Capsim

Research & Development: I decreased performance from 5.5 to 5.3 and increase size from 14.5 to 14.9. I also decreased MTBF hours from 17500 to 17000. In year 2 I will have to perform more research and adjust as needed to attract more of Daze traditional consumers.

Marketing: I increased price per unit from & 28.00 to $34.00 because at the time per share earnings was negative. My sales promo was $900 and my sales budget was $1200 with sales forecast of 1092 units for year one. In year two I need to decrease price per unit in the traditional market segment of $19.50 to $29.50. To increase awareness and access I need to increase my sales promo and sales budget and expect an above average in sales. In year 2 I will have to improve my performance increasing the awareness and access of Daze along with a decrease in price per unit in the traditional market segment.

Daze Production: I ordered 1000 units in production with 189 on-hand with a forecast of sales of 1092 units. I set my automation rating at 4.6. In year two I expect with changes I will make in R&D, and marketing I expect a sales forecast above average sales forecast even though Daze had poor sales in year one. “ Daze has little share of the marketplace at 2% priced at $33.99, consumer awareness at 65%, and Consumer access is at 39% (Capstone Courier Report 2012).” I have 935 on-hand; therefore, my production scale will be low. I expect the drop in price of Daze product and revised changes in R&D and marketing promo and sales budget will increase sales.

Finances: In year one I felt it was important to issue stock of $5000 and issue long term debt of $5000 to increase earnings per share and increase total capital and cash on-hand at end of year one.  It was hard to adjust figures that stayed stable in the finance department because it changes with every decision for each product of Digby Corp. The COO and VP’s in year two will have to work together and create ideas to have the best outcome in the finance department.

Summary

As Vice President of Digby I could have had a better performance in the practice round in marketing my product such as spending more on promo and my sales budget to have my consumers become more aware and have easier access. My most important mistake was raising my price per unit out of reach of the traditional market segment at $34.00 from $28.00. This put my product in the high end segment. As a result my product had very poor sales, but I look to rebound in round 2 and correct the mistakes I made in Marketing. Overall besides my product, Digby did well and we look to gain a big share of the market place in round two.