Monday, January 31, 2005

Strategy Guide from Trevor Chan 1995

CAPITALISM FAQ Version 1.0
(C) Copyright 1995 Trevor Chan and Enlight Software

Getting Started and Retailing

How can I buy goods from the seaport?
Set up a purchasing unit and a sale unit in your department store anddouble-click the line between them to link them together. Select the purchasingunit and click the "Link Supplier" button.Double-click the small "pink" dot on the regional map to select the seaport. Nowthe products available in the seaport are shown. To buy a product, double-clickon its picture.
Where should I set up new purchasing and sale units?
Select your department store and click on the "Layout" button to show theinterior layout of your firm which consists of nine slots. Set up a purchasing unit inone of the slots and set up a sale unit next to it. You can set them up in any twoof the nine slots as long as they are next to each other.
Why are the goods that I have purchased are not showing up in my department store?
It takes a short while for the purchasing unit to move the goods to the sale unit.Also, check your firm's layout to make sure that the purchasing unit is connectedto the sale unit. If they are not connected, the goods will not be moved to thesale unit. To link them together, double-click the line between them.
Any tips for designing good firm layouts?
Learn from computer players. Look at their firm layouts, which are usually welldesigned.

Market Analysis

How can I increase the overall rating?
The overall rating of a product is calculated based on price, quality, and brandrating. If you decrease your products' prices, their overall rating will increase andmore people will buy your products. Quality and brand are also very important,we will tell you how to improve them in the following instructional games.
What does the price concern mean?
If a product has high price concern, consumers are more sensitive to the priceand care less about the quality and brand. Its overall rating is more closelyrelated to the price.
When should I decrease my products' prices?
Compare the overall ratings of your products to those of your competitors. Ifyours are lower than those of your competitors, people prefer the competitionand you are losing your market share to them. In this case, you should considerlowering the price.
What are local competitors?
There are local competitors in each city. Although their firms are not shown in thegame map, they do compete directly with you. Keep an eye on their ratings inthe product reports and reactaccordingly

Farming

What agricultural products should my farm produce ?
Only some agricultural products can be sold directly. They are frozen beef,frozen pork, frozen lambs, frozen chickens, and eggs. The others are rawmaterials for other products. (For example, barley is the raw material for beer.)We will tell you more about that in the next instructional game.
How can I be a good farmer?
Consult the Manager's Guide for details about the farm's unit info-boxes. Youcan call up the Manager's Guide on the "Help" menu.

Manufacturing

What should I do before starting a factory?
Before entering a new industry, analyze the status of the industry. Try to find amarket with the least competition. The product summary report displays conciseinformation about the competitive status of each product in each city.
What's the use of the supply and demand?
Examine your product's supply and demand lines. If the supply line (blue) islonger than the demand line (red), the supply of the product is greater than thedemand. This implies that the product's profitability might not be fully exploitedyet. It has the capacity to meet more demand and generate more revenue. Conversely, if the demand line (red) is longer than the supply line (blue), thisindicates that the firm cannot supply enough goods to meet the demand. In thissituation, try to lift the supply, because any additional supply turn into sales.
How can I be a good factory manager?
To run a successful factory, you must understand the meaning of unit info-boxindicators on the firm layout plan. Consult the Manager's Guide for the detailsabout the unit info-box. You can call up the Manager's Guide on the "Help"menu.

Brand and Advertising

What is brand concern?
If you spend the same amount advertising two products, one with high brandconcern and another with low brand concern, the overall rating of the former oneincreases faster. So much data about advertising, I'm confused. Pay attentiononly to the "Rating Points" and "Daily Frequency" and ignore the rest. They arethe two most important advertising numbers. They are shown on the info-box ofthe advertising unit, denoted by the letters "R" and "F", respectively.
What are the rating points?
The rating points tell the size of a medium's audience. Always try to select a TVstation or a newspaper publisher with high rating points.
What is the daily frequency?
The daily frequency tells now many times a target audience is exposed to anadvertisement in a day. If you increase your advertising spending, you get ahigher daily frequency.
How is brand rating determined?
The brand rating of a product is determined by its brand awareness and brandloyalty. Advertising a product increases brand awareness but not brand loyalty.
How is brand loyalty determined?
Brand loyalty is affected by brand awareness, product quality, and brand scope.
Brand awareness and brand loyalty
Higher brand awareness means more people will try the product and the rate atwhich brand loyalty can increase is faster.
Product quality and brand loyalty
Customers are loyal to a brand only if the brand's products have consistent highquality.
Brand scope and brand loyalty
If you are exercising a range brand or corporate brand strategy, a brand coversa variety of products. Consumers will doubt your corporation's devotion to thatproduct and will not easily become loyal to the brand.
How can I change my brand strategy?
To change the brand strategy, call up the "Corporation Detail Report" and go tothe "Brand" section.

Research and Development

What is an R&D team?
When you connect R&D units, they become an R&D team. The advancement intechnology the team can achieve is higher than the individual units. But you mustdo that before starting R&D. You won't get any advantage from linkingadditional units to an R&D team that has already started R&D.
How can I tell an R&D team to start R&D?
When you start a new R&D project, remember to click the "R&D Technology"button of the "leader" unit of the team. The "leader" is the one that hasconnections to all other R&D units in the team. Selecting a non-leader unit resultsin low technology advancement.
How do I know when my R&D projects are done?
When an R&D project is complete, the "Event Tracker" button appears (on thebottom part of the screen, below the product report button). Press the button togo to the corresponding R&D unit, where you can apply the R&D result rightaway.
Any good R&D strategy?
You can research a product before setting up a factory to manufacture it. Withthis strategy, you can launch new products with superior quality and seize marketshare from your competitors.

Raw Materials Production

Why are mines always losing money?
Mines, logging camps, and oil wells are long-term investment. In the beginning,they barely break even. However, as more factories buy raw materials fromthem, their revenues and profits will increase.
Any good strategy for operating a mine?
If you set a reasonable price for your raw materials, other corporations will buythem from you. Since competition in the raw material market is much less than inthe consumer market, once you have a sizable customer base, it will give yourcorporation a constant income source.

Stock Market

Why should my corporation buy back its own shares?
When your corporation buys back its own shares, those shares are taken out ofcirculation. The total number of shares is reduced and the ownership percentageof the existing shareholders increases.This action can strengthen the ownership of existing shareholders in thecorporation and reduce the risk of a hostile takeover.Buying back your corporation's own shares also has a positiveeffect on the earnings per share, which in turn has a positive effect on the stockprice. If a company buys back half its shares and its overall earnings stay thesame, the earnings per share double


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