capsim | UPDATED Questions with 100% Verified Answers
Q1: review your scoring
A: financial results: sales, profits, margins, emergency loan
market cap
balanced scorecard
Q2: if put money in plant
A: take out loan long term
Q3: balanced scorecard based on
A: shows were to improve on financials, awareness, growth, l
total profit + market cap
Q4: emergency loan causes
A: not enough capital, missing inventory from high sales forecast, not accounting for debt
that is about to be paid off (from either an emergency loan or a future bond due)
Q5: current debt
A: •is good to cover cash needs for shortterm onetime expenses (marketing an sales)
Q6: long term debt
A: good to cover investments in capital, production, R&D needs. It cost about 1.4% higher
interest rate than current debt and is locked in for 10 years in a bond. $ in plant
Q7: issuing stock is effective after price rose considerably and can
A: provide needed capital without giving up a lot of equity. dont do too early (not yrs 1 and
2) in our case do it
Q8: market segment analysis
A: •Understand what customer wants in each market segment and how its growth rate
•Understand why you sold what you did
•3 Forecasting Methods
•Modeling Forecasting and Production
, Q9: model forcasting and production
A: 1.Use each of the 3 market forecasting methods to review the range of possibilities
2.Analyze any major changes on your product
3.Anticipate any major changes from leading competition
4.Develop a forecast number
5.Look at existing inventory
6.Production = (forecast + inventory) + 1015% cushion
Q10: cm needs to be
A: 30% or +
Q11: improving operating margin
A: •Raise price
•Lower labor cost (e.g. automation)
•Lower material costs (size, performance, MTBF)
•There are other ways to lower labor & material costs in the simulation
Q12: available capacity production
A: • is 2X
Base capacity assumes one 8hour shift
Can add second 8hour shift (50% higher per hourly cost)
Run production lines at 150% before adding capacity
Q13: automation production
A: reduces labor costs, increases cost to improve products (r&d)
Q14: •Increating Capacity and Automation are Big Investments
A: funded w long term debt
Q15: customer satisfaction
A: •Product Positioning: How close the product is to the ideal spot on the Perceptual Map.
•Price: Whether the product's price falls within the acceptable range for the segment.
•Product Age: How closely the product's age matches the segment’s preferences.
•MTBF (Reliability): The match between the product’s MTBF and the segment’s
expectations.
•Awareness: The product's awareness level, which impacts customer perception.
•Accessibility: The ease with which customers can access the product through
distribution channels.
Q1: review your scoring
A: financial results: sales, profits, margins, emergency loan
market cap
balanced scorecard
Q2: if put money in plant
A: take out loan long term
Q3: balanced scorecard based on
A: shows were to improve on financials, awareness, growth, l
total profit + market cap
Q4: emergency loan causes
A: not enough capital, missing inventory from high sales forecast, not accounting for debt
that is about to be paid off (from either an emergency loan or a future bond due)
Q5: current debt
A: •is good to cover cash needs for shortterm onetime expenses (marketing an sales)
Q6: long term debt
A: good to cover investments in capital, production, R&D needs. It cost about 1.4% higher
interest rate than current debt and is locked in for 10 years in a bond. $ in plant
Q7: issuing stock is effective after price rose considerably and can
A: provide needed capital without giving up a lot of equity. dont do too early (not yrs 1 and
2) in our case do it
Q8: market segment analysis
A: •Understand what customer wants in each market segment and how its growth rate
•Understand why you sold what you did
•3 Forecasting Methods
•Modeling Forecasting and Production
, Q9: model forcasting and production
A: 1.Use each of the 3 market forecasting methods to review the range of possibilities
2.Analyze any major changes on your product
3.Anticipate any major changes from leading competition
4.Develop a forecast number
5.Look at existing inventory
6.Production = (forecast + inventory) + 1015% cushion
Q10: cm needs to be
A: 30% or +
Q11: improving operating margin
A: •Raise price
•Lower labor cost (e.g. automation)
•Lower material costs (size, performance, MTBF)
•There are other ways to lower labor & material costs in the simulation
Q12: available capacity production
A: • is 2X
Base capacity assumes one 8hour shift
Can add second 8hour shift (50% higher per hourly cost)
Run production lines at 150% before adding capacity
Q13: automation production
A: reduces labor costs, increases cost to improve products (r&d)
Q14: •Increating Capacity and Automation are Big Investments
A: funded w long term debt
Q15: customer satisfaction
A: •Product Positioning: How close the product is to the ideal spot on the Perceptual Map.
•Price: Whether the product's price falls within the acceptable range for the segment.
•Product Age: How closely the product's age matches the segment’s preferences.
•MTBF (Reliability): The match between the product’s MTBF and the segment’s
expectations.
•Awareness: The product's awareness level, which impacts customer perception.
•Accessibility: The ease with which customers can access the product through
distribution channels.
