Course Intro & Overview

1. University of Alaska-Anchorage * College of Business & Public Policy * Marketing Management Simulation* Course Intro & Overview

2. Professor Ed Forrest • Telephone: (cell) 854-8784 • Email: ejforrest@ uaa.alaska.edu • Website: http://www.cbpp.uaa.alaska.edu/afef/

3. 5 Things: • What course is not… • What course is… • What you will learn… • What learning tools you’ll use… • Begin Assessing Your Situation

5. Lecture-Learning

6. Learning / Retention 5% 75+%

8. 5 Things: • What course is not… • What course is… • What you will learn… • What learning tools you’ll use… • Begin Assessing Your Situation

10. THE CAPSTONE SIMULATION Most widely used Business – Simulation Program in the World • Adopted by major Fortune500 companies ..General Motors, General Electric, Honeywell, Dell, John Deere, Citibank, Alcoa, BP, Allstate, Samsung, Goldman Sachs, Microsoft…

11. You Da’ Boss …run a $100M business ….

12. YOUR JOB: • Take on every key Mgt. position in your Company • Make 100+ intertwined decisions necessary to create, produce & successfully market your products…

13. YOU… • Analyze the market, consumer, your company & competitive situation • Discern & implement your corp. growth & competitive strategies • Must make & integrate decisions in & across all functional areas(Marketing, Research & Development, Production, Human Resources & Finance).

14. Your Product Line: SENSORS:

15. Concepts & Processes Equally Applicable If Simulation ServiceBased: • Instead of Sensors Sold--Units of Production= • Customers served • Seats sold • Rooms rented • Patients seen • Members joined • Donations raised

16. Simulation proffers you opportunity to experience every key dimension of strategic thinking developed to date: Strategic Thinkingthe ten big ideas

17. You will Compete against other members of this class –running 5 other Corp’s …. • Andrews • Baldwin • Chester • Digby • Erie • Ferris

18. Plus… your decisions & business performancewill be compared against 1000+ other teams competing at other universities… around the world

19. & How –to date--have we fared in this World-Wide Competition??

20. 2001 Top Ten Teams, World-Wide, for Round 8 • Top Ten Teams, World-Wide, for Round 8 by success measurement There are currently 940 active teams that have played Round 8. For a team to make this list: Cumulative Profits above 0 Overall Market Share (in dollars) greater then 5.0% Asset Turnover less then 8.0 Profit for Round 8            Round 8 - Mean - $ 25,324,003 • Top Ten Active Teams   Professor School/Course Simid Team Value • 1 Dr. Minu Afza College of Business - Bloomsburg University93 481 Business Policy & Strategy CAP1742 Digby $ 238,235,245 2 Mr. Bill Gardner Penn State University -Fayette CampusContemporary Business Seminar CAP1513 Andrews $ 193,853,427 3 Dawn DeTienne University of Colorado at BoulderSenior Seminar CAP1656 Andrews $ 184,258,599 4 Prof. Howard Feldman University of PortlandManagerial Decisions and Policy-Undergrad B CAP1787 Erie $ 181,422,390 5Dr. Ed ForrestUniversity of AlaskaMarketing Management CAP1611 Baldwin $ 163,281,864 6 Dr. Eric Wiseman University of Colorado at BoulderBusiness Senior Seminar CAP1818 Chester $ 157,930,382 7 Dr. Murrow Drury CollegeStrategy and Policy Formulation CAP1838 Erie $ 149,235,238 8 Dr. Pettus Millikin UniversityBusiness Policy CAP1748 Baldwin $ 147,967,873 9 Doug Mayer Hartwick CollegeManagement VII-secA CAP1811 Digby $ 137,339,216 10 Dr. Bruce A. Schooling Point Loma Nazarene UniversityStrategic Management CAP1794 Digby $ 121,289 5th

