Cesim Global Challenge Simulation
Hello, and welcome to this detailed session on the Cesim
Global Challenge. This video was created based on multiple requests from
friends and fellow participants who wanted a clear, step-by-step guide
to decision-making in Cesim simulations. Specifically, we’ll walk through Round
9 as our reference point, but the strategies and insights shared here will
apply to all rounds — especially Rounds 1 to 10.
This session is designed to help you understand the game
structure, how to analyze reports, use Excel effectively, set smart prices,
forecast demand, and plan production with precision. If you follow these steps
carefully, you’ll significantly improve your chances of achieving top sales,
profit, and shareholder value.
🔍 Part 1: Overview of
Game Results
Let’s begin with a quick performance snapshot. We are
team number 10, and after completing 9 rounds, our results are impressive:
- Sales:
Among the highest in the simulation.
- Profit:
We’re currently in the top 2.
- Market
presence: Strong in all three regions – USA, Asia, and Europe.
Here’s a breakdown:
- USA:
Consistent double-digit sales and around 10% market profit.
- Asia
(ASER): Very strong sales and nearly 20% profit share.
- Europe:
Solid sales and about 15% in profit contribution.
What you’re seeing now is the cumulative result of carefully
analyzed decisions. Let’s now reverse-engineer this outcome so that you can do
the same from Round 1 onward.
✅ Step 1: Review Past Results
Before making any decision, always begin with the financial
statement and performance reports from the previous round.
Why?
Because you must understand:
- How
well your products performed
- Whether
your pricing was effective
- Whether
your inventory planning worked
- Which
market segments are profitable or underperforming
You should do this consistently, starting from the Practice
Rounds (1–3) and every round after.
📊 Step 2: Analyze the
Market Report
Now that you’ve seen your internal results, it’s time to
move to the market-level data.
Each round provides detailed insights into:
- What
products are being sold in each region
- What
prices competitors are using
- What
features (value or price) are dominant
- What
the sales and profit shares are by product and by company
In Cesim, there are four product types (Tech 1 to Tech 4),
and three key markets (USA, Asia, Europe). Here’s a simple strategy you
can adopt based on the round:
➤ Early Rounds (1–4):
- Focus
on Tech 1 and Tech 2
- These
generate early cash flow
- Competition
is high, so pricing must be competitive
➤ Mid to Late Rounds (5–10):
- Shift
focus to Tech 3 and Tech 4
- These
offer higher profit margins
- Less
competition as many teams struggle with R&D and pricing
Important Tip: Tech 1 and Tech 2 can still be sold in
later rounds, but they will generate lower margins and may become obsolete
as market preferences shift.
🧠 Step 3: Use Excel to
Forecast and Plan
Now comes a powerful but often underused tool: Excel.
Create a spreadsheet where you track:
- Product
prices
- Sales
volume
- Unit
cost
- Marketing
spend
- Estimated
demand for the next round
Let’s walk through an example from Round 8:
In the USA market, for Tech 3, we sold:
- Price:
$245
- Volume:
700 units
For Tech 4:
- Price:
$280
- Volume:
1300 units
From this data, we know that increasing filters and
promotion significantly boosts demand. So next round, if we raise filters
slightly while maintaining price, we could sell 10–15% more.
In Asia, Tech 3 was priced at $1600 and sold nearly
2900 units. Competitors priced lower at $1300 and sold even more units. So
here, we must decide between:
- A premium
strategy (higher price, higher margin)
- Or a
volume strategy (lower price, more units)
For Tech 4 in Asia:
- Price:
$2100
- Volume:
1000 units
- If
we lower price to $1500, we could sell up to 3400 units — a huge gain!
Use your Excel to simulate different price points and
forecast demand accordingly.
🌍 Step 4: Market-Specific
Adjustments
Let’s talk about each region.
USA:
- Competitive
market
- Early
adopter of all tech levels
- Focus
more on quality (filters and features)
- Pricing
range must remain sensitive to competitors
Asia (ASER):
- Often
less price-sensitive
- Value
high-tech features
- Good
market for aggressive Tech 3 and Tech 4 expansion
- Adjust
pricing based on volume you want to push
Europe:
- More
mature, stable market
- Strong
demand for Tech 3 and Tech 4
- Our
results show we had top sales here
In Round 9, our Tech 4 in Europe sold:
- Price:
$260
- Volume:
1200+ units
Again, use Excel to project demand based on:
- Price
- Number
of competitors
- Feature
levels
- Marketing
budget
🔄 Step 5: Demand
Forecasting
Every round provides market outlook data, which
includes:
- Expected
demand growth rates
- Customer
segment preferences
- Competitor
count
You can use this to estimate:
- Total
market size
- Average
demand per company
- Adjusted
demand for your company based on your competitive edge
In the simulation dashboard, use the demand section
to input estimated demand values for each product in each market. This forms
the foundation for accurate production planning.
🏭 Step 6: Production
Planning
Now that we know what to sell, and in what quantity, it’s
time to plan production.
