Capsim stands for captive simulation. This is a challenge for the Capstone and Foundation alumni where they compete twice every year. The competitors are tasked with running multi-million dollar companies that have been simulated. The winner is crowned globally.
This business simulation experience gives the participants a learning opportunity shared with other students across varying time frames. It is among the best interactive online simulations.
Winning the Competition
Firstly, read the Capsim booklet. This is very important as you will get all the information on the competition. You will be able to understand the purpose of the game and your role in it. Read it as many times as possible until you are conversant with what is required.
It is essential that the team members are placed in their correct positions. For instance, a marketer should not have a finance position not unless the person is good in both. In case you are alone, use the booklet for guidance.
In addition, be very aggressive and listen to your professors. Carry out sufficient market research to know how and where to invest in. Know your competitors well. Take time to learn about previous competitions and how they turned out. Find out ideas that can make you be a winner.
Consider taking all the loans and investing in the initial rounds. Use the loans to fund automation. This will enable you plan for the next rounds. Automation is necessary for the success of your business.
To achieve customer satisfaction, release new products both in high-tech and low-tech ends. Keep launching new products because the high-tech products eventually move to low-tech products. The customer will most likely be interested in the new products on the market.
Gradually, increase your product automation. This in return will affect your level of production and most likely be disadvantageous to your competitor. Efficiency is vital in customer satisfaction.
Make achieving 100% product awareness your target. Use all possible means to accomplish this goal. Once your customer knows what you have to offer, chances are higher that they will come for the product. Invest in rigorous advertising to achieve customer awareness.
The available dividends should not be shared. Any available cash needs to be used to buy back shares. This is likely to increase their pricing significantly.
Capsim Emergency Loan
This comes in handy when you are out of cash. The cash flow statement will enable you diagnose your emergency loan. An inflow will be shown by a positive number whereas a negative number indicates an outflow. Get additional inventory results to attain cash outflow. Subsequently, selling out the entire old inventory generates cash inflow.
The following are situations that should lead to an emergency loan:
· Your unsold inventory winds up in the warehouse. This will mean you have to get cash to purchase new inventory.
· You neglected or forgot to fund major plant improvements. Most times, 25% of the emergency loans cater for the required plant changes and adjustments.
· You had negative profits hence depleting your cash reserves. 5% of the emergency loans can be used for this.
Capsim Strategy Plan
It is important that your plan gives the customers what they want. To be able to do this, you will need to find out the customers’ needs. It may be challenging to provide exactly what your customer is looking for but make it your priority to beat your competitors at it.
Find out what others before you have done. Research is the key at this point. Pick out the best ideas that will work in your position and assess them for any weaknesses.
Monitor your competitor through the Capstone courier. This way, you will be able to know their Capsim strategy plan and use the information to your advantage.
Winning this challenge is entirely dependent on your efforts at the implementation of the best research findings. Avoid emotional reactions and look at the bigger picture with every move.