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4
Welcome to Comp-XM
Table of Contents
1 Introduction . . . . . . 1
2 Scoring . . . . . . . 2
2.1 Board Queries . . . . . 2
2.2 Balanced Scorecard . . . . 2
3 Decision Summaries . . . . 2
3.1 Research & Development . . . 2

3.2 Marketing . . . . . . 3
3.3 Production . . . . . 3
3.4 Finance . . . . . . 3
3.5 Human Resources . . . . 3
3.6 Human Resources Entries . . . 4
3.7 TQM/Sustainability . . . . 4
Your Registration Number
If your instructor or school did not give you a
Registration Number, you will need to register
online using a credit card or checking account.
Welcome to Comp-XM®, an integrated evaluation tool that will
allow
you to demonstrate your business skills. Comp-XM has two
sections:
1. A business simulation similar to the one you just completed
and
2. A series of quizzes, called Board Queries, that ask questions
related to your simulation environment.
The Simulation
You are the CEO of a new company, the
Andrews Corporation. You will make four
sets of decisions. Your competition, Baldwin,
Chester and Digby, are run by computers.
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all participants go up against a standard
set of competitors. As with your previous
simulation, the quality of your decisions
directly affects the position of your company.
Performance is evaluated using a Balanced
Scorecard, an analysis technique that gauges
results across four areas.
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Board Queries
Board Queries are web-based quizzes that relate
directly to the results of your simulation. As CEO, you
will report to the Board of Directors. The Board
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that are based on the results of your previous rounds.
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a break-even analysis on an increase in production
automation or calculate the effect additional
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questions use standard true-false, multiple choice
and essay formats.
All the information needed to answer the queries
appears within the pages of The Comp-XM Inquirer,
an industry newsletter similar to The Capstone®
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you work as an individual, which means all success
will be attributed to your efforts. This is your chance
to show your strategic vision, tactical abilities and
business knowledge. Best of luck!
4 Industry Conditions Report . . 5
4.1 Market Segments . . . . 5
4.2 Growth Rates . . . . . 6
4.3 Rough Cut / Fine Cut . . . 6
4.4 Seller’s Market . . . . . 8

5 Reports . . . . . . . 8
6 Website Instructions . . . . 8
6.1 The Comp-XM Spreadsheet . . 8
6.2 Dashboard . . . . . 8
6.3 Answering Board Queries . . . 9
6.4 Round Schedules . . . . 9
6.5 Self-Paced Exams . . . . 10
Round 1
Round 2
Round 3
Round 4
Final
Differences From Your Previous Simulation
1
1 Introduction
You have just been recruited to head the Andrews Corporation’s
newest spin-off, the Andrews Comp-XM Corporation. The unit

concentrates Andrews’ biometric sensor efforts into a new,
publicly
traded company.
1.1 What Is Comp-XM?
Comp-XM is familiar, yet different from your experience in
Capstone
or Foundation. You are the CEO. You will be making decisions
on
your own; you will not be a member of a team. Like Capstone or
Foundation, Comp-XM uses a spreadsheet and a web interface.
“6 Website Instructions” discusses the mechanics.
There are two parts to Comp-XM: A four-round simulation, and
a
series of web-based quizzes called Board Queries. Board
Queries are
questions posed by your Board of Directors. They are drawn
from the
unique results of your simulation. You could appear before the
Board
up to fi ve times to answer their questions about your company.
Comp-XM Inquirer and Industry Conditions
All the information needed to answer the questions appears
within
the pages of The Comp-XM Inquirer, an industry newsletter that
is
similar to The Capstone Courier or The Foundation FastTrack.
“4 Industry Conditions Report” summarizes the current state of
the
biometric market.
1.2 Workfl ow

Comp-XM has four decision rounds. Each round, you will enter
a set
of decisions via the Comp-XM Spreadsheet.
In the standard Comp-XM setup, each round you will also
answer the
Board Queries posed by the board of directors. At the end of the
simulation, you will answer a fi fth set of Board Queries, but no
decisions will be required (Table 1.1). Decisions and Board
Queries
require the Comp-XM Inquirer.
Table 1.1 Standard Comp-XM Schedule
Round Activities Material Needed
1 Round 1 Decisions
Board Query 1
Round 0 Comp-XM Inquirer
2 Round 2 Decisions
Board Query 2
3 Round 3 Decisions
Board Query 3
4 Round 4 Decisions
Board Query 4

Final No Decisions
Final Board Query
Your instructor can confi gure Comp-XM to have fewer
Board Queries.
1.3 Differences From Your
Previous Simulation
Comp-XM has four market segments:
• Thrift
• Core
• Nano
• Elite
Comp-XM TQM (Total Quality Management)/Sustainability
and
Human Resources Modules are active in Round 1.
The segment circles start the simulation in the middle of the
Perceptual Map before drifting to the lower right (Figures 1.1 -
1.3).
Figure 1.1 Segment Positions at the End
of Round 0 and the Beginning of Round 1
of Round 2 and the Beginning of Round 3
of Round 4

Board Queries
2
3 Decision Summaries
Decision entries are made with the Comp-XM Spreadsheet,
which is
similar to the Capstone Spreadsheet and the Foundation
Spreadsheet.
Please refer to your Capstone or Foundation Team Member
Guide for
general information.
All Comp-XM simulations utilize the Human Resources and
TQM
(Total Quality Management)/Sustainability modules. Decisions
made
in these modules can have wide ranging effects, including infl
uencing
product demand, R&D cycle times, productivity, material costs,
labor
costs and administrative costs.
TQM and Human Resource drive the Learning and Growth
section of
the Balanced Scorecard.
Human Resources decisions are made in two locations:
• The Workforce Complement is entered at the bottom of the
Production area;

• Recruit Spend and Training decisions are made in the
Human Resources area.
All TQM/Sustainability decisions are made in the TQM/
Sustainability area.
3.1 Research & Development
3.1.1 Positioning Costs
Material costs are also driven by positioning (Figure 3.1). The
higher
the technology, the higher the cost. At the beginning of the
simulation, the trailing edge of the Thrift segment has the
lowest cost,
at $1.00; the leading edge of the Nano and Elite segments have
the
2 Scoring
Scoring occurs in two parts, the results of your Board Queries,
and
the results of your simulation, which are assessed via a
Balanced
Scorecard.
Comp-XM has 1000 possible points, 500 for your Board Query
results
and 500 for your Balanced Scorecard.
2.1 Board Queries
Board Queries are unique to each participant, although each
question covers the same content. If a question applies to a
product, the question might be posed about any of the products
in the simulation.

Each simulation generates different numbers, so each question
containing numbers varies by participant. Furthermore,
product names and competitor assignments vary from
participant
to participant.
Here’s an example of a Comp-XM Board Query: You are asked
to fi nd the Net Margin for product Biff. Your classmate is
asked to fi nd the Net Margin for product Bold.
Both questions have the same level of diffi culty, but the
answers are based on different numbers.
2.2 Balanced Scorecard
Comp-XM uses a Balanced Scorecard for simulation scoring. A
Balanced Scorecard is a common analysis technique that allows
companies to gauge their current performance and formulate
future
goals. Balanced Scorecards are divided into four areas:
• Financial
• Internal Business Process
• Customer
• Learning and Growth
Each Comp-XM Scorecard is built from criteria which are
assigned a
weight– a level of importance. Criteria, weights and results for
each
round, and criteria, weights and results for a fi nal overall
scorecard,
are available from the Dashboard.

As you enter decisions in the Comp-XM Spreadsheet,
projections of
the Balanced Scorecard results for the upcoming year are
available
via the proforma menu. Scores from previous years are available
on
the website; login to your simulation then click the Results/
Scorecards link.
______________
Figure 3.1 Material Positioning Costs: These costs vary
depend-
ing on the product’s relative location on the perceptual map. For
example, at the start of Round 1, products placed at the trailing
edge of the Thrift segment would have a positioning component
cost of $1.00; products placed at the leading edge of the two
high
technology segments would have a positioning component cost
of
$9.25. Material component costs drop 3% to 4% per year.
Human Resources
3
Comp-XM uses a straight line depreciation method calculated
over fi fteen years.
3.3.3 Second Shift/Overtime
Labor costs increase 50% when a second shift is hired or when
the

fi rst shift works overtime.
3.3.4 Automation
Increasing automation has a linear effect on labor costs.
Between an
automation of 1.0 (lowest) to 10.0 (highest), labor costs fall
approximately 10% for each point of automation.
3.4 Finance
3.4.1 Stock
Stock issues are limited to 20% of the company’s outstanding
shares.
You pay a 5% brokerage fee to issue stock.
3.4.2 Current Debt
These are one year bank notes. Bankers will loan current debt
up to
about 75% of your accounts receivable (found on last year’s
balance
sheet) and 50% of this year’s inventory. They estimate your
inventory
for the upcoming year by examining last year’s income
statement.
Bankers assume your worst case scenario will leave a three to
four
month inventory, and they will loan you up to 50% of that
amount.
This works out to be about 15% of the combined value of last
year’s
total direct labor and total direct material, which display on the
income statement.
There is no brokerage fee for current debt.
3.4.3 Bonds

These 10 year notes carry an interest rate 1.4% higher than the
current debt rate in the year they were issued. Bondholders are
willing to lend amounts up to 80% of the depreciated value of
the
company’s plant and equipment, that is, the assembly lines. You
pay a
5% brokerage fee to issue bonds.
Companies with better Bond Ratings have lower
interest rates.
If your company runs out of cash, you will receive an
emergency loan, which carries a 7.5% penalty above the
Current Debt interest rate. Emergency loans convert to
Current Debt in the following year.
3.5 Human Resources
3.5.1 Recruiting
Investing in recruiting a better quality employee increases
productivity and decreases turnover, which will reduce your
labor
highest costs, at $9.25. Positioning material costs decrease 3%
to 4%
per year.
3.1.2 MTBF (Mean Time Before Failure)
Each 1,000 hours of reliability (MTBF) adds $0.30 to the
material
cost. A product with 20,000 hours reliability includes $0.30 *
20,000/1000 = $6.00 in reliability costs.

