CAPSIM Questions with correct Answers
Americas
2:1 (Budget: Performance) for foreseeable future
Europe
3:1 but trending towards performance in the next five to ten years.
-High-income region
-experiencing steady economic growth that your company hopes to capitalize on.
Asia Pac...
CAPSIM Questions with correct Answers
Americas - answer 2:1 (Budget: Performance) for foreseeable future
Europe - answer 3:1 but trending towards performance in the next five to ten years.
-High-income region
-experiencing steady economic growth that your company hopes to capitalize on.
Asia Pacific - answer -3:1 with further expansion of the budget market anticipated.
-low-income communities, significant demand for improved health care.
-zero-tariff policy that makes it an attractive market moving forward.
R&D Department - answer Responsible for creating new products AND managing
existing offerings.
-Success depends on your ability to understand customer needs and communicate with
other departments.
-must work closely with the *Marketing* department because they provide info on what
your customers really want so that R&D can identify the best product specifications to
meet those needs, while coordinating project timelines and managing development
costs.
R&D Department - provides information on... - answer -products
-customers
-competitors
-cost of your decisions
R&D Department - 4 product specifications - answer 1) speed
2) accuracy
3) service life
4) age
(price is determined by Marketing)
For existing products, adjusting accuracy or speed will cut the age of your product in
half. The update causes customers to see that it is newer.
By reducing a product's Service Life... - answer your product will have a lower
material cost. Since Budget customers don't place a heavy demand on Service Life, it
may be wise to reduce that figure.
-each 1,000 hours of Service Life adds $0.30 to the material cost. Customer prefer
products towards the top of the range.
Region Kits - answer -boost demand in an area by 10% compared to the
competition, but add 3 months of development time to add/remove and 15% in material
cost per unit.
, -In the case that all six companies offer kits to a specific region, there will be no
advantage in customer demand for any team.
Age - answer modified products cuts age in half
-only decisions changed for Speed or Accuracy cut the age in half. Changes to Service
Life and Region kits have no impact on the perceived age.
Customers in EACH market segment continuously expect... - answer faster and
more accurate products.
-Each company must innovate and update products!!
Budget Customer? - answer -considers *price* and *age* above positioning
Marketing Department - answer Responsible for forecasting sales, promoting both
the products and brand, as well as pricing and selling your products.
-The Production Department uses these forecasts to determine how much of each
product line to manufacture, and your Finance Department uses these forecasts to
generate your proforma financial statements.
Marketing Department Decisions: - answer 1) *Setting the price* - for each product in
each region, marketing must determine the appropriate balance between customer
price expectations and your company's margins.
*currency exchange rates change each year AND are different from region to region.
2) *Sales Forecasting* - very important. Accurately forecasting your product's sales will
have a direct impact on your bottom line.
-must submit a *Best Case* and *Worst Case* forecast for each product in each region.
-forecast how well *customers* will embrace your products
-forecast how your products compare with *competition*.
Marketing Department Decisions (cont) : - answer 3) *Awareness and Accessibility* -
in charge of promo and sales budgets. How much you spend on your promo budget
directly affects your customer's awareness of your product. The amount you spend on
your sales budget is reflected in how accessible your product is to your customers.
2 ways to invest in this - *Product* and *Regional*
-In the products panel you can invest in *Promotion*, which impacts Awareness, and in
*Sales*, which impacts Accessibility.
4) *Customer Needs* - Customers in budget and performance sections have different
expectations as do customers from region to region. Each product will have a customer
satisfaction score (the higher the score, the more likely the customer is to purchase the
product).
Promotion - answer Product Promotion makes up 70% of your total Awareness,
while Regional Promotion makes up the remaining 30%.
-Each year, your Awareness and Accessibility will reduce by 1/3 from the prior year.
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