The document outlines the general decision making process in Foundation® by explaining the six basic strategies to use as a starting point when making decisions. It then provides an overview of the different modules in Foundation® for research and development, marketing, production, and finance. Users are directed to additional resources for more guidance on using the specific modules and strategies.
3. 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
4. Practice or Competition Rounds
Double click on:
Foundation.xls
Choose: Work with my
decisions online
Enter your User ID and
Password
Go to Decisions
5. Research and Development
R &D Marketing Production Finance Additional
Modules
Go to Decisions > R&D
For Existing products: Change For New Products: Change
product’s attributes to meet product’s attributes to meet
“Customers Buying Criteria” “Customers Buying Criteria”
Change: Size, Performance & 1. Give name to new product
MTBF
2. Choose: Size, Performance
& MTBF
Changes in R&D affect:
3. Buy Capacity & Automation
1. Age of the product (current
(buy it this year, use it next
age/2)
year)
2. Revision Date (when will
the product be available for
sale)
3. Cost
6. Marketing
R &D Marketing Production Finance Additional
Modules
Go to Decisions > Marketing
Enter: Price (Look at Customer
Buying Criteria)
Enter: Promo Budget & Sales
Budget (Look at Six Basic
Strategies + Student Guide)
Enter: Your Sales Forecast
(Look at Online Manager Link to Sales Forecast
Guide or Student Guide >
Forecasting)
Enter: A/R & A/P (Look at
Online Manager Guide)
7. Production
R &D Marketing Production Finance Additional
Modules
Go to Decisions > Production
For Existing Products: For New Products: Discontinue a Product:
Enter Production Schedule Buy Capacity: Buy/Sell 1. If no inventory > Sell all
Capacity > enter positive capacity (enter negative
Buy or sell capacity (if
number number in Buy/Sell
applicable)
Capacity)
In “Buy/Sell Capacity” cell: Choose automation level:
- Buy: enter (+) number Enter (+) number in: New 2. If there is inventory >
- Sell: enter(-) number Autom. Rating. Sell all but 1 unit of
capacity
Change Automation in:
New Autom. Rating (if
applicable)
8. Finance
R &D Marketing Production Finance Additional
Modules
Go to Decisions > Finance
Your Goal is: Cash Position by
the End of Year should be
POSITIVE
Borrow Money Retire Money
Issue 10-year bonds: Long Retire bonds early
Term Debt
Retire stocks
Issue Stocks: selling common
stock to the public Dividends
Borrow 1-year notes: Current Issue Dividends: give money
Debt to Shareholders
Important: these numbers are as good as your FORECASTING.
The real numbers might be different.
9. Additional Modules
R &D Marketing Production Finance Additional
Modules
For Additional Modules:
Go to Online Manager Guide
Or
Help > Tutorials & Demos >
Additional Modules
Or
Student Guide
Link to Additional Modules
10. Links to Additional Resources:
Spreadsheet Demonstrations: Additional Material:
R&D Student Guide PDF
Product Invention
Manager Guide
Marketing
Developing a Sales Forecast
Production
Finance