Golden Rule: Always check inventory first.
In Round 9, our inventory levels were:
- Tech
3: almost zero → excellent
- Tech
4: around 1.6 million units → manageable
Poor inventory management leads to:
- Excess
inventory costs
- Holding
costs
- Waste
or obsolescence
Once inventory is accounted for, use your sales forecast
(from Excel) and deduct existing inventory to determine production
quantity.
Our Round 9 plan was:
- Tech
3: demand = 2300 units → inventory = 0 → produce 2300 units
- Tech
4: demand = 3700 units → inventory = 1600 units → produce 2100 units
Production cost is also affected by:
- Capacity
planning
- Automation
investment
- Maintenance
decisions
So review those parameters carefully.
📈 Step 7: Investment,
R&D, and Finance
You’ll also make decisions about:
- R&D:
Focus on improving Tech 3 and 4. Don’t waste on Tech 1 in later rounds.
- Marketing:
Tailor budget per market. Use filters strategically to match market needs.
- Finance:
Avoid large loans unless for capacity or emergency. Monitor debt-to-equity
ratio.
- HR/Training:
Enhance productivity with training when profitability is stable.
📌 Summary: Winning
Strategy Recap
Let’s summarize the 7 key steps to win Cesim Global
Challenge:
- Review
previous round results
→ Understand what worked and what didn’t - Analyze
market reports
→ Identify best-selling products and competitor moves - Use
Excel to simulate outcomes
→ Plan price and sales forecast - Adjust
strategy per region
→ USA, Asia, Europe behave differently - Forecast
demand using growth trends
→ Plan realistically - Plan
production based on sales – inventory
→ Avoid underproduction or excess stock - Optimize
R&D, marketing, and financials
→ Focus investments on long-term gains
🎯 Final Thoughts
The Cesim Global Challenge is not just a simulation. It’s a strategic
management lab where your decisions mirror real-world consequences.
Mastering this simulation means:
- Thinking
long-term
- Being
data-driven
- Adjusting
to competitive dynamics
- Staying
efficient in production
By following the framework in this video, you will build a
strong foundation to win — not just in the game, but in any business
environment where decisions matter.
Thank you for watching, and good luck in your Cesim Global
Challenge!
If you have any questions or want to share your results, feel free to leave a
comment or send a message.
PART 2
Certainly! Below is a completed and polished lecture script (approx. 2200
words) for your Cesim Global Challenge simulation video. It retains
your ideas, expands on them where necessary, and presents the content in a
clear, instructional, and engaging format suitable for a video lecture.
[Cesim Global Challenge Simulation – Round 9 Winning
Strategy Walkthrough]
Hello everyone, and welcome back to our Cesim Global
Challenge simulation strategy walkthrough. In today’s lecture, we will be
focusing on Round 9—one of the final and most critical stages of the
simulation. I’ll guide you step by step through production, demand estimation,
marketing, HR, logistics, R&D, finance, and other strategic decisions,
helping you maximize performance and secure a top ranking.
Let’s begin with the decision-making interface.
1. Production Planning and Outsourcing
As you can see on the screen, we have our production
capacity clearly displayed. In the USA, we have around 6,800 units
available, and we also have outsourcing options in both the USA and Asia—up
to 2,200 in the US and 2,000 in Asia. These outsourcing
capacities give us flexibility in meeting demand without over-investing in
fixed capacity.
For Product Tech 3, we anticipate demand of around 6,400
units this round. So, we plan production and outsourcing accordingly:
- Produce
5,300 units in the USA
- Outsource
around 1,100 units in Asia
This combination covers our total expected demand while
optimizing for cost efficiency. Outsourcing in Asia tends to be more
cost-effective in this scenario. For example, producing 100 units in-house
might cost $197, while outsourcing the same in Asia could cost $109.
These differences are significant when scaled up.
It’s important to play with the numbers on the screen—test
different combinations to minimize production cost while ensuring total
availability meets demand.
2. Demand Estimation
Next, let’s look at demand estimation for all
products across markets.
We’re currently offering Tech 1 to Tech 4, but we’re
focusing heavily on Tech 3 and Tech 4 as they drive the bulk of revenues
in the late rounds.
- For
Tech 3:
- America:
4,500 units
- Europe:
1,100 units
- Asia:
800 units
- For
Tech 4:
- Europe:
1,200 units
- Asia:
600 units
Make sure your estimated demand inputs match your
marketing assumptions and pricing strategies, or you risk overproducing or
running into shortages.
You should also adjust the expected growth rate and competitive
reaction to stay realistic. Use the data from previous rounds and the
Analyser tool to fine-tune these estimates.
3. HR and Staff Planning
Now let's move on to the Human Resources decisions.
- Set
the number of workers based on your production plans.
- Adjust
the monthly wage (e.g., $3,000/month).
- Monitor
the change in efficiency with any changes in workforce size.
- Be
cautious with batch size changes—while smaller batches might reduce waste,
they also increase complexity and cost.
