The Capsim Business Simulation - Essay Example

? Functional Analysis of Capsim Business Simulation Introduction This paper performs a functional analysis of Capsim Business simulation by firstly defining the functions and scope of responsibilities of each unit in the Capsim Business simulation. It includes an analysis of what each function typically measures and the potential measurement issues that I encountered during the course of my simulation. The current trends and best practices typically seen in the functional units have also been evaluated for the purpose of using them to improve my business performances. In addition, the paper analyses how each of the functional unit integrates and interacts with other functional units. Finally, the paper provides my recommendations for a business leader in managing a $40 million manufacturing business. The simulation provides a rare chance in experiencing how managing a full business while utilizing the benefits of reports helps in showing the correlations existing between the outcomes in a business and the management decisions (Forgang, 2004). The units of the simulation include production, marketing, finance, research & development (R&D), Human resources and (TQM) total qualities management (Bossche, Gijselaer & Milter, 2011). Production involves the behaviors that firms exhibit at the market places in regards to the creation of goods along with services. This is mainly done for the purpose of satisfying their consumer wants (Dusseau & Wilson, 2010). The production managers involved in a business should engage in comprehending the relationships that exist between the business inventory levels and their carrying costs along with their market shares (Dusseau & Wilson, 2010). They should also understand the relationship existing between their production capacities and the number of excess hours that their employees have to work to achieve their goals (Sitomer, 2010). This is because a business may end up incurring losses in their operations when their expenses in catering for the overtime hours worked and the cost of this labor exceeds their earnings (Clawson & Haskins, 2006). The production managers in a business will be responsible for producing beneficial results through their efforts of automating the production processes and increasing their manufacturing capacities (Forgang, 2004). Marketing, in a manufacturing environment, refers to the processes through which businesses indulge in creating value for their customers while at the same time building strong relationships with them (Wankel, Arthur & Stoner, 2009). It also involves creating solutions along with relationships that will either be of long or short term benefit to the business (Dusseau & Wilson, 2010). The marketing manager in a business will be responsible for comprehending the relationship that exists between their margins on prices along with contributions and prices along with demand (Forgang, 2004). They will also be responsible for understanding the relationships existing between the promotions of their budget along with increasing awareness for the business products. The marketing manager and his team should be charged with the task of establishing the business sales budget and accessibility to these funds (Sitomer, 2010). The marketing department in a business may be affected by the new products that are being launched by the research & development departments since they had not been accounted for in their operations and are unknown in the market (Wankel, Arthur & Stoner, 2009). The activities of these departments can also be affected by a business’s production capacity along with the costs it incurs in its operations (Dusseau & Wilson, 2010). Finances in a business are used as measures for ascertaining whether a business is making profits on its investments or not. Finances in a business are mainly affected by their time values since they change on a day to day basis (Sitomer, 2010). Businesses allocate their money and assets to certain uses but under conditions of uncertainty or certainty (Bossche, Gijselaer & Milter, 2011). Financial managers in a business according to the Capsim business simulation should ensure that they protect, plan and invest the business’s finances in a manner that will enable them to maximize their profits (Forgang, 2004). In relation to the Capsim business simulation, the financial managers are responsible for comprehending the relationships that exist between stock issues and their capital structures, working capitals and inventories and cash along with emergency loans (Dusseau & Wilson, 2010). They are also responsible for planning and implementing the business’s dividend policies, bond issues along with their measures of financial performance (Wankel, Arthur & Stoner, 2009). The financial department in a business is mainly affected by the introductions coming from the research & development departments, the business marketing forecasts, their expected margins and the business’s budget (Clawson & Haskins, 2006). They are additionally affected by the production budgets along with the inventories that the business incurs in its operations. This is mainly because they lead to variations in the budgeted and actual amounts spent by the business (Sitomer, 2010). Research & development refers to the creative works that are undertaken systematically for the purpose of increasing the amount of knowledge while utilizing it for devising new products (Dusseau & Wilson, 2010). This activity is mainly scientific and consumes a large amount of the reserved funds in a business. The department is vital for the survival of the business since it enables the management to adequately deal with the technological changes, changes in their consumers preferences along with competition found in the market (Forgang, 2004). In case a business does not have this department it is advised that it should rely on its strategic alliances, networks and acquisitions to cope with the innovations that other businesses are coming up with (Wankel, Arthur & Stoner, 2009). Marketing that is driven by customer preferences aims at satisfying their customer’s needs through any means even if it means introducing new commodities into the market. Market researches will enable a business to properly ascertain what their customer’s needs are (Sitomer, 2010). However, the activities carried out in the research and development department of a business are difficult to manage since