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WINNERS' STRATEGY:
Capstone® Business Simulation winners
will make a long term strategy for their
industry. The buying behavior and market
growth rate is known for each segment.
In this electronic sensor industry each
segment has a unique customer with
unique aspiration in terms of Age,
Price, MTBF and Positioning. Based upon
that, they would decide which segment
they would have more than one product or
may exit from a segment. They would like
to know, as early as possible, how eight
of their products shall be distributed
across five segments in round 8. That
will help them in aligning their
business decisions across functional
areas over the years. All
businesses shall have a strategy!
INTERNAL BUSINESS PROCESS: Now,
they will acquire basic tools of doing
business. In Capstone®, they will invest
in automation, build awareness and
accessibility for their products,
position their products in the Ideal
spot year after year in each segment
while meeting the buying criteria
requirement relevant for that segment.
They would invest in TQM and HR. Very
importantly, they will optimize plant
capacity i.e. they will not carry a
plant capacity that they do not need
immediately. These tools help in
expanding the demand for the product and
in increasing the gap between price and
the cost. All businesses, sooner
or later, shall acquire these basic
tools of doing business!
LAST MILE: The Strategy and Tools
of business are in place. Now, it is
time for marriage between the market
aspirations and the business’ financial
intents. It will boil down to who
extracts the most intelligence from data
that comes along year after year.
Quality of competition analysis and
decisions taken thereof, shall decide
the winner. It will require accurate
forecasting backed by a robust resource
planning model to win in the market
place. A combination of short term
strategies, in alignment with the long
term plan, may prove to be a winner.
Based upon my product offering in the
market place vis-a-vis other products in
the market I should come up with a great
forecast. Winners will usually not have
a major stock out and inventory return.
Capacity and Demand analysis will be
critical elements in making forecast
decisions for each product.
Only few, THE WINNERS, will have the
last mile excellence!
WINNERS SHOULD HAVE:
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optimum
plant capacities |
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high
plant utilization |
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high price realization |
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minimum inventory return |
Above mentioned are some basic tips
that will form part of winners’ strategy
in Capstone® Business Simulation.
Industry to industry, based upon quality
of competition, the challenges in the
simulation could be very different that
will require unique mix of strategy
(short term and long term) and tactics
just as in real business environment. |