1. Welcome to the Foundation® Business Simulation

2. School: CBU Professor: Dr. Cayce Lawrence Class: MGMT 498

3. Objectives  Demonstrate effectiveness of multi-discipline teams working together.  Use strategic thinking.  Test your business acumen.  Understand overall interaction and impact of various parts of a business on one another.  Grow the awareness of competition.  Take away practical know-how to improve the effectiveness of your business.

4. Why Simulate?  Risk Free  View Alternative Strategies  Enjoyable  Compresses Time (1 Round=1Year)  Selectivity Integration

5. SENSORINDUSTRYOVERVIEW

6.  Customers (OEMs) need sensors for their products  Initially one segment, now breaking into two  Very different customer demands developing between the segments  Diversification in the use and utility of the sensors The Marketplace Low Tech High Tech

7.  In our industry we track the changing customer demand on a perceptual map  Over 8 years customers will demand much faster and smaller sensors   Market Segments will continue to diverge Low Tech High Tech The Marketplace

8. You’re not giving me what I want  “I want these sensors to be cheap”   “I want them to have been around for a while – no Beta Testing!”   “They have to be moderately reliable.”  “The technology doesn’t have to be cutting edge.” Low Tech Customers

9. And I’m not getting what I want!  “These sensors have to be small, like micro, and fast”  “I need them to be right out of R&D, I’m talking ZERO years on the market”   “I’m willing to pay more to get what I want.”  “I like a pretty high reliability.” High Tech Customers

10. SENSOR INDUSTRY ANALYST PROJECT ONGOING GROWTH Sees the next 8 years as consistent growth. All market segments increase at a nice “clip,” according to market analyst. “I see the entire market growing at around 14% or 15% per year. The High Tech market alone will be growing at a whopping 16%.” I hope those companies out there are ready for that kind of expansion!”

11. COMPANYOVERVIEW

12. The Competition $40 Million in Sales 1 Product Line 2 Segments Closed Marketplace 6 Companies AndrewsDigby BaldwinErie ChesterFerris

13. Welcome To Your New Company

14. Students need to coordinate strategy and tactics across the following areas of their company:

15.  Establish the specification of the products to meet customer demand  Build the quality and reliability (MTBF) into the products  Ensure the perceived age of the product meets customer demands  Create new products to meet the changing marketplace “Our products are not well positioned in the marketplace.” R&D

16.  Set the price of our products in the marketplace  Build customer awareness through promotion  Establish a sales force and distribution channels  Set the sales forecast for our products  Set Credit Policies AR/AP “Our products are not priced optimally. And many of our customers don’t even know our product exists.” Marketing

17.  Purchase machinery to automate our facilities  Buy or sell capacity of product lines  Schedule production for each line  Manage the majority of the companies fixed assets  Establish your workforce complement “We are paying too much for labor costs. Very soon we will run out of capacity to meet demand.” Production

18.  Acquire capital to fund capital expansions Issue Stock Short Term Debt Issue Long Term Bonds  Issue dividend to our shareholders  Balance our debt portfolio  Manage our Proformas “We have poor cash flow and substandard financial ratios. We have no financial policy statement.” Finance

19. A great management tool driven by forecasts and projections. Allows “What if” Scenarios by the company.  Balance Sheet  Profit & Loss  Cash Flow  Financial Ratios Proformas

20. Scoring Methods

21. Success Measures: Select a minimum of two criteria to be measured by: o ROE o ROS o ROA o Cumulative Profit o Stock Price o Market Capitalization o Asset Turnover o Market Share o Weight each selection

23. Analyst Report

25. Running your Company

26.  Establish business strategy for your company  Analyze Foundation FastTrack to see industry results  Make tactical decisions across each functional area (aligned to strategy!)  Upload official results and confirm on the website  Await results when Professor processes  Rejoice in your superior capitalistic acumen  Begin the process again by confirming alignment of your results with your company’s strategic goal. Things to do on an Annual Basis

27. Good Luck and Enjoy!