Capsim Debrief Paper

A company situation analysis can be defined as “matching the company’s strategy to external market circumstances and to internal resources and competitive capabilities.” We believe that our company, Chester Electronic Sensors, is currently in a position to spring ahead in the Electronic Sensor market. The industry in 2011 (round 0) consists of six competitors in very similar positions, holding virtually equal market share. We will use indicators in the industry to help determine our position and build our marketing, production, R&D and financial strategy. The situation analysis, as outlined by Capsim, will help provide us with a picture of the current conditions of the market and how it will develop in the next 8 years (rounds). This

The board decided that the company should be judged on its ability to make a profit, gain market share, provide positive ROA and make money for our shareholders with an increasing stock price. Our target was a stock price of $38

3. Was the firm able to generate enough cash from operations to pay for all of its capital expenditures?

In this Period our stock price drastically went down from $35.14 to$ 25.61The BCG Matrix which is an analytical

The financial performance of the company over the years six t thirteen is shown in table no 7. The data includes Revenue generated over the years, Earning per share, Return on Investment and Stock Prices. Chart 5 shows that there has been a decline in the revenues generated. Charts 6 to 8 all show a decline in Earnings per Share, Return on Equity and Stock Prices suggesting a poor financial performance by the company.

Market live is an online game that helps to educate students in making real life business decisions and seeing their results. The game included five teams that were starting new companies entering the microcomputer business. They were given investment money to help them start their business. By using that capital to open sales offices, web sites, design their brand, and build their factory. Since microcomputer industry was in the introductory stage of the product cycle there was no previous history nor established competitors. The teams were given six quarters to get their companies up and running. In those quarters each team should have become self-sufficient and earned substantial profits from their operating decisions. The team’s cumulative performance

* Teams must compromise. You may develop a hybrid strategy that includes a little bit of each.

As for financials, we made sure to pay debt and repurchase outstanding shares of stocks because it boosts earnings per share, ROE, and stock price. We also paid dividends of $8 dollars per share at the final round because we had 0 shares to retire in year 14. For entry level and multi featured assembly we always matched assembly to orders because we did not want to assembly more unless demand is high in a specific year. Our EPS and ROE increased significantly while maintaining a strong credit rating from the beginning

My assessment of the performance of our team (ACC-Baldwin) in Phase One is that we performed decently in terms of strategy, but we have a lot of room for improvement in terms of implementation of strategy in the simulation exercise.

$10,644,800 / $2,271,400 = 4.69 Times Return on Common Stockholders’ Equity (2002) $647,645 / $1,928,960 = 33.58% Return

During this time, sales increased from: $7.11 billion in 2010 to $7.99 billion in 2012. Earnings improved from $2.84 to $3.57. While the total amount of dividends rose from $1.00 to $1.72. These figures are showing how the company has been continually increasing sales, earnings and dividends over the last three years. In the future, the management predicts that their current strategy will increase returns. As, executives believe that their focus on building the brand and accounting for costs will lead to net earnings of $5.20 to $7.19 annually by

Erie Corporation has been founded in 2011 with the mission is to provide both reliable products for low-technology customers including Traditional and Low End segments; and premium- technology oriented customers including High End, Performance and Size segments. This business plan is written so as to provide the board of directors a detailed picture about the company’s strategies as well as the direction how we can implement these strategies. The plan consists of three parts.

One of success parameters were profits, though we did manage to make significant profits over the last two years, we did not focus on it early in the game. The profit parameter was considered as an average. We did not take any corrective measure to increase our profit margins early in the game. While focusing on immediate goals keeping long term goals in mind is also important.

During weeks 7 and 8, the group learned that any strategy could win the game as long as our costs are low. As a matter of fact, it 's about maximizing profits, and we should have focused on our market share as well as advertising. For example, if we would have kept our cost down and used that money for publicity, then it would have increased our profits.

The dividends to Kennecott equal to the difference between Carborundum’s net income after adjustment and the profit retention. The methodology Kennecott’s management team used to determine the value of Carborundum to Kennecott was evaluated using an incorrect set of cash flows. First, it subtracted out the profit retention requirements needed to support Carborundum’s growth even though Kennecott would own the full equity in Carborundum, which is incorrect. Second, depending on the method used to value the company, the relevant set of cash flow is needed to be determined, either the free cash flow to the firm or the free cash flow to equity.