MEMORANDUM
TO: Professor
FROM:
DATE: July 14, 2016
SUBJECT: Initial Strategy Memo
Business Strategy
When I first experienced Capsim in my second core accounting course, I found myself
very successful using two different strategies. My first strategy involved focusing almost
exclusively on the high end, or in this case “performance” market. The second I took a
more broad strategy and pursued both the very high end and the very low end markets. I
had more success using the second strategy so that is my plan going in. I will provide both
top of the line, new, expensive products for the high-end market, and very cost-focused,
less advanced products for the low end market.
Success Measures
I will of course take all success measures into consideration when both making decisions
and evaluating my choices, but there are three that I will put extra emphasis on, mostly due
to my broad market strategy. The first and most important is market share by dollar
volume. As someone who is taking on a strategy that embraces both ends of the market, I
should be concerned if I do not have substantial market share. With my both very high and
low-end products, I will be covering a huge portion of the market, and that should
definitely be recognized and considered in my decision making. The second measure I am
putting the most emphasis on is return on sales. I want to focus on this measure because it
is a huge indicator on whether or not I am effectively pricing my products. My high end