Always double-check your total HR cost in relation to
the expected revenue to avoid eating into your gross margin.
4. Research and Development (R&D)
In Round 9, R&D still plays a vital role, especially for
improving Tech 3 and Tech 4. We added the final features to our Tech 3
and Tech 4 products:
- Total
of 10 features
- Each
feature costs around $5.5 million
This is a long-term investment in product competitiveness,
helping to improve perceived value, which in turn supports premium
pricing.
Even in the later rounds, continuous investment in features
can give you a final push ahead of your competitors.
5. Marketing and Pricing Strategy
This is where strategy becomes an art.
Let’s start with the America market:
- For
Tech 3, we analyze competitors’ prices from Round 8 using the Analyser
tool.
- Based
on their pricing and market demand trends, we set our price at a
slightly competitive level, ensuring strong margin while avoiding
price wars.
Let’s say:
- Tech
3 in America: $1,402
- Tech
4 in America: $2,000
- Promotions:
around $30,000
In Europe, based on market sensitivity and previous
sales data:
- Tech
3: $1,200
- Tech
4: $2,400
- Promotions:
$25,000
In Asia:
- Tech
3: $1,100
- Tech
4: $2,100
- Promotions:
$24,000
Make sure to maximize the number of features per product,
and adjust pricing accordingly. The higher the number of features, the higher
the value perceived by customers, allowing you to price more aggressively while
maintaining good sales.
Also, promotions directly impact awareness and certainty.
If you want to guarantee higher sales, increasing promotion budgets is a
smart move. In Round 9, we use promotions to secure market share and support
price increases.
Always monitor the gross margin after marketing
decisions. Ideally, you should keep your margin above 30%.
6. Logistics and Inventory Management
Let’s now discuss logistics and inventory decisions,
which are often overlooked.
For this round:
- We
produce most units in the USA
- Export
to Asia and Europe for Tech 3 and Tech 4
For example:
- Tech
3: Produced 5,300 in the USA, 1,100 outsourced in Asia
- Delivered
to: 4,500 (USA), 1,100 (Europe), 800 (Asia)
In this configuration:
- No
significant inventory left over
- No
major unmet demand
If you notice excess inventory or unmet demand,
adjust your production or delivery plan accordingly.
Avoid accumulating unused stock—it increases holding costs
and leads to inefficiencies.
7. Tax Optimization
Let’s quickly cover regional tax optimization.
You can adjust tax percentages in each region (within
limits). Try setting tax from 1% to 2% depending on your profitability
in that region. A small tax reduction can boost your net income,
especially in high-volume markets like the USA.
Be cautious though—some rounds may penalize unrealistic tax
reductions.
8. Financial Strategy – Final Rounds
Round 9 is almost the final round, so financial strategy
becomes crucial.
Here are your key options:
- Buy
back shares if you want to increase EPS (Earnings per Share)
and stock price
- Pay
dividends to signal strong financial health and increase investor
confidence
- Ensure
you maintain enough cash reserves to support operations in the
final round
Monitor your balance sheet to avoid excessive
short-term loans or large negative cash positions. A strong cash position and
shareholder payout in the final rounds can boost your final scorecard and
investor perception.
9. Final Checks and Projections
Before submitting, always go through the checklist:
- ✔️
Production matches forecasted demand
- ✔️
HR costs are under control
- ✔️
R&D investments are reflected in features
- ✔️
Prices are competitive, supported by promotions
- ✔️
No inventory overflow
- ✔️
Deliveries align with logistics plan
- ✔️
Finance strategy is cash-positive
- ✔️
Demand estimates align with Analyzer predictions
Use the Projection tool to simulate your results:
In this round, our strategy projects:
- Sales
increase by 20%
- Profit
increases by 39%
- Gross
margin remains stable
- Inventory
levels are optimal
- Market
share remains strong across all 3 regions
These are all strong indicators that the strategy is
working. If projections are far off, revisit pricing, demand, or logistics
before final submission.
10. Closing Notes
Remember, Cesim Global Challenge is not just about
maximizing numbers—it’s about building a sustainable strategy that
performs consistently across regions and products. Round 9 is where your
long-term decisions come to fruition. You can’t afford to make major mistakes
at this point.
Use all the data available: competitor analysis, internal
reports, past round trends, and performance benchmarks.
And finally—before you click "Submit":
- Double-check
your numbers
- Communicate
clearly with your team
- Align
every department (production, marketing, finance, R&D) under a cohesive
strategy
Thank you for watching this detailed walkthrough of Round
9.
We hope this strategy helps you lead your team to top
rankings in the Cesim Global Challenge. Good luck with your
simulation—think strategically, execute precisely, and win decisively!
If you found this helpful, check out our full set of tips
and free resources at:
👉
https://top30tipsforcesim.blogspot.com/
And if you need free support for Round 1 and 2, email us:
📩
cesimhelp2020@gmail.com
See you in the next session!
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