Project 3: Simulation As A Tool For Strategic Decision see attached docs Project 3: Simulation as a Tool for Strategic Decision Making—Part 1
see attached docs
Project 3: Simulation as a Tool for Strategic Decision Making—Part 1
In this Project you will use the Capsim software to simulate a real-world environment in which you not only make strategic business decisions for MediCorp but see the results year after year. Prepare yourself for operating in the complex world of international business and be sure to take notes as you progress through the simulation. Your team’s simulation results for MediCorp are not graded or assessed. Rather, your grade will be based on your individual analysis of how your team’s decisions affected the outcome of the simulation.
Structure of Projects
In Project 3 your team will make four rounds of decisions based on your selected local strategy, equivalent to four years of business operations for your client. Although you will be working as a team to make strategic decisions for your client, you will be given individual grades for Project 3 and Project 4 deliverables. While all business decisions are made as a team, the analysis of results is performed individually. Your project grade will be based on the quality of your individual analysis of the simulation results and your ability to interpret the results as a consequence of the team’s decisions.
Company Assignments in Capsim (Team Andrews)
Capsim assigns a company/team name to each team. The company names are preset, so students will not be able to change them. In the simulation report, the company name directly correlates to the product name(s). For example, the product names for the Andrews company will all start with the letter A; products for Baldwin will start with the letter B. This helps the participants understand what product belongs to what team when they are analyzing the results of the simulation.
The company names assigned in the Capsim simulation are as follows:
Any teams that are not assigned to students will be “computer teams,” meaning that the Capsim software will make decisions without any human input on behalf of each computer team.
To get started, click Step 1: Prepare for Your New Client.
Your work will be evaluated using the competencies listed below.
· 1.1: Organize document or presentation clearly in a manner that promotes understanding and meets the requirements of the assignment.
· 1.2: Develop coherent paragraphs or points so that each is internally unified and so that each functions as part of the whole document or presentation.
· 1.3: Provide sufficient, correctly cited support that substantiates the writer’s ideas.
· 1.7: Create neat and professional looking documents appropriate for the project or presentation.
· 2.1: Identify and clearly explain the issue, question, or problem under critical consideration.
· 2.2: Locate and access sufficient information to investigate the issue or problem.
· 2.3: Evaluate the information in a logical and organized manner to determine its value and relevance to the problem.
· 2.4: Consider and analyze information in context to the issue or problem.
· 2.5: Develop well-reasoned ideas, conclusions or decisions, checking them against relevant criteria and benchmarks.
· 3.1: Identify numerical or mathematical information that is relevant in a problem or situation.
· 3.4: Employ software applications and analytic tools to analyze, visualize, and present data to inform decision-making.
· 4.1: Lead and/or participate in a diverse group to accomplish projects and assignments.
· 6.1: Identify the general (external) environment in which an organization operates and discuss the implications for enterprise success.
· 6.2: Evaluate strategic implications for domestic and international markets of an organization’s industry.
· 6.3: Analyze an organization’s internal strengths and weaknesses for strategic value.
· 6.4: Develop and recommend strategies for an organization’s sustainable competitive advantage.
· 10.1: Apply relevant microeconomics principles to support strategic decisions for the organization.
· 10.2: Analyze financial statements to evaluate and optimize organizational performance.
· 10.3: Determine optimal financial decisions in pursuit of an organization’s goals.
· 10.4: Make strategic managerial decisions for obtaining capital required for achieving organizational goals.
· 10.5: Develop operating forecasts and budgets and apply managerial accounting techniques to support strategic decisions.
· 12.1: Assess market risk and opportunity.
· 12.2: Analyze marketing information.
· 12.3: Prepare marketing plan for a new product/service.
· 13.1: Identify and analyze new opportunities.
Step 1: Decide on a Local Strategy
Your team will make strategic recommendations for and provide consulting advice to MCS’s client, MediCorp, which designs, manufactures, and sells genetic testing devices. You will make decisions in four functional departments: R&D, marketing, production, and finance.
It is important for MediCorp to tailor their R&D, marketing, and sales efforts to specifically reach the segment of the market most likely to buy their genetic testing devices. The success of MediCorp depends on the ability to tailor their products to meet their customer’s needs and desires. In conducting a target market analysis, it is essential to ask the right questions before settling on a company-wide strategy.
The local strategy for your team is Local Strategy: Niche Cost Leader
Your team will need the strategy to guide its decisions for MediCorp. Review all eight strategies in Capsim before making a team decision.
Step 2: Make Your Decisions
Your team is now ready to help MediCorp compete in the genetic testing device industry by making strategic decisions through the Capsim platform. Your decisions will direct four calendar years of your client’s operations. On December 31 of each year in your simulation, Capsim will produce a report that reflects the results of your decisions. Your team will use these reports to make further decisions for the following calendar year.
