Welcome to the

Capstone Business
Simulation

SENSOR
INDUSTRY
OVERVIEW

****know
what cust.
Wants*****

The Marketplace Differ Customers (OEMs) need

sensors for their products
Initially one segment, now
breaking into five
Very different customer
demands developing between the
segments
Diversification in the use and
utility of the sensors

The Marketplace

In

Low
Tech
toster

Performance
MRI

Traditional
Size
CEll

High
Tech

sweet spot

our industry we track the

changing customer demand on a
perceptual map

Over 8 years customers will

demand much faster and smaller
sensors
Market Segments will continue
to diverge
Positioning: where you place
your sincere

Low End & Traditional Customers

I want these sensors to be cheap
I want them to have been around
for a while no Beta Testing!
They have to be moderately
reliable.
The technology doesnt have to be
cutting edge.
Long cheap tested product. 7yr
best

Youre
not giving me
what I want

High End, Size & Performance

These sensors have to be small,
like micro, and fast Customers
I need them to be right out of
R&D, Im talking ZERO years on
the market (size or performance
to go to 0)
Im willing to pay more to get
what I want.
I like a pretty high reliability.
Ideal position is key

And Im not
getting what I
want!

SENSOR INDUSTRY ANALYST PROJECT ONGOING GROWTH

Sees the next 8 years as consistent growth. All
market segments increase at a nice clip,
according to market analyst.

I see the entire market growing

at around 14% or 15% per year.
The High Tech market alone will
be growing at a whopping 16%.
I hope those companies out there
are ready for that kind of
expansion!
Segments grow different rates
Need to barrow in 15-16%
market (barrow heavily)

COMPANY
OVERVIEW

SEC ANNOUNCES BREAKUP OF MONOPOLY

FOR IMMEDIATE RELEASE

The SEC, took dramatic action today by breaking up the

monolithic corporation Sensors, Inc.
In a statement to the press, the SEC outlined the reason
and the outcome of this move.
We cannot allow monopolies of this sort to impact an
entire industry! The customers that utilize these sensors
are being held hostage.
Effective immediately Sensors, Inc will be dissolved into
the Andrews, Baldwin, Chester, Digby, Erie and Ferris
companies.

The Competition
$100 Million in Sales
5 Product Lines prduct in each onecan add or delete
5 Segments
Closed Marketplace
6 Companies

Andrews

Digby

Baldwin

Erie

Chester

Ferris

SHAKE UP IN SENSOR INDUSTRY: COMPANY FIRES MANAGEMENT TEAM!!!!

After poor results, lackluster sales and angry

customer reports, the Chairman of the Board
of Directors has announced the immediate
termination of the Management Team.
This is a black day for our company, said
Chairman Todd Roberson, We need to hire
a dynamic leadership group who will be able
to take this company into the future!
Due to this immediate need I have hired the
Dream Team to start on January 1st. I expect
to see great things from this Executive
Team!

Welcome To
Your New
Company

Students need to coordinate strategy and tactics across the following areas of
their company: use this order!
R&D:Design,
add/delete or MTEF
Marketing: Set: price,
budget, receivable and
payable period, set item out
up
Production: make excess
inventory, buy automation
(important)
Finance: raise capital to cover all
your expenses

Additional Modules
-

HR: train, recurte, work harder,

TQM: invest in training
Advanced Marketing: tweak
marketing break it up into
channels

Establish the specification of the

products to meet customer
demand
Build the quality and reliability
(MTBF) into the products
Ensure the perceived age of the
product meets customer demands
Create new products to meet the
changing marketplace

R&D
Our products
are not well
positioned in
the
marketplace.

Marketi
ng
Our products
are not priced
optimally.
And many of our
customers dont
even know our
product exists.

Set the price of our products in the

marketplace
Build customer awareness through
promotion
Establish a sales force and
distribution channels
Set the sales forecast for our
products
Set Credit Policies AR/AP

Purchase machinery to automate

our facilities
Buy or sell capacity of product
lines
Schedule production for each
line
Manage the majority of the
companies fixed assets
Establish your workforce
complement

Producti
on
We are paying
too much for
labor costs.
Very soon we
will run out
of capacity to
meet demand.

Finan
ce
We have poor
cash flow and
substandard
financial ratios.
We have no
financial policy
statement.

Acquire capital to fund capital

expansions
Issue Stock
Short Term Debt
Issue Long Term Bonds
Issue dividend to our shareholders
Balance our debt portfolio
Manage our Proformas

Proformas
A great management tool driven by forecasts
and projections. Allows What if Scenarios by
the company.
Balance Sheet
Profit & Loss
Cash Flow
Financial Ratios

Scoring Method

Success
Measures:
Select a minimum of two
criteria to be measured by:
o ROE
o ROS
o ROA
o Cumulative Profit
o Stock Price
o Market Capitalization
o Asset Turnover
o Market Share
o Weight each selection

Running your Company

Things to do on an Annual
Establish business strategyBasis
for your company
Analyze Capstone Courier to see industry results
Make tactical decisions across each functional area (aligned to
strategy!)
Upload official results and confirm on the website
Await results when Professor processes
Rejoice in your superior capitalistic acumen
Begin the process again by confirming alignment of your results
with your companys strategic goal.

Good Luck and

Enjoy!