Mba Simulation - Free Winning Guide 2018 - V26

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MBA SIMULATON GAMES

WINNING GUIDES AND TIPS 2018
TOP 10 STRATEGIES
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Table of Contents
OVERVIEW .................................................................................................................. 5
PART 1. BASIC GUIDES AND TIPS ......................................................................... 6
1.1. R&D .................................................................................................................... 6
1.2. MARKETING ..................................................................................................... 8
1.3. PRODUCTION ................................................................................................. 10
1.4. HUMAN RESOURCES.................................................................................... 11
1.5. FINANCE.......................................................................................................... 12
1.6. TQM .................................................................................................................. 12
PART 2. OVER VIEW OF ALL DECISIONS .......................................................... 13
2.1. General strategy: ............................................................................................... 13
2.2. How to set decisions .......................................................................................... 14
2.3. R&D .................................................................................................................. 17
2.4. Marketing .......................................................................................................... 20
2.5. Production ......................................................................................................... 22
2.6. Finance .............................................................................................................. 25
2.7. HR & TQM ....................................................................................................... 25
2.8. Reports............................................................................................................... 26
PART 3. WINNING STRATEGIES – ROUND BY ROUND – WIN ALL 8 ROUNDS
STRATEGIES ............................................................................................................. 27
3.1. Use Industry Condition Report to create Decisions Plan Excel file ................. 27
3.2. Drift Spots, Ideal Spots and Sweet Spots .......................................................... 28
3.3. How to Re-position Low End sensor (Year 3 and Year 8) ............................... 30
3.4. How to set MTBF .............................................................................................. 31
3.5. How to set R&D (All 8 Rounds Guides) .......................................................... 32
ROUND 1. R&D ...................................................................................................... 34
ROUND 2. R&D ...................................................................................................... 34
ROUND 3. R&D ...................................................................................................... 34
ROUND 4. R&D ...................................................................................................... 35
ROUND 5. R&D ...................................................................................................... 35
ROUND 6. R&D ...................................................................................................... 35
ROUND 7. R&D ...................................................................................................... 36
ROUND 8. R&D ...................................................................................................... 36
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3.6. HOW TO SET MARKETING DECISIONS (All 8 Rounds guides) .............. 37

PRICING .................................................................................................................. 37
SALES FORECASTING ......................................................................................... 38
Round 1 - Marketing ................................................................................................ 39
Round 2 - Marketing ................................................................................................ 39
Round 3 - Marketing ................................................................................................ 40
Round 4 - Marketing ................................................................................................ 40
Round 5 - Marketing ................................................................................................ 40
Round 6 to 8 - Marketing ......................................................................................... 40
3.7. HOW TO SET PRODUCTION DECISIONS (ALL 8 Rounds Guides) .......... 41
ADDING MORE CAPACITY ................................................................................ 42
Round 1 - Production ............................................................................................... 42
Round 6 and 7 - Production ..................................................................................... 43
3.8. HOW TO SET HR DECSIONS ........................................................................ 44
3.9. HOW TO SET TQM DECISIONS ................................................................... 44
3.10. HOW TO SET FINANCE DECISIONS ........................................................ 45
3.11. OTHER DECISIONS...................................................................................... 45
- How to Check the Income Statement .................................................................... 45
- How to Check the Balanced Scorecard ................................................................. 45
- How to increase Graded on Balance Scorecard ..................................................... 46
- How to check Days of Working Capital ................................................................ 46
- How to check Leverage ......................................................................................... 46
- How to check Graded on Profit ............................................................................. 47
- How to check Graded on Stock Price .................................................................... 47
3.12. HOW TO SAVE A Companies in the Mid Games ......................................... 47
- Find the lease profitable segments, improve them or get rid of them. .................. 48
- Save a company in Lack of Cash ........................................................................... 48
PART 4. WIN THE SIMULATION WITH DIFFERENT STRATEGIES ................ 49
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4.1. HOW TO COMPETE WITH STRONG COMPETITORS .............................. 49

i. Not making Profits in first Rounds? ..................................................................... 49
ii. Competitors and Computer players ..................................................................... 49
iii. Computers are doing well with high quality products and more market shares. 49
iv. Compete by PRICE ............................................................................................. 49
vi. Compete by SEGMENT ..................................................................................... 50
vii. How to exit or remove a sensor?........................................................................ 50
4.2. HOW TO WIN WITH TRADITIONAL, LOW END AND HIGH END ........ 50
4.3. HOW TO WIN WITH LE, TR AND PE .......................................................... 51
4.4. HOW TO WIN WITH LE, PE AND SIZE ....................................................... 51
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OVERVIEW
This Simulation Game for Sensor Industry is the top simulation game for business
people and students, especially MBAs, we have played the game many rounds, for
years, besides other games like BSG online for shoes and drones, flying camera. This
Simulation Game use sensors as the key products because of their popularity in all
aspects of life and work and sensor applications in thousands of products.
Through the game, participants can gain a lot of experience in analyzing business data
and making strategic decisions, including R&D, Marketing, Pricing, Promotion and
Sales, Production, HR and also TQM (Total Quality Management). Also, participants
can be gained specific skills in reading Financial Statements, understanding of financial
key factors which reflect business situation of company. Competitors analysis and
planning skills are also the key lessons from the simulation.
To share our finding with players around the world, this collection of winning guides
and tips from many experienced players and our own findings from the games, many
games, to support new players get the most from the game and good lessons from time
and efforts. All the winning guides and tips will support you and your team go on and
win the game as effectively as possible and enjoy the game more with better
experiences, and you can learn more lessons from the game.
With this winning guides and tips, you and your team can understand almost all aspects
of the simulation game and win the game, with a good learning experience of winning
a competition. Note that when you purchase this Winning Guides and Tips, you can
get Free Personal Support for 2 rounds (with explanations of all decisions).
Thanks for The Simulation Game Creators and Players.

Thank you for purchasing this e-book.
Good Luck and Success!
For FREE Personal Support for 2 rounds, email to:

mbahelp2002@gmail.com
It is better from round 1 and round 2, so you can lead the game.
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PART 1. BASIC GUIDES AND TIPS

This guide will help you and your team avoid the mistakes that makes you lose,
at the same time, the winning guides and tips help your team manage company
more effectively like professional, win the game and learn more from winning.
In this simulation game, we usually have six competitors, competing in five
product segments, each company has their own strengths in one or a few
segments, so we need to focus on competitors’ strategies as well as your own
strategies to gain good sales and net profit, also, we need to get better ROE, ROS,
EPS, market share and market capitalization.
We often start the game with five products in five segments, and five strong
competitors. We can follow different strategies and win the game with leading
positions, the strategy we select often depends of specific condition of each game,
and also depends on strategies of the five competitors. With the winning guides
and tips, we can lead the company in right direction with right decisions from the
first rounds to win the whole game in all 8 rounds.
Also, the most important note, if we did something wrong from first one or a few
early rounds, it is difficult to get the company up in the competition, especially
when competitors know what they are doing. So, start early, read all the guides
and then you know you can win 50% before starting the competition.
It requires about an hour to three hours for one round of the game to set about 30
decisions, read the 10 pages of reports, do the calculation and analyze
competitors, including discussion with your group members to decide the best
strategies.
1.1. R&D
This is one of the five decision tables we have to set decisions. Also, this is the
most important table which will decide win or lose of the team.
Our products are sensors which will be bough by business customers, then
sensors will be used to produce thousands of products.
For each sensor, our product, we have to set Pfmn (performance), Size and MTBF
(mean time before failure or durability if products). Customers have different
buying criteria for each product segments. We need to set right decisions, so that
products can sell well, also, we can update R&D in next rounds to ideal spots
(which meet customer buying criteria best).
TIP
We can also develop as many as three (03) new products, this is the key to win
the game, because new products can sell better, because they are closer to ideal
spots. More over, two products in one segments can sell better, more effective
promotion budget.
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We can add three more products in three, four or five first rounds, depends on
specific situation, and strategies of competitors.
TIP
All these Options Can Win:
- Add LE, TR and HE (often very popular strategy)
- Add LE, TR and PE (PE also can sell well, especially when competitors use the
first option or many focus on HE or TR segments).
- Add LE, HE and PE
- Add LE, HE and SIZE
- Add HE, SIZE and PE
NOTE: What strategy or option to select really depends on strategies of

competitors, option 1 is most popular, but when 2 or 3 teams apply the same
strategies, it is not good for any team, in that case, different strategies like Option
2-3-4-5 can be better winning strategy.
Sample decisions:
- Change MTBF for all our products to the most effective value.
o Traditional to 19000 (17.000)
o Low End to 17000 (14.000)
o High End to 25000 (23.000)
o Performance to 27000 (27.000) – only this one need max MTBF.
o Size to 21000 (20.000)
- We can check buying criteria to decide MTBF, e.g. Performance segment

customers prefer highest MTBF, so we set it 27.000
- Modify each product according to the spreadsheet on each segment. You want
to increase performance and reduce size as much as you can without the revision
in June or July. The reason is simple, we have half of the year to sell newly
developed products.
- Some times, we need to develop longer than a year to go ahead, then our
products can be closer to Ideal Spot then sell better in later rounds. Note that, this
is quite risky but that products can sell very well (except only in the round of
R&D). For example, LE product does not need R&D for round 1 and 2 and 3,
because they are optimal already, in round 3 and 4 we can update LE to ideal spot
of round 4, this can take more than a year, after that LE is optimal until round 7.
TIP
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The only product that does not move much is Low End. We can update this Low-
End product one more time in Round 3, for example, to 4.5 and 15.5, and the 2nd
time in Round 7 or 8 if we find product ages are over 7 or even 8 years old. For
Low End product, customers prefer 7 years old, maybe they like more stable
products. Also, low price will account for more purchasing influence.
1.2. MARKETING
Marketing is the 2nd most important decision table. For marketing we have to
make several decisions, including: Prices, Promo, Sales budget, days of A/R
(account receivables) and most important, estimate the sales forecast.
• PRICE
o For traditional you want to start your pricing as close as your competition,
undercut if possible.
Age, 2 years – importance: 47%
Price, $20.00-$30.00 – importance: 23%
Ideal Position, performance 5.0 size 15.0 – importance: 21%
MTBF, 14,000-19,000 – importance: 9%
o For low end, you have to have the lowest price you can afford without going
below 40% in your contribution margin. And without sacrificing demand.
MTBF, 12,000-17,000 – importance: 7%
o For high end, performance and size segments, place your price the highest
possible.
MTBF, 20,000-25,000 – importance: 19%
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o Recommendation for round 1

