Assessment

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Assessment Analysis
Capstone Provides Several Tools to Assist in
Results Assessment Analysis

• Benchmarking Reports website only
• Top Ten Rankings
• Round Analysis
• Analyst Report

The Round Analysis Analyst Report also provide
coaching

• Industry Team Reports both website
  capstone.xls
• Capstone Courier
• Annual Reports

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Benchmarking
Top Ten Rankings
Compare your teams results with thousands of
Capstone users at other schools at your
professors discretion Average Profits, Stock
Prices, ROE, ROS, ROA, Asset Turnover, and Market
Capitalization results are all reported
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Benchmarking Coaching
Round Analysis Report

• The Round Analysis Report uses five simple
  benchmarks for Profit, Margins, Emergency Loan
  status, Inventory Management, Stock Price.
• Students are quickly pointed towards potential
  problem areas.
• Uses a Morningstar style rating system to award
  stars for meeting the benchmarks.

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Benchmarking Coaching

• Comprehensive scoring for each team for every
  round of competition.
• The Analyst provides detailed coaching on each of
  ten categories
• Margins
• Profits
• Emergency Loans
• Working Capital
• Market Share
• Forecasting
• Customer Satisfaction
• Productivity
• Financial Structure
• Wealth Creation

Analyst Report
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Capstone Courier

• Page 1 and Page 2 report the big picture
  headline-grabbers -- Sales, Profits, Margins,
  Market Share, Return Measures, Stock Prices,
  Earnings Per Share, etc.
• What constitutes good or bad results? Benchmarks
  are provided on the website in the Analyst
  Report, the Round Analysis report, and the Top
  Ten rankings report.
• Compare your results against competitors, and the
  Round 0 Courier. Remember - Round 0 reflected
  mediocre performance. Also remember that overall
  customer demand is growing at somewhere around
  14 a year, which means Sales -- and Profits --
  should likewise be on the increase.

Page 1- Front Page
Pages 1 2 report what as opposed to why.
Pages 3-12 illustrate why.
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Capstone Courier
Closing Stock Price Earnings Per Share
(EPS) Market Capitalization Dividend Payouts
Bond Rating (SP) SP rating of BBB and higher -
considered a good credit risk BB and below is
junk bond rating The Analyst Report on the
website (Wealth Creation category) provides
extensive coverage of Stock Price issues
Page 2 - Stocks Bonds
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Capstone Courier

• Cash Flow Statement helps diagnose Emergency
  Loans and analyze use of working capital. Numbers
  in parenthesis? Money is being sucked out of the
  cash account. Excessive inventory and un-funded
  Plant Equipment investments are the two primary
  causes for Emergency Loans.
• What does a large value for the Plant
  Equipment line on the Balance Sheet Survey
  suggest? Either that team wants to be a cost
  leader (automation increases/capacity
  expansions), or they have added new products.
• Income Statement Survey allows teams to compare
  cost structures and RD/Marketing expense return
  rates against competitors. More detailed Income
  Statement provided as part of teams private
  Annual Reports (Annual Report Page 2 under Last
  Years Reports).

Page 3 Financial Analysis
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Capstone Courier

• Assess plant utilization, inventory management,
  analyze competitors plant automation and capacity
  changes, and compare unit sales figures.
• Good number for plant utilization? At least 100,
  150 to 180 is better (as long as it doesn't end
  up in a warehouse as excess inventory).
• Ideal inventory position? One unit in each line -
  rarely happens. About 10 worth of sales is a
  good benchmark for inventory when developing
  sales forecasts. If you sold 1M units, about 100K
  in inventory would be fine.
• Stockouts are costly 1) The SGA costs have
  already been recovered, so missed sales would
  have gone more heavily towards profit
  2) Competitors often pick up additional
  sales as a result of your stockout.

Page 4 Production Analysis
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Capstone Courier
Pages 5-9 Market Segment Analysis

• Assess market penetration, effectiveness of
  Marketing expenses, competitor RD revision
  dates.
• Get a consumers perspective on products in the
  market (December Customer Survey).
• "Statistics" box - was all customer demand met?
  If not, how much missed opportunity was left on
  the table? (Unmet demand doesn't carry forward to
  the next round).
• Market Share Actual vs. Potential graph shows the
  impact of stockouts.
• Detailed product comparison (bottom portion).

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Capstone Courier
Page 10 Market Share Report
Quick reference for checking whether market
customer demand was met (chart on the left), and
assessing where each team is placing emphasis
(chart on the right).
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Capstone Courier
Page 11 Perceptual Map

• Shows where all products are positioned at the
  end of the round. The more products, the more
  intense the competition.
• Products positioned outside the parameters of all
  segments will generate zero customer demand.
• Products positioned outside the solid line, but
  inside the dotted line, will generate decreased
  demand within that segment.
• Products that straddle the fence between segments
  may be sofa-beds not great sofas, not great
  beds.
• Products positioned at the trailing-edge of any
  given segment will have lower material costs than
  they would have at the leading-edge of the
  segment (given an identical MTBF rating).

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Capstone Courier
Page 12 HR/TQM Report

• If Complement exceeds Needed Complement, workers
  get paid for doing nothing.
• Productivity Index driven up by extra spending in
  Recruiting Training. Diminished returns apply.
• Spending under 500K or over 2M on any one TQM
  initiative in a given round is a waste. Above 5M
  total on any single initiative for all rounds is
  also a waste.

HR TQM are optional modules (Professors
Discretion)
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Annual Reports
Company Annual Reports are provided on the
website and in the capstone.xls spreadsheet
program
Balance Sheet Cash Flow Statement Income
Statement Same Format as Proforma Reports
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Annual Reports
Income Statement
Detailed by product An indispensable tool for all
Managers Compare to Proforma Income Statement to
identify tactical mistakes
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Help Files FAQs
Hundreds of QA and coaching tips can be accessed
directly from the website or through capstone.xls
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MSI Support Staff
Submit questions to the MSI Support Staff via the
on-line system or Call 1-888-472-7554