Each Team can earn a maximum of 5 stars per round. Stars re…

Each Team can earn a maximum of 5 stars per round.  Stars represent an overall performance evaluation, much like the stars in the Morningstar ratings. One star is issued in CAPSIM for each of the following:

In the CAPSIM simulation, teams are evaluated based on their overall performance and are awarded stars as a measure of their success. Each team has the potential to earn a maximum of 5 stars per round, and these stars serve as an overall performance evaluation, similar to the star ratings used in Morningstar ratings.

The allocation of stars in CAPSIM is based on several criteria that assess different aspects of the team’s performance. Each criterion is associated with a specific star rating, with a maximum of 1 star being issued for each criterion. The criteria for earning stars in CAPSIM include:

1. Market Share: Market share represents the portion of the target market that a team’s product captures. A higher market share indicates a greater ability to attract customers and compete effectively in the market. Teams can earn a star for achieving a high market share, reflecting their success in this aspect.

2. Profitability: Profitability is a crucial measure of a team’s financial success. It indicates whether the team’s sales revenue surpasses their expenses and allows them to generate a profit. Teams can earn a star for achieving profitability, which demonstrates their ability to effectively manage costs and generate revenue.

3. Return on Sales (ROS): Return on Sales is a measure of the team’s profit margin. It represents the proportion of sales revenue that is converted into profit after deducting all expenses. A higher ROS indicates a more efficient and profitable operation. Teams can earn a star for achieving a high return on sales, indicating their ability to generate significant profit from their sales.

4. Stock Price: Stock price reflects the market valuation of the team’s shares. It represents the confidence and perception investors have in the team’s future prospects. Teams can earn a star for achieving a high stock price, indicating strong investor confidence in their performance and potential.

5. Asset Management Index (AMI): AMI measures the efficiency of a team’s asset utilization. It evaluates how well the team is using its assets to generate sales and profits. Teams can earn a star for achieving a high asset management index, indicating their ability to optimize resource allocation and generate maximum returns from their assets.

By assessing these criteria, CAPSIM evaluates teams’ performance in various dimensions, providing a comprehensive understanding of their overall effectiveness in the simulation. The allocation of stars helps teams track their progress and benchmark their performance against other teams.

It is important to note that the allocation of stars is not just based on absolute performance but also relative performance compared to other teams. Therefore, even if a team achieves a certain level of performance, it might not be awarded a star if other teams outperform them in that aspect.

Furthermore, CAPSIM employs a dynamic simulation environment, where market conditions and competitor actions can fluctuate. This means that teams need to continuously adapt their strategies and actions to maintain or improve their star ratings. The allocation of stars is not static; it changes with each round based on the team’s performance and market dynamics.

In conclusion, stars in CAPSIM serve as an overall performance evaluation and are awarded to teams based on their achievement in various criteria such as market share, profitability, return on sales, stock price, and asset management index. These stars help teams assess their progress, benchmark their performance, and adapt their strategies in the dynamic simulation environment.