3.2 Marketing
3.2.1 Promotion Budget
Promotion expenditures reach diminishing returns at
$3,000,000 for
each product. Promotion buys awareness. You lose one third of
your
old awareness each year. Your promotion budget replaces lost
awareness, and if the budget is high enough, makes gains
towards
100% awareness. When a product reaches 100% awareness,
promotion budgets of about $1,400,000 are needed to maintain
it.
3.2.2 Sales Budget
Sales budgets buy segment accessibility. Although you budget
by
product, any product within the segment’s fi ne cut contributes
to
accessibility. Diminishing returns are reached at a budget of
$3,000,000 for each product. Diminishing returns in the
segment,
however, are not reached until $4,500,000. You need at least
two
products in the segment’s fi ne cut to reach 100% accessibility.
You
lose one third of your old accessibility each year. Your sales
budgets
replace lost accessibility, and if the budgets are high enough,
make
gains towards 100% accessibility. When a segment reaches
100%
accessibility, sales budgets of about $3,300,000 are needed to
maintain it.

Sales budgets also allocate the time spent by the sales force
selling
the product. The higher the budget, the more time the sales
force
gives to the product. This can be useful if you wish to
emphasize one
product over another within the same segment. For example, if
you
are splitting a combined $4,000,000 sales budget between two
products, you might spend $3,000,000 with one and $1,000,000
with the other. Your salespeople would emphasize one product
over
the other.
3.3 Production
3.3.1 Plant Purchases
Floor space for each unit of capacity is $6.00. Add $4.00 for
each
point of automation. Additional capacity at an automation rating
of
10.0 would cost $6.00 + ($4.00 * 10.0) = $46.00 per unit.
3.3.2 Plant Sales
When you sell plant, you get $0.65 on each original dollar.
Depending
on the depreciated value of the plant, you could make a gain or
a loss
on the sale which will appear as a gain or loss on the income
statement.
Human Resources Entries
4

3.7 TQM/Sustainability
The TQM (Total Quality Management)/Sustainability Module
allows
companies to invest in several initiatives. Different initiatives
return
different benefi ts. For example, some initiatives will reduce
labor and
material costs, others will reduce R&D cycle time (allowing you
to
re-engineer products faster), and others will increase product
appeal or decrease administration costs. You don’t have to
invest
in all initiatives.
Differentiators might want to reduce R&D cycle times, to
ensure their
products are newer and better positioned. Cost leaders might
want to
reduce material and labor costs, allowing them to reduce prices
while maintaining their margins.
The return on investment follows an S-curve (Figure 3.2). If
you
spend too little or too much the returns on your investment are
poor.
If you spend less than $500,000 in any initiative in a single
round
chances are you will see little return. An investment of
$1,500,000 in
a single round
produces a
cost-effective
impact,
investments over

$1,500,000
become dollar for
dollar less
effective. Finally,
for each initiative,
an investment over
$2,000,000 in a
single round
produces
absolutely no
additional benefi t.
For each impact, complementary initiatives combine together to
increase the total effect. You should bundle your investments in
multiple initiatives that have an impact important to your
company’s
strategy. By spreading your investment among complementary
initiatives you can invest more in each impact than the limit of
$2,000,000 for an individual initiative. For example, to reduce
material costs, companies should consider investing in both CPI
Systems and GEMI TQEM Sustainability.
Aggressive spending in each initiative would involve spending
$1,500,000 in year 1, $1,500,000 in year 2, and $1,000,000 in
year 3.
The Best Case/Worst case table gives an indication of the return
on
investment. The impact is cumulative so cost reductions will
continue
in future years.
Refer to the fl ags on the TQM/Sustainability spreadsheet for a
thorough discussion of TQM/Sustainability entries.
______________

and HR Admin costs. The effect of investing in recruitment is
cumulative. You can spend up to $5,000 per person to hire
better
talent. The amount is added to the automatic recruitment charge
of
$1,000 for every new employee.
3.5.2 Training
Investing in training also increases productivity and decreases
turnover. Each year, you can assign up to 80 hours of training
per
employee, which increases productivity. Each training hour
costs
$20.00. When employees are in training they are replaced with
other
employees, so the Needed Complement will increase as training
hours increase. The effect of investing in training is cumulative.
3.6 Human Resources Entries
Workforce Complement entries are made in the Production area.
Workforce Complement controls the number of workers
employed by
the company. Once production schedules are complete, the
spreadsheet will display a Needed Complement. Matching the
Workforce Complement to the Needed Complement ensures the
company will have suffi cient workers.
Having more workers than needed drives up labor costs as
workers
stand around doing nothing. Having fewer workers than needed
results in worker overtime, which cuts into the effi ciency of the
workforce. Having signifi cantly fewer workers than necessary
will

result in serious production shortfalls because labor will not be
available to manufacture the sensors.
Always review the Workforce Complement entry at the
bottom of the Production area after making changes to the
Production Schedule, Training Hours or TQM/Sustainability
initiatives. Serious fi nancial consequences can result if the
Workforce Complement is too low or too high.
Recruit Spend and Training Hour entries are made in the Human
Resources area.
Recruit Spend allows the company to attract a higher caliber
worker,
which will increase the effi ciency of the workforce as
measured by
the Productivity Index.
Training Hours will also increase effi ciency. However Training
Hours
increase the Needed Complement because workers are in the
classroom, not on the production lines.
Investments in Recruiting and Training raise your Productivity
Index,
which in turn lowers your per unit labor costs. Scheduling
overtime
reduces any gains to the Productivity Index. The Productivity
Index
cannot go below 100%. Refer to the red fl ags on the Production
and
Human Resources spreadsheets, which activate pop-up

explanation
windows, for a thorough discussion of Human Resources
entries.
Figure 3.2 S-Shaped Curve
Market Segments
5
4 Industry Conditions Report
In the next four years, the biometric sensor market will see a
59%
increase in unit demand. Growth rates vary among the four
market
segments – Thrift, Core, Nano, and Elite.
The biometric sensor industry is a fast growing sector of the
larger
sensor industry:
• Andrews Comp-XM Corporation has three competitors,
biometric business units of Baldwin, Chester, and Digby
Corporations– these companies have well established
strategic directions;
• There are four segments;
• There are no labor unions but there are opportunities to
invest in Human Resources;
• Some companies have been investing in TQM (Total Quality
Management)/Sustainability.

As CEO you will be responsible for the strategic direction of
the
Andrews Comp-XM business unit and its tactical execution.
At the beginning of every year, the board of directors will ask
you to
respond to a set of questions about your situation. The questions
will
be drawn from recent activities within the industry as described
in
last year’s results and from the situation that you expect to
develop
over the next year.
After satisfying the board’s questions, you will execute your
plan by
making operational decisions in Research & Development
(R&D),
Marketing, Production, Human Resources, TQM/Sustainability
and
Finance. Your results will be assessed with a Balanced
Scorecard.
4.1 Market Segments
The biometric sensor market evolved from two original markets,
a
low technology segment and a high technology segment. The
original
low tech segment split into Thrift and Core. The original high
tech
segment split into Nano and Elite. Because of this evolution, the
segments are less distinct than the segments in your former
business.
Straddling two segments with a product is still viable, although

you
can expect straddling to become more diffi cult as the market
evolves
(see Figures 1.1 - 1.3).
Each market segment expects different:
• Positioning
• Age
• Price
• MTBF (Mean Time Before Failure)
Price, Age and MTBF ranges for each segment hold steady
year after year. Positioning expectations advance steadily
every month.
Thrift Segment Criteria
Thrift customers seek proven products, are indifferent to
technological sophistication and are price motivated:
• Price, $14.00-$26.00– importance: 55%
• MTBF, 14,000-20,000– importance: 20%
• Ideal Position at the end of Round 0,
performance 6.5 size 13.5– importance: 15%
• Age, 3 years– importance: 10%
Age 10%
Positioning 15%
MTBF 20%
Price 55%

