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User Manual - Mac Game Store

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1. Product Sell in Chocolate Bar Discount Megastore Supermarket Convenience Store Cigarettes Discount Megastore Supermarket amp Convenience Store Cigars Discount Megastore Supermarket Convenience Store Cola Discount Megastore Supermarket amp Convenience Store Cold Tablets Discount Megastore Supermarket Convenience Store amp Drug Store Cookies Discount Megastore Supermarket Convenience Store Com Flakes Discount Megastore Supermarket Convenience Store Cough Syrup Discount Megastore Supermarket Convenience Store amp Drug Store DVD Player Departrent Store Discount Megastore amp Hardware Store Desktop Computer Deparment Store Discount Megastore Hardware Store amp Computer Store Detergent Discount Megastore amp Supermarket Eggs Supermarket amp Convenience Store Elegant Watch Departrent Store amp J ewelry Watch Store Eye Shadow Departrent Store Discount Megastore Cosmetic Store Drug Store Frozen Beef Supermarket amp Convenience Store Frozen Chicken Supermarket amp Convenience Store Frozen Larrb Supermarket amp Convenience Store Frozen Pork Fruit Snacks Supermarket amp Convenience Store Discount Megastore Supermarket Convenience Store 132 Product Sell in Gold Ring Deparment Store amp J ewelry Watch Store Golf Clubs Departrrent Store Discount Megastore amp Sport
2. Chief Executive Officer Office 6 eee ADE ENNEN 69 Chief Operating Oficer OCE arii A A a ij A 69 Chief Marketing Officer OFIC o cooccococccncnccncncancnac ee ee eee ee eee eee eee 70 Chief Technical OMC OME ci n ss austere altace tele a hind olen BD eke alee eS 70 Manion 2 2 e eee 70 Radio Station Television Station and Newspaper Publisher a ia ce 71 Stock Market 2 cece eee eee eee eens 73 PM cc A2 RESINAS ia ts AART VE AA 42 Private Labelling UNE sis si ines acorn tl endarnir a aa ia id 44 Mataco UND sau iat cui aani sa Saami ecard eae Ls aad iii ia 47 Research amp Developnent R amp D 2 cece Ss Starting an RED Project rica da e Saha Ciena a eel katte A WE A da gid Sete ca 53 Technology AVANCE 2 tc Sok Sok eae AMT eae PA a a a ae EA 54 Purchasing Technology fromother corporations onosai eee eee eee 57 Fam COP CrOWINQUUINRE arica tl a a jaa a y ls Ba 58 IVESTOCK Raising UNITE oir aa A AA A A A SMe a 59 Livestock Processing Und chia Seite a OA lp eee in a ea ION ee aA 61 Mine Oil Well and Logging Canps ccoo 63 Selling amp Buying Finis 2 ce 65 Putting a finmon the market Receiving an Offer to Purchase 0 0c ccc cal 65 Placing an Offer to Buy a Anns ines oe ced ies Sa aoe Pea a Od eae Loewen ten a ed 66 Public Relations Departrrent a a aana AA e cl 68 Investor Relations Department ooi sssr iisa n ce eee eee eee eee eed 69 Changing Selling Price
3. Utilization The unit s level of productivity Staff Staff number represented by the figure icon NOTE The color bar under the product picture shows the corporate color of the brand owner of the unit s products 34 Unit Info Link Alarte IAA The info box of the Inventory Unit in the layout area shows the following Product i A information Hama Product Name The narre of the product in the inventory Product Stock Explained above Unit Level Because an inventory unit provides a place for storing goods the units experience does not affect the productivity of the business Therefore unlike most other units the unit level of an inventory unit does not increase over time Purchasing Unit Set up in Retail store farmor factory Setup cost 50 000 Workers needed 2 or 4 in mediumto large firms A purchasing unit buys products fromsuppliers These units are essential for retail stores farms and factories The following sections describe the basic operations and displays of the purchasing unit Purchasing a Product Once you tell the purchasing unit which product you want to purchase it purchases the product until the supply is no longer available To give the purchase unit an order select the purchasing unit Press the Link Supplier button and the supplier screen appears Alternatively if you do not currently have any Purchasing units in store you may click the Add Product button and a ne
4. F Firm summary report C Corporation summary report P Product summary report G Goal report H Headquarter l Information center 0 5 game speed E Event tracker Space Activate deactivate tool bar M Activate deactivate mini map window W Activate deactivate world map window F1 Manufacturer s guide F2 Farmer s guide F3 Manager s guide F4 Stock market F5 Financial action Farthest zoom Medium zoom Closest zoom Previous city Next city PgUp Previous firm PgDn Next firm Arrow keys Scroll the city map ESC Exit the current screen 145
5. Prev and Next Button toan a eap i ar aa E E RE PARATE eee 78 GBI aa o aa e rai ade aaa a E 78 FirmSunmrary Report os sesia ee 78 Corporate Sunnery Report 2 30 Financial OAE a 30 oda A KFARA DENRA A Gan ke Melt Gh ekieee EAN 80 STOCK OVEIVIEW oasi ipoe SANT ANASA a A OLER A 80 ETE OEI fiir dees eri e lt a a a VG Reais BOGAN ue oa 81 BUSINESS REIBUOMS aa i ireu io Dea eee See BOW eee ees base il thd Ke 81 Corporate Detail Report 2 20 2 ee 3L Managerment Overview rsisi n nias v eee RAN a EE a eee eee 82 Financial Overview and Stock Overview oos iisi tapki ua eee eee aaa 83 FANS QUEM OW A A SENE Ea AS A as ile veal 83 Buying and Selling to the Public wo cee 104 Buying Back Shares Stock Trading Regulation eee 107 Issuing Shares and Paying Dividend oooooooooooooooooooonononnnooo 107 COO Responsibilities 2 02 ee Retail Shores cier a i i a ae a a Appendix B Manufacturers Guide oooooooooo eee eeee Appendix C Shortcut Keys 2 25202 e ee eee Appendix D Credits 2 2 2 0 22 ee ee Technical Support coc A Chapter 1 Installation Welcorre Before you install Capitalisml take a moment to review the Minimumand Recommended System Requirements Your computer should meet all of the Minimum Requirements so that Capitalism II may run If it meets or exceeds the Recommended Requirements you will find game performance greatly improved Minimum System Requirements Operati
6. Factory Size Setup Cost Monthly Cost Small 750 000 50 000 Medium 1 500 000 100 000 Large 2 500 000 180 000 The types of units in a factory include e Purchasing Unit e Sales Unit Inventory Unit e Advertising Unit Private Labeling Unit Manufacturing 46 Unit Set up in Factory Setup cost 300 000 Workers needed 6 or 24 for small mediumand large factories Manufacturing Unit Manufacturing a Product A manufacturing unit is very flexible It can manufacture any product if supplied with the appropriate raw materials For example if cotton enters a manufacturing unit the unit automatically produces textiles If wheat is the input flour is produced If you want your factory to manufacture a specific product you must know what its raw rraterials are The Manufacturer s Guide contains the raw material information for each product you can produce You can refer to the Manufacturer s Guide anytime by selecting it fromthe information screen Press the info icon on the tool bar and choose Manufacturers Guide Once you know which raw rraterials you need you need to locate a supply of each of the required raw materials Generally this is easiest by using the Supply Filter see Purchasing Units above or by using the Mini Map filter Link the purchasing units to a manufacturing unit to start production After the necessary connections are established you see the products being manufactured If you can prod
7. If you want to see only billionaires who appear in the garre you can select the Local Billionaires option in the upper right corner of the report Manufacturers Guide This guide can be used to investigate which products are required to produce others The display above depicts the products required to manufacture a Car in this instance Car Body Engine and Wheel amp Tire These three items are the raw materials The overall quality of the Car is 30 determined by the Production Technology and 70 determined by its raw materials 30 each for the Car Body and Engine and the remaining 10 by the Wheel amp Tire unit For an in depth analysis of manufacturing and quality aspects see Chapter 4 Click More to see what other products the raw material forms or click the product picture to discover what materials it is derived from Use the Previous or Next arrows top right to see other products If you wish to search for a particular product click the Input or Output buttons and select the product fromthe list 98 Famers Guide This report lists the crops and livestock available in the garre The following two tables sun rarize the information A S Gan DE Crop Cocoa Coconut Com Cotton Flax August April Grape J uly Decerrber Lemon August April Rubber Plant May February Strawberry February August Sugar Cane March September Tobacco No
8. Based on consurrer behavior each product has a set of predefined values These are price concern quality concern and brand concem They are shown as percentages and their sumis always 100 If a consurrer buys a product with 50 price concern 30 quality concern and 20 brand concern the foremost criterion in the consurrer s mind is price with quality second and brand third Necessity Index In the top section of the report the necessity index of the product is displayed next to the product picture A high index value indicates that the product is necessary to people in their daily lives The derrand for necessary goods is fairly constant because people must buy them even if the price they are offered is not attractive Conversely the demand for non necessary goods is influenced mainly by the attractiveness of the goods Therefore cutting the price does not always result in decreased profit because the lower price can stimulate demand This increased demand could offset or even surpass the reduced profit margin Product Browser The product browser lists all of the products of the sarre type currently being sold in a specific city The price quality rating and brand rating are shown for each product If you want to know more about a product look at the information displayed below the product browser These sections display the data related to price brand and quality in detail By evaluating these data you can deternine t
9. Chae Ps rs Ed lee EE L ak there HQ Unit Types Financial Department This department allows you to set the share dividend pay out ratio see Chapter 6 for more information The unit is not available if the stock market has been disabled in the gare set up menu Human Resource Department This unit can be used to instigate corporate wide training and incentive programs The unit details the total number of corporate employees average employee level and average training expenditure per firm Click the Organize an Extensive Training Program button and use the spinners to modify the cost per employee The more you spend training enployees the faster they gain level experience and becorre more proficient in their tasks Be wamed that conducting training exercises too frequently may not be effective Public Relations Department This unit should only be employed if your corporation is using a Corporate Brand strategy as it has no effect for Unique or Range brand strategy Move the slider to alter the arrount the department spends per month on increasing corporate brand awareness and brand loyalty You are shown the current brand awareness and loyalty ratings Increasing expenditure also helps to lessen the effects of negative brand loyalty 68 Investor Relations Department This unit is enployed to help improve your corporation s stock attractiveness with investors with the aimof improving stock performance Move the slider to alte
10. Pape Copas lead Bee te beg thle dim ber ILAT Other corporations may offer to buy a firmfromyou When you do receive an offer the negotiation window will pop up Fromthere you may select the Go button to be taken to the firm If you wish to delay the potential sale click the E to close the negotiation window a flashing cross appears at the bottomright hand screen Click this to retum to the negotiation window 65 You may choose to ignore the offer by clicking Forget It or you may accept the offer at the suggested price If you wish to negotiate a better deal use the spinners to adjust the price and press Confirm The corporation will consider the new price before rejecting or agreeing to it Placing an Offer to Buya Firm You may decide to offer to buy a firmbelonging to another corporation If you do open the desired firmand click the Buy Firn button The asking price will be displayed and you may modify the price using the spinners or accept the price If you decide not to purchase click the Forget It button to exit Looking for Fins to Buy You can get a list of firms Currently on sale by opening the FinmSuntrary Report and select the Firmfor sale filter option Fromthere you may click the Buy button to offer to buy the firm Apartrert Buildings Setup Cost Monthly Cost 5 000 000 to 10 000 000 100 000 to 200 000 As well as building an
11. Starting a Multi player Game WITH ubi com below If you have selected LOAD you will be asked to select a garre you previously saved in a multi player garre session Subsequently you will shown to the following options IPX Connection for DirectPlay oin a local area network game Intemet TCP IP Connection for DirectPlay J oin a local area network or internet game ModemConnection for DirectPlay oin with another player by modem 13 Serial Connection for Direct Play oin with another player linked by serial cable Left click on any of the four options and press the CONTINUE button Now proceed to the manual section Step 2 Setting Up the Multi player Garre below Step 1 Starting a Multi player Game WITH ubi com Ubi com provides a central lobby where Capitalism players can meet each other online and find opponents to play with in a multi player garre When you select Play it on ubi com the garre will attempt to launch the ubi comapplication which can be optionally installed to your computer during Capitalismll installation If it is installed on your computer the game will now close itself and let ubi comguide you through the multiplayer game setup On the other hand if the ubi comapplication is not installed on your Computer the ubi comweb page will be opened providing you with information and instructions for downloading and installing ubi comon your corrputer Alternatively you can install ubi comfrom your Capi
12. You cannot always control the quality of the raw materials because you often purchase raw materials fromexternal suppliers A better way to improve the product quality is to improve the production technology You can accomplish this with research and developrrent R amp D projects in your R amp D units If your corporation successfully completes an R amp D project on a specific product the production technology of that product improves Then you can Upgrade your manufacturing units so that they benefit fromthe improved technology To upgrade a manufacturing unit highlight it and select the Upgrade Tech button in the unit detail area A message asks for your confirmation If you agree to proceed the new production technology is applied to the unit and the quality of the manufactured products rises If the units level is higher than level one a message informs you that upgrading production technology will decrease the unit s level by one level The units level is downgraded because installing new production equipment and applying new production techniques means most workers experience becomes obsolete While they go through a new learning process their productivity drops Unit Details When you highlight an active manufacturing unit the unit detail area shows the following information e Product Quality The quality of the manufactured product It is the sum of the production quality rating and the raw material quality rating
13. Your offer must be above the current stock price to entice the shareholder to sell After you have settled on a price click the Offer button to make the offer If the shareholder is not satisfied with your offer the shareholder will reject it and derand a new price If you think it is still an attractive price accept it to corrplete the transaction NOTE Sorre shareholders will refuse to sell their shares no matter how much you 1 O5 offer them because their main interest is in controlling the corporation Takeover If a person or a corporation acquires more than 50 of a target corporation that person or corporation takes over the target corporation After the takeover the chairman of the acquiring corporation becomes the new chairman of the target corporation In a corporation the chairman is in charge of stock investment and the Chief Executive Officer CEO is fully responsible for all day to day management Once you have taken over a target corporation you immediately gain the right to use the cash supplies of the corporation for stock investment To maintain control over a corporation you possess at least 50 of the corporation s stock If the percentage you own falls below 50 you lose control immediately If no single shareholder owns more than 50 of the corporation s stock control reverts to the corporation s CEO Mutual control can happen That is corporation A owns more than 50 of corporation B s stock and corpora
