Situation Analysis
Objectives
• Gain a more complete understanding of the
Capstone simulated industry
• Gain a more complete understanding of the
tools and techniques used in industry and
market analysis
• Become familiar with the Capstone decision
support software you will be using.
Components
PERCEPTUAL MAP
Size
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
0
1
2
3
4
5
6
7
8
9 10
11
12
13 14
15
16
Perceptual Map
Demand Analysis
Pricing
Calculations
 = good
 = fair
 = poor
Margin Analysis
Consumer Report
Capacity
Analysis
PERCEPTUAL MAP
PERCEPTUAL MAP
Size
19
18
2
17
4
16
15
1
14
13
3
5
12
11
10
9
8
7
6
5
4
3
2
1
0
1
2
3
4
5
6
7
8
9 10
11
12
13 14
15
16
Performance
PERCEPTUAL MAP
PERCEPTUAL MAP
Size
19
18
2
17
4
16
15
1
14
13
3
5
12
11
10
9
8
7
6
5
4
3
2
1
0
1
2
3
4
5
6
7
8
9 10
11
12
13 14
15
16
Performance
FUTURE SEGMENT
POSITIONS
(pp. 18-20)
Segment Drift
Segment Centers For Each Round
0
Traditiona
l
Performa
nce
Size
Low End
Performa
nce
Size
High End
Performa
nce
Size
Performa
nce
Performa
nce
Size
Size
Performa
nce
Size
1
2
3
4
5
6
7
8
5.0
5.7
6.4
7.1
7.8
8.5
9.2
9.9
10.6
15.0
14.3
13.6
12.9
12.2
11.5
10.8
10.1
9.4
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5
17.5
17.0
16.5
16.0
15.5
15.0
14.5
14.0
13.5
7.5
8.4
9.3
10.2
11.1
12.0
12.9
13.8
14.7
12.5
11.6
10.7
9.8
8.9
8.0
7.1
6.2
5.3
8.0
9.0
10.0
11.0
12.0
13.0
14.0
15.0
16.0
17.0
16.3
15.6
14.9
14.2
13.5
12.8
12.1
11.4
3.0
3.7
4.4
5.1
5.8
6.5
7.2
7.9
8.6
12.0
11.0
10.0
9.0
8.0
7.0
6.0
5.0
4.0
Drift Rate Adjustments
Segment
Traditional
Low End
High End
Performance
Size
Performance
+.7
+.5
+.9
+1.0
+.7
Size
-.7
-.5
-.9
-.7
-1.0
DEMAND ANALYSIS
(p. 21)
Demand Analysis (all demands in 1000’s)
Segment
Round 0
(from courrier)
Traditional
Low
High
Performance
Size
7387
8960
2554
1915
1984
Growth Round 1 Round 2 Round 3 Round 4 Round 5
Rate
9.8%
8111
11.7%
11.2%
19.8%
18.3%
CAPACITY ANALYSIS
(pp. 21-22)
Capacity/Plant & Equipment Analysis (all capacities and dollars in 1000’s)
Segment
Trad
Low
High
Perf
Size
Product
Name
Your
Capacity
1,800
Industry
Capacity
10800
Overtime
Capacity
Firm
3,600
Industry
21600
Automation
Level
Cost to
Add
Capacity
New
Capacity
Level
Cost to
Increase
Automation
4.0
$39600
2,700
$43200
What Would it Cost:
• To Double Capacity?
– To add one unit of capacity
• $6+($4*Automation level)
– To double capacity
• Current capacity * ($6 +($4*automation))
• To Maximize Automation
– Current Capacity * ((10-current
automation)*$4)
MARGIN ANALYSIS
(pp 22-23)
Margin Analysis
Segment
Product
Name
Traditional
Low
High
Performance
Size
Price
Labor
Material
$21
$7.12
$7.81
$25.00
$1.12
$4.6
Overtime
(Y/N)
Y
Gross Margin
$
%
$6.07
28.9%
$19.28
77.1
%
Margin Potential
Traditional
Low
High
Performance
Size
CONSUMER REPORT
(p. 24 )
TRADITIONAL
LOW
HIGH
PERFORMANCE
SIZE
Price

Price

Price

Price

Price

Quality

Quality

Quality

Quality

Quality

Age

Age

Age

Age

Age

Position

Position

Position

Position

Position

Overall

Overall

Overall

Overall

Overall

Consumer Report
• Price and Reliability
– Good (top third of expected range)
– Fair (middle third of expected range)
– Poor (bottom third of expected range)
• Positioning
– Good – product within .5 units of ideal spot
– Fair – product within .6 to1.5 units away
– Poor – product beyond 1.5 units
• Awareness
– Good – Awareness >.80
– Fair – Awareness between .50 and .80
– Poor –Awareness<.50
Consumer Report
• Accessibility
– Good – Accessibility >.80
– Fair – Accessibility between .50 and .80
– Poor –Accessibility <.50
• Overall
– Assess using relative importance of buying
criteria
Points to Consider for Strategy
• Strive to give customers products that
maximize top two criteria
• Perceptual map is more important as rough
cut than as fine cut
• Takes time and maintenance to build a solid
product – Invest routinely
• Strive for accuracy in matching production to
demand
• Higher product demand requires a better
product offering