Unit 1 DB 2

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This presentation shows the general guidelines of the decision process in Capstone®

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Decision Making Process

The Six Basic Strategies

The “Six Basic Strategies” give you a starting point. Make sure before you start making any decisions to go over the strategies and choose one that you feel comfortable using.

Keep in mind that each strategy is proven to work. If you’re not doing well it’s more likely that you’re executing the strategy incorrectly.

Link to Six Basic Strategies

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Main Goal: Adjust product’s attributes to meet “Customer Buying Criteria.”

Change:

Size

Performance

MTBF

Note: Changes in R&D affect:

Age of Product (current age/2)

Revision Date (date new product will be available for sale)

Cost

Enter desired name into a void product space

Choose:

Size

Performance

MTBF

Purchase Capacity and Automation in Production page

Buy this year, use it the following year

For Existing Products

For New Products

Step 1

Go to: Decisions  R&D

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R & D

Marketing

Production

Finance

Additional Modules

Main Goal: Create Price, Promotional Budget, Sales Budget, and Sales Forecast for each product

Step 1

Go to: Decisions  Marketing

Step 2

Enter ‘Price’ for each product

Step 3

Enter ‘Promo Budget’ & ‘Sales Budget’

Step 4

Enter your ‘Sales Forecast’

Step 5

Enter Credit Policy (A/R & A/P)

Price – Use the segment analyses located in the ‘Capstone Courier.’ A price range will be given in the ‘Customer Buying Criteria.’

Promo Budget – Directly affects ‘Customer Awareness.’ Use student guide and your personal strategy to create a budget.

Sales Budget – Directly affects ‘Customer Accessibility.’ Use student guide and your personal strategy to create a budget.

Forecasting – Link to Forecasting Info

A/R & A/P – Link to Credit Policy Info

Tools for setting Price, Budgets, and Forecasts

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R & D

Marketing

Production

Finance

Additional Modules

Main Goal: To determine schedules, capacity, and automation for each product.

Step 1

Go to: Decisions  Production

Enter Production Schedule

Buy or Sell Capacity

Buy: Enter (+) number

Sell: Enter (-) number

Change automation in: ‘New Automation Rating’ box

Buy Capacity

Buy: Enter (+) number

Choose Automation Level

Enter number in ‘New Autom. Rating’ box

Note: In order to produce a new product, capacity MUST be purchased

If 0 inventory  Sell all capacity

EX: if 1000 capacity, input -1000 in ‘Buy/Sell Capacity’

If there is excess inventory  Sell all but 1 unit of capacity

EX: if 1000 capacity, input -999 in ‘Buy/Sell Capacity’

For Existing Products

For New Products

To Discontinue a Product

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R & D

Marketing

Production

Finance

Additional Modules

Main Goal: To finance the company’s investments and make sure the cash position is positive at the end of the year.

Three Main Functions: Borrowing Money, Retiring Money, and Issuing Dividends

Step 1

Go to: Decisions  Finance

Issue Long Term Debt: 10-year bonds

Issue Stocks: Selling common stock to the public

Issue Current Debt: Borrow 1-year notes

Retire Bonds Early

Retire Stocks

Issuing dividends = giving money to Shareholders.

*Issuing dividends is not mandatory

Borrowing Money

Retiring Money

Dividends

Important: These numbers are only as good as your FORECASTING. The actual results will most likely be different. Your goal is to be as close to the actual results as possible.

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R & D

Marketing

Production

Finance

Additional Modules

Go to Online Guide

Help > Tutorials & Demos > Optional Modules

Team Member Guide

For Additional Modules:

Link to Additional Modules

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