A team of undergraduate students at the Kelley School of Business Indianapolis recently placed second in the final profit round at the global Capsim Simulation Experience.
Capsim business simulations engage participants in a dynamic competition to turn struggling companies into successful, profitable businesses. Classes are divided into teams that work together to focus on strategy, finance, production, marketing and all the key elements that interact to build their business. The competition is held for eight rounds during a semester, with each round representing a year of the business.
The Kelley “Team Erie” of Aaron Liwanag, Matt Ray, Lindsay Slone, Mike Smith and Scott Todd earned their second-place finish against nearly 500 other teams by ending with a $92 million profit in the eighth and final round of their simulation.
The team benefitted by maximizing the profit from sales of a product by setting a price point beyond the preferred price in the market. By identifying a demand that exceeded production capacity, the team essentially sold its product to a segment of the market others had mistakenly ignored in their strategic business plans.
“I always begin J411 class by asking, ‘How many of you want to be judged by what you accomplish, not how you accomplish it?’ Team Erie took this to heart and made some very bold, but informed, moves that paid off in a big way,” said Todd Roberson, senior lecturer in finance.
A second Kelley team finished 11th in the profit round with a profit of $63 million.
“I think (the simulation) is a really good way to apply the theories we learned from the books and professors in the classroom to a close reality, while not having the real-life implications for any mistakes made in the process,” Liwanag said.
Liwanag and team member Smith had high praise for the simulation experience and urged future students to take advantage of the rich learning opportunity.
“I believe this may be one of the proudest accomplishments I have had in my college career,” Liwanag said.
“I felt proud to represent the Kelley School of Business Indianapolis in this competition,” Smith said. “This is an excellent school, and I want to do the best I can to represent it well.”