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The goal of Capsim is to help students relate to what happens in the real world. OneThe secret for winning lies in looking at your competition to see what they are doing, and then adapting and strategizing to do things better and make better decisions— just like in the actual competitive marketplace. There is no one set of “winning decisions,” but you can improve by practicing different strategies. First, you play eight rounds with your team. Each round represents one year of sales. You try different strategies making decisions, and all your points count toward the grade. Then, I base the class ranking on profits and determine a winning team.
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How to decrease the chance of needing emergency loans? Use forecasting and manage your cash. Plan to have some left-over cash ($5M to- $8M) because you never know exactly how much you will sell. Set the R&D upgrades properly and plan for new products to come out within the next year, so the new product does not miss out on significant sales. Also note that for revisions, the product will sell with the old parameters until the update takes place —so pricing can be tricky. There are many other aspects to take into consideration. I hope that this guide helps you clear up some things and that you can begin the simulation on a positive track.