1.3 Company Departments

The Rehearsal Tutorial and Chapter 4 discuss company activities. You have four main departments or functional areas:

• Research & Development, or R&D
• Marketing
• Production
• Finance

Many simulations utilize modules such as Human Resources and TQM (Total Quality Management)/Sustainability. Modules require additional management decisions. Your simulation Dashboard will tell you if any modules are included.

Companies use the Capstone Web Application to enter departmental decisions.

1.3.1 Research & Development (R&D)

Your R&D Department designs your product line. The department needs to invent and revise products that appeal to your customers’ changing needs.

1.3.2 Marketing

Your Marketing Department prices and promotes your products. It interacts with your customers via its sales force and distribution system. Marketing is also responsible for sales forecasts.

1.3.3 Production

Your Production Department determines how many units will be manufactured during the year. It is also responsible for buying and selling production lines.

1.3.4 Finance

Your Finance Department makes sure your company has the financial resources it needs to run through the year. The department can raise money via one-year bank notes, 10-year bonds or stock issues.

The department can also issue stock dividends, buy back stock or retire bonds before their due dates.

1.3.5 Plug-Ins

Plug-ins are different than modules. Plug-ins and their decisions have a greater overall impact on your organization.

For example, the simulation might include the Corporate Responsibility and Ethics plug-in, which presents you with an unexpected ethical dilemma. Group discussion and consensus is imperative because your decisions will affect your financial results.

Your simulation Dashboard will notify you if a plug-in has been scheduled.