Hi Brandon, thank you so much for this tutorial. You totally opened my eyes and helped me fill the gaping holes in my understanding. I will be sharing this with my team; I hope that they watch it all the way through like me. Now I'm off to explore the rest of your channel to see if you have any other videos on Capsim wisdom!
Hi Dr. Griffin, thank you for your videos. I shared this with my group but we are still a bit confused. We currently have no inventory on hand and we are not sure what would be the next move? Could you help, please?
No inventory means that everyone bought them all! Either you produced too little or they were very popular (or both). Produce more (look at your potential market share for an idea). But don’t overdo it.
@@BrandonPhD Thank you for your quick response Dr. Griffin. We based our unit sales forecast on the potential market share. Now we just want to figure out the production schedule since we don't have any inventory on hand.
Based on what strategy are you making decisions? Cost leadership Differentiator Niche cost leader Niche differentiator Cost leader with product lifecycle focus Differentiator with product lifecycle focus.
Hello again Dr. Griffin. Wondering if you could kindly advise my group and me on how much should we be considering or if we should be issuing Long-Term Debt? I wish I could show you our Finance numbers but it looks like we can't add any images onto comments.
Hi, Im an Economics student of Instituto Tecnologico de Santo Domingo (INTEC)... Just wondery of how can I play capsim alone or with friends? and If this is possible. Do I need to buy a membership or something?
Could you explain how to increase the score for leverage on the balance score card, I currently have 0/8 and we don't have any loans , but my overall score is 80/100
Thanks, Brandon. Very useful. If i can suggest, it would be nice if you could talk about strategy before we start. Do we want to be a cost leader, a broad differentiator, a niche differentiator etc. This would help with the overall decisions, product mix , planning and so on.
Thanks for the suggestion. My strategy focuses on a Broad Differentiator Strategy. I offer high-quality, innovative products across multiple segments while maintaining some price competitiveness. I aim to differentiate my products through performance, reliability, and features while not ignoring price sensitivity altogether.
When I did what you did in the production round with capacity it made my financials negative! Or was that due to the same marketing decisions because yours was originally positive estimated cash flow next year? How can I get back to ground 1 after recalculating?
Good afternoon, Professor. I'm sorry for reaching out again - your notes and videos explain things clearly. I just had a clarifying question regarding why you use actual market share instead of potential? I know potential, well.. is the potential mkt share that should be earned in a perfect setting. My question is would it be wise to use potential market share in segments where it is high instead of actual market share in our forecasting, while, of course, adjusting with an appropriate growth rate (I know there is no perfect answer to a evolving simulation, but does the thought process make sense to some degree?) Our group have been stocking out so I wonder if the adjustment may provide some remedy to our issue.
I typically tell people to use an average of actual and potential, but that is conservative. If you keep selling out, produce more. But beware of inventory costs.
This is a broad differentiation strategy where we also try to be price competitive. Go to my website and use the resources, they should act as a guide to help you in the successive rounds.
Why can't I find the Getting started choice - on left menu? Mine starts with "Dashboard"? I must be blind because I also cannot locate the "IDEAL SPOT" location refrerenced.
Thank you for the explanation, it has helped me a lot, but I still don't understand the strategy for Production and Finance. How can I define a strategy for my 8 rounds?
42:10 You say, "lets look at our production schedule", did you mean production forecast? Trying to determine which numbers to match exactly. Should 1st shift match production schedule or production forecast?
Can the forecasting excel sheet you provided in the video be used for every round? Currently using a forecasting method that involves customer survey to achieve a best and worst case forecast - I am curious to see how you came up with your formula, @BrandonPHD
@@BrandonPhD Thank you for the reply. To your point, I have been adjusting the market-share/growth rate based on the courier and personal preference each round, respectively. I will check out the other videos out. Again, thank you!
Hey Brandon, this video is the most helpful I have found by far. I'm wondering if you have videos or sell a course past round 1, as I am still a bit confused regarding decisions. Also at 7:43 you bring up the segment table, are those numbers ideal for each R & D round or just an example? Thanks again.
