Capsim Quiz 2

Question 1

Which segment moves slower

Answer 1

Low Tech Segment

Question 2

What is the drift rate?

Answer 2

Rate at which the segment moves (monthly)

Question 3

What is the ideal spot

Answer 3

Point of the segment where all other things being equal demand is at its highest

Question 4

What does the marketing department do?

Answer 4

-Forecasting sales

-Promoting both product and brand

-Pricing and selling your product

Question 5

How does the finance and production department use the sales forecast

Answer 5

Production: how much of each product to manufacture

Finance: develop proformas and expected cash position

Question 6

What do the country tabs show in the marketing department?

Answer 6

-Displays the product and information on that country

-Important because customers from different regions place different levels of importance on product aspects

Question 7

What do the marketing charts show?

Answer 7

-Info on the company and business environment

Question 8

How is the price set in a foreign country?

Answer 8

-per unit in local currency

-also shown the conversion to usd

Question 9

What does promotion budget determine?

Answer 9

-determines a products level of awareness

Question 10

What does a products awareness reflect?

Answer 10

-The number of customers who know about your product

Question 11

What % of customers who knew about your product previously forget it?

Answer 11

33%

Question 12

Formula to find CY starting awareness

Answer 12

Last Year’s Awareness - (33% * Last Year’s Awareness) = Starting
Awareness

Question 13

How do you view your awareness?

Answer 13

Within the marketing department interface

Question 14

What % is awareness increased by when you create a new product

Answer 14

-25% for new buzz

Question 15

What does a segments sales budget determine?

Answer 15

-Segment accessibility

Question 16

What does segment accessibility represent

Answer 16

-number of customers who can easily interact with your company

Question 17

Channels customers can interact with your company.

Answer 17

-salespeople, customer service, delivery

Question 18

What happens if your sales budget drops to 0

Answer 18

-you lose one third of your accessibility every year

Question 19

other accessibility and awareness calculation

Answer 19

Starting Accessibility + Additional Accessibility from Sales Budget Curve =
New Accessibility/awareness

Question 20

How do products in the same segment get a boost to accessibility

Answer 20

-as if you were investing in each

-1,500 = 3,000 if you have two products in a segment

Question 21

Differences between accessibility and awareness

Answer 21

Accessibility (sales budget)

-during and after the sale

-spent on distributions, order entry and customer service

-affects the segments

Awareness (promotion budget)

-Before the sale

-spent on advertising and public relations

-affects the product

Question 22

Two methods to forecast in the simulation

Answer 22

PY actual sales * 1 + segment current round growth rate

PY potential sales * 1 + segments current round growth rate

Question 23

What does potential sales represent

Answer 23

Total units you would expect to sell in a perfect market

Question 24

What does potential sales consider

Answer 24

-product stock out from your company and competitors

-That demand is consistent

Question 25

What does your customer satisfaction score consider

Answer 25

-evaluating each product against the buying criteria -criteria's levels of importance (Positioning) -Awareness and accessibility

Question 26

How do customers in each market view price

Answer 26

differently

Question 27

What happens if your competitor has an equal product that is cheaper

Answer 27

-you will lose market shares

Question 28

How is price in the buying criteria reflected

Answer 28

-reflects local price (sales price after currency exchange rates to usd)

Question 29

effects of exchange rate

Answer 29

-1% transaction fee -appears on cfs as effects of exchange rate changes

Question 30

what is the responsibility of the production department

Answer 30

-manufacturing enough products to meet customers' demands -level of capacity and automation of your production lines

Question 31

What is the first decision you company has to make

Answer 31

moving your production facility to a foreign nation or staying put in the USA

Question 31

USA Stats

Answer 31

Cost to ship 0 defect rate 4% tariff 0% hourly wage $22

Question 32

Germany stats

Answer 32

Cost to ship 2.50 defect rate 2% tariff 5% hourly wage $22.89

Question 33

China stats

Answer 33

Cost to ship 2.50 defect rate 6% tariff 3% hourly wage $19.11

Question 34

Affects of the move

Answer 34

-can only be done in round one -will occur on January 1st of round one -2m dollar cost -capacity and automation remain the same

Question 35

Do you have a cap to plant investments

Answer 35

yes

Question 36

What does capacity determine

Answer 36

number of units a plant can produce

Question 37

how much does each new unit of capacity cost

Answer 37

$6 floor space + ($4 * automation rating)

Question 38

affects of using double shift employees

Answer 38

+ 100% capacity + 50% labor cost as compared to first shift

Question 39

what is automation

Answer 39

-how much you can produce without human labor

Question 40

levels of automation rating

Answer 40

1.0 - 10.0 each point of automation decreases labor by 10% for a max of 90% reduction in lc

Question 41

Downside of automation

Answer 41

increases the time it takes for products to be revised by the R&D department level 10 any change takes at least one year to complete

Question 42

Actual number of units produced

Answer 42

-always slightly less then production schedule -bc of defects

Question 43

Factors to consider when making the move

Answer 43

-plant info -capacity -automation -actual

Question 44

% hourly wages increase every year

Answer 44

5%