 Traditional at $28 (29.50)
 Low End at $21-$22 (20.00, some dumping at 18 – not good competitor)
 High End at $39.50
 Performance and Size at $34.50
The issue is we do not know what the competitors set for round 1, so if it is good,
keep going, if round 1 results are not good as expected, do not panic. It is long
term strategies. So, keep track of Pricing of competitors from Round 2 and win
the game with all the tips.
TIP: Try to use as high capacity as possible in round 1.
• PROMO BUDGET AND SALES BUDGET

o Do not ever expend more than $2000 on promotion in any product in any given
year. (diminish returns start at $2000)
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o For the first year you want to spend $2000 in Traditional and Low End. (If we
want net profit, right from Round 1, we can spend 1.500). Note that net profit for
4 first round often low, from a few to 10 or 12 million each round (Round 1 to 4)
o For High End, Performance and Size; spend between $1000 and $1500
TIP: If we want some good Net Profit from round 1, 2 and 3, we should not spend
too much on Promo and Sales. This this good because we will have positive net
profit, then we can issue more stocks to gain higher Investment in round 1, 2 and
3. If so, just spend 1.200 on Promo and Sales. Note that this can save as much as
5 to 8 million (when net profit for round 1-2-3 just about 3-5 or 5-8 million).
• FORECASTING
o From the Market Share page in the Courier Report, take your last year’s market
share and multiple it by the next year demand of each segment.
o To calculate Next Year Demand, you take current demand and multiple it by
the growth rate
o This is a KEY TO WIN THE GAME, it is also right in real business, we need
to calculate, estimate, forecast the buying demands, avoid both High Inventory
or Stock Out.
TIP: Spend more time with each product, R&D, Read Courier report, compare
with close sales of competitors, then we can decide the Sales fore cast based on
above excel file of calculation.
1.3. PRODUCTION
• PRODUCTION SCHEDULE
((Units Sales Forecasted) * (1.2) – Inventory on Hand)), we want to have cushion
of inventory in case we sell more units than we forecasted.
TIP: We can multiple by 1.12 – 1.20, depends on how well we are doing
compared with competitors. We can check Courier Report to see how close and
how competitive in each segment.
• AUTOMATION RATING
o Traditional, increase its automation by 2 points each round until you reach 8 or
even 10
o Low End, you want to reach 10 as soon as possible (first round you can move
to 8 or 9, and make sure you have 10 by the 2nd round or round 3 or 4)
o High End, increase by 0.5 or 1 point each round, you do not want to go over 6.
10
o Performance, increase by 1 or 1.5 each round, until you reach 7

o Size, increase by 0.5 or 1 point each round, until you reach 7
WORKFORCE COMPLEMENT
o Always at 100%
BUY/SELL CAPACITY
o You want to keep 2nd Shift Production % between 20% and 50%
o If you have less than 20%; you have to sell capacity (DO NOT DO SO if not
really necessary)
TIP: We can sell surplus capacity for expand factories with good products.
o If you more than 50% you have to buy capacity, but do not do so except the
case of very difficulty, lack of investment for new factories.
TIP: On right down corner of Production screen, when we make you decisions
on production, check how much capital investment you have left;
o If you have capital investment leftover, try to spend it in Automation or

Capacity
o If you are spending more than you should, try to sell capacity or not invest as
much.
TIP: In early rounds, we do not have much investment (from 12 to 40 million),

so keep track of this, update and add more capacity for new factories. From round
4 to 8, we have very high investment (from 50 to 100 million), we often use half
of this investment.
1.4. HUMAN RESOURCES

• You want to spend as much as possible in human capital, therefore you want to
invest the maximum on recruiting and the maximum of training hours.
o Recruiting Spend; $5000
o Training Hours; 80 Hours
TIP. In round 1, or round 2, when you like some Net Profit, we can apply 3.000
and 40 hours of training. Then from round 3 increase to 5.000 and 80 hours of
training
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1.5. FINANCE
• You want to have at least $5,000 in December Cash Position just to make sure
you do not enter an Emergency Loan
• We will source money until we reach this $5000 Cash position in the following
order.
o Get as much “Issue Stock” as possible
o Get as much “Issue Long Term Debt”
o Get whatever you need left from “Borrow”
TIP: Round 3 is often not good market for all. Keep more cash in hand to avoid
Emergency Loan.
• Retire stock it’s for when you have a good cash position and you have some
money left over to purchase stock back from the market
• Dividends per share it’s for when you have cash leftover in capital investment
to give to your shareholder.
• Retire Long Term Debt it’s for when you want to pay your debt early (This
usually decreases your interests expense)
1.6. TQM
- When TQM Starts, you want to spend $1500 on the first round, then $1500 on
the second round, and then finally $1000 on the third round.
- This expenditure would be for every single aspect in TQM
- In early rounds, of your company does not have much cash, just spend $1.000
for 6 TQM initiatives, then next round can do that for all 10 TQM initiatives.
TIP
DO NOT GET SCARED IF YOU DO NOT MAKE MONEY ON THE FIRST
ROUND. COMPANIES NEVER MAKE MONEY ON THE FIRST COUPLE
OF YEARS, TAKE YOUR FIRST THREE YEARS AS INVESTMENT AND
LAYING DOWN YOUR STRATEGY (OR JUST TRY TO GET SOME NET
PROFIT IN ROUND 1, 2 AND 3, FOCUS MORE ON R&D NEW PRODUCTS
AND ADD MORE CAPACITY).
TIP
If your team like to have positive Net Profit right from round 1, do not use all the
provided Investment Budget, use about 80% and keep surplus cash in hand, do
not use 2.000 for promo and sales, just keep that close to highest of competitors.
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Because in round 1, 2 and 3, team often get 3-5 to lower than 10 million net
profits. Also, this is zero sum game, it means we need to get sales, other wise
competitors will get the sales and lower our sales, just because total sales if fixed
for each round.
PART 2. OVER VIEW OF ALL DECISIONS

This guides and tips to support your team win the game and learn more from all rounds.
After strategy 1, we have gained all the basic understanding and decisions to win the
game. This strategy will support your team to compete with stronger competitors, who
also know what they are doing.
This guide can support all team to win the game, right from round 1 to 8. If your team
need more personal guides and explanations for all decision, you can get Free support
for two rounds. Start early and lead the game in all rounds.
A lot of the Simulation can be applied to real life business. Therefore, spend a few
hours read the game introduction and guide before start setting decision in simulation
screens.
All the simulation decisions are connected and affect each other. There fore, you can
set decisions in the order of real life business management, it will be more logical and
more effective. Strategies include 7 parts: R&D, Marketing, Production, HR,
Finance, TQM & Reading Annual Reports.
There are several strategies to win the game, some may focus on sales and net profit,
also market capitalization, some may get higher ROA, ROE, ROS, stock price. The
leading game can lead in most of the ranking factors. Companies can also be ranked
based on Balanced Scorecard. Some time, students can select ranking factors and give
each factor a preferred weight.
The two things keep winning the game in any ways include:
- More profit (usually come with more sales)
- Better products (usually come with more sales and more net profit).
New products and better products, bring new products as soon as we can, then we lead
the markets. Of course, we will get low sales in 2-3 rounds because of high investment,
then we can double the sales, control some market segments and lead the game with
both sales and net profit. Some times, we see team who use only 2 segments and also
lead the game, but in most of cases, winning team has control 3 segments and have
from 6 to 8 products.
Note: If you have basic understanding of the simulation, you can scan part 1 to 4
quickly then go direct in details of sample strategies in part 5.
2.1. General strategy:

Start early and start strongly, we have only 8 rounds to play. If we play nicely in
early rounds, competitors will get more market shares, better products, then later
rounds, we will lose market share and lower sales, even negative or very small
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net profit. At that time, improving products, more sales and promo budgets, even
lower prices can not help much. So, start strongly because it is competition
simulation, if we do not apply the best strategies, then the competitors will. So,
again, start early to get better position in the competition, then we can lead the
game more comfortably.
2.2. How to set decisions

Borrow long term debt to the hilt, and issue max stock and you should have
around 25 to 50 million to play with in round 1, 2, 3 and 4. You’ll zoom ahead
of your classmates as they’re too timid to fully commit and go all-in.
Doing business means we get the investments and use it more effectively. College
students in their early twenties have this misconception that low debt is a good
thing, probably because they’ve been traumatized by student loans. Companies
use debt for positive things such as growth and plant investment, similar to
homeowners who take on a mortgage or take out equity on their home; it
shouldn’t be seen as a bad thing.
TIP:
Get long term loans, issuing stocks for round 1, 2, 3 and even 4 investments in
new products and build capacity for production.
You will be at a crossroads when choosing how to invest. Either go heavy on

automation, or introduce products in high end, performance, and size. It’s
possible to balance things out and do both, but decide now which option you like
more.
TIP:
From round 1, it is important to add new product, which is at ideal spot of round
4, then when it is ready, it can sell very well. The problem is you do not know
which products to add, LE, TR, HE or even PE or SI. Normally, every one knows
that LE can sell high volume, but when all come to produce low end, competition
increase and lower prices, then lower sales and net profit for all competitors.
Therefore, we need to look at competitors’ strategies to decide which new
products to add. Avoid the segments that all produce, find a segment that less
competitive.
Automation increases the contribution margin and thus profitability, while new
products rob your opponents of market share. Don’t bother with introducing new
traditional and low end due to automation and capacity requirements.
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Traditional should be near the 8-8.5 automation range, low end 10 towards the
end of the game, and the high-end offerings can be anywhere from 6-8, depending
on how you R&D.
Remember to ramp up automation slowly as you need TQM to kick in over three
rounds: 1500, 1500, and 1000.
Employees need to be hired with $5000 and 80 hours. These are weaknesses you
can exploit in your enemies, since they’ll be too timid to go all-in.
Marketing and promotion have sweet spots. If you couldn’t afford it in previous
rounds, try and catch up with $3000 spending, although there are diminishing
returns. For other rounds, $2500 is the best compromise.
When you hit 100% awareness, $1400 is the maintenance amount for promotion,
$2500 for accessibility, and $3500 accessibility if you have two products in the
same category.
When you’re bringing up two products, it’s $4500 per segment instead of $3000
for one product. Split the spending to $2500 for the new product, $2000 for the
old. Note the marketing department will emphasize one product over the other
depending on your spending.
Automation is an interesting one.