No courses, but there is a bunch more material if you follow the link in the description. The R&D from the situation analysis is the ideal spot for the entire game. No guesswork… that is what the ideal spots are. Just remember to factor in age (gets cut in half each product change), and other factors.
@@BrandonPhD Thank you for clarifying. What I am struggling with now is production. In your example, Acre has a production schedule of 1820, and your first shift capacity is 1400. Would it be wise to add around 400 to the capacity? Every time I add a significant amount of capacity it devastates my profits. What do you recommend when the Schedule is much higher than production? Thanks again, you have been a lifesaver. 🙌
@lukeredrow4576 Production and capacity are the hardest things about capsim. You always want to be using overtime, but you also need to be adding capacity to keep up with your growth. Maybe add 10% as an estimate (assuming you think you will grow by 10% next year).
So for example, if my first shift capacity is 1,700 then do I have the capability of producing up to 3,400 units by using the second shift? Is there a financial loss to this?
Your goal is to use a little bit of overtime (2nd shift). Maybe 125-150% of 1st shift capacity. But you have to balance current needs with future demand.
Hi this video is so helpful! I do have a question tho. When calculating production forecasts for the next rounds after round 1, what should we assume our growth percentage is gonna be or how do we calculate that? Thanks in advance!
That depends… that is the hard part. Try something like 15%. If you have too much inventory, reduce it. If you don’t have enough, keep it the same. Realistically, you will not grow 15% per round forever. There is no formula for forecasting, it is an “educated” guessing game.
Hi Brandon!, I do love all of your Capstone tutorials , they literally help me a lot to deal with the capsim competition at my uni, thank you so so much. I hope you might release your new tips and tricks about capsim like TQM or how to deal with the labour when they are going to protest. Have a nice day! and thak you again, I truly appreciate your vids!
That is a rough estimate. You want to grow, and I assumed the first year it would grow by about 20%. This just came from my experience. If you have too much inventory at the end of the year, that means 20% is too high. If you sell out, 20% is likely good, or you need to produce more (look at potential vs actual). The hard part about capsim is that it is dynamic. There are no hard and fast rules (just like in business).
@@BrandonPhD During our round 1 results we had our unit inventory at 0 which means we sold out of everything. We used 20% so does that mean we should use a higher percentage? How are we able to increase production? T.I.A
@@stephaniebravo2077 think about this, you cannot grow 20% forever, additional production means making more units. You can pump it up to 25% but anything more than that is way too high to sustain for very long.
Thanks alot. This brings back my interest in learning Capsim because I was very discouraged at first.
Thanks SOOOOO much for these vdos on the CAPSIM simulation. These helped me tremendously!
Hi Brandon, thank you so much for this tutorial. You totally opened my eyes and helped me fill the gaping holes in my understanding. I will be sharing this with my team; I hope that they watch it all the way through like me. Now I'm off to explore the rest of your channel to see if you have any other videos on Capsim wisdom!
For some reason I can't find rounds 2-8😂
Thank you so much for giving such a clear explanation of the steps in the Capsim game. I feel much better about it now!
Thank you so much for clear and simple step by step instructions. Got some confidence on Capstone now 😊
Hi Dr. Griffin, thank you for your videos. I shared this with my group but we are still a bit confused. We currently have no inventory on hand and we are not sure what would be the next move? Could you help, please?
No inventory means that everyone bought them all! Either you produced too little or they were very popular (or both). Produce more (look at your potential market share for an idea). But don’t overdo it.
@@BrandonPhD Thank you for your quick response Dr. Griffin. We based our unit sales forecast on the potential market share. Now we just want to figure out the production schedule since we don't have any inventory on hand.
@anavillarreal5107 Produce how many units you expect to sell, with perhaps a slight buffer. Use the formulas given as a general guideline.
@@BrandonPhD Thank you Dr. Griffin for your help and quick response.
Based on what strategy are you making decisions?
Cost leadership
Differentiator
Niche cost leader
Niche differentiator
Cost leader with product lifecycle focus
Differentiator with product lifecycle focus.
