Essay on C492 Lecture 1B 2015 CAPSTONE Introduction 1 2

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WELCOME TO
CAPSTONE
BUSINESS
SIMULATION

Professor
Peter Nemetz

Sauder School of
Business - UBC

Objectives
• Demonstrate effectiveness of multi-discipline teams working together.
• Use strategic thinking to an advantage.
• Test your business acumen.
• Understand overall interaction and impact of various parts of a business on one another.
• Grow an awareness of competition.
• Take away practical know-how to improve the effectiveness of your business.

Why Simulate






Risk Free
View Alternative Strategies
Enjoyable
Compresses Time (1 Round=1Year)
Integration

SENSOR
INDUSTRY
OVERVIEW

The Marketplace
Customers
(manufacturers) need sensors for their products
Initially one segment, now breaking into five
Very different customer demands developing between the segments
Diversification in the use and utility of the sensors

The Marketplace
Low
Tech

Performance

Traditional

Size

High
Tech

In our industry we track the changing customer demand on a perceptual map Over 8 years the customers will demand much faster and smaller sensors Market Segments will continue to diverge

Low Tech & Traditional
Customers
“I want these sensors to be cheap”
“I want them to have been around for a while – no Beta Testing!”
“They have to be moderately reliable.” “The technology doesn’t have to be cutting edge.”

You’re not giving me what I want High Tech, Size &
Performance Customers
“These sensors have to be small, like micro, and fast”
“I need them to be right out of
R&D, I’m talking ZERO years on the market”
“I’ll pay more to get what I want.”
“I like a pretty high reliability.”

And I’m not getting what I want! SENSOR INDUSTRY ANALYST PROJECT
ONGOING GROWTH
Sees the next 8 years as consistent growth. All market segments increase at a nice “clip,” according to market analyst. “I see the entire market growing at around 14% or 15% per year. The High
Tech market alone will be growing at a whopping 16%.”
I hope those companies out there are ready for that kind of expansion!”

SENSOR INDUSTRY ANALYST PROJECT
ONGOING GROWTH
Sees the next 8 years as consistent growth. All market segments increase at a nice “clip,” according to market analyst. “I see the entire market growing at around 14% or 15% per year. The High
Tech market alone will be growing at a whopping 16%.”

NOT REALISTIC

I hope those companies out there are ready for that kind of expansion!”

COMPANY
OVERVIEW

The Competition
ANDREWS

6 Companies

DIGBY

$100 Million in Sales
BALDWIN

5 Product Lines

ERIE

Closed Marketplace
CHESTER

FERRIS

Functional Areas
R&D

Production

Finance

Marketing

Research & Development
• Establish the specification of the products to meet customer demand
• Build the quality and reliability (MTBF) into the products • Ensure the perceived age of the product meets customer demands
• Create new products to meet the changing marketplace “Our products are not well positioned in the marketplace.”

Marketing
• Set the price