Capsim Simulation S't'R'a'Te

Topics: Marketing, Product management, Stock Pages: 11 (3387 words) Published: April 6, 2013
MBA798 Capsim Simulation Strategy Plan

Industry C55926

Team members:

Team Digby

1. Organizational Structure
Illustrate in AppendixⅠ
Digby sensor manufacturing company consists of R&D, Marketing, Production, and Finance four main departments. In our team, we have five product managers and one CFO. Product leaders
Daze (Traditional):
Dell (Low-End):
Dixie (High-End):
Dog (High-End):
Dot (Performance):
Dune (Size):
Roles and responsibilities
For product managers, first of all, they need to determine product features in each market segment according to customer buying criteria. For example, in traditional market segment age is the most important product attribute for customers, so Daze manager should revise the positioning and aim to the 2.0 age; in high-end market segment, positioning is the most important, so the manager has to make a product to the ideal spot as close as possible. Second, after positioning the product, the first part of marketing division is pricing and forecasting. Each segment has a different price range, and low-end customers are very sensitive to the price; in contrast, high-end and size are not sensitive to the price. According to the sensitivity, managers make price and cater to the need of different target customer groups. Third, the other part of marketing division is to determine the promotion and sales budget. Marketing is a crucial tool to pull products to customers. The key point is to obtain high level of awareness and accessibility with rational budget. Finally, the production division plans the assembly line running. Managers should consider the sales forecast and inventory units left last year. Our goal is to produce the number of units can satisfy the market demand and carry unsold unit inventory as few as possible. CFO focuses more on the finance department, controlling cash flow, stock, EPS, current debt and long-term debt. After integrating all segment product managers financial budget, CFO determines how much stock and bonds to borrow or retire. After each segment manager presents their recommendations, all final team decisions are made as a team. A team vote would happen to resolve in case of disagreement over a decision. Additionally, new product development or discontinuing a production line will be considered by all the team members, and other overall company strategy decisions Human Resources, TQM will be discussed together.

2. Statement of Vision and Mission
Vision statement
Digby seeks to become an industry-leading supplier of high-quality sensor in every segment to gain competitive advantage. Mission Statement
Digby strives to produce premium products for the market. Firstly, our products keep up with customers’ rising demand by continuously updating design in R&D department. Secondly, Digby constantly improves production efficiency through professional training and increased level of automation. Last but not least, we try to raise customer awareness and accessibility more customers to make them enjoy our product and service through overall market promotion and ample sales budgets. Strategy Objective

* Maintain a minimum of 30% average contribution margin ever year. * Keep a minimum of a 16% market share in every market segment. * Make company stock price to gain at least 7% increase every year. * Pursue a long-term accumulation of profit.

* Keep a sustainable increase of ROA and ROE.
* Retain a sustainable growth of customers’ awareness and accessibility in every product.

3. Business-Level Strategy
Our company Digby will use the Broad Differentiator strategy, contributing efforts to every marketing segment of the Industry. We not only focus on R&D development to keep up with the pace of marketing requirement but also balance our investment in the promotion and sales to increase the awareness and accessibility. Adding new products to the less sensitive buying...
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