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Capsim Project Paper

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Submitted By panda1rox
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Mkt 350 In a classroom far, far away, four people were thrust into a group. Their goal was to succeed in the game known as Capsim. They called themselves Digby 2. This is the real life story of their friendship, challenges, and accomplishments as they worked their way to the top of the game. On a more serious note, our group took Capsim very seriously. In the beginning we were all confused as to how the game worked and where to begin. We looked at the various tutorials and the booklet to try and make some sense of it. Once we had some understanding, we tried to develop our strategy. In the first few rounds we understood it was important to have our company funded through stocks and long term debt. We issued stock the first three rounds and took out enough current and long term debt to get our company up and running. We also chose to not issue dividends as it would cost our company too much in its growth stage. In addition, we made sure to create new products in the earlier rounds, as it would become more expensive in the later rounds. Once we had created all of our products, we used the Foundation FastTrack to help us determine our optimal position within the low and high tech markets. We also used this to look at where our competitors were and what they were charging for similar products. Our strategy consisted of putting a lot of money into the Sales and Promo budget in the initial rounds so that we could increase customer awareness and accessibility. As the game continued and product age began to increase, we decreased our allocation of funds into Sales and Promos. As mentioned before, we compared our products each week to our competitors to maximize our profits and stay competitive. In the HR & Production section, we bought capacity in the early rounds and at the launch of a new product. This was one of the few obstacles we

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