finished or until the deadline.
    2. After making decisions for each product, check your projected cash position. If  it becomes negative, borrow enough current debt to bring it back to a positive number.
  3. Remember to save your decisions to the website when you finish.









Deliverable Length:  PowerPoint presentation of 4–5



As you begin the simulation round, there are six strategies that need to be considered. As a team, you will need to discuss these strategies before you make any decisions. Each member of the team should review the strategy for his or her role. A consensus decision will be made by the team on the overall strategy for the practice round.

For the first round, you will need a leader in the following roles: Research and development, marketing, production, and finance.

Task Assignment Part 1: Team Participation in the Simulation Round

  • Log in to your account from the CAPSIM home page.
  • Click on the Capstone® logo.
  • Click on Launch the Web Spreadsheet
  • Enter your User ID and password.
  • Begin the simulation round.
  • Go to “Decisions,” and start making decisions.

Task Assignment Part 2: Yearly Summary Report

As a team, use your textbook(s), course materials, and Internet sources to prepare a PowerPoint presentation of 15–20 slides that justifies your strategic decisions from year one. The team will need to provide an executive summary, a synopsis of the key decisions from each organizational role, the overall impact of your decisions, and the strategic adjustments that are being considered for year two.

Note: 10% of your grade will be based on your group performance ranking in CAPSIM.

Please submit your assignment.

  • Log in to your account from the CAPSIM home page.
  • Click on the Capstone® logo.
  • Click on Launch the Web Spreadsheet
  • Enter your User ID and password.
  • Begin the simulation round.
  • Go to “Decisions,” and start making decisions

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