14. current product is 50 and the maximum quality rating a product can have is 100 e Production Quality 15 50 The quality of textiles is 50 affected by the production technology and the production technology contributes 15 rating points to textiles overall quality These rating points are calculated by multiplying the importance of technology to the product s quality by factory technology divided by the top technology in the world or in this case 50 x 30 100 15 e Raw Materials Quality 35 50 The quality of textiles is 50 affected by the quality of the raw materials and the quality of cotton contributes 35 rating points to textiles overall quality 71 x 50 35 e Production Technology 30 A high production level does not guarantee a high quality rating You obtain a high quality rating only if your factory s technology level is close to or the sarre as the world s top technology level The top technology level of every product starts at 100 When a product with a higher technology level enters the market the top technology level is updated accordingly So launching a new product with an unprecedented technology level into the market can cause existing products to becorre inferior 48 You can improve production technology by conducting research See Research and Development on page 53 for more details Improving Product Quality Product quality is determined by the quality of raw materials and the production technology
15. into the acquiring corporation The acquiring corporation also acquires the target corporation s technologies The target corporation ceases to exist and the merger is complete After the merger all the target corporation s products are labeled with the acquiring corporation s brand If the acquiring corporation is pursuing a unique brand strategy the brand rating of all these products is reset to zero Stock Trading Regulation To prevent you from manipulating the stock market you must follow these regulations e You cannot use a corporation that you control to buy a stock in which you have ownership e You cannot use a corporation that you control to buy a stock in which your corporation has ownership e Your corporation cannot buy a stock in which you have ownership Issuing Shares and Paying Dividend Issuing New Shares One of the most common ways a corporation raises new capital is by issuing new shares When new shares are issued the shares are offered to public shareholders The cash received fromthe sale of stock is deposited into the operating capital of the corporation Access the Issue New Shares screen by either clicking Financial Actions fromthe Information menu or by locating and selecting the government run Investment Bank in the main city view When your corporation issues new shares you must make two decisions First you must decide the issuing price It can be any amount lower than the current stock pric
16. one cargo unit holds several thousand units The value of each cargo unit is about the sarre Utilization The orange bar shows the unit s utilization If this bar reaches its full length the unit is at full capacity No more goods can be manufactured even if there is additional supply and demand Conversely if the unit is underutilized its facilities and resources are not being used effectively This could contribute to low profitability of the firm Staff Staff number represented by the figure icon NOTE The color bar under the product picture represents the corporate color of the product s brand owner mr The info box of the Sales Unit in the layout area shows the following toms information Product Narre The product the unit is Currently selling Uis aliar Dimar Supply Product Stock Explained above Supply and Demand Explained above Utilization Explained above 40 Unit Level The productivity and capacity of a sales unit increases when its unit level increases The following table shows this relationship Unit Level Productivity Capacity 1 100 100 2 130 125 3 160 175 4 200 200 5 250 250 6 300 300 7 360 375 8 430 437 9 500 500 Bottleneck Diagnosis Because sales units are the only units in a finmthat generate sales revenue directly inspecting them frequently and removing any bottlenecks usually increases the profitability of the whole firm Refer
17. the likelihood is that the yellow price bar would increase in size to represent the new price attractiveness felt by the consurrer As a consequence brand and quality would becorre slightly less important considerations for the consurrer The important thing to remember is that the relationship of the bar sizes is an indicator of why the consurrers are purchasing that particular product irrespective of competition or necessity You may see a situation in which two exarrples of a product successfully exist in the market place even though one is inferior in brand or quality to its rival It may be the case that the inferior product is priced so aggressively low that its only selling point is its price it will only show a yellow bar whilst its rival displays large bars for quality and brand An example of this is given in Product Information below Studying the relative sizes of the bars can help you decide a strategy Concentrating on improving a soap s brand for example would initially be more beneficial than modifying price or improving quality Product Market Share Next to the product rating bar there is a red bar showing the market share of the current product in the city When the length of the bar is close to its maximum the product is dominating the market in the city Product Brand Indicator Directly under the two bars there is an indicator showing the corporate color of the product s brand owner A gray branding indicates
18. button in the upper left indicates your corporation s brand strategy Corporate Brandl A single brand covers all products Range Brand A brand covers a range of products e Unique Brand Each product has a unique brand To switch to a new brand strategy click the button you want You are warned that your products will be labeled with new brands and brand ratings of all your products will be set to zero as a result To proceed answer Yes to start the brand replacement immediately Decide the brand strategy of your corporation at the beginning of the garre Switching brand strategy after brands have been established leads to a loss of the hard earned brand rating This also gives your corrpetitors an advantage in competing with your products while you are re establishing your brands Doninance This reports the results of the corporation s market dominance in various industries and different markets It shows the corporation s market share and position in each industry and market You control the display range by clicking one of the three buttons at the bottomof the report All Show all industries and markets With Market Share Show only those products for which the corporation has market shares e Only Doninated Show only those products which are dominated by the corporation 90 Statenents This report shows financial statements that are important in determining whether a corporation is gaining or losing grou
19. chairman and chief executive officer of your corporation You may choose a difficulty level by clicking the buttons labelled 1 to 8 1 is the easiest and 8 is the most difficult Modifying any of the garre settings in the following tabs will define the difficulty as Custom Lastly you can click the Randomize button to set the garre settings in the tabs to random values Click the ENVIRONMENT tab In the Environment screen you can e Define the Number of Cities that will appear in the garre Determine the level of Startup Capital or money you and your corporation will have e Set the frequency of Random Events such as plagues and power black outs e Set the Garre Starting Year An earlier start date will mean that sorre technologies will have to be researched before they are available to you e Decide if you wish to Allow Stock Investrrent If you decide on including the stock market your corporation will be able to invest in other corporations but it will also be open to possible takeover and merger moves fromother corporations e You may choose whether to allow only single Retail Store Types or many Selecting one type will result in generic departrrents stores that can sell any product while selecting many types will result in more specific stores being available such as toy and jewellery stores Further information can be found in Chapter 4 e Finally you may decide if you want a Complex City Econony or not If you d
20. gt Production Quality The quality Uni Lavel 1 rating of the production Stock HEM iia tion 74 Raw Materials Quality The quality rating of the raw materials Production Tech The production technology level which affects the production quality Unit Level The experience level of the unit e Stock This area shows the stock of the product in the unit Each cargo unit can store a certain number of product units The number of units a cargo unit can hold varies For sorre expensive products such as automobiles one cargo holds only a few units For lower cost products such as shan poo one cargo unit holds several thousand units The value of each cargo unit is about the sare Utilization The orange bar shows the unit s utilization If this bar reaches its full length the unit is at full capacity No more goods can be purchased even if there is additional supply and demand Conversely if the unit is underutilized its facilities and resources are not being used effectively This could contribute to low profitability of the firm e Staff Staff number is represented by the figure icon The colored bar under the product picture shows the brand owner s corporate color Because the current factory must be the manufacturer and brand owner of the manufactured products the color displayed is always the corporate color of the factory hiran har PE unit info The info box of the Manufacturing Unit in the
21. of manufacturing products yourself an alternative to production is to label products of a less popular brand with your own brand This saves you the trouble of managing production lines and lets you concentrate on marketing Research Developrrent R amp D Setup Cost Monthly Cost 1 500 000 100 000 Your products need good quality to compete successfully The most effective way to improve your products quality is to invest in the research and developrrent R amp D for new technologies which produces better products R amp D centers are very expensive to set up and maintain Companies that are struggling financially may not want to set themup right away You should not however put off their construction too long because the quality improvements from R amp D will lead to increased sales and profits Investment in research and development anticipates that you will need to develop better quality products to stay ahead of your competition Setting up an R amp D center is simple compared to other firms because you just set up an R amp D unit You can use several strategies in R amp D Starting an RSD project You can set up a maximumof nine R amp D units in an R amp D center They can work independently as nine separate teams or be linked to increase performance An R amp D teamconsists of one to nine units After you have linked as many units as you wish into a team highlight the teamleader unit This will be the unit
22. of suppliers and the setting up of retail stores e You can now build an array of retail stores frommega discount stores to specialty stores each with its distinct advantage for your business strategy e Rather than being forced to develop your own technology you may now acquire it from another company And you may sell to others the technology that you have developed yourself e You will now be able to fill new senior managerrent positions Chief Operating Officers Chief Marketing Officers and Chief Technical Officers can help to streamline sorre of your day to day business activities e Expand your corporation into a true conglorrerate get ink on your fingers and take to the airwaves with your new newspapers publishers and TV and radio stations Chapter 3 Game View After beginning a new gare or after loading a saved garre you are presented with an isometric view of your starting city The view can be zoomed using your keyboard and keys or with a scroll wheel equipped mouse Move the pointing hand icon using the mouse or keyboard cursor keys to navigate around the map The Toolbar This is located at the bottom of the screen and comprises 8 sections Gane Tools A side bar menu opens when you click on the tool bar Fromtop to bottomthe menu displays Construction Various types of building are available from Retail Stores to Corporate Headquarters See Chapter 4 for nore details ZoomLevels Three levels o
23. original level Personality Each computer player has a personality The information is displayed in the Personality section of the Person Report 127 Character The most important aspect of personality is the main character attribute The main character attribute can be any of the following e Conservative The principal mindset of a conservative person is Safety All expansion must be carefully planned and is carried out only when the existing business is profitable and the corporation s cash reserve is high enough to make the person feel confortable Moderate A moderate person is always open to opportunities but takes action only when confident A moderate person still pays considerable attention to the corporation s profitability and cash reserve before any expansion but not as much as a conservative person Aggressive Expect a corporation controlled by an aggressive CEO to expand relentlessly because it does not care too much about the profitability and cash reserve of the current business An aggressive person does not fear competition and will not hesitate to compete with you whenever the market is attractive Very Aggressive The person with very aggressive character always wants to extend into all kinds of businesses This person is interested in every sort of business because the ultimate goal is to control every market in the world Concems Apart fromthe main character attribute a person s concern abou
24. product needs separate advertising to establish and support its brand Under this strategy advertising can becorre a major expense for the corporation The corporation can lose a price advantage to a corporation that successfully pursues a corporate or range brand strategy Advertising Advertising is the most important element of brand development With a handsorre advertising budget a firmcan raise the public awareness of a brand easily and rapidly A clear understanding of advertising is the first step toward beconing a successful brand manager The sections below first introduce some basic media concepts and then discuss the effect of advertising frequency reach duration and the relationships between them Finally a section illustrates the relationship between advertising and product quality The following deals with the theoretical side of advertising To know exactly how your products can be advertised see Advertising Unit on page 3L Media Concepts Before you start advertising your products you should be familiar with the following media concepts as they will be used extensively in areas relating to advertising e Media Vehicle The specific program publication or promotional piece used to carry an advertising message Coverage A measure of the potential audience that night receive an advertising message through a media vehicle e Reach The number of different audience members exposed at least once to a media v
25. profit Technology The Technology Report shows the following information about a product Product The narre of the product If a diamond appears in front of the product narre the corporation is currently producing the product GQurrert Tech The current production technology level of the product Top Tech The top production technology level of the product in the world At the beginning the top technology level of all products is 100 When a product with a higher technology level enters the market the top technology level is updated accordingly Target Tech The target production technology level that is reached when the current research and development R amp D plan is complete Nothing is shown here if there is no R amp D plan on the product 88 RSD Progress The red bar shows the progress of the current research and development R amp D plan To the right of the bar you see the duration of the R amp D plan and the number of R amp D units involved in the R amp D plan Nothing is shown here if there is no R amp D plan on the product The report can show either technology information for products that the corporation is currently researching or technology information for all products Toggle between each information set by using the All and Products with R amp D Only buttons If you click the Go button the garre will jump to display the R amp D unit conducting the research For more information about production te
26. s Spending Level at different degrees Products with a high necessity index e g toothpaste are less affected by Spending Level than those with a low necessity index e g Cars A products necessity index can be seen in the Product Detail Report Salary Level indicates the labor cost of the city One good way to increase profitability is to set up production in areas of low labor cost while exporting to cities with a more wealthy consurrer base Salary Level is also affected by the citys economic climate Econonic Climate can be Boom Prosperous Normal Recession or Panic A city with a booming economy benefits all business activities with higher consurrer demands indicated by Spending Level On the other hand labor cost also tends to increase in the midst of a booming econorry thus increasing the cost of operating a business indicated by Salary Level You should pay close attention to these economic indicators which all vary from city to city and over time when selecting a city in which to build a new firm Ina city in recession businesses suffer Building a large department store in a city with a panic economy is a recipe for financial losses and failure To avoid this you rrust keep a watchful eye on these economic indicators 29 Business startups will help stimulate a citys econorry and improve its economic climate Conversely closures of businesses will negatively affect a city s econony and excessive business closure