I recommend 8.5 for traditional, 10 for low end, and 6.5 for the rest. It’s possible
to push traditional to 10, but time it so you’re no longer R&D at the end; this
applies to low end too.
Figure out the product drift and complete R&D for the ideal spot by round 7. For
low end, R&D doesn’t matter so long as you’re within the circle of product
desirability. For high, performance, and size, you can push to about 7.5
automation. I’d be careful about high automation. The key is to ramp up your
TQM to have 47 percent R&D reduction.
For projections, 1.2 is your baseline. You calculate this by going to your potential
market share page in the The Simulation Courier, and multiplying current market
size from the segment analysis page, by the growth rate, by your potential market
share percentage found on the right side. That’s your worst-case scenario
projection.
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Then multiple by 1.2 in the production section for what you’ll actually make. In
round 4, you’ll experience a recession, so pull projections back to 1.15 or 1.10.
In situations where your three new products are coming on-line, push projections
way beyond potential market share, such as 1.3 or 1.4.
You’ll probably stock out and deal with capacity issues as that’s expensive when
expanding your product portfolio. When the market settles down and you stop
taking market share, give yourself a 1.15 to 1.20 production schedule to avoid
stock outs, while staying away from high inventory carrying costs.
Note that your new products will cannibalize your old products by about 2
percent, but it’s not a big deal considering what you gain. You can scale back old
production by 2 percent to compensate.
For such high-risk projections, take out additional long-term loans to cover your
cash position. Near the beginning, I used my intuition by suggesting we give
ourselves a $5 million cash buffer just in case.
Sure enough, we were left with $4 million when the round processed, meaning
we would have taken an emergency loan and sunk our growth model. Over time,
increase your buffer as your projection risk goes up: $10 million, $15, $20, and
about $30 by round 8. That gives you about 10 percent protection assuming a
$300 million sales year, and if you make $503 million, emergency loans won’t
be an issue.
Stay away from current debt as commercial paper become due the next year. It’s
better to pay 1 percent more in interest to have essentially free money since it has
a ten-year maturity. Note some long-term debt becomes due because of previous
debt incurred before the game started.
Remember this is a zero-sum game. I’ve read and heard from previous teams that
it’s impossible to take all segments so you have to concede some of your
products. I offer a different look, where it’s possible to have a stranglehold over
the sensor industry. In our game, two player industries were essentially bankrupt
with negative earnings, while the other was a small fraction of our size by market
cap. The two computer teams were under maximum-security prison lockdown as
our products choked theirs from making money. Yeah, we had fun dominating.
=)
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2.3. R&D
R&D is the backbone of your company, especially in sensor production industry.
Whatever strategies you use, you need to R&D something every year. If you're ever
not doing R&D something, then you're doing something wrong. Also, if we missed
R&D for 1, 2 rounds or more rounds, we can not compete with other competitors.
Because customers buying criteria depends on products Pfmn and Size, and they
increase demands every round (every year).
First of all, do NOT R&D your products according to the the Simulation Courier
suggestion.
Why? Because the Simulation Courier gives you the data for LAST YEAR's products.
If you follow it, then your products are outdated. You should R&D the products to its
ideal spots 1 or 2 year in advance, according to several factors.
TIP:
Invent new products in the least competitive segment. This is self-explanatory. At
Round 1 or 2 you may not know which segment is the least competitive, but by Round
3 you should be able to with the help of Courier. The more products you have earlier,
the greater advantage you'll be in in the future.
However, do NOT invent all 4 additional products in Round 1 because you won't have
the budget for it.
TIP
In round 1, we can R&D a new product in Low End, or in Traditional or even in High
End or Performance. What product you think competitors do not focus on, you can
select that. Most of competitors like to develop a new product in Low End. Because of
their big sales. You can do so or you can select a different segment to focus on.
This accounts for 20% of winning the game. Some products need short time to update,
some requires longer time. Some times, we have to jump a head one year, so that our
products can lead the market with higher Pfmn and Size. MTBF does not change, we
fix that from round 1 with most suitable number (you find that in next part).
Again, we use the excel file to calculate and keep control of Pfmn and Size of all
products over 8 rounds. We need that to see how much to change in Pfmn and Size,
also we can have the excel file to adjust products to launch them in right time, for
example in June or July so we have more time to sell new products.
New Pfmn:
This is where you set the performance of your product for the next year. It is pretty self
explanatory as to what performance means. Updating this will cost money and it will
take time. Market such High End has a high demand of the best performance item.
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New Size:
This is where you set the size of your product for next year. Also self explanatory.
Updating this will cost money and it will take time. Market such as Size segment has
a high demand for small products.
MTBF:
This is an abbreviation of Mean Time Before Failure. This means how long the product
will last before it breaks. This is where you set the MTBF of your product for next year.
Market such as Performance has a high demand for long lasting products. This number
is also in the ten thousand according to what the market wants. If you go lower, people
will not buy your product. Lowering and upping the MTBF will cost money both ways.
A bit of an advice is to, according to how much money you can allocate, put it on max
for Performance (27000), medium for Size and High End, and low for Low and
Traditional (12000 and 14000 respectively). Remember, the higher the number, the
more expensive it will cost to produce every year because you are putting more money
into making a product that will last longer. For Low and Traditional, you don't
necessarily have to put it on the lowest. Longer lasting product will obviously sell
better but customers from those segments do not really care for such stat as much as
other segments.
Revision Date:
This is the date for when your product will be coming out into the market after revision.
This means that every update you perform into performance and size, it will take time
to edit. The time increases by how big of a change you put into the product. The ideal
time I found to be good at releasing a new product is around September-October
(Coincidence that Apple releases new iPhones around that time?) with enough time to
make an impact for the year's sale. Remember, NEVER to go over a year because you
will only have what you have left over in your inventory if you can't get the new product
out in time for the year.
Age at Revision:
This is the age of the product after it is updated. Each revision/update to the product
cuts the age in half. Plan accordingly. What do people want in High End products?
What do people want in Low End products? It's not the easiest to control the age of the
product 100% accurately, but it's good to stay in a range and things like High End and
Low Ends are easy to manage.
R&D Cost:
This is the cost of how much it will cost to update your product. This is possibly the
only factor that will prevent you from making the perfect product because you're
limited on the amount of money you have. You want to upgrade as much as possible
to not go under. If you don't have that much money to allocate, don't overspend. Update
according to your budget.
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Material Cost:
This is the cost of producing each product. If you did not update your product, it will
continue to cost the same amount to make that product. If you update it, it will cost
more to make that product. What does this mean? The better the product, the more it
will cost to produce. For example, Ark cost about $15 to make. If I think this following
year, I will sell 1000 of Ark, I will make 1000 of those products costing me $15,000 to
product the inventory for sales. This cost can be lowered with Automation which we
will go into later as it is part of another section.
Position:
Straight forward. Show you where your product currently is in terms of the different
market. It also shows you where the new product will be. As a product means more
towards a circle, it will sell more in that market and less in the other market. Being a
product that fits into the Traditional market does not necessarily mean that product will
only sell in that market. People from Low End market might also buy it too if the
position of the product is near the top left of the Traditional circle. Though you might
not want to create a product that is in the middle of two markets as people might get
confused and not really buy out your inventory.
Age Profile:
Simple. It tells you the age of your product, where it will be by the end of the year, and
where it will be if you update your product. I believe this chart only updates on the
Excel version and not the browser version. But don't quote me on that as I haven't tried
this simulation in a long time.
Now that all sections are fully explained and you should understand what they mean,
what are some tricks and tips that I can provide?
TIP
As a rule of thumb, update your product based on how much money you can allocate.
The more you update, the most it cost to update and the more it cost to produce. But
it's a different story if you're controlling the whole market. If you're raking in a lot of
money, just go wild on it and make the perfect product. This is why Samsung is such
a leader in the smartphone market. The more money you have, the better product you
can make, the more you sell, the more money you get. It's a vicious cycle.
TIP
Another tip is to produce new products as soon as possible. Most simulations only give
you 8 years to work with. The more product you have in the market, the more you can
stomp on other people. As for making the product, plan accordingly to the position you
want and when this product is coming out. If you're making a High-End product and it
19
doesn't come out until 2 years later, you want to invest in position that are 2 years later
so your product will come out with up to date position at the age people wants. Same
goes for Low End. People want a 7 years old product. You want to set the stat of your
new Low-End product to match the 7th year's stat, may it be the stat of a Traditional
product. Let it age into the Low End. That way, you can just leave alone and set
automation to max so all you do is have machine produce the same product for 7 years
without any other cost of having to do R&D or man strength to produce this product.
This is how you win this simulation! I don't advice leaving existing products to age
into other groups as there are down times when people don't buy your product as much
because it's not really something that belongs to any markets (e.g. Letting your High-
End product aging into Traditional). This down time might not work in your favors in
the long run. Unless you're really tight on money then it'd be a reasonable solution to
not having to spend more money on updating.
There are also many more ways to go about this section! Put your imagination into it
and good luck!
2.4. Marketing
This section is probable the most important aspect of The Simulation. It deals with your
pricing, marketing & sales budget as well as your sales forecast, which will be shown
in Proforma Income Statement.
Pricing:
Price your Low End at the bottom third of the price range, your Traditional at middle
range and your High End/Size/Performance at max price.
Try not to get into price war early because it'll kill both you and your competitors.
Lose-lose.
Some of you may wonder why not simply set the lowest price for Low End, considering
price is 47% of the Buying Criteria.
The most important thing in business is Profit, not sales. So, set the price to get more
sales but also need to get more Net Profit.
TIP
For Low End products, keep price close to closest competitor, but need to get profit. It
is simply not worth to set the lowest price while getting only a bit more sales. We can
set max price for High End/Size/Performance products. By lowering the prices, you
can sell a bit more, but your overall profit will go down.
When competing with other teams, note to look at prices of competitors every round
to keep track of sales and increase net profit.
Promo & Sales Budget:

