3 Instructor Environment - 3.8 Industry Scoring

3.8 Industry Scoring

Capsim offers a variety of ways for you to assess performance.

3.8.1 Balanced Scorecard

My Teams

The Capsim Balanced Scorecard encourages the participants to steer their company toward long range success. For example, a common tactic in the final round is to sell company assets and take an extraordinary gain. The Balanced Scorecard Recap weighs Operating Profit so this distortion is not effective. In addition, by tracking Customer Satisfaction and Internal Business Processes, companies are encouraged to create good products, operate efficiently, and invest in employee productivity. The Balanced Scorecard implemented for Capstone, Foundation (and Comp-XM) provides an excellent overall assessment of company performance.

The philosophy of the Balanced Scorecard recognizes that financial measures are results, and management efforts can be leveraged by applying them upstream, that is, concentrating on prerequisites to profitability.

Tabs at the top of this page allow access to scores for each round. Within each round, clicking on any team score opens a page with a breakdown of that score.

Exact scoring methods are available by clicking the criteria name within the scoring breakdown.

Top Ten and the Capsim Balanced Scorecard

Top Ten rankings are based on the Capsim Balanced Scorecard.

The Balanced Scorecard Top Ten recognizes those teams whose results are in the top ten percent. Listings of this top decile recognize professor, school and team for each individual round as well as total performance through each round. Because certain configurations of the simulation create more opportunities for profits than others, equitable comparison for Top Ten evaluation requires a level- playing-field.

Qualifiers:

• Must have a total of six teams participant or computer companies per industry;
• HR - the Human Resources module cannot start before Round 2;
• TQM/Sustainability - the TQM (Total Quality Management)/Sustainability module cannot start before Round 3.

Disqualifiers:

• No Student Bonuses
• No Cash Injections

Instructors are free to configure their simulations in any way which does not garner an undo advantage to their teams, relative to other simulations.

3.8.2 Success Measures

Success Measures are administered from the instructor's Homework section (see 3.9.3 Entering Success Measures on 23).

If they wish, instructors can let their companies determine how they wish to be scored, while all interrelate, a company with high sales might not be as profitable as a niche player. Companies enter how they want to be judged via the participant Homework area (see 4.8.3 Success Measures).

Weighted Ranking

Final Score Ranking: This method displays charts that compare each team's results against each team's set of weights.

Specifically, the Andrews chart will show every team's performance based on Andrew's success measures, the Baldwin chart will show every team's results based on Baldwin's measures, etc.

The final chart, "Overall Scoring," shows each team's performance based on their individual criteria, allowing an "across the board" comparison. Final Score Ranking calculations use a three-step process:

The system determines a raw score for each category:

Each team gets 1 point for itself and 1 point for each inactive team - however, teams with negative results could fall beneath this level.

Companies get an additional point for each active (participant or computer) team they beat.

There will be times when the first and second place team for a category are very close. Nevertheless, the first place team will always receive a score of 6 and the second place team a score of 5.

The system creates an adjusted score for each category by multiplying the team's raw score by its success measurement weight. For example, if Andrews' ROE weight were 20%, and if it were first in that category (scoring 6 raw points), it would receive 1.2 points.

The adjusted scores for each category are added together. The resulting score will always be between 1 and 6.

Weighted Relative

With the relative ranking, the system determines a raw score for each category by dividing the team's score (Team's Value) by the by the highest scoring team in that category (Highest Value). For example, if the Team's Value for Profit is $5,000,000 and the Highest Value is $10,000,000, the team receives a raw score of 0.5 ($5,000,000 ÷ $10,000,000 = 0.5).

Next, the system multiplies the raw score by the success measure entry. Continuing with the example above, if the team's success measure (Team Weighting) is 12.0, multiplying 12 by 0.5 will derive a "Score" of 6.

The scores for each category are added, and the resulting sum appears in the Total row.

The available measures include Market Share, Stock Price, ROE, ROA, ROS, Asset Turnovers, Market Cap, and Cumulative Profit.

Classic Ten Rankings

This area displays round by round the top ten companies and the position of the companies within the industry for the following:

• Profit
• Cumulative Profit
• Stock Price
• Return on Equity
• Return on Sales
• Return on Assets
• Asset Turnover

These results are not weighted.

3.8.3 Analysis &Amp; Scoring

Analyst Report

The Analyst Report evaluates each company in ten categories of management performance.

• Margins
• Profits
• Emergency Loans
• Working Capital
• Market Share
• Forecasting
• Customer Satisfaction
• Productivity
• Financial Structure
• Wealth Creation

Each category is worth 100 points, for a total possible points per round of 1000; total possible points for an 8 Round simulation is 8000 points. To see how a category score was determined, select a category from the select box. The category report lists company performance and offers suggestions for improvement.

Some categories run counter to others. For example, a high Customer Satisfaction score calls for products to be priced towards the bottom of the price range, which can depress the Profits score.

Round Analysis

The Round Analysis is a simplified method for assessing company performance. Based on zero to five stars, the Round Analysis returns scores for these areas:

• Contribution Margin
• Emergency Loans
• Inventory
• Stock Price
• Profits

The Round Analysis is perfect for High School or Introduction to Business courses.

Star Summary

This section summarizes the stars awarded in the Round Analysis.