27. still cannot meet your financial obligations then your corporation must face the ultimate misfortune bankruptcy Once your corporation declares bankruptcy all of the corporation s fins are closed down and the land is sold A report shows the remaining cash after selling off all land and stocks owned by your corporation If there is any cash remaining the cash is used to repay the bank loan If any cash remains after repaying the bank loan the cash is distributed to the shareholders If your corporation goes bankrupt you lose the gare The Bankruptcy Report is displayed followed by the Final Score Report which shows your final score in the garre and then the garre ends 110 Chapter 7 Marketing Overall Rating In the garre each product is given an overall rating This rating serves as an indicator of the overall attractiveness of the product The overall rating is determined by e Price The higher the price the lower the overall rating Quality Rating The higher the quality rating the higher the overall rating Brand Rating The higher the brand rating the higher the overall rating e Price Concem Determines the weight of price in the overall rating Quality Concem Determines the weight of quality rating in the overall rating Brand Concem Determines the weight of brand rating in the overall rating Price Quality amp Brand Concem When a consurrer buys a product the product s price quality and b
28. stock is owned by public shareholders If your corporation buys back 5 of its shares from public shareholders 50 000 shares are taken out of circulation and the total number of outstanding shares is reduced to 950 000 After this change you own 52 63 of the stock 100 times 500 000 over 950 000 and the public shareholders own the remaining 47 37 For details about buying back shares from nonpublic shareholders see Tender Offer below Tender Offer Tender offer is an offer to buy shares of a corporation usually at a price in excess of the value of the shares on the stock market A tender offer is necessary only if all shares of the stock that you are interested in are in the hands of nonpublic shareholders To buy shares from nonpublic shareholders do the following 1 Go to the Stock Information screen 2 Select which person or corporation will buy stock in the investor browser 3 Select the stock you are interested in fromthe Stock Browser 4 Select the shareholder fromwhom you want to buy stock 5 If you are going to buy stock froma corporation that you control you can just set the percentage of the stock you want to buy and press the Buy button The transaction is done at the current stock price If you are going to buy stock froma shareholder who has no relationship with you you must offer the shareholder a price in excess of the market value of his stock 6 Set the price that you are willing to offer in the window
29. that is connected to all the other units within the team Then click the R amp D technology button and select the product you wish to research and set the duration of the research project The R amp D team will begin researching the project intrediately 53 Technology Adivancerrent The technological advancerrent you can achieve with an R amp D project is determined by the following e Duration of the project R amp D teamsize e Unit levels experience of the team Top product technology level Duration of an RSD project The duration of the R amp D plan determines the amount of technological advancerrent that will be accomplished when the R amp D plan is complete Technology is represented by the technology level The following table shows the relationship between expected technology gain and R amp D duration NOTE The table excludes other determining factors These other factors are discussed in the following sections RSD Duration Technology Gain 6 months 1 1 year 3 2 years 7 3 years 11 5 years 20 10 years 50 RSD teamsiz An R amp D teamcan have one to nine R amp D units A larger teamcan achieve nore technological advancerrent than a smaller team However an R amp D team with two R amp D units is not 100 more productive than a single unit R amp D itis only 70 more productive This is because in any research one or a few core scientists are in charge of the most difficult part of the resea
30. the nouse controls Command Requirements for Multiplayer Multiplayer support 2 7 players 56 6 Kbps or faster connections for Internet play TCP IP or IPX compliant network or Phrase Means Left click Select Depress the left mouse button Right click Depress the right mouse button Double click Rapidly depress the left mouse button twice Please note that if your mouse is equipped with a scroll wheel you may use it to zoomin or out of the main city view Chapter 2 Getting Started You begin Capitalism 2 at the main menu screen Fromhere you have 5 options Single Player Gane Play against the computer Multiplayer Gane Play against computer and human opponents via a network or the Internet Hall of Fane View the list of the best players Credits View the garre credits Exit Exit to Windows Single Player Gane Select the Single Player option fromthe main menu to play Single Player garres You may now choose fromloading a previously saved garre LOAD playing a CAMPAIGN or defining a CUSTOM GAME Click LOAD and select a previously saved garre The garre will start autorratically Cick CAMPAIGN and the following screen appears Select either PLEAN PELE A CARPO Entrepreneur s Campaign to play the tutorials The tutorials will lead you through game play basics They are designed to be played in sequence allowing you to maximise your learning potential If itis your first t
31. the screen or press the Enter key The chat message box will be displayed at the bottom of the screen and prompt you to enter a chat message The message will be sent to all other players by default There is however a list of buttons in different colors representing different companies controlled by other players If you click any of them the message will be sent to the particular player only Winning or Losing The following are definitions of winning and losing in different types of gars in Capitalism Il Single Player Gane Campaign Game You will win if you achieve all of the assigned goals in the given time You will lose if any of the following occurs e You are not able to achieve all of the goals within the given time e You retire without achieving all of the goals e Your corporation goes bankrupt e Your corporation is taken over by another corporation Single Player Gane CustomGane If you have not set any goals for the garre the garre will be open ended You will lose if your corporation goes bankrupt or if it is taken over by another corporation If the garre has a set of specific goals the winning and losing conditions will be the sarre as those in a campaign gare Multi Player Game If you have not set any goals for the garre the garre will be open ended You will lose if your corporation goes bankrupt or if it is taken over by another corporation If he garre has a set of specific goals you will win if a
32. unit detail area shows the following information awareness rating of the private labeled goods Brand Loyalty The brand loyalty rating of the private labeled goods Brand Rating The overall brand SU Sachin tn eae er a Sn ng and the my brand loyalty rating E Unit Lowel lt 1 Unit level The experience level of the unit Stock The quantity of the product stocked in the unit Utilization The unit s level of productivity Staff Staff number represented by the figure icon 45 Unit Info Linit Maene ge The info box of the Private Labeling 7 Unit in the layout area shows the following information Product Narre The product being processed Product Stock This area shows the stock of the product in the unit Each cargo unit can store a certain number of product units The number of units a cargo unit can hold varies For sone expensive products such as automobiles one cargo holds only a few units For lower cost products such as shampoo one cargo unit holds several thousand units The value of each cargo unit is about the sarre Unit Level The productivity and capacity of a private labeling unit increases when its unit level increases The table below shows this relationship Unit Level Productivity Capacity 1 100 100 2 130 125 3 160 175 4 200 200 5 250 250 6 300 300 7 360 375 8 430 437 9 500 500 Factory
33. you can purchase and sell them The purpose of the firmis to allow corporations to advertise their products The procedures for arranging advertising are described in Chapter 7 Marketing but this next section focuses on the information provided about a media firm FirmDetails Highlight a radio station television station or a newspaper publisher to display information about the firm A new screen is displayed showing the details of the selected firm The pie chart in the lower left of the area shows the share of each advertiser during the past month The colors indicate which corporation purchased which portion The graph to the right shows the market share of the media firmover the past 12 months 71 Various useful figures about the media firmare displayed Content Quality The quality of the media s content A rating ranges fromOto 100 Rating Points This measurement indicates the portion of potential audiences that receive messages froma specific media outlet One rating point is equivalent to one percent of the potential audience that receives messages froma specific media outlet It is calculated by dividing the reach by the coverage Advertising Cost Cost Per Thousand The cost to expose 1 000 people to an advertising message To purchase a media finm Select the firmand click the Buy Firmbutton A screen is displayed in which the current owner states the sale price Below this you can decide to raise or lower the price
34. your COO to follow for managing your firms To set the policies go to the Career section of the Person Report The following are their descriptions Cn o Emi Eriquen Soh Tiia Cil Uga ari O ii Tann of myku i flrhude Tamad Yra Hani al 0 ina Sady ae MANECEMENT POLICIES Pricing Fiy Bara Pp Very Apra Change internal Sake Yaa Mo Laat far Dene iape Be Fam Da Far Oey Han Bary Pa Leal fin Betis Predio ty Sell in Aaral Siig Yes Ma Adjust the pararreters your Chief Operating Officer adheres to in the Career section of the Person Report Pricing Policy If you let your COO manage your firms product prices are set in response to the market change You can tell your COO to follow the pricing policy you prefer It can be one of the following Normal Pricing Policy The COO adjusts product prices so that your overall product ratings are close to the competition Aggressive Pricing Policy The COO adjusts product prices so that your overall product ratings are about 10 points higher than the con petition Very Aggressive Pricing Policy The COO adjusts product prices so that your overall product ratings are about 20 points higher than the competition However if derrand for a product is higher than supply the COO will increase the price regardless of which pricing policy is in effect When the bottleneck is in the supply decreasing price only generates more derrand but not sales Set the pricing policy to aggre
35. 0 000 180 000 Department Store 1 000 000 100 000 Supermarket 1 000 000 100 000 Convenience Store 500 000 50 000 Drug Store 500 000 50 000 Apparel Store 500 000 50 000 Automobile Outlet 1 000 000 100 000 Hardware Store 1 000 000 100 000 Footwear Store 500 000 50 000 J ewelry amp Watch Store 500 000 50 000 Leather Store 500 000 50 000 Computer Store 500 000 50 000 Cosmetic Store 500 000 50 000 Furniture Store 1 000 000 100 000 Sports Store 500 000 50 000 Toy Store 500 000 50 000 Sorre stores are specialty stores and can only sell certain items For example a fumiture store can only sell beds chairs and sofas Because it specializes speciality stores will enjoy greater demand for its products than say an adjacent department store that may also stock the same goods The main disadvantage of the specialist store is that if demand decreases or supply is interrupted it is difficult or impossible to stock substitute goods Whereas the potential range of goods available to a department store cushions the impact of any down tum in trade by allowing the finmto switch to alternate goods A full listing of itens available to sell in each store can be found at Appendix A Private Labeling Unit Set up in Deparment store or factory Setup cost 100 000 Workers needed 6 A private labeling unit converts products of other brands to your own brand by labeling the product with your own c
36. 0 000 Logging Camp 1 500 000 100 000 These three firms all produce raw materials but each one specializes in different types of raw materials The following section shows how to set themup Producing Raw Materials First locate a site with deposits of the natural resource you are interested in If you have trouble finding that resource click the Resource Map button within the mini map to get a view of all the natural resource reserves Remember that the resource you require may not be available in the city you are viewing or indeed in any other city in a multi city garre Next build an appropriate firmat the location you have chosen as follows e For timber build a logging camp e For oil build an oil well e For other resources such as aluninumand silica build a mine 63 As you know a firmwill not start operating until the appropriate units are properly set up inside it First set up the unit responsible for the production of raw materials Each raw material finmrequires a different type of unit to obtain the raw rraterial as shown below e Logging canp logging unit e Mine mining unit Oil well oil extracting unit Once this unit is set up it starts to produce raw materials To sell them add a sales unit and link the two units You now have a raw rraterials firm Unit Info Logging Unit Una Hame Thelen The info box of the Logging Unit in the layout area shows the following Aaw information M
37. 240 9 260 260 Livestock Processing Unit Set up in Farm Setup cost 100 000 Workers needed 16 Livestock grow up in a livestock raising unit They are then sent to the livestock processing unit which can process the livestock into several useful products Processing Livestock First link the livestock processing unit to a livestock raising unit Once the linkage is established a Select Product button appears Click it to display a menu where you can select the livestock product you want to produce After you select one the unit starts functioning and you see the livestock products appearing as a row of boxes If the livestock supply fromthe linked raising unit is less than the derrand of the processing unit more livestock in the raising unit are killed to meet the demand resulting in an immediate increase in product output but decreases in the overall output over the long run 61 Livestock Quality Product The quality of the livestock and the level of the functional unit processing the livestock determine the livestock product quality This reflects the fact that experienced workers and modermized facilities produce higher quality products Unit Details When you highlight an active Livestock Processing Unit the unit detail area shows the following information e Quality The quality of the livestock product in the unit Unit Info Tete The info box of the Livestock Process
38. Store Video Recorder Departrrent Store Discount Megastore amp Hardware Store Wine Department Store Supermarket amp Convenience Store Yogurt Department Store Supermarket amp Convenience Store 135 Appendix B Manufacturers Guide Production Class Product Input1 Input 2 Input 3 Technology Apparel J ean Dyestuff Textiles 50 2 pairs Lib 2 lbs Q 10 Q 40 Automobile Car Car body Engine Wheel amp 30 1 unit 1 unit 1 unit Tire Q 30 Q 30 4 units Q 10 Bath Body Chenical Coconut Plastic 60 Supplies Lotion Materials Oil 10 units Lib Lunit Lib Q 20 Q 15 Q 5 Bath Soap Citric Coconut Paper 60 Supplies 8 units Acid Ql Lib Lunit Lib Q 15 Q 20 Q 5 Beverage Cola Sugar Aluminum 80 17 cans 5 lbs 1lb Q 10 Q 10 136 Plastic Lib Q 5 Strawberry Sugar 2 lbs 1 lb Q 20 Q 10 137 138 139 Plastic 1Llb Q 5 Plastic 1Llb Q 5 75 140 141 Car Body Lunit Chemical Materials 5 lbs Q 10 Glass Plastic 30 Ibs 30 lbs Q 15 Q 15 Silicon 1lb Q 5 Silicon 1lb Q 10 142 143 Silicon Silica 3 lbs Q 40 Watch Sports Watch 30 units Electronic P Components 1lb Q 25 Electronic Glass Plastic 75 Conponents 1lb Lib 4 lbs Q 15 Q 5 Q 5 144 Appendix C Shortcut Keys O Option menu S Save game menu L Load game menu N Set newspaper display options
39. The number of people exposed to a specific advertisement at least once during a particular time period Each media vehicle newspaper and television in the gare has a different rating and reach Media vehicles with a higher reach will charge a higher cost for delivering an advertisement To rake the advertising campaign successful enough people must be exposed to the advertisement If a single media vehicle cannot provide you with satisfactory reach you should advertise your products on more than one media vehicle to have a higher combined reach Duration This refers to the duration of the advertising campaign You determine the duration of an advertising campaign You can spread the advertising budget evenly over a year or concentrate spending on months when the derrand is high 118 Since your advertising budget nay not allow you to have high frequency high reach and long duration at the sarre time you must allocate your resources to each of themwisely For example if high frequency exposure is necessary to bring your product into public awareness then you might need to sacrifice reach and duration for frequency Advertising amp Product Quality Advertising can be an effective way of building up brand equity but only when used adequately and wisely Spending large armobunts of money advertising a low quality product is a waste of money Custorrers will only develop brand loyalty toward a high quality product If your p