Promo budget raises your product's awareness while Sales budget increase your
product's segment accessibility. Noticed the difference? Promo budget is according to
20
EACH product while Sales budget for each SEGMENT. If you've 4 products in
Traditional segment, you may need to spend $1400 Promo budget for each product,
but you can set $1000 Sales budget for a combined $4000 Sales budget in Traditional
Segment.
If Advanced Marketing module is activated, do not worry because it is essentially the
same thing.
TIP
For early rounds, especially round 1, 2 and 3, when we have low sales and less net
profit, do not apply too strong Promo and Sale. Because it can cause lower net profit,
even loss. We can usually win in later rounds, if we follow the guides, but if we want
to win all 8 rounds, even in early rounds, we can limit sales and promo budgets. Just
use higher than closest competitors. For example, round 1 use 1.400, round 2 increases
to 1.600 and round 3 increases to 1.800. Then check if awareness and accessibility
reach 100% we can reduce back to 1.400.
Sales Forecast:
NEVER EVER USE the computer prediction for your sales forecast
How do we do a sales forecast will decide production, then decide the winning of the
game.
The actual sales depend on our decisions and also on five other competitors’ decisions,
so, it can not be 100% precise but can be close to our calculation.
There is one simple way to calculate or forecast the sales as follows:
- Read the Courier Report and scroll down to your product's segment. Look at "Total
Industry Unit Demand". Get this number and multiply it by the 1+growth rate to know
the demand next year.
Now scroll down to "Market Share" report and look at your product's POTENTIAL
market share. Sometimes it can have % in different segments, but just take the biggest
number.
This percentage multiply by the industry demand we calculated next year will give you
a rough idea on how many units you will sell.
Of course, this depends if you can maintain the same percentage of buying criteria and
whether your competitors improve or not.
TIP:
You can download and use excel file for more convenient calculation for all 8 rounds.
Just copy the number from Courier report and paste that into the excel file, the formulas
are set in advance then the excel file will automatically calculate the forecast demand,
by multiple sales x segment growth rate. We can add about 10% if our products are
good in Pfmn and Size.
Also, the excel file will calculate the production needed by multiple sales forecast with
about 10% or 12% to get some stock and avoid Stock out when products are selling
well.
21
We need to calculate as precise as possible to avoid stock out, which cause losing
potential sales and net profit, may be customers. Also, we need to avoid too much
inventory, which cause the cost of storing products and more difficult to sell in coming
years, because customer demands will increase after a year.
2.5. Production
Production is an extension of Marketing. You get Marketing right, Production is easy
for most parts.
TIP
Note that, if you use the excel file for calculation, the next column to Sales Forecast is
the Production.
Two most important decisions in Production are Capacity and Automation.
Having too much capacity is not always good. We can use 100% in the 2 nd shift for
production.
The most optimal will be 20%-50% of the second shift.
If we need more, we can add capacity, if we do not use more than 150% capacity, do
not expand factory in that round. Or, if you really like expansion, just add about 10%
of capacity.
Do not invest too much, too fast, you may need emergency loan because of spending
too much money, even in the case of selling well.
Having too much capacity is not an efficient way to run your company while having
too many is also bad investment.
For details of how much capacity to add for each round and what levels of automation
for each product segments, please see the next part of the guides.
Automation
This is also very important decision. The higher the rating, the more machines you use
and the less workers you need. Less workers mean less wages, which means cost-
savings on your part.
However higher automation rating also means longer R&D cycle. You can only feel
this when in later rounds, we do R&D and new products need longer time to launch.
You can safely set 10 for Low End and Traditional about 8.
However, for High End/Size/Performance, it is good from 6 to 7, depending your
strategy.
Refer to the next parts for sample winning strategies.
Production section is where to setup your manufacturing for the year. There are a lot
of useful things to know in this section that can help you cut down on the cost.
To calculate an estimate of how much you might sell next year, the formula is:
(Customer Survey # of the product / Total Customer Survey # of the segment) *
(This year's total sale * [1+(Segment's Growth Rate)]
22
Note that this is not always true, because the new products may have much better
customer survey in the next year, then they can sell much better. But this can forecast
quite close to the real sales.
TIP
Again, use the excel file and get the figures from Courier Report to calculate sales fore
cast. Customer survey can reflect potential market share. More simply, just multiple
unit we sold by segment growth rate. This can also be very close to real sales next
round. We can add 5% or 10% if our products have better Pfmn and Size, and better
MTBF than competitors.
Example:
Let’s take Traditional segment as an example. Let’s calculate how many product will
be sold in this segment the following year. Let say this year, a total of 12,000 product
was bought from every team. Traditional has a 9.2% growth rate. You want to do
12,000 * (1+0.092) = 13,104. 13,104 Traditional products will be bought the following
year. Say you have a customer survey of 24 with a total of 156 in the whole segment.
You own 24/156 = 15.4% of the segment's sale. 15.4% * 13,104 = 2018. The estimate
is that you will sell 2018 of Traditional for the following year if your customer survey
does not change. I usually like to add 200 or minus 200 depending on how I adjust the
product. Sometimes, it's best to have leftover inventory than sold out and miss some
potential sale opportunities. Likewise, it's best to not have too much leftover inventory
because you will have to pay inventory storage expenses.
Now you understand how to calculate your next year's production, you can do a diligent
Unit Sales Forecast (this is done in Marketing section). The system default is NEVER
correct. Don't go with that number.
Inventory on Hand is how much you have leftover from previous year. Production
Schedule is how much you forecast to sell minus what you already have on hand.
Again, I would add or minus about 200 just in case I sell more or sell less depending
on how I adjust the product, when the product is coming out of R&D, etc. Take note
of the Production after adjustment. This is the true number of production you will make
for the year because of other factors (I forgot what it was but it has something to do
with employees).
Let’s jump into the Physical Plant. 1st Shift Capacity is how much you can produce
that year. If you look under the section Margin, there's a 2nd Shift Capacity. That means
you can produce twice the amount of your capacity but you do not want to overload
the 2nd Shift capacity to 100%. An ideal place to adjust this is to get them to produce
at a 50% to 80% so 1st and 2nd added together is 150%~180%. So why like this? If
you purchase too much capacity, there are expenses incurred every year that are costly.
23
You want to utilize the 2nd shift as much as possible but overload it. I think it's hard to
explain. For example, you think you're going to sell 2018 for the following year. You
have 418 in inventory, so you want to produce 1600 (more after adjustment). You want
your capacity to be at around 850~900. You want to slowly increase your capacity
depending on how you do and how much you think you will need next year. You want
to adjust your capacity for next year so 2nd shift would achieve 50% to 80% for the
optimal result.
Automation:
This is also a key to win the game. This is using machine to produce your product so
you can cut down your labor cost of having to hire employees. So why not just max
this out? Because when it comes to updating the product in R&D, if you make a major
update on the product, you will also have to update your machines to make the upgrade
product which will result in longer duration to get the product out into the market. What
is the ideal setup for this section then? For products that requires a lot of update such
as High End, Performance, and Size, you want to keep these around 2~4. It might cost
more to produce the product, but you can release the product faster. For moderate
updated products like Traditional, you want it around 5~6. It cost a little bit less to
produce, and you should have enough time to improve the product and get it out on
time. For products like Low end where you don't really need to update it ever, you can
set it to 8~10. You don't need that many human labor to produce the low-end products.
Your machines will learn how to make the low-end product and it will just make the
same thing year after year. Beware though that buying up the automation is extremely
costly. You might just be able to improve about 1 to 2 points per round depending on
how much money you have to allocate.
A/P lag, you want to keep it at 30 days. This means you will pay your accounts payable
within 30 days. The more time you need, the less they the debtor will trust you. The
less time you need, the more money you can allocate but you have to pay it off earlier.
More or less might not be favorable for you so unless you're doing really well, I would
keep it at 30 days.
I think that covers all of Production. What are the main points to take away here?
Produce what you predict to sell next year +-200. Utilize your 2nd shift effectively by
getting it to around 50% to 80% to cut down on capacity cost. Automate the hell out of
those that don't need big updates and use labor to produce those that requires big
updates all over.
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2.6. Finance
This table includes 2 important decisions, issuing stocks and getting long term loans
for investment. In round 1 to 3, may be 4, we need most of both sources of finance for
funding the investment in R&D and new capacities.
TIP
Get max from both sources, even in estimation it looks good, because you do not know
strategies of competitors, just get max in 3-4 first rounds to avoid any shortage of cash,
and we can avoid emergency loans.
Stock:
Issuing stock is a great way to make money. We can retire stocks in later rounds, e.g.
in rounds 6,7 and 8 when we have much cash in hand. So that we can increase EOS
(Earning per shares).
Do NOT pay dividends ever.
If you need to raise your stock price, simply buy back stock.
Current Debt:
Do not use Current debt, only when you short of money and long term loans are used.
Again, never use Current Debt unless in emergencies. With its higher interest rate,
Current Debt will only hurt your Income Statement. How you play it is up to you.
Long Term Debt:

Greet your best friend in The Simulation. Again, in round 1, 2 and 3, even 4, we need
max long-term loans for new capacity and R&D new products.
Round 1-4, you should issue MAX Long Term Debt to fund your production
improvements. Beyond that, you may need to issue even more.
In round 5 and 6, some times we still need long term, but if we have right strategies,
round 5 and 6 we started getting a lot of cash in hand, and do not need any stock issuing
or long-term loans.
In rounds 7 and 8, we can even retire stocks and pay off long term debts.
2.7. HR & TQM

Human Resource and Total Quality Management are additional modules.
HR is easy. ALWAYS have 80 Training Hours.
This will boost your Productivity Index and in turn will save you on employee cost.
Recruiting Spend is set at $5,000 depending on its benefits. Try inputting $5,000 and
see the benefits.
Labor Negotiation is another advanced module. In this part, ALWAYS set your offers
at its max. This way your employees will never strike and if the other teams don't
follow your suit, THEIR employees will strike and you'll make more money off them.
25
TQM is also easy, yet highly important.