Figure 4.1 Thrift Segment Buying Criteria
Core Segment Criteria
Core customers seek proven products using current technology:
• MTBF, 16,000-22,000– importance: 18%
Age 20%
Positioning 16%
MTBF 18%
Price 46%
Figure 4.2 Core Segment Buying Criteria
Age 20%
Positioning 35%
MTBF 18%
Price 27%
Nano Segment Criteria
Nano customers seek cutting-edge technology that is small in
size:

• Age, 1 year– importance: 20%
• MTBF, 18,000-24,000– importance: 18%
Figure 4.3 Nano Segment Buying Criteria
Growth Rates
6
4.3 Rough Cut / Fine Cut
Positioning Price, and Reliability work the same as they did at
your
last company. The segments drift every year. Rough cut and fi
ne cut
criteria still hold true for the Comp-XM industry. Your product
designs must meet at least the rough cut criteria before earning
sales.
4.3.1 Segment Locations
As is in the larger sensor industry, the market segments in the
Comp-XM industry move to the lower right. The outer rough cut
circles measure 4.0 units; the inner fi ne cut circles measure 2.5
units.
The segment centers for each round are listed in Table 4.3.
4.3.2 Price
Price ranges in each segment have held steady for the past four
years
and will continue to do so for the next four years (Table 4.4).
Customers want the price of their product to lie within the
expected

range. As the price moves outside the expected range, demand
for the
product begins to fall. For each dollar outside the range,
demand
falls 16.7%. When price reaches $6.00 outside the range,
demand
reaches zero.
4.2 Growth Rates
Growth rates differ among the segments. Thrift and Core are
growing
at a slower pace, 11.0% and 10.0%, than Nano and Elite, 14.0%
and
16.0% (Figure 4.5).
In the next four years, Thrift’s and Core’s percentage of the
overall
market will decline. Today, the number of units sold to the
Nano
segment is greater than those sold to the Elite segment (Table
4.1).
However, in four years, Elite’s unit sales will exceed Nano’s
(Table 4.2).
Age 34%
Positioning
22% MTBF 20%
Price 24%
Elite Segment Criteria
Elite customers seek high reliability and cutting edge
performance technology:

• MTBF, 20,000-26,000– importance: 20%
Figure 4.4 Elite Segment Buying Criteria
Table 4.1 Last Year’s Unit Demand
Thrift Core Nano Elite
27.0% 35.3% 19.3% 18.4%
Table 4.2 Unit Demand Four Years From Now
Thrift Core Nano Elite
25.8% 32.6% 20.6% 21.0%
Figure 4.5 Yearly Increase In Unit Demand
Table 4.3 Segment Centers At The End Of Each Round
Coordinates Rd 0 Rd 1 Rd 2 Rd 3 Rd 4
Thrift
Performance 6.5 7.0 7.5 8.0 8.5
Size 13.5 13.0 12.5 12.0 11.5

Core
Performance 8.2 9.0 9.8 10.6 11.4
Size 11.8 11.0 10.2 9.4 8.6
Nano
Performance 9.7 10.5 11.3 12.1 12.9
Size 8.6 7.5 6.4 5.3 4.2
Elite
Performance 11.4 12.5 13.6 14.7 15.8
Size 10.3 9.5 8.7 7.9 7.1
Table 4.4 Segment Price Ranges
Minimum Maximum
Thrift $14.00 $26.00
Core $20.00 $32.00
Nano $28.00 $40.00
Elite $30.00 $42.00
Rough Cut / Fine Cut
7

4.3.4 Age
Customer age assessments vary from segment to segment, as
shown
in Figure 4.6. All other factors held constant, demand is highest
when
the age is at the ideal. For example, Core customers prefer
products
that are 2 years old.
4.3.5 Ideal Spots
For each segment, customers prefer products placed near the
ideal
spot, which is a position relative to the segment center (Table
4.6 and
Figure 4.7).
4.3.3 MTBF (Mean Time Before Failure)
Customers want reliability or MTBF to be within the ranges in
Table
4.5. Within the range, the higher the reliability, the higher the
demand. However, above the range customers are content and
award
no additional demand.
As the MTBF moves below minimum expectations, the product
loses
demand. For every 1,000 hours below the range, demand drops
by
16.7%. At 6000 hours below the range, demand falls to zero.
Customers are indifferent to products with MTBFs above
the guideline.
Table 4.5 Segment MTBF Ranges

Minimum Maximum
Thrift 14,000 20,000
Core 16,000 22,000
Nano 18,000 24,000
Elite 20,000 26,000
Figure 4.6 Preferred Ages: Thrift and Core customers seek out
proven technology. Thrift prefers products in the three year
range and Core in the two
year range. Nano and Elite customers demand the latest
technology. Nano prefers products in the one year range and
Elite wants cutting edge, brand
new products.
Table 4.6 Segment Ideal Spot Offsets
Performance Size
Thrift 0.0 0.0
Core +0.4 -0.4
Nano +0.8 -1.1
Elite +1.1 -0.8
Figure 4.7 Customers prefer products located in the darker
areas. The darkest areas indicate the ideal spots. The inner fi ne
cut circles
have a radius of 2.5 units, the outer rough cut circles have a
radius of 4.0 units. Thrift customers prefer products located in
the center of

the circle. Core customers prefer products located to the lower
right of the circle center. Nano customers want products near
the lower
right edge of the circle, preferring smaller size over faster
performance. Elite customers want products near the lower right
edge of the
circle, preferring faster performance over smaller size.
Seller’s Market
8
The Inquirer is different from The Capstone Courier and The
Foundation FastTrack! Please be sure to use the Inquirer as
you work on Comp-XM.
The Inquirer is available prior to and while working on your
round
decisions and while answering Board Queries.
______________
6 Website Instructions
Login to the website with the User ID and
Password from your previous simulation.
Select Comp-XM (Figure 6.1).
In the Getting Started area, view the brief
introductory video in the Welcome
section. Be sure to review the Sample Board Query in the About
Board Queries section. Go through the remaining sections.

6.1 The Comp-XM Spreadsheet
In the Getting Set Up section, download the Comp-XM
Spreadsheet to
your computer (a web version of the spreadsheet is available
from the
Dashboard, see below).
• You will open the Comp-XM Spreadsheet as you did the
Capstone or Foundation Spreadsheet;
• Enter the same User ID and Password you used to login to
the website;
• The Comp-XM Spreadsheet requires an Internet connection–
it retrieves your work from the website when it opens and
sends your work to the website when you save decisions.
Use your User ID and Password from your Capstone or
Foundation simulation to login to the Comp-XM Spreadsheet.
6.2 Dashboard
When you complete the Getting Started introduction, the system
will
bring you to the Exam Dashboard, an area where activities and
information are accessed, including Board Queries and the web
version of the Comp-XM Spreadsheet.
4.4 Seller’s Market
In a Seller’s Market, all the good products in a segment stock
out.
Desperate customers turn their attention to the remaining

undesirable products (which may even target another segment),
as
long as they are within the rough cuts for price, MTBF and
positioning.
Product sales are driven by the monthly Customer Survey Score
(the
December score is published in The Comp-XM Inquirer segment
analysis pages). Any product with a score of 1 or more
competes for
sales– the higher the score, the higher the appeal. As a product
approaches any of the rough cuts, its score falls towards 0.
Usually a product with very low appeal makes few sales.
However, in a
Seller’s Market, customers will accept marginal products as
long as
they fall within the rough cut limits. For example, desperate
customers with no better alternatives will buy:
• A product priced $5.99 above the price range– at $6.00
customers reach their tolerance limit and refuse to buy the
product;
• A product with MTBF 5,999 hours below the range– at 6,000
hours below the range customers refuse to buy the product;
• A product positioned just inside the rough cut circle on the
perceptual map– outside the circle they say “no” to
the product.
______________
5 Reports
Customer purchase and sensor company fi nancial results are

reported in an industry newsletter, The Comp-XM Inquirer. The
Inquirer has three notable differences from your previous
industry report:
• You can only view the most recent Inquirer ;
• Your company’s annual report is accessed from the Inquirer;
• You now have access to your competitors’ annual reports.
The Inquirer is available from two locations:
• From the Comp-XM Dashboard, click the Comp-XM Inquirer
link (see “6.2 Dashboard”);
• From the Comp-XM Spreadsheet, click the Reports link in the
menu bar.
Figure 6.1
Round Schedules
9
questions) and a check mark if you have already entered an
answer;
Your answer is not recorded unless you click the Save
Answer button.
• Answer each question;
• You can re-select a question if you wish to change the answer.
6.4 Round Schedules

To see round schedules, click the dates in the Dashboard’s
Deadlines column.
Only the fi nal deadline is enforced for self-paced exams.
If Comp-XM is not self-paced, the Dashboard will display:
• The date and time you can begin making simulation
decisions and answering Board Queries;
• The date and time when simulation decisions and Board
Query answers are due.
6.3 Answering Board Queries
Each round, your Board of Directors presents you with a set of
questions. You can answer these questions before, during, or
after
you make decisions for your company (we recommend before):
• From the Dashboard, click the Answer Board Query button;
• A new window opens asking you to authenticate that you are
the person taking the exam– click I Agree;
• Next, a list of Board Query questions appears on the left
(Figure 6.2);
• A second link to the Inquirer is available from this window–
you will need the Inquirer to answer most Board Query
questions;
• To begin, click a question number in the column on the left
(cursor, Figure 6.2);
• The associated question will appear on the right– questions

will be either true-false, multiple choice or essay (some
multiple choice questions require more than one selection);
• You do not have to answer the Board Query questions in any
particular order– each question has a point value for correct
answers (you can receive partial credit for some types of
Figure 6.2 Board Query Input Screen
Self-Paced Exams
10
6.5 Self-Paced Exams
In self-paced mode, you make simulation decisions and answer
Board Queries within a time frame established by your
instructor.
6.5.1 Advancing Self-Paced Exams
The Dashboard displays your progress. For example, whether
decisions have been uploaded in the current round or how many
Board Query questions have been answered.
You will not be able to advance to the next round unless you
have
uploaded a set of decisions and answered at least one Board
Query
question. To advance from Round 1 to Round 2:
• On the Dashboard, click the Advance to Round 2 button;
• When the new page opens, click the button to confirm that
you wish to advance to the next round.

