Vn 2013s3 Pas Class02 Student

8/13/2019 Vn 2013s3 Pas Class02 Student

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ACCT 2197

Performance Analysis

and Simulations

Class 2


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Essential MaterialIf you have not done so yet, as priority,

you should review as soon as possible

1. Course Guide

2. Capsim Guide

3. Rehearsal Script


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Rehearsal Rounds

1. 4 Rehearsal Rounds in total

2. Rehearsal Round 1 has online coaching

3.At any time during semester, RehearsalRounds can be used for Solo practice of business decision-

making Refreshing & Revising business tactics Evaluating impact of business

decisions


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Rehearsal Rounds

4.You can undo each rehearsal round justfinished any number of times

5. Should do at least 2 Rehearsal Rounds More is better


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Firm-level PA & Capstone Courier

Understanding & Using Courier is vital to

your company performance

Courier Contents1. Industry Summary

2. Stock and Bond market3. Financial Analysis Summary4. Production data

5. Segments information6. Market Share7. Perceptual Map

8. HR & TQM data


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Making sense of Financial Reports

There are a lot of numbers to evaluate

Each line & each number can tell ussomething

About us, our competitors, the industry Performance Analysis has several tools

to simplify this volume of data


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Page 1 - Industry Summary


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Well Managed, Healthy Company

NB: Guidelines only!

RoS: > 5%

Asset Turnover > 1 < 3

ROA > 5% < 20%

Leverage Ratio: 1.5x 2.5x

ROE: < 15%

Contribution Margin: > 30%


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PA & BenchmarkingEXAMPLE Sales Growth

If Total market growth yearly = 12% & ifat PR 0 All Firms have $101 M sales

PR 1 sales = ($101 M x 12%)+$101 MAround $113 M

PR 2 average Sales growth =

($113 M x 12%) + $113 M

Around $127 M


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Financial Analysis Summary ISSUES

What analysis can we do of Cash Flow,

Income Statement & Balance Sheet?

If firm is expanding or contracting

Weakened / strengthened financially Buying or selling assets

Managing inventory well or not

Changing approach to AR

What other firms strategy might be


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CC Page 2 Stocks & Bonds


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CC Page 3 - Financial Summary


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CC Page 4 - Production


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EXAMPLE of PA: Chester firm


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EXAMPLE Low End Segment information


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Why is a product better than yours?


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CC page 6 Low End Segment information

1


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3

3


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4


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5 Flora &Feat

f


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6


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CC page 10 Market Share


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Market Share & Capstone Courier

Lost sales8.1% of 12,275,000 units = 994,275 units994,275 units x at $23 per unit

= $22,868,325 lost sales


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CC 12 H R


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CC page 12 Human Resource

CC 12 TQM d t


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CC page 12 TQM data


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Rehearsal Round 1 Script

Covers basic business decision-making for

1. Tactic 1: How do we reposition a product?2. Tactic 2: How do we market a product?3. Tactic 3: How do we schedule production and

manage inventory?4. Tactic 4: How do we modify plant and

equipment?5. Tactic 5: How do we raise money and pay

debt?6. Tactic 6: How do we invent a new product?


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Please commence the

tasks set for you forClass 2

That is

Rehearsal Rounds


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Your Tasks for Class 2

Start the Rehearsal Rounds

1.Go to Capsim.com

2.Log into Capsim

3.Go to Getting Started area

4.Select Complete the Rehearsal Tutorial

a) Read the Rehearsal Instruction

b) Open the Rehearsal Tutorial

) D th R h l T t i l ti iti

Documents

Vn 2013s3 Pas Class02 Student