40. Utzi Demand Supply Product Stock This area shows the stock of the product in the unit Each cargo unit can store a certain number of product units The number of units a cargo unit can hold varies For sore expensive products such as automobiles one cargo holds only a few units For lower cost products such as sharrpoo one cargo unit holds several thousand units The value of each cargo unit is about the sarre Supply and Demand The blue bar indicates the supply of the product by supplier The red bar indicates the derrand for the product fromthe current firm If the supply bar is shorter than the demand bar there is a lack of supply Firmperformance may be affected by supply problems so keep a close watch on your suppliers Utilization The orange bar shows the unit s utilization If this bar reaches its full length the unit is at full capacity No more goods can be manufactured even if there is additional supply and demand Conversely if the unit is underutilized its facilities and resources are not being used effectively 38 Unit Level The productivity and capacity of a purchasing unit increases when its unit level increases The following table shows this relationship Unit Level Productivity Capacity 1 100 100 2 130 125 3 160 175 4 200 200 5 250 250 6 300 300 7 360 375 8 430 437 9 500 500 Sales Unit Set up in Retail store farm factory mine oil we
41. an be calculated by dividing the corporation s annual profit by the shareholders equity of the corporation Retum on Total Assets This is the percentage calculated by dividing the corporation s annual profit by the total assets of the corporation It gives you a brief idea about the profit generation efficiency of the assets of the corporation 91 e Dividend Yield The dividend yield is a percentage calculated by dividing the dividend by the stock price Total Retum to Investors The total return to investors is a percentage calculated by dividing the total ammount of return on one share over the past 365 days by the stock price The retum includes the dividend received and profit gained fromthe rise of the stock price Operating Profit Margin The operating profit margin tells you how profitable the corporation s products are to manufacture and sell Itis a percentage calculated by dividing the corporation s annual operating profit by the corporation s annual incorre Net Profit Margin The net profit margin measures a corporation s profitability after all costs and expenses have been paid It is a percentage calculated by dividing the corporation s annual net profit by the corporation s annual incorre Inventory Tumover The relationship between the corporation s annual sales and the value of the corporation s inventory It indicates the number of times that the inventories turn over and can be calculated by div
42. and The overall brand rating This is the sumof the brand bar is blue and indicates the product supply fromthe supplier The demand bar is red and indicates the product derrand fromthe current firm If the supply bar is shorter than the demand bar there is a supply shortage Overall firm performance may be affected by the shortage and you should consider switching to a better supplier Unit level The experience level of the unit Stock This area shows the stock of the product in the unit Each cargo unit can store a certain number of product units The number of units a cargo unit can hold varies For some expensive products such as automobiles one cargo holds only a few units For lower cost products 37 such as shampoo one cargo unit holds several thousand units The value of each cargo unit is about the sarre Utilization The orange bar shows the unit s utilization If this bar reaches its full length the unit is at full capacity No more goods can be purchased even if there is additional supply and demand Conversely if the unit is underutilized its facilities and resources are not being used effectively Staff Staff number represented by the figure icon The color bar under the product picture indicates the brand owner s corporate color TE The info box of the Purchasing Unit in the layout area shows the SN following information Bock Product Narre The product the unit is Currently purchasing
43. ate may outperforma low P E slow grower over the long run e Dividend Yield Dividend is the distribution of a companys earnings to stockholders Dividend yield is the percentage calculated by dividing the dividend by the stock price Total Retum The total return to shareholders is the percentage calculated by dividing the total return amount by the stock price The total return arrount includes the dividend and profit gained fromthe rise of the stock price over the past 365 days Stock Browser The Stock Browser window shows the stock available on the market COST AL naia Ibit Pr LU Hk DL bas AT ee Faia Company The narre of the corporation e Price The stock price e P E The stock s price earnings ratio Onmeda The percentage of the total number of shares owned by the current investor or investing corporation e Stock Value The value of the stock owned by the current investor or investing corporation 1 02 More details about the currently selected stock can be seen in the Detail Browser as seen on the left In this window you will see all the terms listed at the head of this chapter Oty Owed Stock Value Public Shareholders 5 360 802 49 15 50 427 998 Alan Doyle 659 196 10 05 5 002 508 The shareholder browser is under the Stock Browser It identifies existing shareholders of the highlighted stock e Shareholder The narre of the shareholder Owned Qty The number of shares owned by the
44. aterial y Stock Raw Material Nane The raw material currently being produced Raw Material Stock The stock of raw material in the unit Each box represents a cargo of material the quantity of which varies depending on the raw material MARTA The info box of the Mining Unit in the layout area shows the following information Raw Material Narre The raw material currently being produced Raw Material Stock The stock of raw material in the unit Each box represents a cargo of material the quantity of which varies depending on the raw material 64 Unit Info Gil Well Unit Unit Marrs TEAT The info box of the Oil Well Unit in Extract 1 the layout area shows the following information Raw Material Nane The raw material currently being produced Raw Material Stock The stock of raw material in the unit Each box represents a cargo of material the quantity of which varies depending on the raw material Selling amp Buying Fins You may decide to sell or buy a firm or another corporation may offer to buy a firmfromyou To sell a firmfollow the procedure outlined below Putting a firmon the market Open the firmyou wish to sell and click the Offer to Sell Finm button in the top right of the screen A For Sale sign will now be shown next to the finmin the main city view You will have to wait until an offer arrives Receiving an Offer to Purchase A Mob Dias CPD SEA Taparados E Pipa OPO
45. brand and overall rating are displayed allowing you to make corrparisons if several suppliers offer the sare product type Finally the current levels of supply and demand for the product are shown Once you have found a product you wish to purchase left click the detail box and press the Select button to start the purchasing process Stopping a Product Purchase After a purchase linkage is established the Stop Purchase button appears Press this button to stop the current purchase 36 Changing the Currert Supply To switch to a new supplier press the Link button and select the product that you want to purchase This is the fastest way to change the current supply because the newly selected product is purchased immediately You will however incur a loss because the stock of the old product in the purchasing unit is discarded To avoid this loss stop the purchase of the current product by pressing the Stop Purchase button and wait until its stock is cleared to the sales unit or manufacturing unit Then link the purchasing unit to the new supplier Locating the Supplier of a Purchasing Unit You can click the Supplier button to display the details of the supplier You may then click Go to Supplier button on the detail popup box to go to the supplier firm Unit Details When you highlight an active Purchasing Unit the unit detail area shows the following information Quality The quality rating of the product Br
46. breeding raising cycle Livestock Quality The level of the functional unit determines the quality of the livestock products A higher unit level indicates that the unit has more advanced equipment and the workers are more experienced Livestock raised in these conditions are healthier and of better quality Unit Details When an active Livestock Raising Unit is highlighted the unit detail area shows the following information Quality The quality of the livestock in the unit Baby Qty amp Adult Qty These two rows of boxes represent the quantity of baby and adult livestock in the unit Baby livestock mature and become adult livestock Different types of livestock have different growth rates Fromfastest to slowest the livestock growth rates are chickens sheep pigs and cattle Unit Info The info box of the Livestock Raising Unit in the layout area shows the following information Unit Sane MES Livestock Name The livestock the unit is Currently rearing Livestock Hama Baby amp Adult Livestock These two rows represent the baby and adult livestock in the unit Baby Livestock Livererteersth 60 Unit Level The productivity and capacity of a livestock raising unit improves when its unit level increases The following table shows this relationship Unit Level Productivity Capacity 1 100 100 2 120 120 3 140 140 4 160 160 5 180 180 6 200 200 7 220 220 8 240
47. chnology see Manufacturing Unit on page 47 For more information about R amp D plans to improve your corporation s production technology see Research amp Development Unit on page 55 Advertising This report lists all the products advertised by the selected corporation The following information is shown in the report e Product The product being advertised e City The city in which the product is being advertised Brand Rating The current brand rating of the product e Monthly Adl Spending The monthly advertising spending of the product Daily Ad Freq The daily advertising frequency indicates the number of tines a target audience is exposed to an advertiserrent in a day Rating Points A measurement of the portion of potential audiences receiving messages froma specific media vehicle One rating point is equivalent to 1 percent of all of the potential audiences receiving messages froma specific media vehicle You can sort the list by product narre or city name You can change the sorting order by clicking on the buttons on the lower part of the report Brand This report shows brand information of any corporation in any city instantly The information in this report is straightforward See Chapter 7 Marketing for nore information relating to brands 89 Switching Brand Strategy This report is somewhat different fromthe other reports because you can switch your corporation s brand strategy here The selected
48. constant as long as demand exists Otherwise the supply may be cut of suddenly Determine the Import Quality A low import quality product should be inferior to a corporation manufactured product at the beginning of the gare Conversely imported goods of high quality should be superior at the start of the garre Click the GOALS tab In the Goals screen you may set Custom goals for the new garre Click the and buttons to alter the settings If you decide to play to any goals you may set e The No of Years over which the goals must be achieved The Goal Score Bonus which will be added to the player s score if the goals are achieved Values 1to set financial goals 12 Values 2to set corporate performance goals Industries and Products to set respectively industrial and product dorminance goals When you have finished customising the garre click START and the gane will begin Multi Player Gane Select the Multi Player option fromthe main menu to play Multi Player games You may now choose from Play it on Ubi com LOAD a previously saved garre or CREATE A NEW GAME Step 1 Starting a Multi player Gane WITHOUT Ubi com You should only select CREATE A NEW GAME or LOAD now if you want to start a multiplayer garre playing in a local area network via modemor cable directly or via the Internet accessing a known TCP IP address If this is not the case with you you should proceed to the manual section Step 1
49. d running factories and stores your corporation may also invest in real estate Various sized apartment buildings may be constructed and offered to the city s populace to live in where you set the rent level Generally lower rents will attract more tenants but higher rents may increase profits Once you have built an apartment building left click i Paame Bhia Ceara Had Aan its image in the main city view PA and the Apartment Information A roa ES pe window opens a Pk z brrma 55 13 Fromthis window you nay Donup y yapi alter the rent charged to Lani rad Eslida Enel 4 tenants by using the E Terie DTE Mate Vakie spinners You can also review the profit and occupancy Put fee ape bevel m graphs for the previous 12 months Land and building costs are shown along with an estimated market value should you wish to sell or dermolish the building The annual return of investrrent is also displayed this is updated every year Apartment Information window 66 T if you decide to sell the building click the Put this 2 apartrrent on sale button and wait for offers fromother corporations You may of course purchase an apartrent building fromanother corporation Look out for a For Sale sign on the side of the building Left click the Buy this apartment button to open the negotiation window Enter your price and if it is accepted you will become the new owner of the building Apartme
50. e e New multiplayer garres with up to 7 players offer intense competition against players from around the world e A new ability to acquire buildings from other companies In multiplayer garres you will be able to negotiate for the best prices with your human or computer opponents e The cities in Capitalismll are modeled with a dynanic economic system Flourishing businesses and busy traffic will increase the area s land values Astute investments in the real estate market can be a path to riches e Take on the title of Real Estate Mogul by building apartments and comrrercial buildings in pricey downtown locations 16 17 e Build a headquarters for your company and fromthere execute corporate wide training programs Allocate resources to public and investor relations promoting your brand and your companys stock e Build your dreammansion with the fortune that you have made in the business world e Quickly judge the status of your business by observing the activities of your errployees and custorrers in the newly added interior views Economic systems are not only dynamic but complex as well Labor cost and cost of living will vary from city to city giving you an incentive to set up production in areas of low overhead while exporting to cities with a more wealthy consurrer base Now more product types than ever Over 60 products for you to manufacture and market A new streamlined interface that eases the locating
51. e If the price were higher than the current stock price nobody would buy the new shares Second you must decide how many new shares to issue The linit on the number of new shares you can issue depends on the following e Profitability of your corporation Investors will welcome your stock if your corporation is showing sore promising results e Issuing price If the new shares are offered at a lower and more attractive price more investors will want to buy them 107 Frequency of issuing new shares New shares cannot be issued too frequently You must give the market time to absorb the new shares In the Issue New Shares screen the maximum number of the shares you may issue is displayed In addition to considering the naximumnunber of shares that can be issued you should also consider the following Total number of shares outstanding The impact on the existing shareholders will be greater if the number of new shares to be issued is closer to the total number of shares outstanding Current stock price The issuing price cannot exceed the current stock price Expected gross receipt The expected arrount of money your corporation will receive by issuing new shares Although issuing new shares is an effective means of rapidly generating new funds it does have a major drawback Issuing new shares reduces the ownership percentage of existing shareholders Because you also own less of your company after you issue new shares
52. e brand may thus be reduced In addition when a corporation extends its product lines to others markets it becomes more difficult for the corporation to maintain the quality and consistency of its products Failure to maintain quality and consistency results in damage to the brand as a whole The risk increases if the corporation extends its product lines across markets of different product classes Range Brand Under the strategy products in the same product class are labeled with a single range brand The range brand strategy enjoys the sarre benefits and drawbacks as the corporate brand strategy but to a lesser extent These effects are limited because the number of products a range brand covers is smaller The range brand strategy is preferable to the corporate brand strategy if the quality of your corporation s products varies substantially across different product classes On the other hand if you are confident that the quality of your products can be maintained then the corporate brand strategy nay be a better choice 116 Unique Brand Under this strategy each product has a unique brand The unique brand strategy s most obvious advantage is that you can simply forget the risk of brand interference across different product lines Brand loyalty which has been built up over the years will not be damaged by inappropriate quality control in other product lines The downside of this strategy however is that each individual
