Individual Capsim Simulation Report

The Situation Analysis has five areas: Perceptual Map, Demand Analysis, Capacity Analysis, Margin Analysis and Consumer Report. Overall, the Situation Analysis will give you an idea of where the market currently stands and where it will go. My Team in the Overview Page is Baldwin and my name is Sarah Rathel.

1. On the Perceptual Map, all segments drift to the lower right. Which segment drifts at the fastest rate? Which drifts at the slowest?

2. Each Segment’s Ideal Spot shows the buyer’s preferred coordinates within the circle. Why is the High End Ideal Spot to the lower right of the segment center? Why is the Low End Ideal Spot to the upper left of the Low End segment center?

3. On a unit demand basis, the Performance Segment is growing at the fastest rate, 19.8% each year. In which round will demand for Performance products exceed the demand for Size products?

4. Explain how increasing First Shift Capacity can reduce per unit labor costs.

5. Automation reduces per unit labor costs but it has two disadvantages. What are these?

6. A product’s margin is determined by subtracting its manufacturing costs (labor and material) from its price. Logically, higher prices and lower labor and material costs result in higher margins. Keeping in mind the Customer Buying Criteria, how would you increase margins for a Low End product? How would you increase margins for a High End product? Hint: The criteria can be found in the Capstone Courier Market Segment Analyses.

7. The Consumer Report indicates how customers perceive your product offerings. For example, Reliability (MTBF) is very important to Performance customers. What is the current MTBF for your Performance product? Given the desired range for Performance customers (found in the Buying Criteria) how many hours would it need to be raised to receive an "A" on the Consumer Report?

Your paper is to be written in 6th edition APA formatting, and should be no less than 4 pages in length (excluding cover and reference page). Also you should use at least 2 academic references to support your analysis and critical thinking.