CAPSIM simulations are learning tools that aid business students to learn how to actualize their theoretical knowledge. The games and activities contained in the simulation also guide the user into useful ways to develop their careers. It also provides an opportunity for competition that is similar to the one that will be experienced in the work place. CAPSIM simulation has four functional departments. They are namely marketing, finance, production and R&D. Each department has its own primary functions and subsequent measures of performance.
Discussion
The primary functions of the marketing department include monitoring and setting prices of goods or services and promoting them in order to boost sales. The price is defined by the cost of production and it is compared to the customer's ability and willingness to buy the product. This is therefore determined by factors such as market rates of similar goods and purchasing power of the target market. The marketing team also put up a promotion budget. This creates customer awareness in the market and establishes a customer base. It is followed by the sales budget which ensures that the product is available to the customer who is willing to purchase it. The marketing function uses the sales forecast a a measure of performance. This values are compared to the actual sales to determine success or failure.
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The finance department manages the finances of the business in order to guarantee that the business has enough money to operate during that financial year. Issuing long term debt, issuing stock or borrowing current ddebt are some of the options that are available to the finance department. Other options to free up money include emergency loans, retiring stock or retiring long term debt. This department's measure of performance is compared to the sales forecast that is projected by marketing. This is measured alongside the end of year cash position. (Kotlarsky et al, 2015)
The production department manages the generation of goods and services. This is done by setting a schedule that guarantees there is enough produce to meet the projection of the marketing department. This schedule is then used to determine if there is enough capacity to meet the supply. The capacity is then enhanced by creating additional shifts or increasing the output of the equipment. Sometimes this production department have to consider automation to have their needs met. The measure of performance for this group is the ability to meet the forecasted units of production.
The R &.D is the final department. This department creates the product that determines the existence of the business. As the business progresses, the department decides on which products to retire or modify. The considerations are guided by market needs and buying criteria. The products may be modified in size or to suit the offering price. The most common ground for modification is reliability. This department's measure of performance is market appeal.
The systems theory studies the interaction of different arms or systems and departments, and how their interactions produce results. Each department operates as a sub system that contributes to the entire system .The four functional departments mentioned above operate within the structure of a systems theory. The decisions made in one department directly affect the other departments. For example, the product presented by the R&D department will rely on the feedback that they receive from the marketing department. Their adjustments will also be based on the budgetary allocations that the finance department approves. Similarly, the marketing department will depend on the efforts of the R&D in order to get a core product (Thompson, 2017).
Similarly, the feedback they get from the finance department will determine how effective their efforts are. The production department depends on all the other departments. It gets the product design from the R&D department and then consults the marketing department to determine the volumes to produce. It then goes to the finance department to cater for its operations. The same finance department may limit or boost the operation of any of the other departments. However, the operations of the other departments generate the finance that is needed to keep the whole unit functioning. The four departments operate under an open system with each component relying on the other.
Every organisation has its own culture that determines its operational involvement. This culture may enhance the systematic operating of the department, or it may limit its roles. The culture in each department is often determined by the leadership. The department with a clan type of leader will enjoy open interactions of of a friendly nature. This kind of department will have less limitations in communicating with others departments that have similar leadership. This will keep the system operational. Departments that have a market culture may have frosty relations as each department seeks to outdo the other. This could be neither benefit the organisation if it is channelled correctly. It could however be detrimental if the communication is delayed or misinterpreted (Crane, 2017).
The hierarchy culture may be the worst in terms of departmental organisation. This will require formal interactions in order to exchange information. It may slow down the speed of implementation if the individual departments have to go through protocol to be heard. The decision making process in all these cultures will determine the success of the system mode of departments. The clan culture may be the fastest to actualize change, but the hierarchy culture will be the most organised and accountable. A culture that incorporates some aspects of each will be the most effective.
Conclusion
CAPSIM simulations are perhaps one of the most important tools in business. With its help, the learners can easily put the theoretical knowledge acquired into practice. They allow for a vibrant, a highly and interactive learning experience. Most importantly, one should realize that the four key CAPSIM simulation functional departments (marketing, finance, production and R&D) are rather interactive in nature and thus, cannot operate in isolation from each other. From the discussion, it is evident that each department will influence each other in a way or another. It is therefore, important that one understands how these interactions influence business output in real life. Moreover, an organizational culture that incorporates all the four aspects will go a long way in boosting the business output.
References
Crane, A. (2017). Rhetoric and reality in the greening of organisational culture. In Greening the Boardroom (pp. 129-144). Routledge.
Kotlarsky, J., van den Hooff, B., & Houtman, L. (2015). Are we on the same page? Knowledge boundaries and transactive memory system development in cross-functional teams. Communication Research, 42 (3), 319-344.
Thompson, J. D. (2017). Organizations in action: Social science bases of administrative theory . Routledge.