53. e in the market Each piece of the pie represents a different corporation s market share The white portion if shown represents the combined market share of all local competitors There are local competitors in each city Although their firms are not shown on the garre map they do compete directly with all of the corporations in the gare Sorretimes they can even be the major competing force in the market The product picture itself is a hypertext button Click the button to display the Product Detail Report Display Filter You can control the products listed in the report by setting the display filters The four display filters are described below Product Availability Filter The product availability filter has the following options All Displays all available products Has Trade Sales Displays only products available in the trade market Has Retail Sales Displays only products retailed by corporations Product Category Filter The product category filter has the following options e All Displays all product categories e Consurrer Gooch Displays only consumer goods Industrial Goods Displays only industrial goods Corporation Filter Set this filter to a corporation to list only those products being produced or retailed by that corporation The default setting All lists every corporation 75 City Filter If this filter is set to All Cities the report shows the combined sales of all products in all ci
54. e sarre process to sell stocks J ust click the Sell button instead of the Buy button For information about buying stock from nonpublic shareholders see Tender Offer below Buying Back Shares If a company buys back its shares those shares are taken out of circulation and the supply of outstanding shares is reduced This can have a positive effect on the earnings per share which in tum has a positive effect on the stock price If a company buys back half its shares and its overall earings stay the sarre the earnings per share double Few companies could get such an increase in earning per share by merely cutting costs or selling more goods Buying back shares also strengthens the owner s control of the corporation and reduces the risk of being taken over The procedure for buying back shares from public shareholders is not much different than normal stock buying The steps are 1 Go to the Stock Information screen 2 Select the corporation as the buyer in the investor browser 3 Select the stock of the corporation in the stock browser 4 Set the percentage of total outstanding shares to buy and press the Buy Because the stock you buy back is taken out of circulation the ownership percentages of all shareholders except public shareholders will increase For exarrple suppose your corporation has 1 000 000 outstanding shares You the CEO own 50 of the stock or 500 000 shares of your corporation and the other 50 of the
55. e the Share Issue and Bank Loan screen as detailed above Issuing Shares page 107 The Loan Screen opens with the following information Total Loan The total loan your corporation has borrowed e Monthly Interest The monthly interest your corporation needs to pay Credit Linit The maximumanmount your corporation can currently borrow This is determined by two factors the equity and profitability of your corporation Interest Rate The current interest rate which fluctuates fromtime to time Under this information are two sets of spinners and buttons one for borrowing and another for repaying To borrow or repay a loan set the amount you want and press the Borrow or Repay button NOTE The interest rate of your loan is floating The arrount of interest your corporation pays rises and falls with the current interest rate Out of Cash and Bankruptcy If your corporation runs out of cash a window pops up and you are forced to take one of the following actions e Borrow bank loan e Issue new shares e Sell stocks e dose down fins e Declare bankruptcy If you decide to raise funds by taking out a bank loan issuing new shares or selling stocks you are directed to the appropriate menu to carry out the transaction For more information refer to Borrowing and Repaying above Issuing New Shares on page 107 and Buying and Selling to the Public on page 104 109 If you have exhausted every means of raising cash and
56. e unit detail area shows the following information RSD Duration The duration of the R amp D plan Progress The progress of the current R amp D Original Tech The original technology level Target Tech The target technology level II gt TA iaa uate 7 pean i Original Tech Hb 56 Unit Info The info box of an R amp D Unit in the layout area below shows the following information Uni Name HIED Product Name The product currently being researched Produc 2 RSD Duration The duration of the R amp D plan LEUE RSD Progress The progress of the Progress current R amp D plan Purchasing Technology fromother corporations You may also attempt to purchase technology from your competitors ata price of course For rrore details please see the section on Headquarters Farm Farm Size Setup Cost Monthly Cost Medium 1 000 000 100 000 Large 1 800 000 180 000 Small 750 000 50 000 On a farm you can set up the following business function units specific to farms e Crop growing unit e Livestock raising unit e Livestock processing unit And the following contmon units e Inventory unit Sales unit e Advertising unit On a farm you grow crops and raise livestock To grow crops set up one crop growing unit and one sales unit and link themtogether Next select a crop type for the crop growing unit After sowing growing and harvesting the unit moves the crops to the sales uni
57. ecide to enable this option each city will be subject to variances in the local city economy You may find that sorre cities have lower land values and labor costs enabling you to operate nore cheaply before exporting your goods to a more wealthy market Or you may find that product demand is different than found in a neighbouring city An 11 abundance of work will increase the local population causing land values to increase and traffic to becorre denser All in all the city econony will reflect the dynanics of the city as it develops Click the COMPETITORS tab In the Competitors screen you can Define the Number of Competitors e Set the level of their Start up Capital e Set their economic Aggressiveness towards other corporations e Adjust the Expertise level for each corporation e Choose to be able to see your con petitors Trade Secrets If you select yes you will be able to view firmlayouts product information and R amp D projects e Alter the Competence of Local Competitors These local stores are not corporate controlled but still influence the city market place Click the IMPORTS tab In the Imports screen you may Determine the number of Seaports Importing Consumer and Industrial Goods per City The more seaports of each type in existence the nore diverse the range of products will be available at the start of the garre e Select Constant Import Supply If this is selected the supply of imports will be
58. egarding on staff hiring see the section on Headquarters in Chapter 4 Buildings Firms and Units Personality In the garre each computer player has an individual personality See Chapter 4 Headquarters for details 95 Expertise If you set the Competitor Expertise Level option in the new garre setting menu to on sorre of the computer players will have expertise This report shows the expertise of individual computer players See Chapter 4 Headquarters for details Garre Score A person s garre score is determined by the following criteria e The wealth of the person e The market value of the corporations controlled by the person e The number of industries dominated by the person s corporations e The number of products dominated by person s corporations e The difficulty rating of the garre eIn a campaign garve if the player has achieved all the goals the player will be rewarded with a bonus score eIn a normal garve if the player has been in the garre for more than 50 years the garre score decreases accordingly This rule keeps the player fromobtaining a high score simply by accumulating profit as time passes Goal Report The Goal Report shows the goals you are working toward and your progress toward achieving those goals 96 Nome Gane In a normal gane the ultimate goal is to dominate all industries The Target colunn lists the names of industries and the Achieved colunm shows whether or not you have domi
59. ehicle in a given period 117 Rating Points A measurement used to determine the portion of potential audiences receiving messages froma specific media vehicle One rating point is the equivalent of one percent of all of the potential audiences receiving messages froma specific media vehicles It can be calculated by dividing the reach by the coverage Cost Per Acivertiserrent The cost to place an advertisement on the medium Cost Per Thousand The cost of exposing 1 000 members of a target audience to an advertising message Daily Frequency An indication of the number of times a target audience is exposed to an advertisement in a day e Monthly Frequency An indication of the number of times a target audience of exposed to an advertisement a month Frequency Reach and Duration Three main attributes of an advertising campaign These terms are explained below Frequency This indicates the number of times an average audience is exposed to an advertisement in a specified time period The higher the frequency the greater the chance the audience will be aware of the advertisement It is difficult to determine which frequency is the most effective but generally a person must be exposed to an advertisement at least three or four times before the person can recognize the brand A frequency that is too low cannot deliver an advertising message clearly and may not be able to improve the brand awareness at all Reach
60. elected unit in the Layout section to the right In the exanple shown a Purchasing unit is selected At the left are three tabs labeled 17 2 and 3 1 is the information view which is what you are currently viewing Clicking the 2 tab will change the view to the exterior of the finmand clicking the 3 tab will display the interior view of the firm The interior view gives you visual Cues about the productivity of your firms and the number of custorrers in your stores For instance if the employees of one of your factories are idle it is a clear indication of the existence of a problemin your production line and you must take action to fix it immediately Layout Section To the inmediate left of the nine unit boxes is a colunm containing five icons These are layout library auto link help firmfinancial report and training and are covered in detail below Setting up a Functional Unit There are more than a dozen different functional units in the garre Each one has a distinct function For example a purchasing unit is responsible for purchasing goods whereas a sales unit sells goods and generates incorre for the firm To set up a functional unit double click a location inside the finmwhere you want to begin construction A menu prompts you to select the type of unit you want to set up Because the different types of units have different functions some units require more capital and workers than other units F
61. erent unit types Improvement largely depends on the resources you allocate to train staff and upgrade new equipment Employees who are in units with high utilization receive more experience than employees who do not work to capacity Workers who work to their capacity will learn faster than workers who are idle Therefore it is not unusual to find that the rate of improvement is faster during the growth phase of the business than when the finmhas leveled off in its productivity The unit level decreases for most units when there is change in the product handled by that unit For example if a manufacturing unit which previously manufactured sport shoes changed its production line to manufacture jeans its unit level would immediately decrease Auto Link Below the Training and Equipment slider you can see the Auto Link button If you enable it all of the purchasing units in the firmwith broken supplies will look for tre needed supplies automatically This feature also works with layouts pasted fromthe layout plan library 2 oe Click the help icon to be taken to the Manager s Guide screen This guide is discussed on page 100 Layout Library Ciicking the books icon next to the layout grid accesses the library When you enter the library you can intrediately ADD the layout you have just left Complete the description line if you wish You may also Delete the firms layout with the one currently displayed in the library window If you e
62. es the process of upgrading the unit level which gives the unit more capacity and higher productivity If the demand keeps increasing and this increase is likely to be sustained you could set up more manufacturing units or a new factory to meet the increasing demand Bottleneck at the output unit If finished goods froma manufacturing unit cannot be moved out of the manufacturing unit production is suspended inside the unit In this case the bottleneck is at the output unit Removing it restores the smooth flow of 51 finished goods out of the manufacturing unit To move more goods out of your manufacturing unit you can increase the number of sales units or the demand for your manufactured products through increased distribution or advertising depending on the nature of the surplus in supply To help you better understand the basic function of each type of unit ina ee F pr 7 factory an example follows The example at left shows the layout of a factory manufacturing socks The purchase unit buys the raw material wool Next the raw material is moved to the manufacturing unit and stored there Once the manufacturing unit has the full amount of the required raw material it starts manufacturing socks The finished goods move to the sales unit and are ready for sale After operating the factory for a few months you may find that the supply of wool is inconsistent because of seasonal fluctuation of the wool supply To sol
63. es to the left of the product picture The blue one is the supply line and the red one is the demand line If the supply line is longer than the demand line the supply of the product exceeds the demand This implies that the profitability of the product might not yet be fully exploited There is nore capacity to meet demand and generate revenue than there is currently demand for the product On the other hand if the demand line is longer than the supply line the firm cannot supply enough goods to meet the demand In this situation you should increase the supply of product as soon as possible to increase revenues Product Rating Bars There is a set of two vertical bars to the right of the picture The left one which usually consists of differently colored portions is the overall rating bar Each portion represents a distinct aspect of the product and their combined rating becorres the overall rating of the product The definitions of the colors are e Yellow The products price attractiveness e Green The product s quality Orange The product s brand 25 The relative size of each bar represents the importance of that aspect to the consurrer For example consurrers of the soap shown on the left are buying this particular soap because it has a high rating for brand the size of the orange brand bar is equivalent to the combined sizes of the yellow price and green quality bars If the price of the soap were lowered
64. f zoomare available Click on a magnifying glass to alter the zoomlevel fromclosest view top glass to farthest view bottomglass These three icons link to Product Summary Report Corporate Summary Report and Finance Summary Report respectively These topics are discussed in Chapter 5 Headquarters Access information regarding your corporation More information can be found in Chapter 4 Stock Market The Stock Market is covered in Chapter 6 Garre Options Load or Save garres In Garre Options See details below Garre Speed Click anywhere on the dial to alter the speed The garre is paused when the needle is pointing to the bottom left and running at full speed when it points to the bottom right Click the Gane Tools icon on the toolbar to close the menu 18 In Garre Options This screen allows you to activate or deactivate game sound effects music or the autosave feature You may also alter the autolink your purchasing units locate their own supplies and internal sale features your manufactured or farn reared products are available for you corporation only Select News to enter the comprehensive news section Fromhere you may toggle several options to control how much or how little news you are given News items will be displayed at the bottom of the city view screen for short time If the headline relates to the construction of a new building or the discovery of new raw materials clicking the square to the left of the