the methods of achieving the desired results are unfamiliar to many people (Clawson & Haskins, 2006). The managers in charge of research and development within a business should comprehend the relationship that exists between their cost requirements and the positioning of their products in the market and the automation of processes along with the time of product implementation (Forgang, 2004). They should also be able to understand a project’s length and its proximity to various other products the business handles. The activities in this department usually affect the activities of the marketing, production along with their finance departments (Dusseau & Wilson, 2010). On the other hand, the human resources within a business comprise of the workforce and the knowledge they possess. The HRM department within an organization is responsible for managing the workforce (Wankel, Arthur & Stoner, 2009). Their activities include attracting, selecting and training, assessing workers for their efforts and rewarding or punishing them accordingly. The departments are also concerned with supervising the leadership within a business along with the cultures being practiced (Sitomer, 2010). The human resource managers within a business involve themselves in the activities of making mergers along with acquisitions of other similar businesses, managing the talents they have in their possession and succession planning (Clawson & Haskins, 2006). They are also responsible for ensuring that the business complies with labor laws set by their government and other bodies while ensuring that their staff is diversified and included in managing the business (Bossche, Gijselaer & Milter, 2011). Including all the participatory parties in the management processes of a business enhances its productivity and its profitability (Forgang, 2004). In case a business is just starting up, the HR responsibilities may be taken up by an expert or personnel that do not belong to this department. However, in large businesses, a complete and functional group is charged with performing the specific duties that they are required to perform in the business (Clawson & Haskins, 2006). This group should be utilized when making strategic decisions for the business since they are responsible for ensuring that there are enough personnel who are adequately qualified to handle the proposed issues (Dusseau & Wilson, 2010). The final component of Capsim business simulation is TQM, otherwise known as total quality management. These are long term advancements made towards ensuring that the customers of a business are satisfied with the products being availed to them (Sitomer, 2010). All the members participating in a business ensure that their processes, services, work cultures and products are improved for the benefit of the business (Forgang, 2004). Quality management officers working in a business should adopt strategies that eliminate barriers at the work places, constantly improve their business products along with services while instituting leadership among the work force (Clawson & Haskins, 2006). For instance, the management strategy of six sigma adopted by the Motorola company was aimed at reducing defects in their products. This move was aimed at minimizing the variations that occurred during their manufacturing activities while ensuring consumer satisfaction (Sitomer, 2010). The current trends in the fields could be utilized in ensuring that a business cuts the costs it incurs in its manufacturing activities while it produces superior goods that will be capable of satisfying their customer’s needs (Wankel, Arthur & Stoner, 2009). They can also be utilized in the financial sector in increasing their share in the market through acquisitions and mergers through an increase in their reserves and strategic planning activities (Clawson & Haskins, 2006). Long and short term financial plans can be made to enable the business to the business achieve its set objectives (Forgang, 2004). The use of the Capsim business simulation generates financial records that would greatly enable the business to evaluate their progress and make the most appropriate changes to ensure they do not continue incurring losses (Wankel, Arthur & Stoner, 2009). In marketing, the current trends being utilized can be applied in the business for the purpose of making their activities more aggressive and convincing to their customers (Bossche, Gijselaer & Milter, 2011). They can also be used for the purpose of collecting information from the customers concerning their wants and the satisfaction they achieve from consuming their products (Clawson & Haskins, 2006). These activities can be performed through the use of software that allows customers to post comments to the business concerning their products (Forgang, 2004). The current technological trends will enable the business to automate many processes in their manufacturing activities thereby eliminating the need for recruiting additional staff. This move could further enable them to have a controllable labor force in terms of handling their payments (Sitomer, 2010). After sizing the number of employees under the payroll of the business through automation, the business enjoys a reduction in costs and an increase in their productivity due to the reduction in wastes (Dusseau & Wilson, 2010). I would advice a business leader who is managing a $40 million manufacturing business to utilize the Capsim business simulation concepts. They would greatly help in ensuring that their business achieves the desired objectives in the most cost effective manner (Forgang, 2004). I would also advice the leader to adopt the use of financial reports in assessing the financial status of the business. References Bossche, P. V. D., Gijselaer, W. H. & Milter, R. G. (2011). Building Learning Experiences In A Changing World, New York: Springer. Clawson, J. G. & Haskins, M. E. (2006). Teaching Management: A Field Guide For Professors, Corporate Trainers And Consultants. Cambridge: Cambridge University Press. Dusseau, D. & Wilson, D. (2010). An Introduction to Business. New York: Pearson Learning Solutions. Forgang, W. G. (2004). Strategy-Specific Decision Making: A Guide For Executive Competitive Strategy. London: M.E. Sharpe. Sitomer, A. (2010). The Capsim Capstone Simulation: A Student’s Perspective. New York: Steven A. Pate. Wankel, C., Arthur, J. & Stoner, F. (2009). Management Education For Global Sustainability. London: IAP. Read More