First, consult your Round 0 Report to understand the starting position of MediCorp’s business. Use How to Find Reports in Capsim to locate the Round 0 Report and reports for all subsequent rounds. Then, begin making decisions for your client, consulting Capsim: A Systematic Approach to Making Strategic Decisions for direction.
· Teams should make their decisions in the following order: (1) R&D, (2) marketing, (3) production, and (4) finance. In this simulation, your team is unlikely to be successful if it makes decisions in a different sequence. However, coordination between the four areas during all decisions is also critical, and you may have to revisit decisions based on input from other departments.
· For your own benefit, it is advisable to individually take notes on the decision-making process, which may help you analyze your team’s results later in this project.
Fill out a Capsim Decision Record at the conclusion of each round for each of the four functions, R&D, Marketing, Production and Finance. This document will serve as a record of your thoughts and decisions in each of the functional areas.
Proceed to the next step for more information on finalizing your team’s decisions.
Step 3: Evaluate Your Contribution to the Team
When you have completed all four rounds, write a post of 200 words or less in your group discussion area explaining the decisions in which you were involved, the logic behind those choices, and how those decisions contributed to the team’s strategy and results.
Step 4: Analyze Your Team’s Decisions and Results
I think it’s time to take a step back and assess the direction of our work with this client. I need you to write an analysis that (1) describes the decisions your team made in Rounds 1–4 and the results of those rounds and (2) interprets how your decisions influenced the results.
I’m looking for an eight- to ten-page analysis that answers some key questions about the influence of the decisions you made for MediCorp. Please use the attached template and have the report ready for me by the end of the week. Type your answers directly in the template.
Thanks for your hard work,
Project 3 Analysis Questions (See below)
Dupont Formula ROE (see attachment)
You have now finished working with your team on implementing a local strategy for MediCorp. At this point you will transition into an individual role of an analyst for MCS. Each person on the team will do his or her own analysis of results without any consultation with other team members or with students on other teams.
Submit an analysis of Rounds 1 through 4 of the simulation by answering the questions provided in the Project 3 Analysis Questions template (see below). Your report should be eight to ten pages (approximately 150 to 200 words per question), double spaced, excluding cover page. Any tables, graphs, and figures should be included in the body of your answers. Your report should have one-inch margins and be double spaced in 12-point Times New Roman font. In-text citations and references should abide by APA format. Do not delete the questions as you complete the template.
Step 9: Submit Your Work
Take note of the recommended delivery dates and file-naming protocols in the following table:
Submit your post in the group discussion area
Project 3 analysis questions
Local Strategy: Niche Cost Leader
Country: USA, Marketing – United States of America: Low Tech
Project 3 Analysis Project 3 questions
Directions: Write your answers below each question. Please do not delete the questions.
1. What strategy were you implementing? Give examples of any three decisions over the four rounds that were consciously driven by your chosen strategy. Explain.
2. Which country and customer(s) did you target with your product (high tech, low tech, or both)? Why? Give examples of two decisions in R&D and two decisions in marketing that you implemented over the four rounds to enable your desired targeting.
3. In the market segment that you were focused on, what do your customers want most? Did your market share for the country where your products are sold change over the four rounds? Comment on how it changed and why.
4. Did you meet your potential demand in Round 1? Round 2? Round 3? Round 4? Hint: Look at Section 3 of the report (marketing). If you observed a stockout (inability to meet demand) in one or more rounds, pinpoint the reasons behind each instance.
5. Based on Section 1 (High Level Overview) of the Round 1 Report, how did your sales results compare to those of the other five teams? If your sales results were extreme (top two or bottom two among the six teams), explain what other than sheer luck, caused that to happen. In other words, what decisions in Round 1 might have caused your sales to excel or suffer in comparison to its competition?
6. Calculate ROE for all four rounds, using
Dupont Formula ROE
[Note: In the DuPont equation, ROE is equal to profit margin multiplied by asset turnover multiplied by financial leverage. Under DuPont analysis, return on equity is equal to the profit margin multiplied by asset turnover multiplied by financial leverage.]
7. Did you need an emergency loan in any of the four rounds? If so, why? If you did not need an emergency loan in any of the four rounds, explain the decisions that you made to ensure that your company would not need an emergency loan to survive.
8. Explain your capacity decisions, including whether or not to use a second shift in each round. Compare the available plant capacity in each round (first and second shift) versus the number of units produced. Was there idle capacity in any round? Is it possible that you could you have used capacity more efficiently while increasing your plant utilization? Explain why or why not.
9. See Section 5 (Finance) of the Round 4 report. How did your revenue grow over the four rounds? Why? How did your net income grow over the four rounds? Why? How did your share price/market cap grow over the four rounds? Why?
10. Did your team’s decisions in Rounds 1–4 always align with the chosen strategy? If you found yourself deviating from your strategy, explain why. In hindsight, what decisions would you have made differently? Explain.