You will not be able to change your answers or decisions for a
round once you advance to the next round (for example,
after you advance to Round 2, Board Query 1 will no longer
be available and you will be working on Decision Set 2).
______________
11
R
Recruit Spend 3
Reliability 3, 6, 7
Research & Development (R&D) 2
Rough Cut 6
S
Sales Budget 3
Segment Drift 6
Segments 5, 6
Size 6
Stock 3
T

TQM/Sustainability 4
Training Hours 4
Index
A
Age 7
Automation 3
B
Bonds 3
C
Capacity 3
Comp-XM Inquirer 8
Current Debt 3
D
Dashboard 10
Drift 6
F
Finance 3
Fine Cut 6
H
Human Resources 3
I

Ideal Spot 7
L
Labor Cost 3
Long Term Debt 3
M
Marketing 3
Market Segments 5, 6
MTBF (Mean Time Before Failure) 3, 6, 7
P
Performance 6
Positioning 6
Price 6
Production 3
Promotion Budget 3
Capsim Examination Guide cover design by
Ed Kang, a Graphic Design student from
Columbia College Chicago.
978-1-933681-18-4
Copyright © 2013 Capsim Management Simulations, Inc. All
rights reserved.
Capsim®, Capstone®, Foundation®, and Comp-XM® are
trademarks of
Capsim Management Simulations, Inc.®

Printed in USA
Top
Selected Financial Statistics
Andrews Baldwin Chester Digby
ROS 0.7% 0.1% 3.3% 0.2%
Turnover 0.78 1.16 1.23 1.45
ROA 0.5% 0.1% 4.1% 0.3%
Leverage 2.3 2.8 2.0 2.3
ROE 1.2% 0.4% 8.2% 0.7%
Emergency Loan $0 $0 $0 $0
Sales $122,412,682 $167,340,889 $147,053,946 $220,974,547
EBIT $11,385,747 $10,701,648 $14,283,460 $9,570,040
Profits $859,980 $188,073 $4,921,067 $490,070
Cumulative Profit $7,805,678 $223,085 $16,293,314
$14,705,758

SG&A / Sales 16.2% 12.7% 17.7% 15.9%
Contrib. Margin % 38.4% 29.3% 37.4% 27.7%
http://ww2.capsim.com/LESSONS_AND_QUIZZES/en/Comp-
XM/comp-xm-inquirer.htm#top
Comp-XM® Inquirer Page 1
Top
Stocks & Bonds
Stock Market Summary
Company Close Change Shares
MarketCap
($M)
Book
Value
EPS Dividend Yield P/E

Andrews $27.72 $0.66 2,601,478 $72 $26.74 $0.33 $0.00 0.0%
83.6
Baldwin $10.77 $0.93 2,525,298 $27 $20.64 $0.07 $0.00 0.0%
142.7
Chester $39.73 $5.35 2,000,000 $79 $30.02 $2.46 $0.00 0.0%
16.1
Digby $30.67 ($3.86) 2,224,381 $68 $29.88 $0.22 $0.00 0.0%
138.6
Bond Market Summary
Company Series# Face Yield Close S&P
Andrews
14.0S2016 $20,850,000 13.9% $101.00 CCC
10.8S2021 $8,000,000 12.2% $88.64 CCC
12.2S2023 $15,000,000 13.0% $93.93 CCC
12.7S2024 $10,000,000 13.2% $96.26 CCC

Baldwin
14.0S2016 $20,850,000 14.0% $100.00 C
11.5S2022 $5,000,000 13.0% $88.40 C
12.0S2023 $8,000,000 13.3% $90.11 C
13.0S2024 $20,000,000 13.7% $94.78 C
Chester
14.0S2016 $20,850,000 13.7% $102.01 B
10.8S2021 $4,000,000 11.9% $91.10 B
11.8S2022 $7,000,000 12.4% $95.17 B
Digby
14.0S2016 $20,850,000 13.9% $101.00 CCC
11.4S2022 $10,000,000 12.6% $90.53 CCC
12.2S2023 $4,000,000 13.0% $93.93 CCC
12.7S2024 $6,000,000 13.2% $96.26 CCC

Top
Financial Analysis
Cash Flow Statement Survey Andrews Baldwin Chester Digby
Cash flows from operating activities
Net Income (Loss) $860 $188 $4,921 $490
Adjustment for non-cash items:
Depreciation $10,015 $10,407 $9,220 $9,640
Extraordinary gains/losses/writeoffs ($338) $0 ($13) $0
Changes in current assets and liabilities:
Accounts payable ($957) $4,628 ($462) $4,469
Inventory ($4,203) ($1,511) $306 ($19,140)
Accounts receivable $1,658 ($4,870) ($299) ($4,371)
Net cash from operations $7,034 $8,843 $13,673 ($8,912)
Cash flows from investing activities

Plant improvements (net) ($24,950) ($28,460) ($10,380)
($11,800)
Cash flows from financing activities
Dividends paid $0 $0 $0 $0
Sales of common stock $3,000 $4,142 $0 $6,000
Purchase of common stock $0 $0 $0 $0
Cash from long term debt issued $10,000 $20,000 $0 $6,000
Early retirement of long term debt $0 $0 ($5,000) $0
Retirement of current debt ($13,200) ($10,000) ($14,000)
($12,000)
Cash from current debt borrowing $14,000 $15,000 $12,000
$17,000
Cash from emergency loan $0
$0
$0
$0
Net cash from financing activities $13,800 $29,142 ($7,000)
$17,000

Net change in cash position ($4,116) $9,525 ($3,707) ($3,712)
Balance Sheet Survey Andrews Baldwin Chester Digby
Cash $21,933 $17,650 $3,089 $10,277
Accounts Receivable $10,061 $13,754 $12,087 $18,162
Inventory $14,063 $13,785 $27,999 $40,336
Total Current Assets $46,058 $45,189 $43,175 $68,776
Plant and equipment $169,218 $169,100 $138,300 $144,600
Accumulated Depreciation ($57,288) ($69,703) ($61,428)
($60,867)
Total Fixed Assets $111,930 $99,397 $76,872 $83,733
Total Assets $157,987
$144,586
$120,047
$152,509

Accounts Payable $6,678 $9,718 $7,264 $14,300
Current Debt $27,900 $28,900 $20,887 $30,900
Long Term Debt $53,850 $53,850 $31,850 $40,850
Total Liabilities $88,428 $92,468 $60,001 $86,050
Common Stock $36,360 $26,502 $18,360 $26,360
Retained Earnings $33,199 $25,617 $41,687 $40,099
Total Equity $69,559 $52,119 $60,047 $66,459
Total Liabilities & Owners' Equity $157,987
$144,586
$120,047
$152,509
Income Statement Survey Andrews Baldwin Chester Digby
Sales $122,413 $167,341 $147,054 $220,975
Variable Costs (Labor, Material, Carry) $75,461 $118,374
$92,045 $159,684

Depreciation $10,015 $10,407 $9,220 $9,640
SGA (R&D, Promo, Sales, Admin) $19,840 $21,251 $26,044
$35,181
Other (Fees, Writeoffs, TQM, Bonuses) $5,712 $6,607 $5,462
$6,900
EBIT $11,386 $10,702 $14,283 $9,570
Interest (Short term, Long term) $10,036 $10,406 $6,558
$8,801
Taxes $473 $103 $2,704 $269
Profit Sharing $18 $4 $100 $10
Net Profit $860 $188 $4,921 $490
Top
Production Analysis
Production Information

Name
Primar
y
Units
Sold
Unit
Inven
tory
Revisi
on
Date
Age
Dec.31 MTBF
Pfmn
Coord
Size
Coord Price
Materi

al Cost
Labor
Cost
Contr.
Marg.
2nd
Shift &
Auto
mation
Capaci
ty Next
Round
Plant
Utiliz.
Segme
nt