The optimal figure is $1,500 per category. Although you can set at $2,000, but I found
that number is too much. Remember the benefits are cumulative.
The first round TQM is activated, put $1,500 into categories that reduce your R&D
cycle time and $750 or $ 1.000 in all other categories.
Next round, do the same. However, start putting $0 in one category and see if the
benefits changes or not. After certain point, $100 can give you the same benefit as
$1,500. For example, when you spend about $ 4.000 or $ 4.500 do not have to spend
more for TQM.
2.8. Reports
You should always read up your The Simulation Courier. It has a wealth of VITAL
information. Also remember your Proformas are projected numbers and they WILL
change once the round has been processed. Use them as benchmarks, but don't depend
on them. That's all. This section is not really a guide, but just a reminder to read your
reports.
26
PART 3. WINNING STRATEGIES – ROUND BY ROUND – WIN

ALL 8 ROUNDS STRATEGIES
This is the most popular strategies of the top Winning Strategies, understanding this
strategy then your team can modify and apply other winning strategies in specific
competitive situations and win the game easily. In this part, we will look at all aspects
of the simulation and explanations of all decisions in details.
Note: Spend an hour reading this part, you can win half of the game.
3.1. Use Industry Condition Report to create Decisions Plan Excel file
So, when we start This Simulation, we can have 4 options or 4 different strategies.
IMPORTANT: After download the Excel file, replace Round 0 line in Origin Strategy
by YOUR This Simulation Game Industry Condition Report, then all strategies will be
automatically updated.
Generally, the traditional product can update close to Ideal spot.
The Low End product update to round 4, for one time, in round 4. Then it is optimal
for the whole game.
The High End product can not update right to Ideal Spot (you can try that), it takes long
time. Then, if we want to launch High End product in June or July, we can only update
to 30% close to Ideal Spot (it is Strategy 4).
For Performance, we can update close to Ideal Spot.
For Size, we can update with 50% close to Ideal Spot, it is Strategy 3.
So, we see that all strategies 2-3-4 are necessary.
Note that, R&D is one of the KEY TO WIN THIS GAME.
TIP
YOU NEED TO INPUT FIRST LINE (ROUND 0) WITH SPECIFIC NUMBERS
FROM INDUSTRY CONDITION REPORT OF YOUR OWN INDUSTRY (THIS
27
LINE LOOK FAMILIAR BUT THEY ARE DIFFERENT FROM ANY GAME TO
GAME, CLASS TO CLASS).
If we follow Strategy 1, our products are up to date but not very competitive, because
most of competitors try to upgrade toward Ideal Sport which is much better
specifications, with higher Pfmn and smaller Size.
3.2. Drift Spots, Ideal Spots and Sweet Spots

Follow Drift Plus Ideal Spot Offsets suggested from Industry Condition
Report (each Industry is different from others)
This strategy is the Highest upgrade specification, therefore, it often cost too much and
takes too long time for R&D.
Also, this specification is too good, (ideal), so, we often out of stock, we can not
produce enough to sell to market. Then, we get less Profit. So, we should select
somewhere called sweet spots, which are 50% adjustment between ideal and drift spots.
The key is to get higher Pfmn and Size than top selling products, not to produce perfect
products at high cost. Just make products better than competitors and also meet
customers demands.
TIP
Some times, we can update product 1 year a head, then from that year, it is always lead
the segment with higher Pfmn and Size, and sell better than competitors. But, this can
affect sales and net profit of that product in 1 or 2 years when it is being updated.
If should not follow strategy 2, it is too much advance in R&D and it cost too much
time and money. The only products can follow Strategy 2 is LE, Performance and
Traditional.
Half way from Drift to Ideal Spot Specification.
28
Size can update with 50% adjustment, Strategy 3, and can still launch in June or July.
One third way from Drift to Ideal Spot Specification
High End are difficult to update to Strategy 2 and even 3, because it need longer time,
then if we want to launch High End in June or July, we need to use Strategy 4, with
only 30% of adjustment.
It is not so good, because High End will become less competitive in later rounds, when
its Pfmn and Size is not as good as competitors. Then, in round 4 or 5, we need to jump
1 year ahead, to get Pfmn and Size higher by update skip 2 year. It will be more
competitive.
We often start with Strategy 4 or 3 above. It is the best way to get Profit and also
Competitiveness at the same time.
NOTE: Numbers for the first line is taken from Industry Condition Report. Each
Industry has DIFFERENT starting numbers, so, we need to download Industry
Condition Report and input these Specification in the excel file to create our own
STRATEGIES (page 2 of 8 from report). Only for Round 0 of STRATEGY 1 -
then other cells will be automatically updated.
Note to put Specification of your own Industry in to this line in excel files.
29
3.3. How to Re-position Low End sensor (Year 3 and Year 8)

The original Low-End sensor should only be re-positioned once for the entire game, it
is not necessary to update this product all rounds, because customer prefer 7 years old
product, it means that they prefer more stable products.
The Traditional segment sweet spot is the same with Ideal, Drift spots because Ideal
Offsets is 0-0 for this segment.
The High End, Performance, and Size segments have sweet spots half way from Drift
to Ideal Sport. We can use excel file to calculate (buy online with this guides or you
can create an excel file yourself).
TIP
If Sweet spot with half way cost too much and too long time to R&D, we can select
strategy 4 with 1/3 way from Drift to Ideal spots.
We upgrade original Low End only one time for the entire game, upgrade in Year 3
with specification of Year 4 Sweet Spot (PFMN 4.1 - SIZE 16.3 or PFMN 4.9 - SIZE
15.5) - The new Low End segment will be created in Year 1 with Sweet Spot
specification of Year 4. We should create Low End first, because customer prefer 7
years old for low end products.
When all teams do this, it is not good, because Low End can be produced by most of
the team, then only way to compete is lower prices, it is not good for any team.
TIP
Round 1 – we need to decide which new product to add, if it is not Low End, then it
can be Performance or Size. Or you can add Traditional or even High End. But, it is
necessary to add 1 new product in round 1, then 1 more in round 2, and 1 more in round
3, then we can lead the game.
Note that all figures to input in your game is different from this article, you should get
number from Industry report, put 1 line in Excel file and get your own game figures.
Just input in only Round 0 - Strategy 1 --> Then all tables will be updated.
For The Simulation, we created 3 new products in HE, LE and Traditional and may
terminate 2 products Performance and Size.
TIP
If we do not exit two products, eg. Performance and Size, in round 3, 4 they do not
bring good net profit, but they can control other teams from getting too high sales in
the two segments. Then, we can suffer some loss in round 3, 4 and we can keep control
of 2 segments of Performance and Size. Also, if we update the two products well, from
round 6-7 and 8, they can still bring good sales and net profit.
The Age is important for Low End, because it is 7 years old to sell well, from 6-7-8 is
selling well, besides other factors. So, it is quite strange that 1 year old, new LE product
can not sell as well as 7 years old. May be due to long time experience of using this
Cheaper, Lower cost product, and customers prefer more stable products.
30
So, we can update LE in advance 3 years, then leave it, if necessary, update 1 more
time in round 7 or 8 to keep Pfmn and Size close to ideal spot at that time.
3.4. How to set MTBF

From Round 1 to Round 8, for all the rounds, when we do R&D, we should lower
MTBF to the minimum of the range in order to save cost and increase contribution
margins.
This is not the best strategy, even it is quite simple.
You may prefer keep quite high MTBF, above average and lower than max MFBF for
each segment to save some cost but still get higher customer buying factors.
For each product, we need to have a look at Customer Buying Criteria (see all the 5
segments to see details, in This Simulation Game Courier Report every year, page 5-
9).
Except only Performance segment, we keep that max MTBF at 27.000, for all the other
4 segments, we select minimum MTBF e.g. Traditional to 14.000, Low End to 12.000,
High End to 20.000 and Size to 16.000 or Average.
Average high can have more cost but can sell better, right from round 1 to 8.
We set MTBF for Performance to max 27.000 because buying criteria for this segment
is 43%. See the Courier report for each segment buying criteria.
Again, the numbers for each Industry is changed when game created for different class
or group, so we need to check the number from Industry Condition Report and Courier
Report every round (year).
If we want to compete is 3-4 segments (not all 5), the two most potential and profitable
are Low End and Tradition.
Because most of the team may know this, so from round 2, we need to look at the
Courier report to find segments, that competitors do not focus on, then we will add new
product in that segment.
Low End is good segment, because of high sales
Traditional is good segment, also because of high sales
High End, Performance and Size have lower sales, but if we see that many competitors
focus on LE and Traditional, we can select any of other three segments, with less
competition to focus on.
TIP
Add 3 new products can bring very good sales in later rounds, especially from round
4,5 to round 8. But in round 1, 2 and 3, we have high cost, lower net profit.
They are most potential lucrative.

