Cesim Global Challenge simulation – Round 3 strategy.
Hello everyone, and welcome back to our CESIM Global
Challenge simulation training. In this session, we’ll walk through Round 3
strategies and provide the Top 10 Winning Tips to help you and your team
outperform competitors and win this complex but rewarding simulation.
Whether you’re playing as part of your business school
curriculum, an MBA course, or for strategic practice, this guide is designed to
optimize your decision-making, improve team collaboration, and deliver results
across all regions: USA, Europe, and Asia-Pacific.
Let’s begin with the core focus of Round 3 – using data from
the past to make smarter, more data-driven forecasts for your current
decisions. We’ll analyze sales reports, cost structures, market trends, and
competitive insights to help you build a winning edge.
🏆 Tip 1: Start with Last
Round’s Actual Sales Volumes
Your first key action is to analyze the number of units sold
in Round 2 across all markets and technologies. This gives you a base reference
for Round 3 planning.
Let’s look at the real data:
- In the
USA, we sold about 13,600 units of Tech 1.
- In Asia-Pacific,
nearly 28,000 units – that’s more than double.
- In Europe,
we had around 14,500 units sold.
💡 These numbers are
essential because they directly inform your forecast for Round 3. Copy these
values into a spreadsheet or forecasting template so you can track how your
demand is trending.
Also, calculate the average selling prices and identify if
your pricing strategy last round was too aggressive or conservative.
Now let’s look at cost of production. For example:
- Tech
1 has a cost of around $75/unit,
- Tech
2 may be significantly higher.
You also need to track plant utilization. In our case,
factory capacity was 108,000 units, and we used 71.2%. That’s a great benchmark
– it means you still have room to grow without immediate capital investment.
💡 Tip 2: Analyze
Financial Statements and Competitor Performance
The next step is to dive into the financial reports. This
includes your Income Statement, Cash Flow, and Balance Sheet, but more
importantly — the comparison with other teams.
From the leaderboard or financial summary:
- Look
at sales revenues of all teams. Which teams are leading in revenue?
- Identify
which teams are profitable despite lower revenue — they are managing costs
better.
For example:
- Team Green
may have high sales but low profit due to excessive costs.
- Team Pink
could be spending a lot on R&D or promotions, which might hurt
margins.
Also, look at R&D investments. Some top-performing teams
spend wisely (about $100k–$200k per product line), while others overspend
without result. Balance your R&D across regions and technologies.
Lastly, review promotion budgets. For example:
- Team Ultra
is overspending on promotions but not converting that into sales.
- Smart
teams optimize promotion spending and achieve better ROI.
💬 Recommendation:
Consider increasing promotion budgets for Tech 2 if you’re lagging in sales,
but do so with close monitoring of profit margins.
📈 Tip 3: Study the Market
Report – Price Sensitivity and Demand
This is one of the most critical tools for Round 3.
Open the Market Report and look at the following:
- Average
selling price per tech in each region
- Units
sold per price point
Here’s what we learned from the data:
- In the
USA, prices ranged from $240 to $299/unit.
For $299, you sold ~1,000 units.
For $240, you sold ~2,300 units.
💡 This proves that the
USA market is price sensitive — even a $20 difference can cut your volume in
half.
- In Asia-Pacific,
the trend is even more extreme.
At $1,600, you may sell over 5,000 units.
At $2,000, that drops to 2,300.
At $2,200, it drops to just 700 units.
You must track this sensitivity per market and adjust your
pricing accordingly. A 20% change in price could cause a 70% drop in demand!
💬 Action: Plot a quick demand
curve using Excel to visualize this and find your sweet spot.
🌍 Tip 4: Use the Market
Outlook to Forecast Demand Growth
Next, review the Market Outlook section to understand demand
trends.
In Round 3, you might see:
- USA:
+3% growth
- Asia-Pacific:
+8% growth
- Europe:
-3% decline
Use these values in your demand forecast. If you sold 13,600
units in the USA last round, a 3% growth means you can expect ~14,000 this
round.
🔍 Quick Calculation:
|
Region |
Last Round Sales |
Forecast Growth |
This Round Demand |
|
USA |
13,600 |
+3% |
~14,008 |
|
Asia-Pacific |
28,000 |
+8% |
~30,240 |
|
Europe |
14,500 |
-3% |
~14,065 |
This is your baseline for calculating supply, marketing
budgets, and production volume.
🧮 Tip 5: Build a Demand
Matrix for All Tech Products
Now we cross-reference actual demand per technology.
In Round 2:
- Tech
1 sold 13,000 (USA), 28,000 (Asia), 14,000 (Europe)
- After
applying the growth or decline rates, we project Round 3 demand.
For example:
- Tech
1 in Asia could go from 28,000 to ~30,240 units.
- Tech
2 may grow faster due to better network coverage.