Over-
time
Next
Round
Able Low 947 142
2/13/2
014
4.0 12000 5.0 15.0 $19.00 $5.96 $6.30 33% 0% 6.0 1,200 91%
Acre Low 1,908 114
1/29/2
014
8.6 12000 3.0 17.0 $19.00 $4.40 $5.49 46% 32% 7.0 1,400
134%
Adam Trad 1,287 0
11/4/2
014
1.4 16000 8.0 11.7 $27.00 $9.54 $7.24 35% 40% 7.0 900 143%
Aft 0 0
6/14/2
013
2.7 25000 10.3 14.8 $32.00 $0.00 $0.00 0% 0% 3.0 1 0%
Ate High 475 397

4/26/2
014
1.4 23000 10.5 8.8 $38.00 $13.62 $7.60 35% 36% 7.0 500
139%
Axis High 404 96
6/28/2
014
0.5 23000 12.0 7.0 $38.00 $14.90 $7.37 39% 91% 8.0 500
100%
Ache 0 0
5/8/20
15
0.0 0 0.0 0.0 $0.00 $0.00 $0.00 0% 0% 8.0 500 0%
Baker Low 806 580
1/21/2
014
4.0 14000 5.5 15.1 $21.00 $7.05 $6.58 28% 0% 6.5 1,400 99%
Bead Low 1,522 401
4/13/2
014
4.7 14000 4.5 15.7 $20.00 $6.39 $6.27 34% 7% 7.0 1,400
106%
Bid Trad 1,260 0
1/11/2

014
2.4 17000 7.9 12.2 $28.00 $10.11 $9.14 27% 25% 5.0 800
124%
Bold Trad 891 0
1/11/2
014
2.4 17000 8.6 12.6 $28.00 $10.25 $9.66 28% 50% 5.0 600
149%
Buddy Trad 1,089 0
1/11/2
014
2.4 17000 7.4 11.6 $28.00 $10.17 $10.14 27% 83% 5.0 600
182%
Brass High 769 23
6/24/2
014
0.9 23000 12.6 8.0 $38.00 $15.55 $10.32 32% 100% 5.0 450
198%
Brat 0 0
7/11/2
015
0.0 0 0.0 0.0 $0.00 $0.00 $0.00 0% 0% 5.0 500 0%
Cake Trad 891 0
12/15/

2014
1.3 15000 7.3 12.7 $25.50 $8.59 $5.36 47% 0% 6.8 1,100 89%
Cedar Low 2,438 283
11/28/
2015
8.6 12000 3.0 17.0 $18.50 $4.40 $5.20 45% 73% 8.5 1,400
177%
Cid High 599 591
12/26/
2014
1.1 23000 12.2 7.8 $36.50 $14.66 $8.65 29% 31% 4.8 600
132%
Coat Pfmn 805 443
12/24/
2014
1.2 26000 13.7 12.8 $31.50 $14.60 $7.81 24% 84% 5.8 550
188%
Cure Size 1,016 78
12/24/
2014
1.2 18000 7.3 6.7 $31.50 $12.17 $7.34 36% 37% 5.8 500 139%
Daze Trad 1,424 358
8/8/20
14

1.5 19000 8.3 11.7 $28.00 $10.96 $8.97 27% 80% 5.5 1,000
178%
Dell Low 1,918 498
5/21/2
015
8.6 15500 3.0 17.0 $20.50 $5.63 $7.24 34% 57% 6.5 1,400
156%
Dixie High 802 373
9/8/20
14
1.2 24000 12.2 7.9 $38.00 $15.55 $9.59 30% 70% 4.5 500
168%
Dot Pfmn 950 220
7/21/2
014
1.4 26000 13.8 13.0 $33.00 $15.24 $9.75 22% 83% 5.0 600
182%
Dune Size 1,201 48
8/13/2
014
1.3 19500 7.8 6.8 $33.00 $13.22 $9.75 30% 83% 5.0 600 182%
Doom Pfmn 872 255
5/18/2
014
1.0 26000 13.7 13.0 $33.00 $15.19 $9.93 20% 100% 5.0 550
198%

Dust Size 349 186
6/3/20
14
0.6 19000 7.8 7.0 $33.00 $12.97 $9.81 26% 89% 5.0 550 107%
Top
Traditional Market Segment Analysis
Traditional Statistics
Total Industry Unit Demand 7,003
Actual Industry Unit Sales 7,003
Segment % of Total Industry 28.4%
Growth Rate 9.2%
Traditional Customer Buying Criteria
Expectations Importance

1. Age Ideal Age = 2.0 47%
2. Price $18.00 - 28.00 23%
3. Ideal
Position
Pfmn 7.8 Size12.2 21%
4. Reliability MTBF 14000-19000 9%
Perceptual Map for Traditional Segment
Top Products in Traditional Segment
Name
Market
Share
Units
Sold
to

Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Sales
Budget
Customer

Aware-
ness
December
Customer
Survey
Daze 20% 1,415 8/8/2014 8.3 11.7 $28.00 19000 1.5 $2,300
$1,718 100% 44
Adam 18% 1,282 11/4/2014 YES 8.0 11.7 $27.00 16000 1.4
$1,550 $1,040 90% 34
Bid 18% 1,254 1/11/2014 YES 7.9 12.2 $28.00 17000 2.4
$1,700 $1,012 99% 50
Buddy 15% 1,036 1/11/2014 YES 7.4 11.6 $28.00 17000 2.4
$1,700 $1,012 84% 42
Bold 13% 884 1/11/2014 YES 8.6 12.6 $28.00 17000 2.4 $1,700
$1,012 86% 42
Cake 12% 849 12/15/2014 YES 7.3 12.7 $25.50 15000 1.3
$1,575 $2,250 95% 33
Baker 3% 191 1/21/2014 5.5 15.1 $21.00 14000 4.0 $1,700
$1,012 100% 2
Able 1% 91 2/13/2014 5.0 15.0 $19.00 12000 4.0 $1,550
$1,430 87% 0

Top
Low End Market Segment Analysis
Low End Statistics
Growth Rate 11.7%
Low End Customer Buying Criteria
1. Price $13.00 - 23.00 53%
3. Ideal
Position
Pfmn 3.7 Size16.3 16%

Perceptual Map for Low End Segment
Top Products in Low End Segment
Name
Market
Share
Units
Sold
to
Seg
Revision
Date
Stock
Out

Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Sales
Budget
Customer
Aware-
ness
December
Customer
Survey

Cedar 26% 2,438 11/28/2015 3.0 17.0 $18.50 12000 8.6 $1,575
$2,362 94% 30
Dell 21% 1,918 5/21/2015 3.0 17.0 $20.50 15500 8.6 $2,300
$1,718 100% 24
Acre 21% 1,908 1/29/2014 3.0 17.0 $19.00 12000 8.6 $1,550
$1,170 82% 24
Bead 16% 1,522 4/13/2014 4.5 15.7 $20.00 14000 4.7 $1,700
$1,012 100% 22
Able 9% 857 2/13/2014 5.0 15.0 $19.00 12000 4.0 $1,550
$1,430 87% 14
Baker 7% 615 1/21/2014 5.5 15.1 $21.00 14000 4.0 $1,700
$1,012 100% 10
Cake 0% 42 12/15/2014 YES 7.3 12.7 $25.50 15000 1.3 $1,575
$2,250 95% 0
Top
High End Market Segment Analysis

High End Statistics
Growth Rate 16.2%
High End Customer Buying Criteria
1. Ideal
Position
Pfmn12.5 Size 7.5 43%
4. Price $28.00 - 38.00 9%
Perceptual Map for High End Segment

Top Products in High End Segment
Name
Market
Share
Units
Sold
to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF

Age
Dec.31
Promo
Budget
Sales
Budget
Customer
Aware-
ness
December
Customer
Survey
Dixie 26% 802 9/8/2014 12.2 7.9 $38.00 24000 1.2 $2,100
$1,718 100% 53
Brass 25% 769 6/24/2014 12.6 8.0 $38.00 23000 0.9 $1,550
$1,265 79% 45
Cid 19% 599 12/26/2014 12.2 7.8 $36.50 23000 1.1 $1,550
$2,362 91% 50
Ate 15% 475 4/26/2014 10.5 8.8 $38.00 23000 1.4 $1,700
$1,235 86% 18

Axis 13% 404 6/28/2014 12.0 7.0 $38.00 23000 0.5 $1,700
$1,625 65% 44
Dust 1% 16 6/3/2014 7.8 7.0 $33.00 19000 0.6 $2,100 $1,964
71% 1
Daze 0% 10 8/8/2014 8.3 11.7 $28.00 19000 1.5 $2,300 $1,718
100% 0
Bold 0% 7 1/11/2014 YES 8.6 12.6 $28.00 17000 2.4 $1,700
$1,012 86% 0
Dune 0% 7 8/13/2014 7.8 6.8 $33.00 19500 1.3 $2,100 $1,718
100% 0
Bid 0% 6 1/11/2014 YES 7.9 12.2 $28.00 17000 2.4 $1,700
$1,012 99% 0
Buddy 0% 6 1/11/2014 YES 7.4 11.6 $28.00 17000 2.4 $1,700
$1,012 84% 0
Adam 0% 3 11/4/2014 YES 8.0 11.7 $27.00 16000 1.4 $1,550
$1,040 90% 0
Top
Performance Market Segment Analysis