We need to read reports for Round 1, Round 2 and Round 3 and then in Round 3 and
4 we will select to leave 1 or 2 least competitive which have least profit.
31
Creating 1 new segment, e.g. Low End is good (often in Round 1)

Creating 2 new segments, e.g. Low End and Traditional will provide more Profits in
later Round, e.g. 5-6-7 and 8. (Often we create New Traditional in Round 2)
In Round 3, we can create new High-End segment (more profitable). However, if we

see strong competition in High End, we should create new segment in SIZE (better
than Performance - high cost).
It is better we flexible with MTBF, do not always leave that lowest, we save cost but
lose competitiveness. So, we can add that according to their importance, for example,
20% of purchase, we can set that 17.000 (range from 14.000 to 20.000), we can get
both objective, saving cost and maintaining competitiveness. Another important thing
is we need to analyze competitors after each round to find top selling products in each
segment and update our products close and higher to the best-selling products.
3.5. How to set R&D (All 8 Rounds Guides)

Note: In order to apply this Round to Round strategy for R&D, we need to create an
excel file with your own data from Industry Condition Report and put data in Excel file
to get more precise numbers.
Step 1. Download Industry Condition Report (from your game)
Step 2. Download Excel file for automatic calculation strategies and decisions
Step 3. Very important

Open page 2 of Industry Condition Report and get the Table 2, first line for Round 0
and put that numbers in Round 0 in Excel file, then the file will automatically calculate
all decisions for 8 rounds, with 4 different STRATEGIES.
DO NOT USE THE DEFAULT numbers in excel file, that is a little bit different from
YOUR GAME (creator and administrator change the numbers when new industry is
created for new class).
--> Get Around 0 number from Industry Condition Report
--> Put into Excel file, Round 0 (only 1 row) --> Then the file will automatically
calculate all the decisions
(Check Drift and Ideal Offsets - 2 last rows of table 1 - they often do not change for
all game)
We can use the Excel file to calculate Specifications for R&D more easily.
32
If you have come to this Step. We are half way win the This Simulation Game
Simulation !!
Again, this Round to Round guides can apply if we start from Round 1. DO NOT use
this suggestion if you are already in the middle of the game, having completion several
rounds without this guide. If so, your company may not have enough upgrades and
automation to follow this suggested strategy, you can refer to other tips to Rescue
Company or Mid Game Tips.
Now, if you are in Round 1, we can apply this Round to Round Strategy and Win the
game.
The numbers are from my game, you need to use your Excel file, numbers will be
a little different. If you can not create your file, email: mbahelp2002@gmail.com -
I can create a file for you for FREE.
We use the following strategy for the guides and winning tips in Round to Round
Strategy.
Note: You need to adjust the number of PFMN and SIZE to get new product launch in
June or July.
The numbers are just for this game, your game can be a little bit different, you can
calculate numbers by download free Excel files from http://top20mba.com or
http://topmbabooks.com
33
ROUND 1. R&D
1. Create a new Low-End sensor PFMN 4.1 - SIZE 16.3 MTBF 12.000 - this is
Low End sweet spot Year 4
2. Change original Low-End sensor MTBF to 12.000 (don't re-position original
Low End)
3. Re-position original Traditional sensor to PFMN 6.1 SIZE 14.3 MTBF 14.000
(min) or 17.000
4. Re-position original High-End sensor to PFMN 9.2 SIZE 11.2 MTBF 20.000
(min) or 23.000
5. Re-position original Performance sensor to PFMN 9.8 SIZE 16.0 MTBF 27.000
(max)
6. Re-position original Size sensor to PFMN 4.4 SIZE 10.6 MTBF 16.000 (min) or
19.000
Check report from Round 1 to see top selling products, we can adjust MTBF to most
effective products.
June or July.
ROUND 2. R&D
1. Create a new Traditional sensor PFMN 8.2 - SIZE 12.2 MTBF 14.000 - this is
sweet spot for Traditional Year 4
2. Re-position original Traditional sensor to PFMN 6.8 SIZE 13.6 - Keep 14.000
(min)
3. Re-position original High-End sensor to PFMN 10.1 SIZE 10.3 - Keep MTBF
20.000 (min)
4. Re-position original Performance sensor to PFMN 10.8 SIZE 15.3 - Keep MTBF
27.000 (max)
5. Re-position original Size sensor to PFMN 5.1 SIZE 9.6 MTBF - Keep MTBF
16.000 (min)
June or July.
ROUND 3. R&D
1. Create a new High-End sensor e.g. PFMN 11.9 - SIZE 8.5 - this is High End
sweet spot Year 4
2. (Optional) Create a new Size or Performance instead of High End (with round 4
sweet spot specifications)
3. (Optional) Re-position original Performance and Size sensor ONLY if you plan
to continue them (with round 3 sweet spots specification - see above table).
4. Re-position original High-End sensor to PFMN 11.0 SIZE 9.4 - Keep MTBF
20.000 (min)
34
5. Re-position original Low-End sensor to PFMN 4.1 SIZE 16.3 - Keep MTFB
12.0000 (this takes more than a year to complete)
6. Re-position original Traditional sensor to PFMN 7.5 SIZE 12.9 - Keep MTBF
16.000 (min)
June or July.
So, for 3 first Rounds, we create new Low End, Traditional and High End each Round.
We can also stop Performance and Size (we will do that by lower Promo and Sales
budget to 0 in Marketing and Production).
ROUND 4. R&D
1. Re-position original Traditional sensor to PFMN 8.2 SIZE 12.2 - Keep MTBF
14.000 (min)
2. Re-position original High-End sensor to PFMN 11.9 SIZE 8.5 MTBF 20.000
(min)
3. (Optional) Re-position original Performance and Size sensors only if we plan to
continue them (use round 4 sweet sport from above table).
June or July.
ROUND 5. R&D
1. Re-position both Traditional sensors to PFMN 8.9 SIZE 11.5 - Keep MTBF
14.000 (min)
2. Re-position both High End sensors to PFMN 12.8 SIZE 7.6 - Keep MTBF
20.000 (min)
June or July.
ROUND 6. R&D
14.000 (min)
20.000 (min)
June or July.
35
ROUND 7. R&D
14.000 (min)
20.000 (min)
June or July.
ROUND 8. R&D
14.000 (min)
20.000 (min)
June or July.
36
3.6. HOW TO SET MARKETING DECISIONS (All 8 Rounds guides)

Apply $2.000 for promotion and sales budgets for Traditional and Low End, because
above this level, diminishing returns are experienced.
Apply $1.500 for High End, Performance and Size segments.
Keep this spending from Round 1 to Round 3, until we can decide which segments we
will continue. Then, we increase all segments to $2.000 to compete.
For segments, we do not want to continue, for example Performance or Size, we reduce
budgets for that segment to only $0.
For Promotion, we continue $ 2.000 until we reach 100% awareness. Then we can cut
it back to $ 1.400 per round.
For Sales, we continue $ 2.000 until we reach 100% accessibility. Then we can scale
back to $ 1.650 for each sensor.
TIPS:
We can increase much higher, or even max, to see how much awareness and
accessibility we can get, just click CALCULATION button to see how much we get
for that year. Then we can increase or decrease spending to get 100%.
NOTE:
Budget for sales, accessibility for multiple sensors in a segment, they are combine
together.
See figures in followings:
We can check effectiveness after each round and adjust Sales and Promotion Budgets.
PRICING
Each round we can lower all prices down at least $ 0.50 from maximum price of the
segment to keep up with customer expectation (lower each year)
We can create in excel file a table for Prices to keep track of lowering prices every year
- LINK
We need to check from This Simulation Game Courier Prices (from page 5 to page 9)
to see max prices for each segment, in the top product at the end of each page.
37
If competitors are cutting prices in Traditional and Low-End segments, we need to

lower prices to close to their levels.
However, when competitors lower their prices too much, they will not have enough
capacity to sell, also they suffer stock out.
We can still keep prices higher and get market shares at higher profit level. This is why
we need to calculate demands and plan production as precisely as we can.
NOTE
We DO NOT have to compete with prices in High End, Size and Performance, because
buying criteria is low, only 9 - 19%
SALES FORECASTING
Do not trust computer suggestions, they always wrong.
We have a formula to calculate and forecast sales for next round
1. Get Market shares from Page 10 of Courier Report
2. Get Total Sales also from Page 10
3. Get Market potential growth for each segment from page 5 to 9
Sales forecast = Potential market share % x Segment size x (1 + Segment Growth Rate).
Note:
Page 10 gives us Potential Market share, we use this (do not use actual market share)
If we think we can sell more, we can just adjust the percentage.
Note:
We can use Excel file to calculate more conveniently. Use 8 sheets for 8 rounds, just
copy and paste number from Courier Report Page 10, Page 4 and select market growth
rate from page 5-9 into each sheet.
38
NOTE
You can copy and paste into excel file, then it can calculate automatically Sales and
Productions. You can adjust the percentage if we think we can sell more or less.
Round 1 - Marketing
Leave A/R lag (Account Receivable) at 30 days, this will be increased later rounds to
get higher demands when we have more profits and more cash available.
Leave A/P lag (Account Payable) at 30 days. This is always stay at 30 days for all 8
rounds
Set Promotion and Sales budgets both for $2.000 for Traditional and Low End sensors
Set Promotion and Sales budgets all for $1.500 for High End, Performance and Size
Lower all prices at least $0.50 as indicated in the excel table or check from Courier
Report for max price for that segment last year
USE THE SALE FORMULA or EXCEL FILE to calculate sales forecast and
production - LINK
(Note: This round we create a new Low End sensor in R&D)
Round 2 - Marketing
Expect the new Low-End sensor to sell about 0.2 x original Low-End sensor market
share
Leave A/P lag (Account Payable) at 30 days. This is always stay at 30 days for all 8
rounds
Set Promotion and Sales budgets both for $2.000 for Traditional and Low-End sensors
Set Promotion and Sales budgets all for $1.500 for High End, Performance and Size
39
production - LINK
(Note: This round we create a new Traditional sensor in R&D)
Round 3 - Marketing
If we decide to exit a segment, such as Size or Performance, keep the Promotion and
Sales budgets at $0.
What ever segments we decide to stay, increase Promotion and Sales to $2.000
Expect new Traditional sensor to sell about 0.3 x original Traditional sensor market
share.
production - LINK
(Note: This round we create a new High-End sensor in R&D)
Round 4 - Marketing
Increase A/R Lag (Account Receivable) to 46 days, this helps to increase demands
Once 100% awareness is reached for a sensor, in any round, we can scale back to
$1.400 but need to check if can that budget maintain 100% awareness.
Expect new High-End sensor to sell about 0.75 x original High End sensor market
share.
production - LINK
(Note: This round we exit segments because we have reduced Promo and Sales budgets
to $0 also we have reduced Production capacity to only 1)
Round 5 - Marketing
Increase A/R Lag (Account Receivable) to 61 days, this helps to increase demands
Note to add new market shares for new developed products, check in page 10 This
Simulation Game Courier.
production - LINK
Round 6 to 8 - Marketing
Note to add new market shares for new developed products, check in page 10 This
Simulation Game Courier.
40
Once 100% accessibility is reached for a segment (in any round) we can scale back the
Sales budget t $1.650 for each segment to maintain 100% accessibility. Note to adjust
and then check the graphs at the end of the market table.
production.
3.7. HOW TO SET PRODUCTION DECISIONS (ALL 8 Rounds

Guides)
Note to check Workforce needed and Workforce complement, if the box is editable,
make sure to match the needed with This Year to save money. Otherwise we waste
money.
We will increase automation every round.
Traditional to 8.0 (4.0 - 5.0 - 6. 0 - 7.0 - 8.0)
Low End to 10.0 (5.0 - 6.7 - 8.4 - 10)
High End to 5.0
Performance to 6.0
Size to 6.0
Production amounts should always be 112% of Sales Forecast.