Make a matrix with this format:
|
Tech |
Region |
Demand Forecast |
|
T1 |
USA |
14,000 |
|
T1 |
Asia-Pacific |
30,240 |
|
T1 |
Europe |
14,065 |
|
T2 |
USA |
... |
|
T2 |
Asia-Pacific |
... |
|
T2 |
Europe |
... |
This will guide your production and marketing allocation.
🌐 Tip 6: Track Network
Coverage and Adjust Focus
Your network coverage (distribution network strength) is a
major driver of sales. A low score here means fewer units sold even at the
right price.
Check each region’s network strength for Tech 1 and Tech 2.
For example:
- Tech
2’s network coverage in Asia-Pacific might be rising — this is a chance to
push sales harder.
- Tech
1 could be plateauing, so focus less on expansion and more on price
optimization.
Also, watch technology lifecycle trends:
- Tech
1 = mature, stable
- Tech
2 = high growth
- Tech
3 or 4 = early stage or low availability
Adjust your budget and forecasts accordingly. For Tech 2,
increase promotion and sales staff in regions with strong coverage.
🏭 Tip 7: Plan Production
Efficiently
Now it’s time to match your demand forecast with production
capacity.
💡 Don’t overproduce — it
creates inventory cost.
💡
Don’t underproduce — you lose market share and revenue.
Use this formula:
Forecast Demand + Safety Stock – Inventory = Production
Requirement
Also check:
- Plant
utilization rate (keep it around 85–90%)
- Unit
production cost by tech
- Whether
you need to expand capacity or outsource
Pro tip: Use Make vs. Buy analysis for high-cost techs.
💰 Tip 8: Optimize Pricing
for Each Region
We already discussed price sensitivity in Tip 3. Now,
determine your price-per-tech-per-region by:
- Reviewing
last round’s results
- Plotting
the price elasticity curve
- Matching
price with perceived value and competitive price
💬 Rule of Thumb: Don’t be
the cheapest, be the best value.
You can even try A/B pricing across regions — lower price in
Asia-Pacific where demand is high, higher price in Europe with lower
competition.
📣 Tip 9: Balance Your
Marketing and Sales Staff
Don’t spend all your budget on promotion only — balance it
with sales staff expansion and after-sales support.
For each region, allocate:
- Promotion
for awareness
- Sales
staff for conversion
- After-sales
for customer satisfaction
You’ll find this balance leads to better customer loyalty
and repeat purchases in later rounds.
🧠 Tip 10: Prepare a Round
Summary and Strategic Plan
Before submitting your Round 3 decisions, meet with your
team to review:
- Key
assumptions and forecasts
- Budget
allocations by tech and region
- Risks
and what-if scenarios
- Contingency
plans (e.g., if price is too high, or factory downtime)
Create a 1-page round summary and save it. This helps you
track your logic and adjust better in future rounds.
[Conclusion]
Round 3 is where teams start to diverge — the decisions you
make now can give you a significant lead or cause you to fall behind.
By following these 10 Winning Tips, especially focusing on
data-driven forecasting, competitor analysis, price sensitivity, and
region-specific strategy, your team can confidently make smarter decisions and
move ahead in the CESIM Global Challenge.
Thank you for watching, and stay tuned for our Round 4 guide,
where we’ll cover expansion strategy, financial planning, and managing multiple
product lines.
If you found this video helpful, please share it with your
team or classmates. And for more tips, visit https://top30tipsforcesim.blogspot.com/
or email for FREE support for Round 1 and 2 at cesimhelp2020@gmail.com.
Let’s win CESIM together!
PART 2
Cesim Global Challenge Simulation Strategy Guide
Hello and welcome back to our strategic walkthrough for the Cesim
Global Challenge simulation. In this video, we’ll focus on key decisions and
winning tips to help you achieve top results across all rounds — especially
from mid to late game, where production capacity, cost control, and market
dominance really matter.
This guide includes deep insights into production planning, R&D, pricing,
promotion, logistics, and financial strategy.
Let’s begin with one of the most critical decisions in this
simulation: Production and Investment.
1. Production & Investment Strategy (Winning Tip #7)
Let’s take a look at our production planning.
As of this round, we’ve built significant plant capacity:
- 6,600
units in the USA,
- 4,400
units in India,
- And
additionally, 2,500 units through outsourced contract manufacturing.
That gives us a total capacity of 13,500 units. This is
crucial to meet demand while minimizing cost per unit through economies of
scale.
✅ Demand Forecast &
Production Balancing
Based on the latest market demand analysis:
- In
the USA, we expect to sell around 3,100 units.
- In Europe,
we project 3,000 units.
- In Asia,
around 4,800 units are forecasted.
So we need to balance production against this expected
demand:
- In Europe,
for example, we can plan production of 2,200 units in local plants and
supply the rest from the USA via export.
- In Asia,
we should produce mainly in India to serve the regional demand and avoid
high logistics costs.