Performance Statistics
Growth Rate 19.8%
Performance Customer Buying Criteria
2. Ideal
Position
Pfmn13.4 Size13.2 29%
3. Price $23.00 - 33.00 19%

Perceptual Map for Performance Segment
Top Products in Performance Segment
Name
Market
Share
Units
Sold
to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size

Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Sales
Budget
Customer
Aware-
ness
December
Customer
Survey
Dot 36% 950 7/21/2014 13.8 13.0 $33.00 26000 1.4 $2,100
$1,718 100% 52
Doom 33% 872 5/18/2014 13.7 13.0 $33.00 26000 1.0 $2,100
$1,718 90% 50

Coat 31% 805 12/24/2014 13.7 12.8 $31.50 26000 1.2 $1,600
$2,137 89% 45
Adam 0% 2 11/4/2014 YES 8.0 11.7 $27.00 16000 1.4 $1,550
$1,040 90% 0
Top
Size Market Segment Analysis
Size Statistics
Growth Rate 18.3%
Size Customer Buying Criteria

1. Ideal
Position
Pfmn 6.8 Size 6.6 43%
4. Price $23.00 - 33.00 9%
Perceptual Map for Size Segment
Top Products in Size Segment
Name
Market
Share
Units
Sold
to

Aware-
ness
December
Customer
Survey
Dune 46% 1,194 8/13/2014 7.8 6.8 $33.00 19500 1.3 $2,100
$1,718 100% 46
Cure 39% 1,016 12/24/2014 7.3 6.7 $31.50 18000 1.2 $1,550
$2,137 89% 46
Dust 13% 332 6/3/2014 7.8 7.0 $33.00 19000 0.6 $2,100
$1,964 71% 29
Buddy 2% 47 1/11/2014 YES 7.4 11.6 $28.00 17000 2.4 $1,700
$1,012 84% 0
Top
Market Share Report

Actual Market Share in Units
Trad Low High Pfmn Size Total
Industry
Unit
Sales
7,003 9,299 3,104 2,630 2,590 24,626
% of
Market
28.4% 37.8% 12.6% 10.7% 10.5% 100.0%
Able 1.3% 9.2% 3.9%
Acre 20.5% 7.8%
Adam 18.3% 0.1% 0.1% 5.2%
Potential Market Share in Units

Trad Low High Pfmn Size Total
Units
Demanded
7,003 9,299 3,104 2,630 2,590 24,626
% of
Market
28.4% 37.8% 12.6% 10.7% 10.5% 100.0%
Able 1.2% 9.2% 3.8%
Acre 20.5% 7.7%
Adam 15.7% 0.1% 0.1% 4.5%
Ate 14.7% 1.9%
Ate 15.3% 1.9%
Axis 13.0% 1.6%

Total 19.6% 29.7% 28.4% 0.1% 20.4%
Baker 2.7% 6.6% 3.3%
Bead 16.4% 6.2%
Bid 17.9% 0.2% 5.1%
Bold 12.6% 0.2% 3.6%
Buddy 14.8% 0.2% 1.8% 4.4%
Brass 24.8% 3.1%
Total 48.1% 23.0% 25.4% 1.8% 25.7%
Cake 12.1% 0.5% 3.6%
Cedar 26.2% 9.9%
Axis 12.9% 1.6%

Total 17.2% 29.7% 27.7% 5.2% 20.2%
Baker 2.5% 6.6% 3.2%
Bead 16.4% 6.2%
Bid 18.2% 0.2% 5.2%
Bold 15.2% 0.2% 4.3%
Buddy 15.7% 0.2% 1.9% 4.7%
Brass 27.2% 3.4%
Total 51.5% 23.0% 27.7% 1.9% 27.0%
Cake 14.1% 0.5% 4.2%
Cedar 26.2% 9.9%
Cid 18.5% 2.3%

Cid 19.3% 2.4%
Coat 30.6% 3.3%
Cure 39.2% 4.1%
Total 12.1% 26.7% 19.3% 30.6% 39.2% 23.4%
Daze 20.2% 0.3% 5.8%
Dell 20.6% 7.8%
Dixie 25.8% 3.3%
Dot 36.1% 3.9%
Dune 0.2% 46.1% 4.9%
Doom 33.2% 3.5%

Dust 0.5% 12.8% 1.4%
Total 20.2% 20.6% 26.9% 69.3% 59.0% 30.5%
Coat 29.0% 3.1%
Cure 39.2% 4.1%
Total 14.1% 26.7% 18.6% 29.0% 39.2% 23.7%
Daze 17.2% 0.3% 4.9%
Dell 20.6% 7.8%
Dixie 25.0% 3.1%
Dot 34.3% 3.7%
Dune 0.2% 46.1% 4.9%
Doom 31.5% 3.4%

Dust 0.5% 12.8% 1.4%
Total 17.2% 20.6% 26.0% 65.8% 58.9% 29.2%
Top
Perceptual Map
Perceptual Map for All Segments
Andrews
Name Pfmn Size Revised

Able 5.0 15.0 2/13/2014
Acre 3.0 17.0 1/29/2014
Adam 8.0 11.7 11/4/2014
Aft 10.3 14.8 6/14/2013
Ate 10.5 8.8 4/26/2014
Axis 12.0 7.0 6/28/2014
Baldwin
Baker 5.5 15.1 1/21/2014
Bead 4.5 15.7 4/13/2014
Bid 7.9 12.2 1/11/2014
Bold 8.6 12.6 1/11/2014
Buddy 7.4 11.6 1/11/2014
Brass 12.6 8.0 6/24/2014
Chester
Cake 7.3 12.7 12/15/2014

Cedar 3.0 17.0 11/28/2015
Cid 12.2 7.8 12/26/2014
Coat 13.7 12.8 12/24/2014
Cure 7.3 6.7 12/24/2014
Digby
Daze 8.3 11.7 8/8/2014
Dell 3.0 17.0 5/21/2015
Dixie 12.2 7.9 9/8/2014
Dot 13.8 13.0 7/21/2014
Dune 7.8 6.8 8/13/2014
Doom 13.7 13.0 5/18/2014
Dust 7.8 7.0 6/3/2014

Top
HR/TQM Report
HUMAN RESOURCES SUMMARY
Needed Complement 573 950 585 1,212
Complement 617 920 615 1,188
1st Shift Complement 476 716 425 684
2nd Shift Complement 141 204 190 504
Overtime% 0.0% 4.1% 0.0% 3.5%

Turnover Rate 7.9% 9.0% 8.8% 8.6%
New Employees 49 454 54 402
Separated Employees 160 0 98 0
Recruiting Spend $3,000 $2,200 $2,000 $2,500
Training Hours 50 35 30 40
Productivity Index 108.8% 103.1% 103.2% 105.4%
Recruiting Cost $195 $1,451 $162 $1,407
Separation Cost $800 $0 $490 $0
Training Cost $617 $644 $369 $950
Total HR Admin Cost $1,612 $2,095 $1,021 $2,357

Labor Contract Next
Year
Wages $25.53 $25.53 $25.53 $25.53
Benefits 2,500 2,500 2,500 2,500
Profit Sharing 2.0% 2.0% 2.0% 2.0%
Annual Raise 5.0% 5.0% 5.0% 5.0%
Starting Negotiation
Position
Wages
Benefits
Profit Sharing
Annual Raise
Ceiling Negotiation

Position
Wages
Benefits
Profit Sharing
Annual Raise
Adjusted Labor Demands
Wages
Benefits
Profit Sharing
Annual Raise
Strike Days

TQM SUMMARY
Process Mgt Budgets Last
Year
CPI Systems $900 $0 $900 $0
Vendor/JIT $900 $0 $900 $0
Quality Initiative Training $900 $0 $900 $0
Channel Support Systems $0 $900 $0 $900
Concurrent Engineering $0 $900 $0 $900
UNEP Green Programs $900 $900 $900 $900
TQM Budgets Last Year
Benchmarking $0 $900 $0 $900
Quality Function
Deployment Effort
$0 $900 $0 $900

CCE/6 Sigma Training $900 $0 $900 $900
GEMI TQEM
Sustainability Initiatives
$900 $900 $900 $900
Total Expenditures $5,400 $5,400 $5,400 $6,300
Cumulative Impacts
Material Cost Reduction 5.79% 0.64% 5.79% 1.69%
Labor Cost Reduction 7.13% 0.06% 7.13% 1.19%
Reduction R&D Cycle
Time
0.00% 30.04% 0.00% 30.04%
Reduction Admin Costs 5.60% 25.58% 5.60% 25.58%
Demand Increase 0.75% 7.03% 0.75% 7.59%

