simulation quiz

Why simulate in business courses?

To view strategies risk-free, compress time to see long-term outcomes, and practice in a competitive but safe environment.

What are the main objectives of the Capstone Simulation?

Demonstrate teamwork across disciplines, use strategic thinking, build practical management skills, test business acumen, and understand business interactions and competition.

What company background does the simulation start with?

Sensors, Inc., a monopoly shut down by the FTC.

What are the initial company names in the simulation?

Andrews, Baldwin, Chester, Digby, Erie, and Ferris

What tool tracks consumer demand in the simulation?

The perceptual map, which shows the drift toward smaller, faster products.

What is the annual growth rate of the sensor market?

Around 14–15% overall, with high tech growing at 16%.

What is the Low End consumer ideal age preference?

7 years

What is the Traditional consumer ideal positioning?

Average performance and average size.

What do High End consumers prioritize?

The newest technology, high reliability (MTBF 20,000–25,000), and small size.

What is the Performance consumer MTBF preference?

22,000–27,000 hours.

What is the Size consumer ideal age preference?

1.5 years.

What are the key decision areas in the simulation?

R&D, Marketing, Production, and Finance (with additional modules like HR, TQM, Advanced Marketing, and Labor).

What is the purpose of R&D in the simulation?

To set specifications, reliability (MTBF), and age to meet customer needs and invent new products.

What do Marketing decisions include?

Setting prices, investing in promotion, building awareness, managing sales forecasts, sales force, distribution, and credit policies.

What are Production area tasks?

Managing capacity, automation, production scheduling, and fixed assets while staffing facilities.

What are Finance area tasks?

Acquiring capital, issuing stock and bonds, managing debt, paying dividends, and balancing Proformas.

What are Proformas used for?

Projecting company performance (Balance Sheet, Income Statement, Cash Flow, Financial Ratios).

What are the Balanced Scorecard perspectives?

Customer, Internal Business Process, Learning and Growth, and Financials.

What success measures may include?

Cumulative profits, average market share, ROS, asset turnover, ROA, ROE, ending stock price, and market cap.

What are annual tasks in the simulation?

Set strategy, upload decisions, confirm alignment, analyze Courier results, and adjust tactics for the next round.

What is the role of the perceptual map in the simulation?

It tracks consumer preferences for size and performance, showing the yearly drift toward smaller, faster products.

How price sensitive are Low End consumers?

Very price sensitive; they want the lowest possible price.

What is the High End consumer ideal product age?

0 years — they want the newest technology.

What are Traditional consumers’ reliability expectations?

An MTBF between 14,000–19,000 hours.

What are Performance consumers’ positioning preferences?

High performance and small size.

What are Size consumers’ positioning preferences?

Maximum miniaturization with average performance.

What is the role of HR and TQM modules in the simulation?

They improve productivity, reduce costs, and increase employee satisfaction.

What is the Capstone Courier?

An annual industry report analyzing company and competitor results.

Why are Proformas critical in decision-making?

They forecast the outcomes of current decisions for the next year, allowing proactive adjustments.

What financial ratios are tracked in the simulation?

ROS (Return on Sales), ROA (Return on Assets), ROE (Return on Equity), and Asset Turnover.

What is market drift in the simulation?

The annual shift in customer expectations toward smaller, faster sensors.

What do ending stock price and market cap measure?

The company’s overall value and investor confidence at the end of the simulation.

The Round 0 Capstone Courier should be used for which analysis?

Situation Analysis

What is the primary purpose of the Situation Analysis?

Team building and report familiarizatio

On the perceptual map, the vertical axis measures?

Size

On the perceptual map, the horizontal axis measures?

Performance

Which segment drifts at the fastest rate across the perceptual map?

High End

Which segment drifts the slowest across the perceptual map?

Low End

Which segment grows at the fastest rate in terms of demand?

Performance

Overtime labor is paid at?

1.5 times the wage

Increasing first shift capacity helps reduce reliance on?

Automation

Labor costs decrease by 10% for each increase of 1 in?

Automation