Decision Report for Round 1 (28pts). Due Tues., Feb. 27, 11:59pm on Brightspace.
• Do NOT copy and paste material (tables, lists, etc.) directly from Capsim, you will get 0 points for this report if you do. Answer the questions in your own words.

• Do NOT delete/edit/change/reorder the questions & instructions. You will get 0 points for this report if you do. Just type your answers in the space provided under “ANSWER below:” prompt.

Part A (7pts):
QUESTION: Review your decisions and results from the Practice Rounds. What have you have learned during your 4 Simulation Practice Rounds? 100+ words.
• What did you learn about the simulation, running your company, making decisions, reading the reports, etc.? What did you learn to do, not to do, pay attention to, etc.?
• This is a reflection on what you have learned.
o This is NOT a summary or a list of your past decisions.
o This is NOT a description of your future plans.
• Short essay format. Use your own words, no quotes. Use full sentences. Check spelling and grammar. No tables or lists.
ANSWER below:

Part B (5pts):
QUESTION: What is your strategy for the company (for the Tournament)? Briefly explain. (60+ words).
• NOTE: Being successful, being profitable, becoming the #1 company, etc. are goals NOT strategies. How do you plan to achieve your goals?
• Please read the Six Basic Strategies (section 12) in the Online Guide on capsim.com. It provides you with basic strategies you can follow (with details). You may also want to review our course material on Strategy.

ANSWER below:

Part C (16pts):

Example-A The blue row is an example of what should/could be included (enter your answers in the white rows, below the blue)
Your answers go here Your answers go here

One product per table row! If you have only one product, just fill in one row and leave the remaining rows blank. If you have more than 3 products, just add a new row to the tables (press “tab” when in the last cell).

1. (2pts) List EACH of your products by name (even ones that were just created this round in R&D and are not yet in production). Then state their target market(s) (Who is this product for?):

ANSWER below:
Product Name Current target market(s): high tech or low tech
Example-A High tech product

2. R & D. (4pts)
1) List EACH of your products by name (include the new ones too). For each product (one per row), state the two Beginning & End values for size, performance, and MTBF for this round AND an explanation for the changes or lack or changes.
a. If NO changes were made or it is a NEW product, still state BOTH Beginning/End values (even if they are the same number) AND an explanation.
b. Must have two numbers (Beginning# and End# to receive credit).

ANSWER below:
Product Name Size (beginning/end) Performance (beginning/end) MTBF (beginning/end) Explanation (why did you make a change or why you made no changes at all). Need more than a couple of words.
Example-A 12.5 / 11.5 8.7 / 9.5 20,000 / 20,000 Improve product to meet customer expectations. No changes in MTBF as value already good.

3. Marketing. (4pts)
1) List EACH of your products by name (include new ones). For each product (one per row), state the Beginning/End values for price, sales budget, and promotion budget changes made this round AND an explanation for the changes or lack or changes.
a. If this is a NEW product and there are no values, list all values as 0 (do NOT leave blank).
b. If NO changes were made, still state BOTH Beginning & End values (even if they are the same number) AND an explanation.
c. Must have two numbers (Beginning# and End# to receive credit).

ANSWER below:
Product Name Price $ (beginning/end) Sales Budget $ (beginning/end) Promotion Budget $ (beginning/end) Explanation (why did you make a change or why you made no changes at all). Need more than a couple of words.
Example-A 44.00 / 42.50 1,000 / 1,500 1,000 / 1,700 Lowered price to be more competitive, increased budgets to increase awareness and accessibility.

4. Forecast & Production Order. (2pts)
1) List EACH product by name with a forecast (predicted demand) and production order (order quantity) for this Round; always state these values even if your forecast & order quantity did not change from last round.
2) If it is a NEW product and you cannot produce it yet, write “NEW product” in the cells.
3) If the difference between the forecast and production order is greater than 100, explain why your production does not match your forecast (you will NOT get credit otherwise).
ANSWER below:
Product Name Forecast Production Order If difference between Forecast and Production is “> 150”, explain why production # does not match forecast #?
Example-A 900 1,100 1,100 – 900 = 200 > 150. I produced extra as other companies were stocking out last round and I may sell more than forecasted this round.

5. Production. (2pts)
1) List EACH of your products by name. For each product (one per row), state the Beginning/End values for 1st Shift Capacity and Automation changes made this round.
a. If this is a NEW product and there are no values yet, list all values as 0 (do not leave blank). (Remember, you cannot produce a product if you did not buy production capacity for it in advance).
b. If NO changes were made, still state BOTH Beginning & End values (even if they are the same numbers).
c. The 1st Shift Capacity value is listed under Physical Plant. The “Buy/Sell Capacity” value is by how much your first shift capacity will be increased/decreased at the End. Do NOT confuse the two.

ANSWER below:
Product Name 1st Shift Capacity (beginning/end) Automation (beginning/end)
Example-A 800/800 3.0/3.5

6. Cash Flow (Finance). (1pt) What were your starting and projected ending cash positions?
Found under Finance (see screenshot below):

ANSWER below:
Starting cash position ($ amount) (Projected) Ending cash position ($ amount)
$ $

7. Finance. (1pt) Did you buy or sell stock, issue dividends, take out a short-term loan (current debt), issue or retire a long-term loan (bond)? If yes to any of the above, state what you did (include $ values), and why (brief explanation). If nothing was done in Finance, just state that. Do not buy back and sell stock in the same round; do not issue and retire bonds in the same round.

ANSWER below:

Finance NOTE!
• Selling your company stock is NOT a source of revenue (and thus profit) for the company. Your revenue (and thus profit) comes from selling sensors.
• Stocks: You are NOT creating a stock portfolio here, you are selling your “company stock” to raise cash to grow your company.
• State your decisions using proper business/English language. For example:
o Do NOT say “Borrow 100”, instead state that you “Took out a short term loan of $100K”.
o Do NOT say “Issue 3000”, instead state that you “Raised $3,000K by selling common stock”.
o Do NOT say “Retire 400”, instead state that you “Retired $400K worth of long term debt”
o Do NOT say “Buy Back 500”, instead state that you “Bought back $400K worth of common stock”.
• Do not buy back and sell stock in the same round. You will get 0 points if you do so.
• Do not issue and retire bonds in the same round. You will get 0 points if you do so.
• Do not enter values into cells just because they are there in the simulation, only do what is necessary to support your company/strategy (it is okay to leave some cells blank). E.g., Do not issue Dividends, unless you have a lot of extra cash that you have no other use for (grow your business first, pay your obligations,…).