This allow some extra inventory to take advantage of competitors suffer from stock
out. This often happens.
When we calculate production, we need to take in to account inventory from previous
round.
We can use excel file to calculate PRODUCTION more conveniently
If we see that year we have Stock out, we can increase production more than 112% to
120% or even 125%. If we see some inventory, we can reduce for that segment back
to 112%.
41
ADDING MORE CAPACITY

Our goal is to keep our plant production at 150% (full first shift and 50% second shift).
This allows more flexibility to deal with short term market changes.
Remember that added capacity isn't available until next round. So if we add capacity
in round 2, it will be available in round 3.
If we see any factory with more than 150% capacity, we can add more capacity to that,
just simply multiple the excess over 150% with total capacity. For example, 180% of
2.000 factory, we will add 30% surplus = 30% x 2.000 = 600
NOTE:
We do not sell factories, even we are not using 100% at the current round.
NOTE:
We only reduce the segments we want to exit to 1. By doing so, we can still sell the
rest of inventories in that segment at full price, not 50% price.
If we can not complete all suggestion, try to come as close as possible.

Try to use all the budget available in the first 3 rounds and more if possible
The KEY to win This Simulation Game is to control Automation as early as possible.
The more automation is better.
Round 1 - Production
1. Upgrade original Low-End sensor from 5.0 to 6.7 automation
2. Upgrade original Traditional sensor from 4.0 to 5.0 automation
3. Create 500 capacity with automation 5.0 for the new Low-End sensor
4. Add extra capacity for original Low-End sensor
NOTE: check the bottom right corner to see if we use close to total available budget.
42
3. Create 500 capacity with automation 5.0 for the new Traditional sensor
4. Upgrade new Low-End sensor from 5.0 to right 8.4 automation.
2. Upgrade new Low End sensor from 8.4 to 10.0 automation.
4. Upgrade new Traditional sensor from 5.0 right to 7.0 automation
5. Create 400 capacity with automation 3.0 for the new High-End sensor
6. Add extra capacity for new Low-End sensor
2. Upgrade new Traditional sensor from 7.0 to 8.0 automation
3. (Optional) Reduce Capacity for segments that are being exited, such as
Performance and Size
4. Upgrade original High-End sensor from 3.0 to 4.0 automation
5. Upgrade new High-End sensor from 3.0 to 4.0 automation
6. Add extra capacity for all needed sensors
1. Upgrade original High-End sensor from 4.0 to 5.0 automation
2. Upgrade new High-End sensor from 4.0 to 5.0 automation
3. (Optional) Reduce Capacity for segments that are being exited, such as
Performance and Size
4. Add extra capacity for new High-End sensor
Round 6 and 7 - Production

43
1. Last round of the game, do not add any capacity or automation!
3.8. HOW TO SET HR DECSIONS

It is important to invest in HR because productivity is measured in the Balanced Score
Card and also this investment will reduce labor costs.
Usually HR has a few options available are Recruiting Spending, Training Hours
Aim for the maximum of $5.000 recruitment spending and 80 hours training every
round.
If you have limited funds, try $2.000 and 40 hours training.
If the Labor negotiations are available, we can use half way, win - win strategy,
between demanded and current contract.
NOTE:
when input number here, double check to make sure correct numbers and avoid labor
strikes.
We often use half way for negotiations, average of current contract and labor demands.
3.9. HOW TO SET TQM DECISIONS

In TQM focus on setting $1.500 to $2.000 per round for each item, select the most
useful initiatives first. Continue this for three rounds and then stop spending money
into that initiatives, because it will no longer make any significant changes. We can see
this from graphs at the end of screen.
NOTE
$5.000 is the maximum budget for each initiative for the whole game.
Optimal way to add money is $2.000 - $2.000 and $1.000 or $1.500 - $1.500 and
$1.000 depends on maximum allowed for each round.
Priority order for TQM initiative benefits:
1. Reduce material costs
2. Reduce labor costs
3. Reduce R&D costs
4. Increase demands
5. Reduce SG&A expense
There are generally the best initiatives to put money in first:
1. CCE/6 Sigma Training
2. GEMI TQEM Sustainability
3. CPI Systems
4. Vendor /JIT
5. QIT
6. QFDE
We can apply try with different initiatives to see which one will bring more effects or
most effective. Then in later rounds, we spend money in less effective initiatives when
we have more extra money.
44
We can see the suggestions in the following tables.
3.10. HOW TO SET FINANCE DECISIONS

Finance should always be the last decision we make after all the other section decisions
have been made.
How we make decisions in Finance depends on How the game will be graded.
Most groups are graded on the Balanced Scorecard.
Some groups are graded on Profit or Stock Price.
FOR ALL GRADING METRICS.
We can keep at least $16.000 (000) cash for a round to avoid emergency loans.
We can keep more cash, it is always better than lack of cash.
We need to keep right amount of cash to get MAX Days of Working Capital (not too
much, not too little).
When we have much Cash and Net Profit, we need to pay off dividends and retire
stocks to increase Leverage and also get max points for Days of Working Capital.
3.11. OTHER DECISIONS

- How to Check the Income Statement
We check to find estimated Sales, Contribution Margins, Net Profit compared that with
previous year, if that increase 15%-20% we are doing well.
We can see that if we spend more on TQM, total Net Profit will reduce.
Also, we can see that if we spend more on adding new capacity, upgrade automation,
cost will increase, cash in hand will reduce. We need more investment from long term
loans and issuing stocks.
- How to Check the Balanced Scorecard

Keep track of Profit, Working capitals and Leverage.
We can adjust decisions to make these Ratios as high as possible.
Also keep enough Cash in hand to avoid Emergency loans.
45
- How to increase Graded on Balance Scorecard

For each year, we need to have enough cash, ending cash.
We need to raise funds for business, factory investments.
It is likely that for first 4 Rounds, we always lack of money, we need to raise funds in
this order:
1. Issue Long Term Debts (max this first)
2. Issue Stocks (max this 2nd)
3. Issue Current Debts (if still need cash)
After Round 5, we may have much cash in hand.

At this time, we need to check Ratio (from Proforma --> Ratio) to maintain highest
possible results in Balanced Scorecard.
We need to do some trials to get higher points in Balanced Scorecard.
We need to switch between Finance and Proforma Ratios to get right points.
- How to check Days of Working Capital

This ratio is very important and frequently misunderstood.
Basically, this ratio is how many days your company could survive if no sales were
made.
To check this ratio, go to the Proforma Ratios Statement.
Every round you want this ratio to be between 60-80 days
This gives you a safety cushion if your sales projections are off.
Closer to 80 is better but not over 80 because you may start losing points on the
Balanced Scorecard.
To Increase Days of Working Capital:
- Issue Long-Term-Debt (max this first)
- Issue Stock
Neutral: Current Debt has no impact on Days of Working Capital
To Decrease Days of Working Capital:
- Retire stock (max this first)
- Issue dividends
- How to check Leverage
Leverage is basically the ratio of how much money your company is borrowing
compared to your company's stock equity.
If your leverage ratio is 2.0x that means half of your company assets are paid for with
debt
To cheek this debt/equity ratio go to the Proforma Ratios Statement.
Make sure your leverage ratio is between 2.0 and 3.0
In later rounds you may have to issue dividends or debt to maintain your leverage as
Profits increase.
To Increase Leverage:
46
- Retire stock (max this first)

- Issue dividend
- Issue Long-term-debt (only if more funding needs to be raised)
To Decrease Leverage (not usually needed):
- Don't borrow any Current Debt
- Issue stock
- Retire Long-Term Debt (last resort)
- How to check Graded on Profit

Plan to get the highest profit basically follows that of the Balanced Scorecard Plan for
the first 4 rounds
But in the second half of the game you will be retiring debt first in order to save
money on interest payments.
Raise Funding in this order of priority (mostly first 4 rounds):
I. Issue stock
2 Issue current debt
3, Issue long term debt
Use excess cash in this Order of priority (mostly Last 4 rounds):
L Retire long term debt
2. Retire stock
3. Issue dividend
- How to check Graded on Stock Price

The plan for having high stock price is only to issue debt and never to issue more stock.
We should start retiring as much stocks as soon as we can when we have extra cash.
Continue retiring stock to the end of the game.
If we still have much cash in hand in last round of the game, pay dividends to increase
stock price.
Raise funding in this order of priority (mostly first 4 rounds)
- Issue long term debts (max this first)
- Issue current debts
Use excess cash in this order of priority (all of the rounds)
- Retire Stocks (max this first)
- Issue dividends
3.12. HOW TO SAVE A Companies in the Mid Games

The key to save a company is create more profit.
It is better to invest in Automation - TQM - Sales Budgets, give cumulative benefits
each round after, so, earlier investments are always better.
Do not worry about getting Debts or Issue Stocks, we are doing business so that is
investments.
47
- Find the lease profitable segments, improve them or get rid of them.
If the margin contribution is lower than 25%, something needs to be significantly
improved.
Try to improve automation.
Try to improve pricing.
If we want to exit a segment, cut promotion and sales budget to 0 and DON'T re-
position that products.
Selling off capacity, keep only 1 to maintain products in inventory to be sold at full
price.
- Save a company in Lack of Cash