Link to the CapSim Help files! psychologyofbusiness.beehiiv.com/p/capsim-materials
You have been an absolute gem. Thank you so much for this
Hello again Dr. Griffin. Wondering if you could kindly advise my group and me on how much should we be considering or if we should be issuing Long-Term Debt? I wish I could show you our Finance numbers but it looks like we can't add any images onto comments.
Rounds 1-4 you can get into debt, rounds 5-8 try to pay off debt and maximize profitability.
Thank you for a superb explanation. I shared this with my team in my MBA program.
Awesome! Out of curiosity, which school?
@@BrandonPhD Ohio University
Hi, Im an Economics student of Instituto Tecnologico de Santo Domingo (INTEC)... Just wondery of how can I play capsim alone or with friends? and If this is possible. Do I need to buy a membership or something?
Typically, it is given as an interactive assignment for a class. Go here for more information: www.capsim.com/.
So if I’m in round 3 right now, I should update Low End to Round 7’s ideal spots? And this is the only time I will change Low End’s R&D?
If you haven’t touched performance and size at all, then most likely.
still kinda confused on how to get current capacity calculation
Do you have an email address where i can reach out? Really needing some help?
21:35 Marketing
Could you explain how to increase the score for leverage on the balance score card, I currently have 0/8 and we don't have any loans , but my overall score is 80/100
Leverage can be difficult it really depends on the situation. If you have too much in assets try increasing dividends and doing stock buy backs.
Do you have an email address where i can reach out? Really needing some help?
Thanks, Brandon. Very useful. If i can suggest, it would be nice if you could talk about strategy before we start. Do we want to be a cost leader, a broad differentiator, a niche differentiator etc. This would help with the overall decisions, product mix , planning and so on.
Thanks for the suggestion. My strategy focuses on a Broad Differentiator Strategy. I offer high-quality, innovative products across multiple segments while maintaining some price competitiveness. I aim to differentiate my products through performance, reliability, and features while not ignoring price sensitivity altogether.
Excellent. Thanks. This is a good strategy.
Great Video!
Thank you good sir!
Hi how do you calculate the number for the ideal spot?
Hello. Please watch the situation analysis video on my channel.
When I did what you did in the production round with capacity it made my financials negative! Or was that due to the same marketing decisions because yours was originally positive estimated cash flow next year?
How can I get back to ground 1 after recalculating?
Good afternoon, Professor. I'm sorry for reaching out again - your notes and videos explain things clearly. I just had a clarifying question regarding why you use actual market share instead of potential? I know potential, well.. is the potential mkt share that should be earned in a perfect setting. My question is would it be wise to use potential market share in segments where it is high instead of actual market share in our forecasting, while, of course, adjusting with an appropriate growth rate (I know there is no perfect answer to a evolving simulation, but does the thought process make sense to some degree?) Our group have been stocking out so I wonder if the adjustment may provide some remedy to our issue.
I typically tell people to use an average of actual and potential, but that is conservative. If you keep selling out, produce more. But beware of inventory costs.
@@BrandonPhD Thank you for the swift response! I will take note of inventory costs. Although it is conservative, better safe than sorry!
my capsim starts with High and Low tech but I only have one product to begin with. Do I make a new product for one of the low or high techs?
I have had the same question.
I'm also confused about this too
Thanks a lot, so helpful.
Would you be able to go over the next few rounds I’m needing some help! Also whag strategy did you use?
This is a broad differentiation strategy where we also try to be price competitive. Go to my website and use the resources, they should act as a guide to help you in the successive rounds.
@@BrandonPhDsorry sir but the link on your website is appearing dead for me. Any solution?
psychologyofbusiness.beehiiv.com/p/capsim-materials
Why can't I find the Getting started choice - on left menu? Mine starts with "Dashboard"? I must be blind because I also cannot locate the "IDEAL SPOT" location refrerenced.
Thank you for the explanation, it has helped me a lot, but I still don't understand the strategy for Production and Finance. How can I define a strategy for my 8 rounds?
42:10 You say, "lets look at our production schedule", did you mean production forecast? Trying to determine which numbers to match exactly. Should 1st shift match production schedule or production forecast?
