Capstone® -Interactive Business
Simulation Seminar
How A/R period impacts sales? How TQM
decisions impact productivity? Who should
decide on R&D effort: R&D or Finance or
Marketing or…Production…or…? How automation
level impacts HR and Finance decisions?
Whether a particular product should be
promoted through print media or email or
direct mail or…? What should be the
preferred mode of raising capital: bond or
equity or short-term borrowing? Why time is
of essence while initiating R&D effort?
Several such imponderables are addressed by
our managers on daily basis…successfully…and
unsuccessfully…
It has been every CEO’s dream to have a
Finance head who also understands utility of
TQM, and a Production head who understands
right A/P policy to ensure continuous supply
of raw material, and an R&D head who takes
care of difficulties faced by marketing
folks, and a TQM head who understands
consequences of raising fresh capital, and a
Marketing head who understands and
appreciates the effort put in by R&D
folks…the list is endless…
In one simulation program participants get
to appreciate impact everyone of these
decisions makes on the overall performance
of a company. The Seminar will teach your
managers about strategic planning,
competitor analysis, internal functional
alignment, market segmentation, product
positioning, finance and teamwork. At the
end of the Seminar, your managers/students
shall come to understand the importance of
strategy in business and shall come to
appreciate the roles played by other
function heads i.e. Finance, Production, HR,
TQM, R&D, Marketing etc. The Seminar creates
simulated environments in which your
managers/students face the problems and
issues common to a business, and develop the
skills they need to solve them.
Why Simulate?
Learning technology has changed. The way
adults learn hasn't.
Studies show we retain less than 20% of what
we see or hear alone, around 50% of what we
both see and hear - but up to 80% of what we
interact with.
In the airlines and the military, wherever
accurate decision-making and good judgment
are critical, simulations are used for
realistic training, without the risk.
Malcolm Knowles, a leading theorist in adult
education, said there were four key elements
to successful adult education programs. Each
of those elements is integral to the Seminar
simulation:
Adults learn best from hands-on,
problem-solving activities: Each team runs a
$100 million company from five to eight
simulated years - making every key decision
from Finance and Production to Human
Resources and Quality Management.
Participants operate in a competitive
marketplace and experience the positive —
and the negative — implications of every
business decision.
Adults must believe the learning will have a
personal benefit: To succeed in business,
managers need applied learning and practical
skills. The Seminar provides the skills,
learning and experiences participants know
they can use, in business, every day.
Adults have lifetime experiences that should
be tapped and built upon: The Capstone®
Seminar simulations are interactive, team
building programs, designed to draw out
existing experience to be shared in a new
environment.
Adults need to apply new knowledge and
skills immediately to aid retention: The day
your managers walk back into their workplace
from a Seminar, they can implement what
they've learned. Your people are in business
and business is what Capstone® Seminar
teaches.
The HR managers world over have been saddled
with the difficult task of getting their
managers out of those silos that have proven
to be many a company’s nemesis. The
Capstone® Seminar simulation has proved to
be a strong tool in the hands of HR managers
in breaking down these Chinese walls among
different function heads in their
organization, leading to greater levels of
productivity and better strategic planning.
Capstone simulation has helped countless
teams and companies achieve co-ordination
level equal to that of an orchestra team.
Most managers have a narrow view of their
company. They know their own department, but
don't really know how that department fits
within the needs of a business. The
Production head knows production, but
doesn't understand Marketing, HR, Finance,
etc. So, his decisions and recommendations
are based on his narrow view, and often are
impractical for the company. The Seminar
teaches managers business, so they have the
broad view, and their decisions and
recommendations are far more realistic and
beneficial. In short, they become much
better managers. Better managers make better
companies. That's why General Electric runs
lots of Capstone® Seminars.
A professor in a mix of software and web
based environment conducts the Capstone®
Seminar to hone business managers’ business
and management skills. It uses a computer
"game" to develop understanding of how
competing companies impact each other in the
market place. The Capstone® Seminar offers
advanced optional modules in Marketing,
Human Resources, and Total Quality
Management.
The Capstone® Seminar simulation has proven
itself to be a CEO and HR manager’s dream
tool. Companies like General Electric,
Boeing, General Motors, Dell Computer,
Honeywell, Caterpillar, Bertelsmann and
Citibank have turned to the Capstone®
Seminar to help their managers hone their
skills and make smarter choices. Besides,
the Capstone® Seminar is conducted as a
‘must’ finalè in MBA programs of over 400
universities, whereby through the Seminar,
in a simulated environment, entire syllabus
is covered.
About the Capstone® Seminar:
Studies show we retain
under 20% of what we see or hear alone
50% of what we both see and hear
but up to 80% of what we interact with.
It creates hands-on environments where
participants learn to run — and coordinate —
several business functions including:
R&D
Marketing
Production
Human Resources
Finance
Total Quality Management
Each team (up to 6 members in each team)
acts as an executive committee responsible
for running an electronic sensor company.
