MKT450 University of Tampa CapSim Simulation Electronic Sensor Industry Report Page One: Search online to find comprehensive information about the US Elec

MKT450 University of Tampa CapSim Simulation Electronic Sensor Industry Report Page One:

Search online to find comprehensive information about the US Electronic Sensor Business.
Write a one page summary of the actual US Electronic Sensor Industry. This should be a general overview of the industry to demonstrate that you have a fundamental understanding of the industry.

Page Two:

Use the CapSim slides as a source for page two of this assignment to complete the following tasks:
Write one paragraph with a brief summary of how your company came to exist.
List the five Customer Segments that exist in CapSim.
List the four Buying Criteria that your customers use to make purchase decisions.
Explain what DRIFT is and how you will address it in Capsim.

CapSim Power point slides are uploaded. I also uploaded the rubric for this paper. WHY SIMULATE?
❯ Risk free!
❯ Compressed time
to view long-term
outcomes
❯ View alternate
strategies
❯ Selectivity
vs.
Integration
❯ Enjoyable
and competitive!
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©2014 Capsim Management Simulations, Inc.
OBJECTIVES OF THE
CAPSTONE® SIMULATION
 Demonstrate effectiveness of multi-discipline teams working together.
 Use strategic thinking.
 Take away practical skills in business management.
 Test your business acumen.
 Understand overall interaction and impact of various parts of a business
on one another.
 Grow the awareness of competition.
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©2014 Capsim Management Simulations, Inc.
INDUSTRY OVERVIEW
©2014 Capsim Management Simulations, Inc.
THE SENSOR INDUSTRY
 You are a B2B Manufacturer
 Sensors are component parts of finished goods
 Cell Phone Example:
 Touch Screen, Spatial Orientation, Signal Strength
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©2014 Capsim Management Simulations, Inc.
THE STORY:
BACKGROUND ON YOUR COMPANY
Started as a single corporation named Sensors, Inc. sold sensors as main product.
Corporation forced to break apart by FTC due to monopolistic operations
Sensors, Inc.
FTC required Sensors, Inc. to be
broken up into separate companies:
Andrews
Baldwin
Chester
Digby
Erie
Ferris
YOUR JOB
 Monopoly left the products, marketing, manufacturing and
financial management in poor shape due to lack of competition
➢ Operate one of the companies and make it successful
©2014 Capsim Management Simulations, Inc.
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THE START
When Sensor, Inc. breaks up, each of the new
companies start off with the following scenario:
 $100 million in Sales
 5 Product Lines (can add up to 3 new ones)
 5 Market Segments
 Closed Marketplace
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©2014 Capsim Management Simulations, Inc.
SENSORS: AN OVERVIEW OF
YOUR COMPANY’S PRODUCT
 Customers (OEMs) need sensors
for their products to function.
 Used for diverse applications
Customer demands vary
between the five segments
Five market segments:
 Low End
 Traditional
 High End
 Performance
 Size
 Buying Criteria Price, Age, MTBF (Reliability), Positionaing (size and performance)
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©2014 Capsim Management Simulations, Inc.
THE MARKETPLACE:
A LOOK INTO THE SEGMENTS
 Perceptual map used to track changing
consumer demands in size and performance.
Consumer segment expectations
ROUND 1
 Each year, consumers will expect faster
(higher performance) and smaller products
(smaller size)
• This causes the segment circles to drift
to the lower right constantly
 Market segments continue to diverge
over time.
ROUND 8
Note the drift towards the
lower right (expectations of
faster and smaller products)
Also note the divergence of the segments.
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©2014 Capsim Management Simulations, Inc.
LOW END
CONSUMER CHARACTERISTICS
PRICE
Price sensitive. Prefer prices at lowest possible.
“I want to spend as little money as possible!”
RELIABILITY
Ideal MTBF: 12000 – 17000
“They have to be moderately reliable…
but not enough to drive up the price!”
POSITIONING
Prefer less cutting edge products
AGE
Ideal Age: 7 years
(Bigger Size & Low Performance)
“The technology doesn’t have
to be cutting edge.”
“I want them to have been around for a while…
no beta testing!”
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©2014 Capsim Management Simulations, Inc.
TRADITIONAL
CONSUMER CHARACTERISTICS
PRICE
Price sensitive, but willing to spend more
than Low End consumers
“I want these sensors to be moderately cheap.”
RELIABILITY
Ideal MTBF: 14000 – 19000
“They have to be fairly reliable…but
not enough to drive up the price!”
POSITIONING
AGE
“Average” Performance and Size
Ideal Age: 2 years
“I want average sensors.”
“I want them to have been around
for a couple years…no beta testing!”
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©2014 Capsim Management Simulations, Inc.
HIGH END
CONSUMER CHARACTERISTICS
PRICE
Not price sensitive, willing to pay higher prices
“Price is not an issue. I want the
best sensors in the market!”
RELIABILITY
Ideal MTBF: 20000 – 25000
“We need a very reliable package.”
POSITIONING
High performance and small size
“Only the most cutting edge
products will satisfy me!”
AGE
Ideal Age: 0 years
“I want the newest sensors you have!”
