1. CHESTER SENSORS
CAPSIM: STOCKHOLDERS BRIEFING
PRESENTATION
Monday, December 07, 2015
Presented by:
Paul LaBarge
Rickie Lieu
Steven Quenzel
BUSN464
Professor: Gene Davis

2. Strategy
DIFFERENTIATOR WITH PRODUCT
LIFECYCLE FOCUS
Provide a range of products to meet the needs of all markets
sectors.
Gaining market advantage by supplying reliable cutting edge
sensor at affordable prices.
Staying ahead of the competition with a rigorous R & D
program.
Using automation in order to keep manufacturing costs in
check.

3. Mission Statement
Providing high quality, reliable sensor products for
the electronics industry that will be ahead of our
competition.
The stakeholders are our stockholders, employees
and customers, whom we strive to exceed their
expectations at all times.

4. Today’s Agenda
Financial Analysis
Marketing Analysis
Production Analysis
The Future
Competition Wrap up

5. Chester Sensors
FINANCIAL ANALYSIS
• Cumulative profits exceeded all other
competitors in the market. (by 40%)
• Last 2 years results in two highest sales in
dollars and profit in dollars of all competitors in all
rounds.
• Our Stock Price has consistently tracked upward,
highest of all. (by almost double)
• Paid stock dividends since our 2nd year of
operation, were the only one doing so.
• Only 2 other teams paid any dividends and each
for only a single year.

6. If you invested $10,000 in our stock in 2015.
When we split!
REINVESTED ALL DIVIDENDS IN STOCK EACH YEAR!
YOUR STOCK WOULD BE WORTH:
$111,163
TODAY
FastTrack 0 - 8

7. Closing Stock Prices
Chester’s stock price had an increase from $15.79 in
2016, to $119.57 in 2023
Total Market Cap. = $315,672,931
FastTrack 8

8. 2016-2023 Bond Ratings for Chester
Year Bond Rating
2016 A
2017 AA
2018 AA
2019 AAA
2020 AA
2021 AA
2022 AAA
2023 AAA
Bond Ratings
• Chester’s bond rating slipped a bit in round 5 and 6 due to our
underestimating ending inventory those years.
• It is now the highest rating available.
FastTrack 0 - 8

9. Emergency Loans
• In 2020 and 2021 we required emergency loans due to
unexpectedly high end of year inventory and under
funded plant improvements.
• 2020 the amount was $4.1 million, we were the last of our competitors
to make use of an Emergency Loan.
• 2021 the amount was $7.8 million, the under funded plant
improvements resulted in top team profits the following year.

10. Profit and Loss
2016 vs. 2023 Profit/Loss Statement for Chester Sensors
FastTrack 0 - 8
Total Cumulative Profit since 2015: $111,650,343
This is the highest of all of our competitor by 53%
2016 2023
Change
CYA
Sales $53,070,199 $169,898,910 27.5%
Expenses $49,812,526 $141,557,140 23.0%
Profits $3,257,673 $38,168,772 134.0%

11. Return On Assets
• Return on Assets Ratio= Net Income/ AverageTotal Assets
• Competitive ROA for period since split
• Chester has highestAverage ROA among competitors since split.
• 16.6% which is 43% higher than nearest competitor
Andrews Baldwin Chester Digby Erie Ferris
2016 6.0% 13.8% 11.4% -0.7% 16.9% 4.4%
2017 1.4% 12.7% 12.3% 22.8% 5.8% 7.9%
2018 4.2% 11.2% 19.0% 24.2% 19.9% -14.2%
2019 4.0% -2.3% 11.4% -3.5% -0.1% -12.8%
2020 14.6% -2.4% 8.8% 11.2% 5.5% 16.7%
2021 15.0% -5.7% 18.9% 6.8% 4.1% 6.6%
2022 12.6% -12.9% 25.5% 12.3% 21.0% 6.1%
2023 14.4% 23.5% 25.6% 15.8% 19.3% 21.5%
FastTrack 0 - 8