The games consist of two components:
The Web site — where players download
starting market conditions, communicate with
team and class members, and upload their
corporate decisions;
The software — which runs with Microsoft®
Excel. Using the software, players determine
product positioning, price, sales and
promotion budgets, production levels and
financing (stock vs. bond etc.)
requirements.
In addition to using the Web site for
uploading decisions, coordinating with
teammates, and downloading results, students
will find extensive help features. All
instructions are given in simple,
step-by-step form.
Thousands of managers have participated in
the Capstone® Seminar. Managers have rated
cross-functional integration as the top
learning benefit of the simulation. The
Seminar emphasizes the interaction between
the functional areas of an organization.
Research & Development
The Capstone® Seminar allows students to
revise and invent industrial sensors
products. Products are assigned a:
Size
Performance
Reliability Rating
R&D efforts vary in length and cost,
depending on the parameters of the project.
The participants make, inter-alia, following
decisions:
- R&D effort vs. timing of the product to
the market
- R&D effort vs. automation level of the
plant
- TQM practices vs. R&D effort
- Cost benefit analysis of R&D effort
Marketing
The Capstone® Seminar addresses:
Segmentation and Positioning
Product Development
Perceptual Mapping
Customer Purchase Decision Making
The 4 P's (Price, Product, Promotion and
Place)
The participants make, inter-alia, following
decisions:
- impact/no impact of credit period upon
sales
- impact on sales of promotion and sales
budget
Production
The Seminar examines:
Capital (automation) vs. Labor (overtime)
Tradeoffs
Capacity utilization
Margin Analysis
Asset Turnover
Product Introduction
The participants make, inter-alia, following
decisions:
- impact of supplier’s credit period on
production schedule
- TQM practices vs. automation
- Labor contract vs. automation
- HR practices vs. production/productivity
Finance
The Seminar produces:
Balance Sheets
Cash Flow Statements
Income Statements
Students examine capitalization using both
stock and bond markets, and explore ratio
analysis in detail.
Action Learning at its Best
The Capstone® Seminar Builds Analytical and
Competitive Analysis Skills
The results of each round are published in
the industry newsletter.
Minimum Printed Material
All simulation rules and scenarios are
presented in easy-to-digest booklets.
Support documents include handouts,
worksheets and help files.
Results
After the simulation rounds are processed,
students see the consequences of their
decisions.
Experience
Group process is at least as important as a
team's strategy. The Capstone® Seminar
offers methods for groups to organize by
function, by product, by segment, or as a
board of directors. Much thought has gone
into shaping the conversations within a
team. For example, tactical questions are
resolved through what-if analysis, while the
spreadsheets graphs and charts foster
discussion of the strategic implications.
The Web site includes several additional
resources:
Team Developer Exercise
Peer Evaluation System
Five-Factor Personality Scale
Bonus Questions
Team and Class Conferences
Site Email System
STRATEGY:
Strategy is the central theme of the
Simulation. The participants shall have
comprehensive exposure to Financial and
Business strategy. Under Financial strategy
they shall have the option to select anyone
or a combination of more than one from the
following as their primary, secondary… goal:
- high stock price
- high market cap
- high return of sales
- high return on equity
- high return on assets
- high net profit
- high asset turnover
- high market share
The participants shall determine, at the
beginning of the Seminar simulation, how
much weight to be given to each of the above
goals while evaluating their performance at
the end of the Seminar simulation. In other
words, they decide their own evaluation
criteria.
Under Business strategy the participants
shall have the option to pursue anyone or a
combination of more than one from the
following as their business strategy:
- cost leader with a product life cycle
focus
- differentiation strategy with a product
life cycle focus
- broad cost leader
- broad differentiation
- niche cost leader
- niche differentiation
Participants shall learn to dovetail their
financial goals with their business strategy
and vice-versa. They shall come to acquire a
strategic mindset towards business instead
of merely looking at it from their function
angle.
LOGISTICAL DETAILS:
Each Capstone® Seminar consists of maximum
eight rounds. Recommended number of rounds
per Seminar is minimum four rounds to
maximum eight rounds.
Several Seminars can be conducted
simultaneously.
Each Round is equal to one financial year
i.e. if a team plays 8 rounds they would
have run their Company for 8 years.
Each Seminar ‘theoretically’ can last up to
a year i.e. eight rounds to be completed
over a period of one year. It is recommended
that a Seminar be completed between 1 to 8
weeks to get the best benefit out of it.
Each Seminar can consist of maximum six
teams. It is recommended that at least one
of the six teams to be the Computer, the
remaining to be formed by the
managers/students.
The Teams participating in the Seminar
may/may not be located at multiple
locations.
Each Team is comprised of a maximum number
of six managers/students. A team size of
four to five is considered optimal. Further,
it is recommended that each team member
takes up different functions in each round
i.e. first round marketing, second round
finance…and so forth...and manages different
market segment.