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©2014 Capsim Management Simulations, Inc.
PERFORMANCE
CONSUMER CHARACTERISTICS
PRICE
Not price sensitive, willing to pay moderately
higher prices
“I am willing to pay for what I need”
RELIABILITY
Ideal MTBF: 22000 – 27000
“Reliability is very important and must
be high.”
POSITIONING
AGE
High performance and small size
Ideal Age: 1 year
“I want the highest Performance
available!”
“I prefer new technology!”
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©2014 Capsim Management Simulations, Inc.
SIZE
CONSUMER CHARACTERISTICS
PRICE
Not price sensitive, willing to pay moderately
higher prices
“I am willing to pay for what I need”
RELIABILITY
Ideal MTBF: 16000 – 21000
“We want pretty reliable sensors.”
POSITIONING
Average Performance but maximum
miniaturization
“Now that’s small!”
AGE
Ideal Age: 1.5 year
“I prefer fairly new technology!”
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©2014 Capsim Management Simulations, Inc.
SEGMENT
GROWTH
 According to a Market Analyst, there will be continuous growth in the sensor
market, but beware of external factors such as competitor actions, changing
consumer preferences, and changes in the economy.
Sensor market
“I see the entire market growing at around
14% or 15% per year. The high tech market
alone will be growing at a whopping 20%.”
YOUR GOAL
 Prepare your company’s products to
meet the needs of the growing market but expect
some bumps along the way.
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©2014 Capsim Management Simulations, Inc.
THE DECISION
MAKING PROCESS
©2014 Capsim Management Simulations, Inc.
DECISION AREAS
Students need to coordinate strategy and tactics
across the following areas of their company:
R&D (Research & Development)
MARKETING
PRODUCTION
ADDITIONAL MODULES
 HR
FINANCE
 TQM (Total Quality Management)
 Advanced Marketing
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©2014 Capsim Management Simulations, Inc.
R&D
 Ensure the perceived age of the product
meets customer demands
 Build the quality and reliability (MTBF) of
the products
 Invent new products to address the
changing marketplace and take
advantage of new opportunities
 Determine the specifications of the
products to meet customer expectations
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©2014 Capsim Management Simulations, Inc.
MARKETING
 Set the price of your products
 Build customer awareness through investing
in promotion
 Establish a sales force and distribution channels
 Set the sales forecast for your products
 Set credit policies (A/R and A/P)
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©2014 Capsim Management Simulations, Inc.
PRODUCTION
 Purchase machinery to automate them in
your facilities
 Buy or sell capacity on your product lines
 Set production schedule
 Manage the majority of the company’s
fixed assets
 Staff your facility with workers
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©2014 Capsim Management Simulations, Inc.
FINANCE
 Acquire capital to fund growth and operations
• Issue stock
• Short-term debt
• Issue long-term bonds
 Issue dividends to your shareholders
 Balance your debt portfolio
 Manage your Proformas
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©2014 Capsim Management Simulations, Inc.
PROFORMAS: A LOOK INTO
THE FUTURE
 Proformas use decisions made in the current year
to project company performance for the next year
 Analyzing them is critical for company success
 The following Proformas are available:
• Balance Sheet
• Income Statement
• Cash Flow Statement
• Financial Ratios
• Balanced Scorecard
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©2014 Capsim Management Simulations, Inc.
THINGS TO DO ON AN
ANNUAL BASIS
Establish business strategy for your company
Begin the process again by
confirming alignment of your results
with your company’s strategic goal
Analyze Capstone® Courier
to see industry results
❯
❯
Rejoice in your superior
capitalistic acumen
Make tactical decisions across each
functional area (aligned to strategy!)
Await results when
professor processes
Upload official decisions and
confirm on the website
❯
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©2014 Capsim Management Simulations, Inc.
WRITTEN ASSIGNMENT RUBRIC
MKT 450
Write a report on the Electronic Sensor Industry to prepare for the CapSim Simulation. Your
team will be managing an electronic sensor business where products must be created,
marketed, manufactured and managed financially, so it is important that you have a
fundamental understanding of the actual sensor business as well as your CapSim company.
This is a two-page single-spaced written assignment:
Page One:
 Search online to find comprehensive information about the US Electronic Sensor
Business.
 Write a one page summary of the actual US Electronic Sensor Industry. This should be a
general overview of the industry to demonstrate that you have a fundamental
understanding of the industry.
Page Two:
 Use the CapSim slides as a source for page two of this assignment to complete the
following tasks:
o Write one paragraph with a brief summary of how your company came to exist.
o List the five Customer Segments that exist in CapSim.
o List the four Buying Criteria that your customers use to make purchase decisions.
o Explain what DRIFT is and how you will address it in Capsim.

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