Capsim Simulation Round 1-4
The simulation starts off with all companies Andrews, Baldwin, Chester, Digby, Erie, and Ferris with the same stock market summary. Within this first year they have identical production information and market segment analysis for their products. This begins the competitive race towards which company can make the correct adjustments within the next few years.
After a strong year, Baldwin sets in the lead with a closing stock of $45.69, Ferris $42.21, Digby $42.02, Erie $39.47, and Andrews $38.01. Andrews cumulative profit was $10,269,211 with an ROS of 5.2%. There was a negative change in cash position due to plant improvements which could have been adjusted at a later date. However, net profit was the highest at $6,081. The plant was utilized at 99% for all product segments. For HR Andrew’s had the highest recruiting and new employees at $300.
During Round 2 Andrew’s saw a decreased closing stock price closing at $27.46. Their P/E was the highest at 285.7. Their net cash position was at $0 and net profit $190. Acre was the only unit that ran out of inventory for the year. Able gained top product in traditional segment with a 77% customer awareness. Acre stocked out with 2,045 units sold. Adam and Agape fell short in products segment with low accessibility and awareness. Andrews failed to spend on recruiting for the year resulting in less training hours and higher turnover rate.
The year 2022 Andrews corporation has a -11% ROS. And made a -$182,900 cumulative profit. The market share stock closed at $1, dividend 0 and yield 0%. With a -0.2 P/E. There was an accumulated depreciation of $63,240 and a net profit of -$10,642. Production barely met capacity this year and not enough units were sold. Able dropped to 9% market share although it maintained the highest customer awareness. Acre did not stock out, but only received 12% of market share. Adam met 10% of market share while Aft was at 14%. Employment was not increased at Andrews this year as well resulting in $0 training or recruiting.
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