Can the forecasting excel sheet you provided in the video be used for every round? Currently using a forecasting method that involves customer survey to achieve a best and worst case forecast - I am curious to see how you came up with your formula, @BrandonPHD
Yes but you have to adjust assumptions. It’s based on market share. I go into it in this and other videos.
@@BrandonPhD Thank you for the reply. To your point, I have been adjusting the market-share/growth rate based on the courier and personal preference each round, respectively. I will check out the other videos out. Again, thank you!
@@Leinad304 Good luck! Forecasting is an art and a science. It is IMPOSSIBLE to do perfectly... :)
Please how can I get a past business simulation report for a registered company?
Can you upload that google/excel file
psychologyofbusiness.beehiiv.com/p/capsim-materials
Hey Brandon, this video is the most helpful I have found by far. I'm wondering if you have videos or sell a course past round 1, as I am still a bit confused regarding decisions. Also at 7:43 you bring up the segment table, are those numbers ideal for each R & D round or just an example? Thanks again.
No courses, but there is a bunch more material if you follow the link in the description. The R&D from the situation analysis is the ideal spot for the entire game. No guesswork… that is what the ideal spots are. Just remember to factor in age (gets cut in half each product change), and other factors.
@@BrandonPhD Thank you for clarifying. What I am struggling with now is production. In your example, Acre has a production schedule of 1820, and your first shift capacity is 1400. Would it be wise to add around 400 to the capacity? Every time I add a significant amount of capacity it devastates my profits. What do you recommend when the Schedule is much higher than production? Thanks again, you have been a lifesaver. 🙌
@lukeredrow4576 Production and capacity are the hardest things about capsim. You always want to be using overtime, but you also need to be adding capacity to keep up with your growth. Maybe add 10% as an estimate (assuming you think you will grow by 10% next year).
@@BrandonPhD 🙏
So for example, if my first shift capacity is 1,700 then do I have the capability of producing up to 3,400 units by using the second shift? Is there a financial loss to this?
I dont have a traditional segment on my capsim :(
also what if there is a large variance between production forecast (3850) and 1st shift capacity (2530)??
Your goal is to use a little bit of overtime (2nd shift). Maybe 125-150% of 1st shift capacity. But you have to balance current needs with future demand.
Did they recently change or tweak the program layout? I also cannot find industry report following your tutorial ? I'm sorry to bother you.
The industry report is under help & support :)
where does get get the 16% from the year before
for production you used he low end stats bu updated able... should it have been acre?
I mention low end but I was continuing the calculation from traditional… I believe!
Hi this video is so helpful! I do have a question tho. When calculating production forecasts for the next rounds after round 1, what should we assume our growth percentage is gonna be or how do we calculate that? Thanks in advance!
That depends… that is the hard part. Try something like 15%. If you have too much inventory, reduce it. If you don’t have enough, keep it the same. Realistically, you will not grow 15% per round forever. There is no formula for forecasting, it is an “educated” guessing game.
@@BrandonPhD That makes sense. Where can i go to check inventory levels and if i have too much or not? Thanks again!
Production and capsim courier.
Hi Brandon!, I do love all of your Capstone tutorials , they literally help me a lot to deal with the capsim competition at my uni, thank you so so much. I hope you might release your new tips and tricks about capsim like TQM or how to deal with the labour when they are going to protest. Have a nice day! and thak you again, I truly appreciate your vids!
Please check out the resources on my website, thank you!
For the production (realistic) forecast formula why did you use 20%?
That is a rough estimate. You want to grow, and I assumed the first year it would grow by about 20%. This just came from my experience. If you have too much inventory at the end of the year, that means 20% is too high. If you sell out, 20% is likely good, or you need to produce more (look at potential vs actual). The hard part about capsim is that it is dynamic. There are no hard and fast rules (just like in business).
@@BrandonPhD During our round 1 results we had our unit inventory at 0 which means we sold out of everything. We used 20% so does that mean we should use a higher percentage? How are we able to increase production? T.I.A
@@stephaniebravo2077 think about this, you cannot grow 20% forever, additional production means making more units. You can pump it up to 25% but anything more than that is way too high to sustain for very long.
Price
11:00