Reduce marketing budgets to $1.500 without too much impact
Automation for Low End first
Automation for Traditional second.
Do automation one point at a time if we can not afford that.
Automation in High End, Performance and Size is not so much important. Do that later
is OK.
In HR can reduce recruitment to $2.000 and training to 40 hours with minimal impact.
In TQM try to spend only $1.500 for the initiative that have biggest impact.
Then, try to increase when we have more funds next rounds.
48
PART 4. WIN THE SIMULATION WITH DIFFERENT

STRATEGIES
4.1. HOW TO COMPETE WITH STRONG COMPETITORS

i. Not making Profits in first Rounds?
In rounds 1 to 4, we are building factories, investments for future productions, we
spend a lot in R&D for new products, automation, marketing to increase awareness and
accessibility, and HR, and TQM because all these things add cumulative effects.
It is necessary to borrow money and issue stocks to fund all the investments.
We will have low profits for first 4 rounds.
Any way, keep Profit just higher not negative.
From round 5-8, we will fly up with higher profits.
The new products are finished, automation upgraded, HR, TQM are cutting costs, all
these make company more profitable.
At this point, your company can earn huge profits. With excess money, we retire or
buy back stocks or pay dividends.
ii. Competitors and Computer players

We do not have to sell more than competitors to win. See video guides to see - LINK
We need to have more Profits, higher EPS more effective to win.
When competitors sell more, lower price, lower profit margins, they can suffer from
Stock Out. We can still get market shares with higher prices and higher profit margins.
Some time, we face strong competitors, we need to adjust strategies to compete.
iii. Computers are doing well with high quality products and more
market shares.
We can increase MTBF to top of High End and Size (we already max that for
Performance)
R&D to re-position High End, Performance and Size over sweet points, toward Ideal
spots.
Never waste money to increase MTBF for Traditional and Low End, they are already
optimal.
iv. Compete by PRICE

If competitors and computers are setting very low prices on Low End, we need to
reduce price close to them but still higher than average.
We do not have to compete by Price in High End, Size and Performance because that
is low effect (9-19%) - we can set their prices at Top Price Range. Just reduce $0.50
each round to meet customer expectations.
49
v. Compete by PRODUCTION
If we are stock out or see competitors stock out, we are in good position. We can expand
production.
- Increase Sales forecast or projections.
- Increase Production by 120% or even 130%, until we can still meet the surplus
demands.
Also, raise price in that segment up to Top in that Price Range.
vi. Compete by SEGMENT

If we see one team leave a segment that is Good.
If we see two teams leave a segment that is Great.
If we see three teams leave a segment that is very attractive and lucrative.
If they do not drop or exit any segment, we need to create new product in to the segment
that is making most profit. Eg. Low End, then Traditional then High End (we can check
by looking at the Income Statement).
vii. How to exit or remove a sensor?

Check Proforma and Income Statement, as long as they are bringing Net Profit, there
is no reason to remove sensor.
If that sensor is losing money for two rounds, it is time to discontinue that sensor.
In the case we like to exit a sensor, we can:
- Do not R&D, do not re-position that sensor any more
- Drop promotion and sales to $0
- Stop producing units
- Sell of capacity and keep only 1
- Wait until all the inventory is sold (could take a few rounds)
- Sell off the capacity to 0.
4.2. HOW TO WIN WITH TRADITIONAL, LOW END AND HIGH

END
Winning with Traditional, Low End and High-End products.

Up to this point, you have covered all basic things about the simulation, you can change
your strategies as you like to win the game far from other competitors. As usual, we
can just focus on five products and five segments to win the game, now we can add
new products in any segments to win. This strategy will focus on Low End, Traditional
and High-End Segments and control three out of five segments, leading the game with
both sales and net profit.
To apply this strategy, we will and new products as follows:
- Round 1. Add one more Low-End product
- Round 2. Add one more Traditional Product
- Round 3. Add one more High-End product
50
We can keep Performance and Size, update them to Ideal spot, they can still sell very
well after round 4, and can stay on top of their segment.
For three segments, Traditional, Low End and High End, we lead in both sales and net
profit.
Note that this strategy does not bring good sales in round 1, 2, 3 because we have invest
strongly in R&D, adding new capacities for new products. From round 4 we will lead
the game.
4.3. HOW TO WIN WITH LE, TR AND PE
Winning with Low End, Traditional and Performance.

We can also win the game with focus on three product segments of Low End,
Traditional and Performance.
When we see the gap in market segment such as Performance, we can add a new
product in this segment. Performance segment does not bring good net profit in early
rounds, like 1-2-3 but from round 4 will bring good net profit, especially when other
competitors do not focus on this segment. So, if we find from early rounds that our
competitors do not focus on this segment, we can select as additional market then can
win the game.
To apply this strategy, we can add products as follows:
- Round 1. Add one more product in Low End
- Round 2. Add one more product in Traditional
- Round 3. Add one more product in Performance
We can still keep updating High end and Size to ideal spot and control all the five
market segments.
4.4. HOW TO WIN WITH LE, PE AND SIZE
Winning with Low End, Performance and Size.

We can also win the game with the focus on Low End, Performance and Size segments.
If we find the competitors do not focus on any segments, or a segment with less
competition, with less number of companies producing products in that segments, we
can focus on that segment and gain advantages in later rounds.
If we find fewer competitors in Performance and Size segments, in rounds 2-3 just
check the report, find the sales and also the sales and promotion budgets, if other
reducing, we can focus on the segments to gain more sales in later rounds.
We can apply this strategy as follows:
- Round 1. Add one more product in Low End
- Round 2. Add one more product in Performance
- Round 3. Add one more product in Size
The new products do not bring good sales and profit in round 1, 2 and 3. From round
4, they will start selling well and increase both sales and net profit.
51
We also can keep Traditional and High-End update regularly to ideal spots, then they
can keep selling well and lead their segments.
For all strategies, note that the game has 8 rounds, we need 3 first rounds for R&D and
adding new production capacity, upgrade the factories with automation, then depends
on specific situation and strategies of competitors, we can gain a few millions of net
profits (more or less). From round 4 we will get good new products selling well, and
will gain a few dozen million net profit, in round 6-7 and 8, sales can reach 3-4 or 500
million with net profit from 60 to 80 million.
The most important thing is we learn and gain the experience of understanding how to
run a business (in simulation) and relate to real life, also we face the strong competition
from five competitors, each has their own strength and advantages in one or two
segments, we have to understand their strategies and set our strategies better to win
(the game) and gain the most lesson.
Enjoy the Game, Good Luck and Success!
For FREE Personal Support for 2 rounds, email to:

mbahelp2002@gmail.com
It is better from round 1 and round 2, so you can lead the game.
52

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YOU HAVE FREE PERSONAL SUPPORT FOR 2 ROUNDS

MBA SIMULATON GAMES

3.6. HOW TO SET MARKETING DECISIONS (All 8 Rounds guides) .............. 37

4.1. HOW TO COMPETE WITH STRONG COMPETITORS .............................. 49

Thanks for The Simulation Game Creators and Players.

For FREE Personal Support for 2 rounds, email to:

PART 1. BASIC GUIDES AND TIPS

NOTE: What strategy or option to select really depends on strategies of

- We can check buying criteria to decide MTBF, e.g. Performance segment

o Recommendation for round 1

• PROMO BUDGET AND SALES BUDGET

o Performance, increase by 1 or 1.5 each round, until you reach 7

o If you have capital investment leftover, try to spend it in Automation or

TIP: In early rounds, we do not have much investment (from 12 to 40 million),

1.4. HUMAN RESOURCES

PART 2. OVER VIEW OF ALL DECISIONS

2.1. General strategy:

2.2. How to set decisions

You will be at a crossroads when choosing how to invest. Either go heavy on

Automation is an interesting one.

Promo & Sales Budget:

Long Term Debt:

2.7. HR & TQM

TQM is also easy, yet highly important.

PART 3. WINNING STRATEGIES – ROUND BY ROUND – WIN

3.2. Drift Spots, Ideal Spots and Sweet Spots

Half way from Drift to Ideal Spot Specification.

One third way from Drift to Ideal Spot Specification

3.3. How to Re-position Low End sensor (Year 3 and Year 8)

3.4. How to set MTBF

They are most potential lucrative.

Creating 1 new segment, e.g. Low End is good (often in Round 1)

In Round 3, we can create new High-End segment (more profitable). However, if we

3.5. How to set R&D (All 8 Rounds Guides)

Step 1. Download Industry Condition Report (from your game)

Step 3. Very important

3.6. HOW TO SET MARKETING DECISIONS (All 8 Rounds guides)

If competitors are cutting prices in Traditional and Low-End segments, we need to

3.7. HOW TO SET PRODUCTION DECISIONS (ALL 8 Rounds

Production amounts should always be 112% of Sales Forecast.

ADDING MORE CAPACITY

If we can not complete all suggestion, try to come as close as possible.

Round 6 and 7 - Production

3.8. HOW TO SET HR DECSIONS

3.9. HOW TO SET TQM DECISIONS

We can see the suggestions in the following tables.

3.10. HOW TO SET FINANCE DECISIONS

3.11. OTHER DECISIONS

- How to Check the Balanced Scorecard

- How to increase Graded on Balance Scorecard

After Round 5, we may have much cash in hand.

- How to check Days of Working Capital

- Retire stock (max this first)

- How to check Graded on Profit

- How to check Graded on Stock Price

3.12. HOW TO SAVE A Companies in the Mid Games

- Save a company in Lack of Cash

PART 4. WIN THE SIMULATION WITH DIFFERENT

4.1. HOW TO COMPETE WITH STRONG COMPETITORS

ii. Competitors and Computer players

iv. Compete by PRICE

vi. Compete by SEGMENT

vii. How to exit or remove a sensor?

4.2. HOW TO WIN WITH TRADITIONAL, LOW END AND HIGH