12. Return On Sales
• Competitive ROS 2016 through 2023
• Chester Group has the highest average ROS of all Groups at 11.5%
Andrews Baldwin Chester Digby Erie Ferris Avg
2016 3.5% 7.1% 6.1% -0.5% 9.0% 3.4% 4.8%
2017 0.9% 7.9% 7.1% 11.5% 5.0% 6.3% 6.5%
2018 2.8% 6.3% 11.5% 12.9% 13.4% -67.6% -3.5%
2019 1.8% -1.8% 8.5% -3.5% -0.1% -15.3% -1.7%
2020 7.1% -2.2% 8.5% 8.7% 4.8% 12.7% 6.6%
2021 9.8% -8.7% 13.6% 5.9% 5.1% 6.8% 5.4%
2022 11.3% -19.0% 16.7% 9.0% 15.5% 7.6% 6.9%
2023 12.1% 9.5% 20.0% 9.9% 18.6% 26.3% 16.1%
FastTrack 0 - 8

13. Return On Equity
• Return on Equity Ratio= Net Income/Shareholder’s Equity
• Competitive ROE 2016 through 2023
• Chester Group had the highest average ROE of all groups at 20.8%
Andrews Baldwin Chester Digby Erie Ferris
2016 10.0% 20.6% 18.0% -1.0% 24.7% 6.9%
2017 3.1% 17.5% 18.3% 35.1% 7.7% 12.4%
2018 4.2% 11.2% 19.0% 24.2% 19.9% -14.2%
2019 9.3% -3.4% 15.5% -6.5% -0.2% -48.3%
2020 27.3% -4.1% 13.0% 12.0% 8.4% 35.3%
2021 24.1% -21.6% 25.7% 7.5% 9.2% 16.4%
2022 16.6% -51.6% 29.4% 13.3% 21.6% 15.3%
2023 19.5% 30.1% 27.4% 17.2% 20.0% 31.2%
FastTrack 0 - 8

14. Sales Increase
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
2015 2016 2017 2018 2019 2020 2021 2022 2023
Chester
Inventory Issues
FastTrack 0 - 8

15. Marketing
• In our first year of operation (2016) we developed the
Crete line of sensors that outperformed all of our
competition’s products.
• In our third year of operation 2019 we developed the
Castle line of sensors that again trumped all other
products, including our own.
• We are currently developing the Cyclops line, which may
easily be in a class by itself for years to come.

16. Market Share by Industry
2016 vs. 2023
20232016
FastTrack 1 and 8

17. Market Shares Low & High
2016 2022
We have strived to remain in both market sectors.
Our Tradition of providing High quality products,
have resulted in our excelling in the
high tech sector.
FastTrack 1 and 8

18. Chester’s Sensors
Prices, Sales and Inventory
• Chester’s Sensors market prices for 2016 through 2023
2016 2017 2018 2019 2020 2021 2022 2023
Cake Price $32.54 $33.65 $33.45 $33.25 $32.50 $29.50 $21.99 $20.99
Sales 1374 1352 1248 929 651 753 1393 1843
Inventory 0 35 25 185 623 860 259 0
Crete Price N/A $44.00 $44.00 $44.25 $44.25 $44.00 $42.99 $42.49
Sales N/A 248 673 812 990 990 1485 1485
Inventory N/A 0 20 0 0 0 0 0
Castle Price N/A N/A N/A N/A $45.00 $44.90 $44.80 $44.80
Sales N/A N/A N/A N/A 99 1089 1683 1980
Inventory N/A N/A N/A N/A 0 0 0 0
FastTrack 0 - 8

19. 2023 Perceptual Map
Size
Cyclops
FastTrack 8

20. Presenting Production Analysis
• Currently Highest production capacity at 3,200,000
unit per year
• Our Plant Utilization is at 168%
• Productivity Index consistently above 110% the last
three years.
• Consistently run 7% turnover rate.
• Work force is currently at 477.
FastTrack 8

21. Contribution Margins
Chester’s Income Statements 2016 versus 2023
Round 1 Round 8 % Change
Sales $53,070,199 $190,513,000 258.98%
Direct Labor $17,142,000 $36,856,000 115.00%
Direct Material $23,894,000 $69,744,000 191.89%
Inventory Carry $0 $0
Variable Costs $41,036,000 $106,600,000 159.77%
Contribution Margin $12,034,199 $83,913,000 597.29%
Contribution Margin % 22.7% 44.0% 230.6%
FastTrack 1 and 8