65. fim button to do just that Hage of fhm Firm Playas f CEO amp Chaban i wii marga ia Hess ral l Farski Themin x Chel operating oiia Be coreedy manages wie arm ar ai al ey Pirms Later if you wish to manage the firmyourself click the COO s portrait and select will manage this firm myself fromthe window COO s Responsibilities The COO is responsible for day to day management of your firms but does not have the authority to set up or close down functional units Department Store The COO sets the products selling price arranges advertising seeks better suppliers stops the purchase if the cost is higher than the selling price and conducts training if necessary e Farm The COO sets the products selling price and conducts training if necessary e Factory The COO sets the products selling price seeks new suppliers if the current supply of raw materials stops and conducts advertising and training if necessary e RSD Center The COO decides which products to research and develop and how much training should be conducted e Mine Oil Well and Logging Camp The COO sets the raw materials selling price and conducts training if necessary Your COO s personality affects how much advertising and training are conducted and the preference for buying goods fromsister firms owned by your corporation See Personality on page 93 124 Management Policies You can set a number of policies for
66. gy advance will be intrediately available Don t forget to upgrade the manufacturing units of any factories already making use of the technology Mansion Setup Cost 20 000 to 60 000 depending on size As a player you may purchase a mansion as a show of personal rather than corporate success and wealth Whilst a mansion does not cost anything after the initial construction costs it does not earn anything other than its sale price if you decide to sell it or reclaimthe land upon which it stands A mansion is purchased like any other building by using the Garre Tools Construction menu but the cost of land and construction is borne by the player and not the corporation You may purchase as many mansions as your personal wealth allows To sell your mansion left click on it in the main city view You have two options Put the mansion on sale for another player to purchase or demolish the mansion and sell the land on which it stood 7O The sale of your mansion and the purchase of another player s mansion are similar to apartment and contrercial buildings see Apartment Buildings or Selling and Buying Fin ys above for more information Radio Station Television Station and Newspaper Publisher Each city starts with sore radio stations television stations or newspaper publishers New television stations or newspaper publishers may appear over tire You cannot set up television stations or newspaper publishers but
67. h as a Chief Technical Officer will cost more than 2000 a month These hired professionals contmand salaries in excess of six figures See Chapter 4 HQ Unit Types for information about hiring professionals Staff Training and Procurerrent of New Equipment To the left of the layout section there is a vertical slider labeled Training Use it to set the spending for staff training and procuring new equiprrent You can see the exact armount spent on training and equipment for the entire firmin the Financial Report Spending on staff training and installing new equipment greatly affects the efficiency of the workers as the functional unit improves It is worthwhile for a firmto spend more on this area especially as one considers that there are long term benefits to be gained Worker Experience and Unit Level If an inexperienced worker is provided with proper training the worker eventually becomes an experienced worker You can distinguish between a novice worker and an experienced worker by looking at the uniformcolor Novice workers wear red uniforms whereas experienced workers wear blue When all the workers in a unit becorre experienced the unit will increase one level 23 The overall productivity and capacity of most units increase when their unit level is increased All units begin at unit level 1 and certain units continue to improve until they reach the highest rating unit level 9 The rate of improvement varies for the diff
68. h firm unit employs You should build a larger firmif you anticipate a high demand for your products On the other hand if you are skeptical about the demand of your products you should go for a smaller firm The land value of an area may change over time It rises when there is an increase in traffic volume and the number of buildings in the area Conversely it falls when firms in the area are closing down and the volume of traffic decreases Players will benefit fromtheir real estate investments if the land values of their properties increase and this will be reflected in their corporate balance sheets The building will be immediately available for use lick the building to enter it With the exception of apartrent contrercial government and media buildings which have building specific interiors you will see a similar screen to the one shown 21 The screen represents a department store selling the retail store maximum of 4 products The top section of the screen shows the owning corporation double click on the logo to enter the Corporate Sunnery screen and two graphs depict the firms profit and revenue over the last 12 months At the top right is a filter that will allow you to cycle through specific fins products and corporations The next row shows photos of the products on sale As this is an established store all 4slots are occupied The lower left section contains infonration relating to the currently s
69. he strengths and or weaknesses of each competitor s product lines Like the Product Summary Report the displayed graph can be toggled between Revenue and Quantity Sold T7 Changing Salling Price The Product Detail Report gives you all the essential infomation about the product and also serves as the control center for battling your competitors in the rrarketplace You can respond to your competitors by cutting your products prices or raising your prices to increase the profit margin if the market is already under your control To change the price of a product sold by your corporation simply highlight that product and adjust the Price spinner The new selling price takes effect as soon as you confirmthe price Prev and Next Button Click the Prev button to display the previous product or the Next button to display the next product The products you can browse are linited to those currently sold in the selected city By changing the city select a new city narre at the top right of the screen you can see if the same products are being sold in another city This is useful if you wish to target a new city with products you already sell and perhaps manufacture in another city Go Button Click the Go button to go to the retail store that is selling the highlighted product FirmSunmary Report The Firm Sunnery Report lets you quickly browse the suntrary information of all firms Three filters at the top of the report let you limi
70. he hard earned brand rating but is also gives your competitors an opportunity to steal custorrers during the difficult task of reestablishing your brands To set the brand strategy of your corporation first open the Corporate Detail Report and then select the Brand section A set of buttons appears in the upper left section of the report e Corporate Brand Range Brand e Unique Brand The selected button represents your corporation s brand strategy To switch to a new brand strategy click the button representing that strategy You are wamed that your products will be designated with the new brand strategy and that the brand ratings of all you products will be set to zero as a result To proceed answer Yes and the brand replacement starts intrediately 115 Corporate Brand If the corporation uses a single umbrella brand for all its products the corporation does not start fromscratch in building up awareness of the brand identity for a new product The investment required in the line accordingly reduced Although this strategy offers major savings in the tine and resources required to build a new brand fromscratch and inproves the cost effectiveness of resources spent on supporting the brand family it is not without drawbacks Its major drawback is that the corporation is not perceived as a dedicated provider of a single category of product Consumers may doubt the devotion of the corporation to the product and their loyalty to th
71. headline will reposition the city view over the source of the news gs 2 Mini Map dick the map icon on the toolbar and a small nap al appears This provides important geographical and financial information to help you plan your strategy A window opens top right of the main garre screen displaying the current city Government buildings See Chapter 4 for more information are shown in blue whilst corporation owned buildings are shown in the corporate color Seaports are labeled C or depending on the type of inport handled Consumer or Industrial goods A flashing rectangle indicates the map location of the current isometric view on the main screen Clicking anywhere on the Mini Map will update the main display to that location If you have chosen a garre with several cities they can be viewed by clicking the left right arrows adjacent to the city narre at the top of the Mini Map window Alternatively click the down arrow to display a list by city narre and click on a city to choose it Within the Mini Map view are several icons These toggle various filters that are then displayed over the city view 19 Buildings Default view displaying the city buildings Land Values Light colored regions represent higher land values than darker regions Profit Loss Shows which firms are profitable and which are not Raw Materials Shows the location of such items as Timber Iron and Gold which can be mined for use in man
72. icking the Stock Market building takes you to the stock market section within the Information Center See Chapter 6 Stock Market and Finance for more information 73 Chapter 5 Reports and Guides The following reports and guides are accessed via the Information icon on the Toolbar found at the bottomof the Main City View screen or by clicking the Information Center building Product Sumnrery Report E ESA fromthe Garre Tools menu The Product Sunnery Report provides a quick and convenient way to browse product information Product Information At the top of the display area of each product the narre of the product is on the left and the product class on the right side The product class represents the fanily of products in which this particular product belongs For example Chairs sofas and beds belong to the Fumiture product class If your corporation operates using a Range Brand strategy see Chapter 7 Marketing it is important to know which products fall into which product class to maximize the benefits of the strategy Next to the picture of the product is a graph that can show either the total revenue or the total quantity sold over the past 12 months Press the Revenue Graph button or the Qty Sold Graph button at the bottomof the window to choose which to display 74 To the right of the graph there are two pie charts The left chart shows each producer s share in the market and the right one each retailer s shar
73. iding the corporation s annual sales by the value of the corporation s inventory Assets Tumover The relationship between the corporation s annual sales and the value of the corporation s total assets It indicates the number of times that the assets tum over and can be calculated by dividing the corporation s annual sales by the value of the corporation s total assets Equity to Assets Ratio The equity to assets ratio is a measure of the financial strength of the corporation A high ratio indicates that the corporation is financially healthy because its assets are mostly financed by its own capital instead of loans This ratio can be calculated by dividing the corporation s equity by the corporation s total assets 92 Financial Report The Financial Report displays one of the following financial staterrents e Corporate Balance Sheet e Corporate Incorre Statement e Firmincorre Statement Firm ncorre Statement is only available when you access the Financial Report by clicking the button on the firm detail screen It shows the incorre statement of the current firm Corporate Balance Sheet and Corporate Incorre Statement are the sarre as those in Corporate Detail Report They are here for your quick access Person Report The Person Report shows information about all persons active in the garre Sorre of these people compete directly with you in the marketplace while the rest are investors and speculators who a
74. ime playing the garre you are HIGHLY RECOMMENDED to start with Entrepreneur s Campaign Or select Capitalist s Campaign to play through specific challenges presented as individual scenarios The scenarios are designed to be played after you have completed the Entrepreneur s Campaign or when you are confortable with your knowledge of Capitalisml Unlike Entrepreneur s Campaign where you will only have access to the next scenario in the campaign when you have successfully completed the current one Capitalists Campaign provides you with a choice of 5 scenarios at a time When you have completed any of the available 5 scenarios a new one will becorre available until all scenarios in the campaign have been revealed Alternatively if you wish to have open play click CUSTOM Here you will be able to define sorre of the garre pararreters yourself A j series of screens will lead you CAPITALISM ll through the available options You may alter as many of the options as you like fromall to none The first screen that you will see is shown to the right 10 Fromthe screen shot you can see that the BASIC tab is the default selection Fromhere you can alter your corporation s color as displayed in game its logo and the in garre portrait that will represent yourself lick the yellow left right arrows to cycle through the available choices Next choose your corporation s name and enter your own narre You will begin the garre as
75. imported products Product Information When you left click a product photo detailed information is displayed in the lower left section of the screen The exarrple below shows detailed product information In this instance the product on sale is a bed 26 The Product Information section displays Grom Aetet See SH E Selling Price The selling price fetal Geet ESF of the product aw Prine 112501 Total Cost In a factory this is Pork 12 mente the total cost of the raw E Brom H n mj if materials used to manufacture En Guay MA one unit of the product E Pre E pia F including the freight cost of the Oneal Eating 75 Dip Ovira Arriaga raw materials In a retail store this is the purchase cost how much the store pays the supplier and the freight cost of the product In a mine logging camp or oil well this is the cost of the consumption of the natural resource reserve When a corporation buys land with a natural resource reserve the reserve is treated as a corporate asset Hence when the reserve is being consurred the devaluation of the asset is regarded as a cost to the company New Price If the finmdisplayed belongs to your corporation you can change the selling price of the product by setting the new selling price and then clicking the Confirm button to confirmthe change of the selling price NOTE There is an upper limit on the price you can set The graph shows information about the product There are th
76. in the Information Center You choose a person whom you want to hire and click Hire Chief Operating Officer button For details please see Chapter 8 Personnel Management 69 Chief Marketing Officer Office This unit enables you to hire someone to look after the marketing interests of your corporation The marketing expertise of your CMO will influence any advertising units you have in your firms by increasing their efficiency The unit level however will remain at 1 Your CMO is hired using the same process as COO Chief Technical Officer Office This unit enables you to hire someone to look after the research and developrrent interests of your corporation Once hired they will control all of your R amp D firms determining research project focus and timescales Your CTO is hired using the sarre process as COO Furthermore your CTO office provides the opportunity for your corporation to pay for the acquisition of technology fromrival corporations Open the CTO office and select the Offer to Acquire a Technology button A list of all products for which you do not currently hold the highest technology rating appears The list displays your technology rating and that of rival corporations Highlight the Product for which you wish to acquire the technology and if applicable the corporation from which you wish to make the acquisition Now decide how much you are willing to pay for the technology If your rival accepts your offer the technolo
77. ing Unit in the layout area Produc shows the following information Stock Uni Mame Product Name The livestock being produced Livestock i Sano Product Stock This area shows the product stock in the unit Each box represents one cargo of the product Each cargo can store a number of units of product and this number varies fromcargo to cargo Livestock Supply and Process Capacity The black bar is the livestock supply The green bar is the process capacity If the livestock supply bar is shorter than the process capacity bar the unit is under used and can process more livestock Link additional input units to exploit the capacity Conversely if the livestock supply bar is longer than the process capacity bar the unit has reached its full capacity and cannot process all livestock sent to it Setup a new Livestock Processing unit to reduce the workload of the current unit Altematively increase the training budget for a long termincrease in productivity 62 Unit Level The productivity and capacity of a livestock processing unit increases when its unit level increases The following table shows this relationship Unit Level Productivity Capacity 1 100 100 2 130 125 3 160 175 4 200 200 5 250 250 6 300 300 7 360 375 8 430 437 9 500 500 Mine Gil Well and Logging Camps Firm Setup Cost Monthly Cost Mine 5 000 000 300 000 Oil Well 5 000 000 30
