1. The Decision Making Process This presentation shows the Capstone® general guidelines of the decision making process in Capstone®

2. The Six Basic Strategies: The Six Basic Strategies: The “Six Basic Strategies” give you a starting point. Make sure before you start making any decisions to go over the strategies and choose one that you feel comfortable using. Keep in mind that all these strategies are proven to work, if you’re not doing well it’s more likely that you’re executing the strategy incorrectly. Link to Six Basic Strategies Link to Six Basic Strategies

3. Double click on: Capstone.xls Choose: Work with my decisions online Enter your User ID and Password Go to Decisions Practice or Competition Rounds Practice or Competition Rounds

4. MarketingProductionFinanceAdditional Modules R &D R &D Change: Size, Performance & MTBF New Products For New Products: Change product’s attributes to meet “Customers Buying Criteria” Existing products For Existing products: Change product’s attributes to meet “Customers Buying Criteria” Go to Decisions > R&D 2. Choose: Size, Performance & MTBF 1. Age of the product (current age/2) 2. Revision Date (when will the product be available for sale) Changes in R&D affect: Changes in R&D affect: 3. Buy Capacity & Automation (buy it this year, use it next year) 1. Give name to new product 3. Cost Research and Development

5. Marketing ProductionFinanceAdditional Modules R &D Enter: Price (Look at Customer Buying Criteria) Go to Decisions > Marketing Enter: Promo Budget & Sales Budget (Look at Six Basic Strategies + Student Guide) Enter: Your Sales Forecast (Look at Online Manager Guide or Student Guide > Forecasting) Enter: A/R & A/P (Look at Online Manager Guide) Link to Sales Forecast Marketing

6. Production FinanceAdditional Modules R &D Buy or sell capacity (if applicable) In “Buy/Sell Capacity” cell: - Buy: enter (+) number - Sell: enter(-) number For New Products:For Existing products: Go to Decisions > Production Discontinue a Product: 2. If there is inventory > Sell all but 1 unit of capacity 1. If no inventory > Sell all capacity (enter negative number in Buy/Sell Capacity) Buy Capacity: Buy/Sell Capacity > enter positive number Enter Production Schedule Change Automation in: New Autom. Rating (if applicable) Choose automation level: Enter (+) number in: New Autom. Rating. Production

7. MarketingProduction Finance Additional Modules R &D POSITIVE Your Goal is: Cash Position by the End of Year should be POSITIVE Go to Decisions > Finance Issue 10-year bonds: Long Term Debt Retire bonds early Borrow Money Borrow Money Retire Money Retire Money Issue Stocks: selling common stock to the public Borrow 1-year notes: Current Debt Retire stocks Issue Dividends: give money to Shareholders Dividends Important: FORECASTING Important: these numbers are as good as your FORECASTING. The real numbers might be different. Finance

8. MarketingProductionFinance Additional Modules Additional Modules R &D Go to Online Manager Guide Or Help > Tutorials & Demos > Additional Modules Or Student Guide For Additional Modules: Link to Additional Modules Link to Additional Modules Additional Modules

9. Student Guide PDF Student Guide PDF Guide Manager Guide Finance Production Marketing roduct Invention Product Invention R&D Spreadsheet Demonstrations: Links to Additional Resources: Links to Additional Resources:

10. Best of Luck!