Top
Annual Report
Annual Report Andrews
Balance Sheet
DEFINITIONS: Common Size:
The common size column simply
represents each item as a
percentage of total assets for that
year. Cash: Your end-of-year
cash position. Accounts
Receivable: Reflects the lag
between delivery and payment of
your products. Inventories: The

current value of your inventory
across all products. A zero
indicates your company stocked
out. Unmet demand would, of
course, fall to your competitors.
Plant & Equipment: The current
value of your plant. Accum
Deprec: The total accumulated
depreciation from your plant.
Accts Payable: What the
company currently owes
suppliers for materials and
services. Current Debt: The debt
the company is obligated to pay
during the next year of
operations. It includes emergency
loans used to keep your company
solvent should you run out of

cash during the year. Long Term
Debt: The company's long term
debt is in the form of bonds, and
ASSETS 2014 2013
Common
Size
Cash $21,933 13.9% $26,049
Accounts Receivable $10,061 6.4% $11,720
Inventory $14,063 8.9% $9,860
Total Current
Assets
$46,057 29.2% $47,629
Plant & Equipment $169,218 107.1% $149,680
Accumulated
Depreciation ($57,288) -36.3% ($53,024)
Total Fixed
Assets
$111,930 70.8% $96,656

Total Assets $157,987 100.0% $144,284
LIABILITIES
& OWNERS'
EQUITY
Accounts Payable $6,678 4.2% $7,635
Current Debt $27,900 17.7% $13,200
Long Term Debt $53,850 34.1% $57,750
Total
Liabilities
$88,428 56.0% $78,585
Common Stock $36,360 23.0% $33,360
this represents the total value of
your bonds. Common Stock:
The amount of capital invested
by shareholders in the company.
Retained Earnings: The profits
that the company chose to keep

instead of paying to shareholders
as dividends.
Retained Earnings $33,199 21.0% $32,339
Total Equity $69,559 44.0% $65,699
Total Liab. &
O. Equity
$157,987 100.0% $144,284
Cash Flow Statement
The Cash Flow Statement examines what happened in
the Cash Account during the year. Cash injections
appear as positive numbers and cash withdrawals
as negative numbers. The Cash Flow Statement is
an excellent tool for diagnosing emergency loans.
When negative cash flows exceed positives, you
are forced to seek emergency funding. For

example, if sales are bad and you find yourself
carrying an abundance of excess inventory, the
report would show the increase in inventory as a
huge negative cash flow. Too much unexpected
inventory could outstrip your inflows, exhaust
your starting cash and force you to beg for money
to keep your company afloat.
Cash Flows from
Operating Activities:
2014 2013
Net Income (Loss) $860 ($17)
Depreciation $10,015 $8,979
Extraordinary
gains/losses/writeoffs
($338) ($733)
Accounts Payable ($957) $1,266
Inventory ($4,203) $7,188
Accounts Receivable
$1,658

($2,166)
Net cash from
operations
$7,034 $14,516
Cash Flows from
Investing Activities:
Plant Improvements ($24,950) ($29,440)
Cash Flows from
Financing Activities:
Dividends Paid $0 $0
Sales of Common Stock $3,000 $10,000
Purchase of Common
Stock
$0 $0
Cash from long term
debt
$10,000 $15,000

Retirement of long term
debt
($13,900) $0
Change in current debt
(net)
$14,700
($3,750)
Net cash from financing
activities
$13,800 $21,250
Net change in cash
position
($4,116) $6,326
Closing cash position $21,933 $26,049
Andrews Annual Report Page 1
Annual Report Andrews

2014 Income Statement
(Product
Name:)
Able Acre Adam Aft Na Ate Axis Ache
2014
Total
Common
Size
Sales $17,998 $36,250 $34,755 $0 $0 $18,046 $15,364 $0
$122,413 100.0%
Variable
Costs:
Direct
Labor
$5,969 $10,610 $9,315 $0 $0 $3,967 $2,979 $0 $32,840 26.8%
Direct

Material
$5,923 $9,007 $13,155 $0 $0 $6,751 $6,096 $0 $40,933 33.4%
Inventory
Carry
$214 $141 $0 $0 $0 $1,075 $258 $0 $1,688 1.4%
Total
Variable
$12,105 $19,758 $22,470 $0 $0 $11,794 $9,334 $0 $75,461
61.6%
Contributi
on Margin
$5,893 $16,492 $12,285 $0 $0 $6,253 $6,030 $0 $46,952 38.4%
Period
Costs:
Depreciati
on
$2,400 $3,173 $2,040 $1 $0 $1,133 $1,267 $0 $10,015 8.2%
SG&A:
R&D
$120 $80 $853 $0 $0 $321 $495 $1,000 $2,869 2.3%

Promoti
ons
$1,550 $1,550 $1,550 $0 $0 $1,700 $1,700 $0 $8,050 6.6%
Sales $1,430 $1,170 $1,040 $0 $0 $1,235 $1,625 $0 $6,500
5.3%
Admin $356 $717 $687 $0 $0 $357 $304 $0 $2,421 2.0%
Total
Period
$5,856 $6,690 $6,171 $1 $0 $4,746 $5,390 $1,000 $29,854
24.4%
Net
Margin
$37 $9,802 $6,114 ($1) $0 $1,507 $639 ($1,000) $17,098 14.0%
Definitions: Sales: Unit sales times list price. Direct Labor:
Labor
costs incurred to produce the product that was sold. Inventory
Carry Cost: the cost to carry unsold goods in inventory.
Depreciation: Calculated on straight-line 15-year depreciation
of
plant value. R&D Costs: R&D department expenditures for each

product. Admin: Administration overhead is estimated at 1.5%
of
Other $5,712 4.7%
EBIT $11,386 9.3%
Short Term
Interest
$3,153 2.6%
sales. Promotions: The promotion budget for each product.
Sales:
The sales force budget for each product. Other: Charges not
included in other categories such as Fees, Write Offs, and TQM.
The fees include money paid to investment bankers and
brokerage
firms to issue new stocks or bonds plus consulting fees your
instructor might assess. Write-offs include the loss you might
experience when you sell capacity or liquidate inventory as the
result of eliminating a production line. If the amount appears as
a
negative amount, then you actually made money on the
liquidation

of capacity or inventory. EBIT: Earnings Before Interest and
Taxes. Short Term Interest: Interest expense based on last year's
current debt, including short term debt, long term notes that
have
become due, and emergency loans. Long Term Interest: Interest
paid on outstanding bonds. Taxes: Income tax based upon a 35%
tax rate. Profit Sharing: Profits shared with employees under the
labor contract. Net Profit: EBIT minus interest, taxes, and profit
sharing.
LongTerm
Interest
$6,883 5.6%
Taxes $473 0.4%
Profit Sharing $18 0.0%
Net Profit $860 0.7%

Andrews Annual Report Page 2
Top
Annual Report
Annual Report Baldwin
Balance Sheet

ASSETS 2014 2013
Common
Size
Cash $17,650 12.2% $8,126
Inventory $13,785 9.5% $12,274
Total Current
Assets
$45,189 31.3% $29,284
Plant & Equipment $169,100 117.0% $140,640
Accumulated
Depreciation ($69,703) -48.2% ($59,296)

Total Fixed
Assets
$99,397 68.7% $81,344
Total Assets $144,586 100.0% $110,628
LIABILITIES
& OWNERS'
EQUITY
Current Debt $28,900 20.0% $10,000
Long Term Debt $53,850 37.2% $47,750
Total
Liabilities
$92,468 64.0% $62,839
Common Stock $26,502 18.3% $22,360
Total Equity $52,119 36.0% $47,789

as dividends.
Total Liab. &
O. Equity
$144,586 100.0% $110,628
Cash Flow Statement

Cash Flows from
2014 2013
Net Income (Loss) $188 ($10,621)
Extraordinary
$0 $0
Accounts Payable $4,628 ($2,631)
Inventory ($1,511) $15,594
Accounts Receivable
($4,870)
$1,024

Net cash from
operations
$8,843 $12,741
Cash Flows from
Cash Flows from
Sales of Common Stock $4,142 $0
Purchase of Common
Stock
$0 $0
Cash from long term
debt
$20,000 $8,000
debt

($13,900) $0
(net)
$18,900
($6,950)
activities
$29,142 $1,050
Net change in cash
position
$9,525 $1,151
Baldwin Annual Report Page 1
Annual Report Baldwin

(Product
Name:)
Baker Bead Bid Bold Buddy Brass Brat Na
2014
Total
Common
Size
Sales $16,931 $30,439 $35,293 $24,952 $30,497 $29,230 $0 $0
$167,341 100.0%
Variable
Costs:
Direct
Labor
$5,306 $9,959 $11,459 $8,611 $11,042 $7,936 $0 $0 $54,313
32.5%
Direct

Material
$5,879 $9,536 $14,203 $9,386 $11,374 $12,029 $0 $0 $62,407
37.3%
Inventory
Carry
$966 $617 $0 $0 $0 $71 $0 $0 $1,654 1.0%
Total
Variable
$12,151 $20,112 $25,662 $17,997 $22,416 $20,036 $0 $0
$118,374 70.7%
Contributi
on Margin
$4,780 $10,327 $9,630 $6,955 $8,081 $9,193 $0 $0 $48,966
29.3%
Period
Costs:
Depreciati
on
$2,987 $3,173 $1,387 $1,040 $1,040 $780 $0 $0 $10,407 6.2%
SG&A:

R&D
$56 $285 $28 $28 $28 $484 $1,000 $0 $1,909 1.1%
Promoti
ons
$1,700 $1,700 $1,700 $1,700 $1,700 $1,550 $0 $0 $10,050 6.0%
Sales $1,012 $1,012 $1,012 $1,012 $1,012 $1,265 $0 $0
$6,325 3.8%
Admin $300 $540 $626 $442 $541 $518 $0 $0 $2,967 1.8%
Total
Period
$6,055 $6,710 $4,752 $4,222 $4,321 $4,597 $1,000 $0 $31,658
18.9%
Net
Margin
($1,275) $3,617 $4,878 $2,733 $3,760 $4,596 ($1,000) $0
$17,309 10.3%
Labor
of

of
Other $6,607 3.9%
EBIT $10,702 6.4%
Short Term
Interest
$3,352 2.0%
Sales:
brokerage
a

liquidation
have
sharing.
LongTerm
Interest
$7,054 4.2%
Taxes $103 0.1%

Baldwin Annual Report Page 2
Top
Annual Report
Annual Report Chester
Balance Sheet

current value of your inventory
across all products. A zero
indicates your company stocked
out. Unmet demand would, of
course, fall to your competitors.
Plant & Equipment: The current
value of your plant. Accum
Deprec: The total accumulated
depreciation from your plant.
Accts Payable: What the
company currently owes
suppliers for materials and
services. Current Debt: The debt
the company is obligated to pay
during the next year of
operations. It includes emergency

loans used to keep your company
solvent should you run out of
ASSETS 2014 2013
Common
Size
Cash $3,089 2.6% $6,797
Inventory $27,999 23.3% $28,306
Total Current
Assets
$43,175 36.0% $46,891
Plant & Equipment $138,300 115.2% $127,920

Accumulated
Depreciation ($61,428) -51.2% ($52,208)
Total Fixed
Assets
$76,872 64.0% $75,712
Total Assets $120,047 100.0% $122,602
LIABILITIES
& OWNERS'
EQUITY
Current Debt $20,887 17.4% $14,000
Long Term Debt $31,850 26.5% $45,750
Total
Liabilities
$60,001 50.0% $67,476
Common Stock $18,360 15.3% $18,360
Total Equity $60,047 50.0% $55,126

as dividends.
Total Liab. &
O. Equity
$120,047 100.0% $122,602
Cash Flow Statement

Cash Flows from
2014 2013
Net Income (Loss) $4,921 $2,324
Extraordinary
($13) ($397)
Accounts Payable ($462) ($1,009)
Inventory $306 ($1,501)
Accounts Receivable
($299)

($826)
Net cash from operations $13,673 $7,120
Cash Flows from
Cash Flows from
Sales of Common Stock $0 $0
Purchase of Common
Stock
$0 $0
Cash from long term
debt
$0 $0
debt

($13,887) $0
(net)
$6,887
($2,950)
activities
($7,000) ($2,950)
Net change in cash
position
($3,707) $1,740
Chester Annual Report Page 1
Annual Report Chester

(Product
Name:)
Cake Cedar Cid Coat Cure Na Na Na
2014
Total
Common
Size
Sales $22,724 $45,103 $21,879 $25,353 $31,995 $0 $0 $0
$147,054 100.0%
Variable
Costs:
Direct
Labor
$4,775 $12,880 $5,136 $6,549 $8,129 $0 $0 $0 $37,470 25.5%
Direct
Material

$7,335 $11,415 $8,668 $11,593 $12,204 $0 $0 $0 $51,215
34.8%
Inventory
Carry
$0 $339 $1,634 $1,199 $187 $0 $0 $0 $3,360 2.3%
Total
Variable
$12,110 $24,633 $15,438 $19,342 $20,521 $0 $0 $0 $92,045
62.6%
Contributi
on Margin
$10,614 $20,469 $6,441 $6,011 $11,474 $0 $0 $0 $55,009
37.4%
Period
Costs:
Depreciati
on
$2,435 $3,733 $1,008 $1,071 $973 $0 $0 $0 $9,220 6.3%
SG&A:
R&D

$967 $1,000 $1,000 $994 $994 $0 $0 $0 $4,954 3.4%
Promoti
ons
$1,575 $1,575 $1,550 $1,600 $1,550 $0 $0 $0 $7,850 5.3%
Sales $2,250 $2,362 $2,362 $2,137 $2,137 $0 $0 $0 $11,248
7.6%
Admin $308 $611 $296 $344 $433 $0 $0 $0 $1,992 1.4%
Total
Period
$7,534 $9,281 $6,216 $6,145 $6,087 $0 $0 $0 $35,264 24.0%
Net
Margin
$3,079 $11,188 $225 ($134) $5,387 $0 $0 $0 $19,745 13.4%
Labor
of

of
Other $5,462 3.7%
EBIT $14,283 9.7%
Short Term
Interest
$2,381 1.6%
Sales:
brokerage
a
liquidation

have
sharing.
LongTerm
Interest
$4,177 2.8%
Taxes $2,704 1.8%
Net Profit $4,921 3.3%

Chester Annual Report Page 2
Top
Annual Report
Annual Report Digby
Balance Sheet

ASSETS 2014 2013
Common
Size
Cash $10,277 6.7% $13,989
Inventory $40,336 26.4% $21,197
Total Current
Assets
$68,775 45.1% $48,977
Plant & Equipment $144,600 94.8% $132,800
Accumulated
Depreciation ($60,867) -39.9% ($51,227)

Total Fixed
Assets
$83,733 54.9% $81,573
Total Assets $152,509 100.0% $130,550
LIABILITIES
& OWNERS'
EQUITY
Current Debt $30,900 20.3% $12,000
Long Term Debt $40,850 26.8% $48,750
Total
Liabilities
$86,050 56.4% $70,581
Common Stock $26,360 17.3% $20,360
Total Equity $66,459 43.6% $59,969

as dividends.
Total Liab. &
O. Equity
$152,509 100.0% $130,550
Cash Flow Statement

Cash Flows from
2014 2013
Net Income (Loss) $490 $135
Extraordinary
$0 ($783)
Accounts Payable $4,469 $841
Inventory ($19,140) ($5,261)
Accounts Receivable
($4,371)
($1,410)

Net cash from operations ($8,912) $1,575
Cash Flows from
Cash Flows from
Sales of Common Stock $6,000 $0
Purchase of Common
Stock
$0 $0
Cash from long term
debt
$6,000 $4,000
debt
($13,900) $0

(net)
$18,900
($5,950)
activities
$17,000 ($1,950)
Net change in cash
position
($3,712) ($8,325)
Digby Annual Report Page 1
Annual Report Digby

(Product
Name:)
Daze Dell Dixie Dot Dune Doom Dust Na
2014
Total
Common
Size
Sales $39,885 $39,319 $30,469 $31,365 $39,636 $28,785
$11,516 $0 $220,975 100.0%
Variable
Costs:
Direct
Labor
$12,776 $13,842 $7,864 $9,282 $11,728 $8,733 $3,425 $0
$67,649 30.6%
Direct
Material
$15,385 $11,314 $12,317 $14,446 $15,714 $13,435 $4,583 $0
$87,194 39.5%

Inventory
Carry
$849 $784 $1,126 $659 $132 $778 $511 $0 $4,840 2.2%
Total
Variable
$29,009 $25,940 $21,307 $24,387 $27,574 $22,947 $8,519 $0
$159,684 72.3%
Contributi
on Margin
$10,876 $13,379 $9,162 $6,978 $12,061 $5,838 $2,997 $0
$61,291 27.7%
Period
Costs:
Depreciati
on
$1,867 $2,987 $800 $1,040 $1,040 $953 $953 $0 $9,640 4.4%
SG&A:
R&D
$610 $1,000 $696 $560 $623 $383 $428 $0 $4,300 1.9%

Promoti
ons
$2,300 $2,300 $2,100 $2,100 $2,100 $2,100 $2,100 $0 $15,100
6.8%
Sales $1,718 $1,718 $1,718 $1,718 $1,718 $1,718 $1,964 $0
$12,272 5.6%
Admin $633 $624 $484 $498 $629 $457 $183 $0 $3,509
1.6%
Total
Period
$7,128 $8,629 $5,797 $5,916 $6,111 $5,612 $5,628 $0 $44,821
20.3%
Net
Margin
$3,748 $4,750 $3,365 $1,062 $5,951 $226 ($2,631) $0 $16,470
7.5%
Labor
of

of
Other $6,900 3.1%
EBIT $9,570 4.3%
Short Term
Interest
$3,492 1.6%
Sales:
brokerage
a

liquidation
have
sharing.
LongTerm
Interest
$5,309 2.4%
Taxes $269 0.1%

Digby Annual Report Page 2
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