Capsim Foundation Pg. 1-17 Flashcards
Why were operating inefficiencies and poor product offerings not answered because of the monopoly?
- Increasing costs could be passes on customers
- Mediocre products would sell, because there is no other options
what follows post-monopoly era?
Competition
what are Sensors?
Devices that observe physical conditions.
Ex. phones have sensors that allow it to interpret touch
What is an example of a sensor?
phones have sensors that allow it to interpret touch
What does an Industry Conditions Report outline?
the beginning business environment, and customer buying criteria.
What are the 6 management tools?
- Rehearsal Tutorial
- Foundation FastTrack
- Situation Analysis
- Proformas & annual Reports
- Foundation Spreadsheet
- Just in Time information
What does the Rehearsal Tutorial teach you?
- Invent and Revise Products
- Make marketing decisions
- Schedule production and buy/sell equipment
- Ensure your company has the financial resources it needs for the upcoming year
What is the FastTrack?
an extensive year-end report of the sensor industry. It includes:
- customers buying patterns
- Product positioning
- Public financial records and other info. that will help you get ahead.
What does the Situation Analysis help you with?
Operational planning.
What are Profomas?
PROJECTIONS for the upcoming year.
Helps envision the impacts of your pending decisions and sales forecasts.
What are Annual reports?
RESULTS from the previous year.
Helps you analyse last year’s results.
What is the Foundations Spreadsheet?
Nerve center of company where you formulate and finalize management decisions for every department.
How does “Just in Time Info” help you?
it gives you detailed info. about the area you are viewing.
What are the 4 main departments/ functions areas in the Rehearsal Tutorial?
- Research & Development (R&D)
- Marketing
- Production
- Finance
What does the R&D (Research and Development) do?
design your product line. They Invent and revise products to customer’s needs.
What is the role for Marketing Departments?
they price and promote your products.
interact w/ customers.
responsible for sales forecasts.
What does Production Departments do?
determines how many units will be manufactured during the year.
Responsible for buying & selling production lines.
What does the Finance Department do?
Makes sure your company has the financial resources it needs to run through the year.
Can also issue stock dividends, buy back stock/ retire bonds before their due dates.
What are Plug-ins?
different than modules.
their decisions have a greater overall impact on your organization.
Name the 6 Inter-Department Coordination.
1 R&D and Marketing 2 R&D and Production 3 Marketing and Production 4 Marketing and finance 5 Finance and Production 6 Finance and all Departments
How does R&D work with Marketing?
Makes sure products meet customer expectations.
How does R&D work with Production?
To ensure assembly lines are purchased for new products. If a product is discontinued, Productions tells R&D.
How does Marketing work with Production?
Makes sure manufacturing quantities are in line w/ forecasts. if Market want to discontinue product, they tell Production to sell the product’s line.
How does Marketing work with Finance?
to project revenues for each product and to set Account Receivable policy.
What is and Accounts Receivable policy?
it is the amount of time customers can take to pay for their purchases.
How does Finance work with Production?
Productions tells Finance if it needs more money for additional equipment. If Finance cannot raise enough money, they tell Production to scale back its requests/ perhaps sell idle capacity.
How does Finance work with All Departments?
acts as a watchdog over company expenditures.
What is Decision Audit?
a complete trail of all team decisions. It helps you identify your decision-making strengths and weaknesses.
What doe Successful Managers do?
- Analyse the market and its competing products
- Create and execute a strategy
- Coordinate company activities.
What information will help you understand your customers?
Industry Conditions Report
What are the two primary groups of people?
- Low Tech
- High tech
What are the 4 Buying Criteria?
Price, Age, MTBF (Mean Time Before Failure), Positioning
What price are Low Tech wanting?
Inexpensive products.
What price are High Tech wanting?
advanced tech and is willing to pay higher prices.
What does age mean in segments?
Length of time since the product was invented or revised.
What age do High Tech want?
new tech.
What are do Low Tech want?
Proven tech that has been in the market for a few years.
What does MTBF (Mean Time Before Failure) mean?
a rating of reliability measured in hours.
What MTBF do High Tech prefer?
high MTBF rating
What MTBF do Low Tech prefer?
satisfied with low MTBF rating
What is Positioning?
Combining size and performance.
What do Perceptual Maps Track?
Positioning
Where are Drift rates published?
Industry Conditions Report
What Buying Criteria stays the same?
Price, age, and MTBF.
What Buying Criteria changes every year?
Positioning
What are the 4 “P’s” of Marketing?
Product, price, place, and promotion
