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Welcome to the

Capstone® Business
Simulation

SENSOR
INDUSTRY
OVERVIEW

now breaking into five  Very different customer demands developing between the segments  Diversification in the use and utility of the sensors . Wants***** The Marketplace Differ Customers (OEMs) need sensors for their products  Initially one segment.****know what cust.

The Marketplace  In Low Tech toster Performance MRI Traditional Size CEll High Tech sweet spot our industry we track the changing customer demand on a perceptual map  Over 8 years customers will demand much faster and smaller sensors  Market Segments will continue to diverge Positioning: where you place your sincere .

”  “The technology doesn’t have to be cutting edge.” Long cheap tested product…. 7yr best You’re not giving me what I want .Low End & Traditional Customers  “I want these sensors to be cheap”  “I want them to have been around for a while – no Beta Testing!”  “They have to be moderately reliable.

” Ideal position is key And I’m not getting what I want! . Size & Performance “These sensors have to be small. and fast” Customers  “I need them to be right out of R&D.High End. I’m talking ZERO years on the market” (size or performance to go to 0)  “I’m willing to pay more to get what I want. like micro.”  “I like a pretty high reliability.

The High Tech market alone will be growing at a whopping 16%.” I hope those companies out there are ready for that kind of expansion!” Segments grow different rates Need to barrow in 15-16% market (barrow heavily) .SENSOR INDUSTRY ANALYST PROJECT ONGOING GROWTH Sees the next 8 years as consistent growth.” according to market analyst. All market segments increase at a nice “clip. “I see the entire market growing at around 14% or 15% per year.

COMPANY OVERVIEW .

Erie and Ferris companies.” . Inc. the SEC outlined the reason and the outcome of this move. took dramatic action today by breaking up the monolithic corporation Sensors. Digby. Inc will be dissolved into the Andrews. Baldwin. Chester.” “Effective immediately Sensors. In a statement to the press.SEC ANNOUNCES BREAKUP OF MONOPOLY FOR IMMEDIATE RELEASE The SEC. “We cannot allow monopolies of this sort to impact an entire industry! The customers that utilize these sensors are being held hostage.

The Competition $100 Million in Sales 5 Product Lines… prduct in each one…can add or delete 5 Segments Closed Marketplace 6 Companies Andrews Digby Baldwin Erie Chester Ferris .

I expect to see great things from this Executive Team! . “We need to hire a dynamic leadership group who will be able to take this company into the future!” “Due to this immediate need I have hired the Dream Team to start on January 1st.SHAKE UP IN SENSOR INDUSTRY: COMPANY FIRES MANAGEMENT TEAM!!!! After poor results.” said Chairman Todd Roberson. the Chairman of the Board of Directors has announced the immediate termination of the Management Team. lackluster sales and angry customer reports. “This is a black day for our company.

Welcome To Your New Company .

receivable and payable period. add/delete or MTEF Marketing: Set: price. buy automation (important) Finance: raise capital to cover all your expenses Additional Modules - HR: train. budget. recurte. set item out up Production: make excess inventory. TQM: invest in training Advanced Marketing: tweak marketing break it up into channels .Students need to coordinate strategy and tactics across the following areas of their company: use this order! R&D:Design. work harder.

Establish the specification of the products to meet customer demand Build the quality and reliability (MTBF) into the products Ensure the perceived age of the product meets customer demands Create new products to meet the changing marketplace R&D “Our products are not well positioned in the marketplace.” .

And many of our customers don’t even know our product exists.” Set the price of our products in the marketplace Build customer awareness through promotion Establish a sales force and distribution channels Set the sales forecast for our products Set Credit Policies AR/AP .Marketi ng “Our products are not priced optimally.

Purchase machinery to automate our facilities Buy or sell capacity of product lines Schedule production for each line Manage the majority of the companies fixed assets Establish your workforce complement Producti on “We are paying too much for labor costs.” . Very soon we will run out of capacity to meet demand.

Finan ce “We have poor cash flow and substandard financial ratios. We have no financial policy statement.” Acquire capital to fund capital expansions • Issue Stock • Short Term Debt • Issue Long Term Bonds Issue dividend to our shareholders Balance our debt portfolio Manage our Proformas .

Allows “What if” Scenarios by the company.Proformas A great management tool driven by forecasts and projections. Balance Sheet Profit & Loss Cash Flow Financial Ratios .

Scoring Method .

Success Measures: Select a minimum of two criteria to be measured by: o ROE o ROS o ROA o Cumulative Profit o Stock Price o Market Capitalization o Asset Turnover o Market Share o Weight each selection .

Running your Company .

Things to do on an Annual Establish business strategyBasis for your company Analyze Capstone Courier to see industry results Make tactical decisions across each functional area (aligned to strategy!) Upload official results and confirm on the website Await results when Professor processes Rejoice in your superior capitalistic acumen Begin the process again by confirming alignment of your results with your company’s strategic goal. .

Good Luck and Enjoy! .