Capsim Practice Questions with Correct
Answers
Americas
2:1 (Budget: Performance) for foreseeable future
Europe
3:1 but trending towards performance in the next five to ten years.
-High-income region
-experiencing steady economic growth that your company hopes to capitalize on.
Asia Pacific
-3:1 with further expansion of the budget market anticipated.
-low-income communities, significant demand for improved health care.
-zero-tariff policy that makes it an attractive market moving forward.
R&D Department
Responsible for creating new products AND managing existing offerings.
-Success depends on your ability to understand customer needs and communicate with other
departments.
-must work closely with the Marketing department because they provide info on what your
customers really want so that R&D can identify the best product specifications to meet those
needs, while coordinating project timelines and managing development costs.
R&D Department - provides information on...
-products
-customers
,-competitors
-cost of your decisions
R&D Department - 4 product specifications
1) speed
2) accuracy
3) service life
4) age
(price is determined by Marketing)
For existing products, adjusting accuracy or speed will cut the age of your product in half.
The update causes customers to see that it is newer.
By reducing a product's Service Life...
your product will have a lower material cost. Since Budget customers don't place a heavy
demand on Service Life, it may be wise to reduce that figure.
-each 1,000 hours of Service Life adds $0.30 to the material cost. Customer prefer products
towards the top of the range.
Region Kits
-boost demand in an area by 10% compared to the competition, but add 3 months of
development time to add/remove and 15% in material cost per unit.
-In the case that all six companies offer kits to a specific region, there will be no advantage in
customer demand for any team.
Age
, modified products cuts age in half
-only decisions changed for Speed or Accuracy cut the age in half. Changes to Service Life
and Region kits have no impact on the perceived age.
Customers in EACH market segment continuously expect...
faster and more accurate products.
-Each company must innovate and update products!!
Budget Customer?
-considers price and age above positioning
Marketing Department
Responsible for forecasting sales, promoting both the products and brand, as well as pricing
and selling your products.
-The Production Department uses these forecasts to determine how much of each product line
to manufacture, and your Finance Department uses these forecasts to generate your proforma
financial statements.
Marketing Department Decisions:
1) Setting the price - for each product in each region, marketing must determine the
appropriate balance between customer price expectations and your company's margins.
*currency exchange rates change each year AND are different from region to region.
2) Sales Forecasting - very important. Accurately forecasting your product's sales will have
a direct impact on your bottom line.
-must submit a Best Case and Worst Case forecast for each product in each region.
Answers
Americas
2:1 (Budget: Performance) for foreseeable future
Europe
3:1 but trending towards performance in the next five to ten years.
-High-income region
-experiencing steady economic growth that your company hopes to capitalize on.
Asia Pacific
-3:1 with further expansion of the budget market anticipated.
-low-income communities, significant demand for improved health care.
-zero-tariff policy that makes it an attractive market moving forward.
R&D Department
Responsible for creating new products AND managing existing offerings.
-Success depends on your ability to understand customer needs and communicate with other
departments.
-must work closely with the Marketing department because they provide info on what your
customers really want so that R&D can identify the best product specifications to meet those
needs, while coordinating project timelines and managing development costs.
R&D Department - provides information on...
-products
-customers
,-competitors
-cost of your decisions
R&D Department - 4 product specifications
1) speed
2) accuracy
3) service life
4) age
(price is determined by Marketing)
For existing products, adjusting accuracy or speed will cut the age of your product in half.
The update causes customers to see that it is newer.
By reducing a product's Service Life...
your product will have a lower material cost. Since Budget customers don't place a heavy
demand on Service Life, it may be wise to reduce that figure.
-each 1,000 hours of Service Life adds $0.30 to the material cost. Customer prefer products
towards the top of the range.
Region Kits
-boost demand in an area by 10% compared to the competition, but add 3 months of
development time to add/remove and 15% in material cost per unit.
-In the case that all six companies offer kits to a specific region, there will be no advantage in
customer demand for any team.
Age
, modified products cuts age in half
-only decisions changed for Speed or Accuracy cut the age in half. Changes to Service Life
and Region kits have no impact on the perceived age.
Customers in EACH market segment continuously expect...
faster and more accurate products.
-Each company must innovate and update products!!
Budget Customer?
-considers price and age above positioning
Marketing Department
Responsible for forecasting sales, promoting both the products and brand, as well as pricing
and selling your products.
-The Production Department uses these forecasts to determine how much of each product line
to manufacture, and your Finance Department uses these forecasts to generate your proforma
financial statements.
Marketing Department Decisions:
1) Setting the price - for each product in each region, marketing must determine the
appropriate balance between customer price expectations and your company's margins.
*currency exchange rates change each year AND are different from region to region.
2) Sales Forecasting - very important. Accurately forecasting your product's sales will have
a direct impact on your bottom line.
-must submit a Best Case and Worst Case forecast for each product in each region.
