Capism Foundation Business Simulation Paper

The Capism Foundation business simulation consisted of six rounds leading to the game-ending position. Throughout the simulation, my group and I created a strategy that we thought would help maximize performance indicators such as return on sales, return on assets, return on equity, market share, earnings per share and net income. Our strategy was simple – first enter the low-tech market and then once ready, try occupying significant amounts of market share in the high-tech market. Once we established our strategy, we implemented the correct tactical execution from round-to-round by applying relevant course material and conducting the right research. At the end of the simulation, I believe that our company’s level of profitability and financial

Firstly, I was expecting that our stock price would close at $12.29 at the end of the sixth round. Our stock price closed at $86.92 per share, a number much higher than the expectation I set. Secondly, I forecasted our ROS figures to be 5-10% higher than the competition. At the end of the simulation, our return on sales were 14.14% higher than the runner-up in the market. One of my goals by the end of the simulation was to have the largest net income in the industry and the largest earnings per share. Looking at the Foundation FastTrack, it’s clear that we have reached these goals. Our earnings per share were $11.57/share and our net income figures were both approximately three times larger than the next highest company. We finished the simulation as the company with the largest profit, largest return on sales and the only company with an S&P rating of AAA. We were able to exceed the expectations set out in my intended strategy because of three underlying reasons. Firstly, the expectations I set in my intended strategy were low. I thought it would be better for our company to exceed low expectations than not to meet high expectations. Secondly, we did a lot of market and company research throughout the simulation. For example, we analyzed the competition’s pricing throughout the six rounds using the Foundation FastTrack. When we executed decisions, we knew there was risk associated with these decisions but we also knew there was a lot of relevant research and logical thought supporting these decisions. Thirdly, we remained loyal to our initial strategy and we applied the correct tactical execution. As planned, we first entered the low-tech market and then once ready, entered the high-tech market. We were able to do so through a short-term debt issue, reinvestments in increasing promo and advertisement budgets and reinvestments in increased material and