This demand-driven planning allows us to optimize our
capacity utilization and reduce waste or overproduction. Always make sure your
production forecast aligns with expected sales.
2. R&D (IND) Decisions
Let’s talk about Innovation and Development (IND).
In this round, we decided to add new features only for Take
2 products, as Take 3 and Take 4 are still in early stages. It’s wise to hold
off on developing those until demand increases in the later rounds.
Why?
- IND
costs are very high at this stage.
- The return
on investment for new features is low when market demand is still small.
So we delay major R&D upgrades until:
- Demand
for those products justifies the cost,
- And
our cash flow can support larger development efforts.
This saves capital for marketing and production efficiency
in early rounds.
3. Marketing Strategy (Winning Tip #8)
Now let’s move into Marketing — a crucial area for capturing
market share and driving revenue.
We worked on three key levers:
- Pricing,
- Promotion
budget,
- Product
features.
✅ Product Features
We used:
- 4
features for Take 1 globally,
- 6
features for Take 2 in Europe,
- And
adjusted accordingly in Asia based on segment expectations.
Remember: more features don’t always mean more profit — only
add what your customers value, not what just adds cost.
✅ Pricing Strategy
We reduced prices to stay competitive:
- From
$299 to $289, and even $169 for certain segments to push volume.
In Europe, for instance, the drop from $216 to $169 was strategic: - It
increased demand,
- While
our production cost was low enough to still yield strong profit margins.
In Asia, prices were adjusted modestly — around $199, with aggressive
promotion to push volume and maintain profitability.
✅ Promotion & Advertising
We increased promotion budgets significantly — especially in
Asia and Europe — to:
- Improve
brand awareness,
- Drive
higher sales,
- And
prepare for next rounds where brand equity will influence demand more than
price alone.
Our advertising investment was key to the 83% increase in
sales this round — a major win!
4. Logistics Strategy (Winning Tip #9)
Let’s talk about logistics and distribution. This is often
overlooked — but critical for profitability.
We produced in:
- USA
for USA and export to Europe,
- India
for the Asian market only.
We avoided cross-continent exports from India to Europe or
USA to Asia, since logistics costs would be too high.
Our logistics plan ensured:
- On-time
delivery,
- Lower
shipping costs,
- And
maximum local market responsiveness.
Yes, there might be a few unsatisfied orders due to limited
exports, but overall profit was higher by focusing on local production and
minimizing logistics expenses.
5. Finance & Cash Flow Management (Winning Tip #10)
Let’s move on to financial strategy.
In this round, we didn’t aim for maximum profit — instead,
we focused on:
- Boosting
sales volume,
- Using
all production capacity,
- And
positioning ourselves for future rounds where unit costs will be lower.
✅ Why this approach?
- By
maximizing production this round, we drove unit costs down for next round.
- This
lets us price more competitively and expand profit margins later.
We also:
- Maintained
a healthy cash balance,
- Avoided
unnecessary borrowing,
- And
preserved financial flexibility for R&D and expansion in later rounds.
This conservative but smart finance strategy ensures
long-term victory — not just a short-term high score.
6. Overall Simulation Results and Next Round Outlook
With these strategies:
- Our sales
increased by 83%,
- Production
capacity was fully utilized,
- And
despite lower margins in some products, we secured a solid profit overall.
We also built strong brand awareness, market share, and
global presence — which will pay off massively in Rounds 6–10.
Next round, we will:
- Continue
refining prices,
- Launch
Take 3 or Take 4 products as demand builds,
- Increase
automation to reduce labor costs,
- And
use precise demand forecasting to match supply with sales more
efficiently.
7. Summary of Winning Tips
Let’s summarize the key lessons from this round:
|
Tip # |
Strategy Area |
Action |
|
7 |
Production Planning |
Match production to demand, balance regional capacity,
avoid excess. |
|
8 |
Marketing |
Smart pricing, targeted features, and aggressive
promotion. |
|
9 |
Logistics |
Produce locally, minimize cross-border exports to cut
costs. |
|
10 |
Finance |
Focus on sales growth now, reduce costs, plan for
long-term gains. |
By following these tips, your team can scale fast, control
costs, and dominate the simulation.
8. Final Advice & Free Resources
If you're a student or team leader looking for help in the
next round, here’s what you can do:
📧 Get FREE support for
Round 1 and Round 2 by emailing:
cesimhelp2020@gmail.com
📘 Download the Top 30
Winning Tips for CESIM simulation here:
👉
https://top30tipsforcesim.blogspot.com/
🎥 Rewatch this video
anytime for key takeaways and apply them round by round.
[Closing Message]
Thank you so much for watching! I hope this video gave you actionable insights
and confidence to lead your team to top results in the CESIM Global Challenge.
If you have any questions or need help with your simulation
rounds, don’t hesitate to reach out by email.
💡 Wishing you great
strategy, smart decisions, and ultimate success in your simulation journey.
Good luck — and let’s win the game together!
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