Capsim Capstone 2.0 Round 1 Strategy Guide

Capsim Capstone 2.0 Round 1 focuses on building a strong foundation for future rounds. The main areas of decision-making are research and development, marketing, production, and finance. The objective is to position products effectively, attract customers, prepare for demand, and maintain financial stability.

Note: The decisions below are an example strategy and should be adapted to the specific market conditions, company position, and simulation results in your round. They can be applied as a framework for companies such as Andrews, Baldwin, Chester, and others.

Research and Development

The R&D strategy focused on improving products according to the needs of each customer segment. Able, the Traditional product, was repositioned to a performance of 6.1, a size of 13.9, and MTBF of 18,500. Acre, the Low-End product, was left largely unchanged because Low-End customers generally prefer older and more affordable products.

Adam, the High-End product, was repositioned to a performance of 8.8, a size of 11.2, and MTBF of 25,000. Aft, the Performance product, was positioned at a performance of 10.4, a size of 14.7, and MTBF of 27,000. Agape, the Size product, was positioned at a performance of 4.6, a size of 9.9, and MTBF of 20,000. A new product, Axe, was also introduced to target the Size segment. Axe positioned at a performance of 5.6, a size of 8.9, and MTBF of 20,500.
Capsim Capstone 2.0 Rounds 1–8 Excel sheet

The overall goal was to improve product positioning and ensure that products remained competitive within their respective segments.

Marketing Decisions

The marketing strategy focused on increasing awareness and accessibility while using competitive prices to attract customers. A $2,000 promotional budget was allocated to each product to increase customer awareness and brand visibility. The sales budget was also set at $2,000 per product to improve accessibility and support sales growth across the target segments.

Able was priced at $28.00 with a sales forecast of 1,400 units. Acre was priced at $21.00 with a forecast of 2,230 units. Adam was priced at $38.50 with a forecast of 680 units. Aft, the Performance product, was priced at $34.25, with a sales forecast of 600 units. Agape, the Size product, was priced at $34.50, with a sales forecast of 550 units. Axe was a new product, so no sales forecast was established at this stage.

These pricing and forecasting decisions were intended to support market-share growth while keeping the products attractive to their target customers.

Production Decisions

The production strategy focused on preparing for future demand and improving efficiency. Able was scheduled for 1,260 units with no capacity change and automation of 4.8. Acre was scheduled for 2,230 units with a capacity change of +400 and automation of 6.3. Adam was scheduled for 650 units with no capacity change and automation of 3.3.

Aft was scheduled for 550 units with no capacity change and automation of 3.5, while Agape was scheduled for 500 units with no capacity change and automation of 3.5. Capacity change of +150 and automation of 3.0 were allocated to the new Axe product.

Increasing automation was intended to reduce labor costs and improve production efficiency over the longer term.
Capsim Capstone 2.0 Rounds 1–8 Excel sheet

Financial Decisions

The financial strategy was designed to provide sufficient funds for R&D, production expansion, and other strategic investments. The decisions included a $9,000 stock issue, $10,000 in current debt, and an $15,000 bond issue.

The objective was to maintain sufficient cash while avoiding excessive financial pressure and supporting future business growth.

Round 1 Strategy

Overall, the Round 1 strategy focused on improving product positioning, increasing awareness and accessibility, preparing production capacity, and investing in automation. The decisions were designed to establish a strong foundation for future rounds.

After Round 1, the results should be reviewed carefully. Sales, market share, inventory, competitor decisions, product positioning, cash flow, and profitability can provide important information for making better decisions in Round 2.

For more Capsim Capsim Capstone 2.0 Rounds 1–8 Excel sheet guides, tutorials, courses, Q&A, and simulation resources, explore MBASIMU Solutions.

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