Capsim Debrief - could help with the mandatory assignment we have to do all semester. shows what PDF

Preview

Summary

could help with the mandatory assignment we have to do all semester. shows what i did wrong in the project. ...

Description

Capsim Debrief

Priscilla Reyes

At the beginning of the simulation we decided to take a low cost approach to selling our product. This did not end up working for us since the cost to make our products was too high. This caused us to sell at a loss and not make enough profit to afford the high cost of the materials. Our profits fell for four rounds before we were able to fix that mistake and turn a profit. Since we had a negative profit for three rounds we had to pull out emergency loans which added to our expenses because of the high interest rate; reducing our profits even more. To correct the initial problem we attempted to raise our prices and lower material costs by reducing the MTBF, this led to customers not buying our products and an increased inventory cost. To counteract this we made our products more appealing to consumers by lowering the price to compete more evenly with competitors and increased the MTBF to fit consumer standards. We also decided to discontinue products in the low and traditional market segments to focus more on our high end and performance products. We added a product to the high end segment to increase our market share in that segment. It was difficult to produce enough of each product because of the lack of funds to increase capacity. However, through the TQM plug-in we were able to invest in programs that helped reduce material cost by 11.18%, labor cost by 13.72%, R&D cycle time by 40.01%, admin costs by 60.02%, and increased demand by 13.87%. Establishing a low-cost advantage failed for us because of our inability to keep costs low. Instead, we should have focused on a niche market and what differentiates us from the competition to justify higher prices. Throughout the game we had some of the highest potential because of how good our products fitted the needs of consumers. We were unable to take advantage of that potential because of our financial status. The price of the products did not reflect the quality of the products being produced. It is important to properly analyze the initial value of the product to be sold and price accordingly to avoid low margins in the future....