21. 2003 Top Ten Teams, World-Wide @Rnd 8 • For a team to make this list: Cumulative Profits above 0 Overall Market Share (in dollars) greater than 6% Asset Turnover less then 8.0 Your class was ranked: with 711 Capstone ® teams completing round 8 by Apr 12, 2003. teams per game of 6 Category: All • URL: http://www.capsim.com/prof/viewtopten.cfm?round=8&simid=C4806&version=KDate/Time: 04/12/2003 10:07:35eNote: • Text:Cumulative Profit for Round 8 - Mean - $ 125,355,000 Top Ten Active Teams   Professor School/Course Simid Team Value 1 natalie marsh Strayer UniversityBusiness Policy & Strategic Planning C4779 Baldwin $ 459,411,986 2 John Hall University of FloridaGlobal Strategic Management I2MBA 2002 C4923 Baldwin $ 386,472,583 3 natalie marsh Strayer UniversitySenior Seminar - Business Administration C4778 Erie $ 382,697,422 4 Peter Stanwick Auburn UniversityStrategic Management C5095 Chester $ 353,185,127 5 John Pearce Villanova UniversityPolicy Administration C5033 Ferris $ 348,535,130 6 Gavin Fox Georgia Southern UniversityBUSINESS SIMULATION C5041 Digby $ 343,761,703 7 Shirley Schooley Birmingham-Southern CollegeStrategic Management Senior Project Course Sec B C5356 Digby $ 341,865,002 8 natalie marsh Strayer UniversitySenior Seminar - Business Administration C4778 Ferris $ 339,568,171 9Edward ForrestUniversity of AlaskaMarketing Management C4806 Chester $ 333,620,19810 Donald Kreps Kutztown Universitymba capstone C4797 Digby $ 327,188,363 9th

22. 2005 - #1

23. 2006-5th

24. and8th

25. 2007 3rd

26. Fall 2009 #1 in the world!

27. And Stock Price

28. Spring 2010

29. Spring 2010

30. Fall 2010

31. Spring 2011 v

32. Fall 2011

33. Your Industry C58880 was ranked:·  with 1089 Capstone teams·  completing round 8·  by Nov 22, 2013 Fall 2013

34. Fall 2013

35. Fall 2013

36. 5 Things: • What course is not… • What course is… • What you will learn… • What learning tools you’ll use… • Begin Assessing Your Situation

37. …success contingent on strategic integration of decisions across all domains

38. your “study” of business … piece-meal and in isolation!

39. Marketing R&D HR Production Finance

40. Product Place Target & Position Price Promotion You formulate - Marketing Mix & calibrate relationships between: As MARKETING MANAGER Planning, implementing & controlling your marketing strategy • Price & demand • Price & margin • Promotion budget & awareness • Sales budget & accessibility • A/R policy & demand

41. Set price of your products in the marketplace • Set the sales forecast for our products • Set Credit Policies AR/AP • Build customer awareness through promotion • Establish a sales force and distribution channels

42. Marketing also selects media vehicles & message weights • AND determines composition of sales/distribution staff ..and allocation of their efforts by segment & Brand

43. A B Performance As R&D Mgr SIZE Responsible for: • Product Position • Age & Quality • New product development High High Eight < < < Low Low One Quality Age Prdt Line

44. Establish product positioning to meet customer demand • Build quality & reliability (MTBF) into products • Create new products • Ensure age of product meets customer demands Drift

45. As Production Mgr: • Set automation levels • Buy / sell capacity • Schedule production • Drive Productivity

46. Schedule production for each line • Buy or sell capacity of product lines • Purchase machinery to automate our facilities • Establish your workforce complement

47. As Human Resource Manager--Responsible for: • Recruitment, Hiring, Training & Firing of all labor • 2 groups: • Assemblers • Technicians • Wages • Benefits

50. As FINANCIAL MANAGER • Acquire Capital • Issue Stock • Short Term Debt • Issue Long Term Bonds • Set Dividend • Retire Long Term Bonds • Retire Stock • Responsible for Emergency Loans Big AL The Loan Shark