22. ProductionVs. Capacity
• In 2016 Chester operated it’s manufacturing plant
efficiently running 2nd shift at 86% of all it’s products
FastTrack 1
2016

23. This year 2nd Shift ran 68% of our products.
ProductionVs. Capacity
FastTrack 8
2023

24. Inventory Levels
• Production schedule was below the demand for all of our
product lines in 2023. Zero inventory left!
• With 4,852,000 unit left in inventory at the end of 2022, most
competitors were very conservative with their production
scheduling.
• This amount to a reduction of over 80% of last years inventory.
Considering that total demand for both sectors was 20,092,000
units this year, most competitors did their estimating of
production scheduling surprisingly well.
Inventory Levels
Andrews Baldwin Chester Digby Erie Ferris
Average 257.9 562.1 250.9 159.6 751.4 702.9
Maximum 604 1887 860 920 2990 1787
FastTrack 0 - 8

25. 2023
Market Share, Promo & Awareness
Sector Product Unit Sales Market Share
Promotion
Budget
Cust.
Awareness
Sales Budget
Cust.
Accessibility Cost/unit
Rank in
Sector
Low
Cake
1464000 14%
$2,200,000 100% $2,275,000 70% $2.428
1
High
379000 4% 9
Crete 1466000 16% $2,350,000 100% $2,350,000 100% $3.206 2
Castle 1980000 21% $2,100,000 100% $2,100,000 100% $2.121 1
Sector Product Unit Sales Market Share
Promotion
Budget
Cust.
Awareness
Sales Budget
Cust.
Accessibility
Cost/unit
Rank in
Sector
Low
Cake
1021000 20%
$1,100,000 61% $1,500,000 42% $1.654
1
High 551000 23% 1
2016
FastTrack 1 and 8

26. TQM investment
• TQM has reduced material , labor and administrative
costs. Shortened the length of time required for R & D
projects and increased product demand.
• Invested every sector of theTQM program at the
recommended level of optimum efficiency,
Cumulative Impacts
Material Cost Reductions 11.8%
Labor Cost Reduction 13.97%
Reduction R&D cycle
Time
40.01%
Reduction Admin Cost 60.02%
Demand Increase 14.22%
FastTrack 8

27. CYCLOPS
WHAT IS IN STORE FOR NEXTYEAR
• We are designing a new line to better compete in the Ultra-High
tech sector:
• Line will be fully (10) automated in order to keep labor costs as low as possible.
• Performance rating of 14.2, Size of 5.9, and MTBF of 23,000. This will allow for our sensors to be
used in advanced ultra miniature electronic devices.
• The expected cost of production is $22.67, and we intend to sell for $47.99. This should net a profit
margin of 45%.
• Once the new Cyclops line is up and running, we intend to phase
out the Cake line and shift the Crete line towards the lower sector.
• This will allow for some of the work force to move to the new line.
• This is why we are still running the Cake line at a break even margin, we
wish to retain those quality employees until the new line is operational.
• Automation of the Crete and Castle lines will increase to 9 thus
reducing labor costs in the future.
THE FUTURE

28. Balanced Scorecard
Chester 50 47 58 61 57 71 80 73 177
Poss.
Points 82 89 89 100 100 100 100 100 240
Scored 674 out of a total of 1000 points
Final Score Relative

29. Poorest Round (2)
Best Round (8)
Balanced Scorecard
Final Score Relative

30. Final Results
Team Chester achieved a score of 97.3 point out of a possible 100
2nd Place received 69.5
3rd Place received 67.2
Final Score Relative

31. Grading Rubric

32. Summary
• Success was achieved by only one team member making
official decisions, as instructed at beginning of competition.
• Screen shots were circulated among team members for
suggestions.
• Spreadsheet were created to look at how all other teams were
doing things, best idea were adapted into our game plans.
• We looked at this as it were an actual business model and looked
out for all stakeholders.

33. References
CAPSIM Final Score Relative: Industry Results – Debrief – Final
Score Relative.
http://new.capsim.com/student/portal/index.cfm?template=repo
rts.debrief.finalscore_relative_2004
CAPSIM FastTrack Reports: Generated Rounds0 through 8
http://new.capsim.com/student/portal/index.cfm?template=repo
rts.reports.annualNewspaper_2004
•

34. Questions?