Wednesday, August 13, 2008

Of Business Capstone IV

Here we go, two simulations in a day, online class happens on friday from 7pm to 10pm

A brief recap:

Round 1 - Prudence, large cash balance, keeping cost low
Market Share: 25%
ROS: 9.5%
ROA: 15.4%
ROE: 17.1%
Sales: $386mil
Profits: $57mil
Cumulative Profits: $171mil

Round 2 - More aggressive strategy, good products, high market share
Market Share: 22%
ROS: 23.0%
ROA: 21.1%
ROE: 21.9%
Sales: $344mil
Profits: $79mil
Cumulative Profits: $327mil

Completed today(12 Aug)

Round 3 - Same aggressive strategy, attempting to grab higher share to score better
Market Share: 22%
ROS: 25.6%
ROA: 21.3%
ROE: 22.0%
Sales: $309mil
Profits: $79mil
Cumulative Profits: $324mil

Round 4 - Create new product, attempt to retire 1 product
Market Share: 15%
ROS: 5.2%
ROA: 6.0%
ROE: 6.6%
Sales: $228mil
Profits: $11mil
Cumulative Profits: $141mil

Based on these rehearsals, strategy used for Round 2 and Round 3 works well against the bots.

Round 4 seems too risky due to production restriction and cost of retiring a product meaning lost sale and the money from the factory sale does not equal to the investments put into improving the product over the past 7 years.

Now i am more convinced of my master plan and also more confident of convincing any detractors.





Towards business excellence team! Let's put some fun into Bizcap!

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