78. ing bar Those consurrers purchasing the competitors beds are doing so because of the lower price the yellow portion doniinates the Product Rating bar These are local variations to the concerns normally addressed by the consurrer A bed is usually rated in equal proportions against Price Quality and Brand the yellow green and orange sections of the Product Rating bar in the product photograph are of approximately equal size Such variations arise if a product displays superior attributes in this example a much higher quality than other types on offer Links to Other Reports You can display the Product Detail Report for a specific product by double clicking the product picture 28 Conplex City Economy Capitalismll offers the player with an optional econonic simulation mode called Complex City Economy which provides the player the challenges of operating a business in a highly dynanic economy Complex City Economy can be enabled or disabled in the Custom Garre Setup screen s Environment tab With Complex City Econony enabled the first thing you notice is the displays of the following econonic indicators in the mini map window Spending Level indicates the ability and willingness of consurrers to spend A more developed city will have a higher Spending Level than a less developed one It is also affected by the city s economic climate which is described below The demands of all products are affected by a city
79. ions This preference is not however shown on the report you have to figure it out yourself by experience e Profitability of the corporation A person expects a higher salary offer froma highly profitable company e The person s attitude toward you Someone who doesn t like you will work for you only if you offer a higher than average salary Attitude A persons attitude toward you in proves if the person works for your corporation It gets worse if e You reject a request for a raise e You terminate the person s employment e The person resigns Salary Raise Request If your COO thinks he or she deserves a raise you see a request for a raise If you turn down the request two outcorres are possible e Stay in the corporation If the COO is a good friend attitude toward you is very good the COO may stay in the corporation but will feel discontented and attitude toward you will get worse e Decide to resign If the COO is not particularly fond of you he or she may decide to resign How often you see raise requests depends on the individual s personality Sorre people ask for a raise without a second thought as soon as their current salary is below their expected level Some people ask for a salary raise only if their current salary is far below their expected level 122 Resignation Your COO may ask to resign to start his or her own corporation or for personal reasons You can try offering a higher salary or jus
80. is return includes the dividend received and profit gained fromthe rise of the stock price e Stock Price Graph Shows the corporation s stock price over the past 12 months Ams Overview This overview shows the total number of firms of each type that the corporation owns Business Relations Relationships between your corporation and other businesses are shown in several ways These relationships are reported based on how much trade has been conducted between the two businesses e YTD Trade The value of the trade between the player s corporation and the displayed corporation in the current year e Lifetime Trade The value of the trade between the player s corporation and the displayed corporation during their lifetimes Corporate Detail Report You can find most of the information about a corporation in the Corporate Detail Report The following sections are available 81 e Balance Sheet Incone Statement This shows the chairman and chief executive officer of the corporation and indicates their character If a Chief Operating Officer has been hired his her portrait and character are also displayed For computer controlled corporations the business strategy of the corporation is shown This can be one of the following Diversified The corporation operates all kinds of firms Retail Focusedl The corporation opens only department stores e Production Focusecl The corporation only produces products e Stoc
81. k Focusecl The corporation focuses on investing and speculating stocks of other corporations 82 Financial Overview and Stock Overview This shows sorre important financial and stock information The information displayed is the amalgarration of the Corporate Sunnery Reports Finance Stock and Fin s screens Aims Overview This shows the total number of each type of firmthat the corporation owns Ans This report shows the total number of each type of firmthat the corporation owns and their annual revenue and profit e Amal Revenue Total revenue of all firms of a specific type owned by the corporation over the most recent 12 month period Amual Profit The total operating profit of all firms of a specific type owned by the corporation over the most recent 12 month period The report explains which types of firms are your corporation s main profit generators When you plan changes to your corporation make sure you sustain the profitability of these valuable firms On the other hand you also find out which firms burden your corporation and limt its overall profitability A shrewd manager finds this information critical to improving the company s profits This report reveals only the consolidated revenue and profit If you need the profitability statistics for individual firms refer to the FinmSuntrary Report see above Products This report lists the products that contribute to the revenue and profit of the corp
82. l Overview e No of Units Total number of units in the firm This shows the following financial information about the corporation Average Unit Level The average unit level of all units in the firm e Cash The corporation s cash Average Utilization How busy your employees are The firmis fully utilized when this ratio is 100 Amal Revenue Total corporate revenue over the past 365 days Click the Firmirrage or the Go nto close the report and go to the Anual Profit Total corporate operating profit over the past 365 days selected finmimvrediately e Profit Graph The corporatior s operating profit over the past 12 months Stock Overview The stock overview shows information about the corporation s stock e Stock Price The corporation s current stock price Equity Per Share Calculated by dividing the shareholders equity in the corporation by the total number of outstanding shares 79 80 Eamings Per Share Determined by dividing the corporation s annual operating profit by the total number of outstanding shares P E Ratio Calculated by dividing the stock price by the earnings per share e Dividend Yield Dividends are the distribution of a companys earnings to the stockholders The dividend yield is a percentage calculated by dividing the dividend by the stock price Total Retum Total return to shareholders is calculated by dividing the total return on one share over the past 365 days by the stock price Th
83. layout area shows the following information Product Stock Product Name The product the Utiizathon unit is currently manufacturing Product Stock Explained above Raw Material Stock Explained above Utilization Explained above Unit Level The productivity and capacity of a manufacturing unit increase when its unit level increases The following table shows this relationship 50 Unit Level Productivity Capacity 1 100 100 2 130 125 3 160 175 4 200 200 5 250 250 6 300 300 7 360 375 8 430 437 9 500 500 Bottleneck Diagnosis Here are sore suggestions to eliminate some common bottlenecks Inconsistent supply of raw materials Setting up an inventory unit and linking it between the purchasing unit and manufacturing unit usually improves this situation In addition an inventory unit is useful for raw rraterials that have seasonal supply fluctuations for exarrple wool and crops Insufficient supply of raw materials Try to find a supplier that can provide raw materials of comparable quality and price more consistently If you cannot find a better supplier or you anticipate a surge in demand for your manufactured goods consider backward integration setting up a firmyourself to supply the lacking raw materials Peak Manufacturing Capacity The most cormon way to remove this bottleneck is to increase the budget for training and new equipment This accelerat
84. lity of raw materials e The production technology level of the factory See Page 47 Chapter 4 Manufacturing Unit Crops Crop product quality is consistent among different farms The quality does increase however as a fanmaccumulates experience A farmwith higher unit levels produces better quality crop products Livestock Products Livestock product quality is consistent among different farms The quality does increase however as a farmaccumulates experience A farmwith higher unit levels produces better quality livestock products Raw Materials For raw materials such as timber crude oil coal chenicals or metals the quality is deternined by the quality of natural resource reserves Brand A brand is a distinguishing name and or symbol intended to identify and differentiate a seller s products from competitors products A well established brand is a valuable intangible asset For some products a consurrer may judge a product mainly by its brand A brand rating represents the overall value of a brand This rating is the sum of the brand awareness rating and the brand loyalty rating These two ratings are described in detail in the following sections Brand Awareness Brand awareness measures consurrers knowledge that a particular brand exists People will often buy a familiar brand because they feel more confortable with it They may assure that a product with a familiar brand is reliable of reasonable quality and
85. ll and logging carrp Setup cost 100 000 Workers needed 4 or 8 in mediumto large firms A sales unit is responsible for selling products to custorrers Since sales units are the only units in a finmthat generate income directly you find them in almost every type of firmthat produces goods In the following section the basic operations and displays of this unit are introduced Unit Details When you highlight an active Sales Unit the unit detail area shows the following information Cost Freight The cost of the product plus the freight cost Selling Price The cost of the product to the custorrer 39 Quality The quality rating of the product Brand The overall brand rating This is the sumof the brand awareness rating and the brand loyalty rating Supply and Demand The blue bar indicates the supply of the product fromthe current firm The red bar indicates the demand for the product fromthe buyers If the supply bar is shorter than the demand bar there is a lack of supply Firm performance may be affected by supply problems so keep a close watch on your suppliers Unit level The experience level of the unit Stock This area shows the stock of the product in the unit Each cargo unit can store a certain number of product units The number of units a cargo unit can hold varies For some expensive products such as automobiles one cargo holds only a few units For lower cost products such as shampoo
86. locate more of your budget to research and development and plan strategically to decrease the cost of your products A long termstrategy will win out over a short term one if you plan ahead Ans Retail Stores To choose an appropriate location for a retail store you must consider the following factors Strength of conpetitors in the city First you should know which products you plan to sell It is wise to build your retail store in a city section with comparatively weak competitors e Population of the city The population of the city directly affects the total derrand for the goods your retail store offers e Land cost The land cost can vary greatly Land in urban areas is always much more expensive than in rural areas Sinilany land near the center of the city is more expensive than land farther away fromthe city center Despite these costs it makes sense to build a retail store near the city because this ensures a larger flow of custorrers Transportation cost of goods fromsuppliers You have to estimate the cost of transporting goods fromthe suppliers to your retail store For goods with a high ratio of weight to value try to open your retail store in a section of the city not too far away fromthe suppliers Otherwise the cost of transportation could severely affect your firms profitability Availability of building site near the city center Finally the availability of a building site near the city center is an importa
87. ly the results the improved production technology to your manufacturing units Click the Apply Tech button to display the manufacturing units eligible for a technology upgrade and you are provided with the following options e Yes You proceed the new production technology is applied to the unit and the quality of the manufactured products rises e If the unit s level is higher than level one a message informs you that upgrading production technology will decrease the unit s level The unit s level is downgraded because installing new production equiprrent and applying new production techniques means most workers experience becomes obsolete While they go through a new 55 learning process their productivity drops The number of levels that will be decreased is based on the difference between the new technology and the existing technology e No Do not apply the technology to this manufacturing unit All Apply the technology to all eligible manufacturing units immediately without asking you one by one Go Go to the manufacturing unit so you can examine the unit in detail before applying to the technology e Quit Cancel the action and quit the menu Researching and Developing New Products There are new products that you can only produce after you have put in the right research efforts To research and develop a new product click the R amp D new product button Unit Details When you highlight an active R amp D unit th
88. n s shareholders and shows their shares in a pie chart e Shareholder The narre of the shareholder Owned Qty The quantity owned Onmed The percentage owned calculated by dividing the quantity owned by the total number of outstanding shares of the stock e Stock Value The total value of the stock owned by the shareholder Position The shareholder s position in the corporation CEO Chief Executive Officer CEO C Chief Executive Officer and Chairman A corporation can own stock of other corporations The second section of the Stock Report shows the information about the stock that the current corporation owns Corporation The corporation narre of the stock e Price The current stock price Owned Qty The quantity owned Onned The percentage owned calculated by dividing the quantity owned by the total number of outstanding shares of the stock e Stock Value The total value of the stock e Subsidiary Whether the corporation listed is a subsidiary of the current corporation Balance Sheet A balance sheet is a financial statement showing the corporation s assets what the corporation owns liabilities what it owes and the difference called shareholders equity or net worth 85 Note that the balance sheet shows the amount of each account in three different periods e Total The total arrount of the account YTD changes Year to date changes to the account e Last Year Change
89. n on the toolbar To close the map view click the toolbar again or click the X in the top right of the map window El 4 Infomation A comprehensive choice of reports and guides Further details can be found in Chapters 5 6 and 7 EN 5 Back Retum to the previous screen viewed like a browser back button 20 Cash Profit A live reading of your corporations current cash and profit amounts ES 7 Profit Loss A live bar chart depicting corporate profit and loss information for the previous 6 months The length and color of each bar relates to the nature and amount of the monthly tumover A tall green bar indicates large profit whilst a short red bar indicates a small loss 8 Date Shows the current game month day and year data Understanding a Firm To build a firm select the type of firmyou want to build fromthe Construction menu See above Next position the cursor over the location on the map where you want to build the firm If the firmcan be built in the selected location you are informed about the total building cost which includes the land and construction costs If you think the cost is reasonable click the Build button to start construction Sore firms offer you choices of different sizes The size of a firmaffects 1 its setup and monthly operating cost 2 its capacity the quantity of products that it can stock 3 its productivity the rate it produces products and 4 the number of employees eac
