Global Finance CapSim

Question 1

How was each company created

Answer 1

Government split up a monopoly into separate competing companies

Question 2

Where do the company’s financial positions begin

Answer 2

at the exact same position

Question 3

What is the length of each round

Answer 3

1 year

Question 4

what are the four areas of business you will make decisions on + two extra

Answer 4

-research and development
-marketing
-production
-finance

-HR
-total quality management

Question 5

What will you learn in the beginner training section

Answer 5

-Introduction to your company and the industry you will be competing in

Question 6

What will you learn in the intermediate training section

Answer 6

-covers decision making scenarios for all four departments

Question 7

What will you learn in the advanced training section

Answer 7

-provided a two-page document about changing your plant location and its impact

Question 8

what are the types of market segments

Answer 8

-low tech
-high tech

Question 9

what are buyers looking for in the low-tech segment

Answer 9

-inexpensive product
-still fulfills primary needs

Question 10

what are buyers looking for in the high tech segment

Answer 10

-most up to date product
-don’t mind paying a premium

Question 11

how do you navigate to the detailed buying criteria page for each segment

Answer 11

-within the updated simulation report posted at the end of every round

Question 12

what are the geographical regions within the simulation

Answer 12

-USA
-Germany
-China

Question 13

USA region explained

Answer 13

-currency = US Dollar $
-mature economy
-stable political environment
-market will become saturated as it moves forward

Question 14

Germany region explained

Answer 14

-currency = euro
-highly developed technology advanced
-high income
-experiencing steady economic growth

Question 15

China region explained

Answer 15

-currency = renminbi
-relatively low-income communities
-increasing economic growth
-demand for improved healthcare

Question 16

what is the low-tech segment demand growth for each region

Answer 16

-USA = 6%
-Germany = 20%
-China = 45%

Question 17

what is the high-tech segment demand growth for each region

Answer 17

-USA = 13%
-Germany = 35%
-China = 32%

Question 18

what must be addressed to maintain an competitive edge

Answer 18

-improvement of the current technology of your product

Question 19

How will you be evaluated in capsim

Answer 19

-based on the four pillars of the balanced scorecard

Question 20

what is your goal in the simulation

Answer 20

-outperform the competitors

Question 21

what does a business strategy create

Answer 21

-a vison and direction for the whole organization

Question 22

what are the three questions to consider when determining your companies strategy

Answer 22

-local or global
-niche or broad
-cost leader of differentiator

Question 23

what are the local strategies

Answer 23

-local broad cost leader
-local broad differentiator
-local niche cost leader
-local niche differentiator

Question 24

what are the global strategies

Answer 24

-global broad cost leader
-global broad differentiator
-global niche cost leader
-global niche differentiator

Question 25

explain low cost leadership

Answer 25

-cost are kept to a minimum -prices are below average -plant automation is increased to increase margins

Question 26

explain differentiation

Answer 26

-competitive advantage is gained by having superior products -prices are above average -sometimes uses tailored testing kits

Question 27

what is done within the R&D section

Answer 27

-creating new products -managing existing products to keep them relevant -retiring products that no longer fit your strategic direction

Question 28

what is the customer buying criteria

Answer 28

-product features customers will consider when buying a product -different regions will place a different emphasis on each criteria

Question 29

what are the criteria included within customer buying

Answer 29

-price -positioning (speed and accuracy) -perceived age -service life

Question 30

what tab is the customer buying criteria found under

Answer 30

-customer data tab on the R&D and marketing page -also segment analysis page

Question 31

how many products does your company start with? and how many can it add?

Answer 31

-starts with one -can add 3 for a total of four

Question 32

what is a regional kit

Answer 32

-upgrade that makes the product more appealing to the region

Question 33

what do you need to do a year before a product is released?

Answer 33

-set a capacity and automation level in the production tab

Question 34

how do you create a new product

Answer 34

-by clicking on the "+new product" tab

Question 35

what is the revision date

Answer 35

-date new product is released or all older units are updated

Question 36

what three factors determine the revision date

Answer 36

-how highly automated is your production line -how drastic of a change is being made -other product updates

Question 37

what is the speed of your product

Answer 37

-the time it takes to analyze a sample -directly correlated to material cost -represents the x axis

Question 38

what is the accuracy of your product

Answer 38

-the likelihood that your product will provide a correct result -directly correlated to material cost -represents the y axis

Question 39

what is the service life of a product

Answer 39

-average time it takes before the device is likely to fail

Question 40

How much does your material cost increase for every 1,000 hours of service life you add to a product

Answer 40

$.30

Question 41

how much will adding a regional kit increase demand by

Answer 41

-10% if no other competitors make a regional kit -0% if all competitors add one

Question 42

what are the negative effects of adding a regional kit

Answer 42

-adds 3 months to the R&D product -15% material cost increase in the country the regional kit is being produced

Question 43

how do modified products effect age

Answer 43

-cuts the perceived age in half

Question 44

what does the perceptual map show

Answer 44

-a products speed and accuracy -two circles for each market segment -also shows ideal spot for your product

Question 45

what happens when you retire a product

Answer 45

-product will be sold off at 65% of its original price -inventory on hand is sold at 50% of the production value

Question 46

what charts are displayed within the R&D section

Answer 46

-investment -material cost -perceived age

Question 47

how do the segments move on the perpetual map

Answer 47

-to the top right -overlap at first but drift apart as each segment moves differently (monthly) -customers still expect faster and more accurate products each round

Question 48

explain the ideal spot for each segment

Answer 48

-area where when all things are equal the demand is at its highest -middle middle for low tech -upper right for high tech

Question 49

what does the marketing department do

Answer 49

-prices and promotes your product -interacts with customers via sales force and distribution systems -sets sales forecast

Question 50

what does the finance department do

Answer 50

-makes sure company has financial resources to get through the year -can either borrow or pay back loans -shows you how your company did against the competition

Question 51

what does the production department do

Answer 51

-determines how many units will be manufactured during the year -also responsible for buying and selling production lines