Each Member, in a team, is assigned a unique
password/ID tied to his/her team.
Number of market segments is five.
Starting number of products per team is five
i.e. one product in each market segment.
Maximum number of products per team is eight
i.e. teams can introduce up to three new
products in market segments of their choice.
REQUIREMENTS:
- Participants should be familiar with basic
concepts of business, finance, marketing
etc.***
- Participants should be familiar with usage
of desktop/laptop and Internet
BENEFITS:
Among other benefits, managers will:
Study And Understand The Elements Of
Business Planning.
Study And Understand External Factors That
Effect Business.
Study And Apply Business Terminology.
Identify And Analyze The Internal Functional
Areas Of Business.
Study And Understand Basic Principles Of
Business Finance.
Understand And Conduct Competitor Analysis.
Experience The Effects Of Business Decision
Making Through Simulation.
Analyze And Understand The Various Elements
Of Swot Analysis And Strategic Planning.
Study The Application Of Functional Area
Alignment In Support Of A Strategic Plan.
Develop Critical Thinking Skills And
Experience Business Decision-Making From a
Long-Term, Senior Manager’s Perspective.
Understand Components Of Competitive
Intelligence And Practice Competitor
Analysis.
Improve Team Skills.
Identify And Apply Principles Of Brand
Management.
Identify And Describe The Marketing Role In
New Product Development And Release.
List Components Of Competitor Intelligence
And Practice Competitor Analysis.
Identify And Utilize Activities Associated
With Product Sales And Distribution.
Identify And Utilize Activities Associated
With Product Promotion.
Study And Understand The Integration And
Application Of Marketing With Other
Functional Areas Of Business.
Managers are more aware of the central
importance of strategy in driving business
decisions.
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***It is desirable that the participants
are familiar with basic business
concepts so that they derive the best
benefit out of it. However, the
Capstone® Seminar web site (www.capsim.com)
provides comprehensive information on a
wide range of business concepts in an
easy to understand format. |
Financial managers better understand of the
needs and demands of the operational areas
of the business.
Non-financial managers begin to consider the
real financial implications of their
decisions.
Participants learn effective group
decision-making skills
Managers draw useful information and
important analysis out of the data available
on their own and their competitors’
businesses.
Participants have a better understanding of
the way each department’s decisions impact
other parts of the business, and the
importance of working across functional
areas for optimal results.
The Seminar is reckoned as a powerful tool
in breaking down the Chinese walls that
exist among different function heads within
a company.
Thousands of participants tell us that it is
the best training program they have ever
experienced. The Seminar’s unique,
interactive form of experiential learning
makes a substantial difference to the way
they go on to approach their jobs.
Many participants admit, they have been
reviewing financial statements for years
without really understanding their value.
Others say that the course gave them their
first holistic view of their company, and an
appreciation for how the different elements
impact upon each other. Some of the comments
are:
“The simulation allows you to live the
financials, rather than just learn about
them.”
“It taught me how important it is to stick
to strategy.”
"We get a vast array of data, this has
helped me to extract the real lessons from
it.”
“I can't believe that we could be risk
averse even in a risk free environment!”
“I learned the value of going in hard.
There's no point having a strategy if you
don't go all the way.”
“This taught me the many areas of law we
must be aware of daily.”
“The course, being not in legalese helped me
to understand why I need to take a 'stop,
look, listen' approach to so many issues.”
I think I represent the sentiments of
the team when I say that you did a great
job for us. Your presentation/simulation
was terrific, entertaining, and yes, I
think we even learned something!
(...quite a lot, actually — and perhaps
more about ourselves than we expected)
Taking it to Round 8 was above and
beyond, but it introduced an interesting
"virtual," and difficult time
management, aspect to the simulation
that didn't previously exist.
Kevin M. Hanrahan
Corporate Information Services
General Electric
Support from sansRisk and MSI:
sansRisk
shall conduct the Seminar all the way
from introduction to conclusion. Among
other support services, sansRisk
shall undertake following:
Offline:
-
Initial
briefing to the participants covering
various strategies that are available
to the participants
-
Familiarization with the Seminar
software and website services
-
Distribution of Seminar manual etc.
-
Debriefing session with students upon
completion of Seminar
-
Debriefing session would, inter-alia,
involve analysis of each team’s
performance and Q&A.
-
Online:
-
Allotment of individual password/ID
-
Web
based support-cum-interface i.e.
results processing, communications,
scheduling of various events during
the Seminar, monitoring/supervision of
Seminar
Interaction:
Throughout the
Simulation, Prof. on the web shall
interact with the participants, round
after round. This interaction is highly
customized to participants’ role profile
and industry they belong to.
Besides, Management Simulations Inc.,
USA
, who owns the Capstone simulation,
shall provide comprehensive assistance,
if necessary, throughout the simulation
to each participant through email or
telephone.
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