90. n which to advertise the product Choose a media firmand press the Link button 3 Set the monthly advertising expense per product by clicking on the Monthly Expense slider A higher advertising budget means your advertiserrent is broadcast more frequently which increases public awareness about your product more rapidly Unit Details When an active advertising unit is highlighted the unit detail area shows the following information e Monthly Spending Per Product The amount spent advertising a product each month e Advertising cost CPM The cost to expose 1 000 members Of a target audience to an advertising message e Rating Points This measurement indicates the portion of potential audiences that receive messages froma specific media outlet One rating point is equivalent to one percent of the potential audience that receives messages froma specific media outlet It is calculated by dividing the reach by the coverage The information shown in the advertising unit detail box is shown below 32 In this example the unit is linked to the local radio station It can be seen that the advertising cost per thousand CPM for this particular station is 2 28 and the station enjoys Rating Points of 36 23 The greater this figure the greater the population reach the advertising campaign has The gray slide bar can be manipulated to change the monthly spending per product and will affect the advertising campaign helping to raise bra
91. nated the industry Campaign Gane In a campaign garre the Goal Report shows the total number of years you have to complete the campaign gare as well as the number of years that have passed since the beginning of the garre The difference between these two numbers is the number of years you have left to achieve the goals You lose the garre if you cannot accomplish all the goals within the allotted time There can be one or more goals for you to accomplish These goals are listed in the Goal Report The Target colunm shows the target value of the goal the Current colunm shows your current value and the Achieved colunm shows whether or not you have achieved that goal For example suppose the goal description colunm reads Annual Operating Profit of Your Corporation the target colunm is 100 million and the current colunm is 16 million These values would indicate that your corporation s annual operating profit must reach 100 million in order to complete the goal but that they are currently only 16 nillion Fromthis information you can estimate how far you are in meeting the goal Score Report The Score report indicates the current game score of the player and details how it is calculated ds a 97 Billionaires 100 This report shows the top 100 billionaires in the world If your wealth makes you eligible to enter the chart you see your name next to those celebrities That honorable achieverrent deserves to be recorded
92. nd awareness of your products Setting the bar click and hold the left mouse button and drag the red slider to set the value all the way to the right will saturate the city with advertising This may have a negative effect on brand loyalty if you cannot satisfy the increase in demand Unit Info nit Name Unit Leva The info box of the Advertising Unit f erter 13 in the layout area shows the R ALE following information Ratings Point Explained above Rating Peiris Explained above Unit Level Since the function of an advertising unit is to contact media outlets and arrange advertising the unit s experience does not affect the outcome of the advertising Therefore unlike most other units the unit level of an advertising unit does not increase over time However your corporation may hire a Chief Marketing Officer whose expertise will improve the efficiency of your corporation s advertising units without increasing their level See Headquarters later in this chapter for further guidance Inventory Unit Set up in Retail store farm factory mine oil well and logging camp Setup cost 50 000 Workers needed 1 Inventory units provide storage for large quantities of raw materials or finished goods Although most firms can operate without an inventory unit it supports smooth operations for the whole firm The inventory unit s capacity is several times greater than other units and operating costs are several
93. nd in the unending struggle for profitability and solvency Each financial statement is explained below Net Worth The difference between the corporation s total assets and total loans Market Value The corporation s market value is calculated by multiplying the corporation s stock price by the total number of outstanding shares of the corporation e Cash The cash that the corporation currently has on hand Annual Revenue The corporation s total revenue over the past 365 days Amual Operating Profit The corporation s total operating profit over the past 365 days Amal Net Profit The corporation s total net profit over the past 365 days Total Assets The sumof the corporation s assets The individual asset details are shown in the corporation s balance sheet Total Loans The corporation s total bank loans e Stock Asset The total value of stock that the corporation owns No of Years of Operating The number of years that the corporation has been operating Total No of Enployees The total number of employees includes those working for the corporation in all firms No of Product Classes The total number of classes of product which the corporation is currently producing No of Product Types The total number of product types which the corporation is currently producing Retum on Equity The annual return on the capital invested by the ordinary corporate shareholders as a percentage It c
94. ne firm See Chapter 5 Reports and Guides for information on using the Layout Library The common units are discussed below whilst the more specialized units are discussed within the relevant firmtext A firmmay be available in different sizes such as small mediumand large factories The general rule is that for each increase in size there is a corresponding increase in the production capacity of the firm However the firmwill cost more to build and maintain than a smaller version The size of retail stores mines oil wells and logging camps are predetermined but farms factories apartment and comrercial buildings offer different sizes fromwhich to choose Common units Advertising Unit Set up in Retail store factory farm mine oil well and logging camp Setup cost 5 000 Workers needed 1 31 An advertising unit in a firmis responsible for contacting the media television and radio stations and newspaper publishers and arranging advertising The following sections describe the unit s basic operation For an in depth discussion of advertising see Advertising on page 89 Advertising a Product To advertise a product do the following 1 Link the advertising unit to a unit with a product If you link to a sales unit the advertising unit will advertise the product sold by the sales unit 2 Press the Link Media Firm button to select a media firm a television station a radio station or a newspaper publisher i
95. ng are destined to fail in the market There is always a group of consurrers who are more price sensitive and will buy a lower cost product even if it has a lower overall rating Thus you can still compete successfully in the market by becoming a cost or quality leader Calculating the Overall Rating Since the overall rating is calculated automatically by the garre you don t need to understand how it s calculated The following formula is for your reference only QR x QC ie BRxBC dE StdPr SellPr x PC 60 60 StdPr Rating QR is the quality rating CC is the quality concern BR is the brand rating BC is the brand concern StdPr is the standard price NOTE Each has a predefined standard price It is for the internal calculations only and is not displayed SellPr is the selling price PC is the price concem Quality To corrpete successfully in the marketplace you need a solid understanding of how a product s quality is determined and how you can improve its Quality In the garre a product s quality rating ranges fromO to 100 If you are ina highly competitive market compare quality ratings of your products to those of the competitors frequently and react if their quality ratings rise The following sections explain how the quality of manufactured goods crops livestock products and raw rraterials is determined 112 Manufactured Goods The quality of manufactured goods depends of two factors e The qua
96. ng system Windows 95 98 2000 M E XP Windows NT not supported CPU type and Pentiun I1 233 MHz or speed processors of the sarre grade Merrory 64 MB RAM CD ROM Speed Hard drive space Graphics card 4x CD ROM DVD ROM drive 250 MB free hard disk space Video card with DirectX 8 compatible driver Other needs DirectX 8 compatible sound card Keyboard Mouse Recommended System Requirements Pentiun 11 350 MHz or processors of the sarre grade and 128 MB RAM To install Capitalisml follow the procedures below Before you start you must have Windows 95 or later installed 1 Start your computer and wait for Windows to finish loading 2 Insert the Capitalism CD ROM in your CD ROM drive If you have AutoPlay you will see the installation screen Follow the on screen instructions and Capitalism will be installed on your computer If the installation screen does not appear it is likely that AutoPlay is disabled Follow these procedures 1 Click START on the taskbar 2 Select SETTINGS then CONTROL PANEL 3 Double click ADD REMOVE PROGRAMS 4 Select INSTALL NEXT and BROWSE 5 Locate the programcalled SETUP on the CD Romand click OK The installation screen should now appear Follow the on screen instructions and Capitalism will be installed on your computer Using the Mouse Capitalism is controlled using a combination of keyboard and mouse controls The following table is a guide to
97. nt criterion The flow of custorrers reaches its maximumin the city center and decreases toward the city border If your competitors already occupy most spaces in the city center you will have to set up your retail store in a less advantageous location and you will be ata disadvantage fromthe very start 42 You can set up the following units in a retail store e Purchasing Unit e Inventory Unit e Private Labeling e Sales Unit e Advertising Unit Purchase units and sale units are typically the most contron in retail stores With one unit of each type you can forma simple purchasing sales team You can also set up e An inventory unit to stock goods and provide the retail store with merchandise when a fluctuation of supply or demand might otherwise leave the store without sufficient stock e An advertising unit to arrange advertising of your products on TV and Radio stations or local newspapers A private labeling unit to convert products made under another brand to your own brand The private labeling unit is detailed belowv The following table depicts the retail stores types available to build if you have chosen many in the garre settings If you chose one store type you will only be able to build Discount Megastores Each store has a setup cost for construction and a monthly operations charge 43 Retail Store Type Setup Cost Monthly Cost Discount Megastore 1 80
98. nt For Sale Potential occupancy levels depend on the following factors e Econonic climate of the city The better the economic climate the higher the occupancy rate e Spending level of the city The higher the spending level the higher the occupancy rate Land value of the building The higher the land value the higher the occupancy rate The rent The lower the rent the higher the occupancy rate Comrreercial Buildings Setup Cost Monthly Gost 10 000 000 to 18 000 000 200 000 to 360 000 A conmercial building is similar to an apartment building except that its tenants are companies requiring office space For more detail regarding rents and the sale of the building see Apartment Buildings above Headquarters Setup Cost Monthly Cost 3 000 000 100 000 You may build several offices within your headquarters building and hire personnel to occupy key roles within your corporation When you build and first open your headquarters by left clicking the building you will see nine empty office units Double click on any of the units and select a department or office fromthe drop down list The 67 available choices are discussed below Please note there are no links between units and your headquarters and that each department or office need only be represented once Multiple units of the sarre type will not increase the effect or efficiency of that unit Pe aico Chet konate Hion a ed dep
99. nter the library from either a farmor factory you will be able to use the Search filter to locate any previously stored layout plans containing the product you select Alternatively you may use the slider below the layout plan to search through all the stored plans If you locate a plan you wish to use click USE and the plan is placed within your firm When in the farmor factory layout mode there are two further sections to assist you These are the input and output sections The output section lists the product outputs of the currently displayed layout plan whilst the input section lists the products required to attain the output A tick next to an input list itemindicates that particular product is available froma local supplier 24 FinmFinancial Report Ciick this icon to display the financial report for the firm This report discussed in Chapter 5 details the incorre and expenditure of the firm such as salaries paid training expenses and sales revenue by current month previous month year to date or lifetime of the firm Product Summary The main screen displays the pictures of all products currently available for sale in the firm Each product picture has several bar and line indicators on the side These indicators tell you how good the product is compared to the market s standard and how well the product is currently selling An explanation of the indicator bars and lines follows Supply and Demand Lines There are two vertical lin
100. nvestor A high degree of concern here indicates that the person would pay generous dividends to the shareholders Investing in Stock CEO A high number in this attribute indicates that the person enjoys investing in stocks and the person may enjoy speculating in stocks even nore Corporation Takeover and Mierger CEO A high number in this area warns that your corporation would be at risk if the person is interested in your corporation Strengthening Corporation Ovnershi p CEO A high degree of concern here means that the person is highly conscious of the need to strengthen ownership Endure Loss for Avoiding Layoff CEO A high degree of concem reflects that the person is a good employer and will be reluctant to close down firms or lay off employees Purchasing Goods fromOuwn Finns CEO amp COO A high degree of concern indicates that the person s corporation would always buy goods fromits own firms even if the goods offered by other suppliers were better 129 Advanced Management Technique Follow the steps below 1 Add the layout plans of your existing firms to the Layout Plan Library Make sure that every functional unit is working before adding the plan to the library 2 Set up a new firm and apply a layout plan fromthe library to the firm 3 Delegate the firmto your COO Your COO will take care of the firm Using this technique you can mininize the amount of operation level management you need to do It is e
101. ny of the following occurs e You achieve all of the assigned goals in the given time 15 You will lose if any of the following occurs e You are not able to achieve all of the goals within the given time e You retire without achieving all of the goals e Your corporation goes bankrupt e Your corporation has been merged into another corporation which formerly owned not less than 75 of your corporation s shares Another human player achieves all of the goals before you do Note Unlike in a single player garre where you will immediately lose the garre when somebody has acquired 50 or more of your corporation s stock in a multiplayer garre you will be allowed to continue your role as CEO of your corporation even though somebody else has acquired controlling interest You will only lose the garre when another corporation has acquired 75 or more of your corporation s stock and decides to execute a merger with your corporation The result of this is that the entirety of your company will be consolidated into the other company thus ousting you as CEO New Features of Capitalismil For those who have played Capitalism or Capitalism Plus the following is a highlight list of new features of Capitalism II e Dozens of exciting new scenarios are packed into two brand new Campaigns The Entrepreneur s Campaign and The Capitalists Campaign e Vivid isometric 3D graphics show off the stunning new buildings roads vehicles and peopl
102. or example the manufacturing unit requires many nore people than the inventory unit After you set up a unit a box displays sumrary information about it in the lower left of the screen In this area you see a picture of the unit and a group of people representing its workers The workers in red unifonrs are novice workers and the workers in blue unifonrs are experienced For details on improving worker experience level see Worker Experience and Unit Level below 2 2 Linking Functional Units You can link two units together by double clicking the link line between them Once linked they can contrunicate with each other and transfer goods Since functional units are the essential components of a firm if the linkages between the units are not properly established the firmmay not function as you intended For exarrple linking a purchasing unit to a sales unit enables the goods purchased by the purchasing unit to move onward to the sales unit for sale Without the linkage both of the units will becorre idle and neither will contribute to the profitability of the firm See Chapter 4 for more detailed information about each type of unit Labor Gost For simplicity the monthly salary of each worker in the garre is set at 2 000 This salary applies to all workers regardless of the nature of their jobs or their experience The specific salary expenses of a firmare shown in the Financial Report Please note that hiring individual officers suc
103. oration It shows the following information about each product Amual Revenue Total product sales over the last 12 rmonth period Amal Gross Profit Gross profit is the difference between the sales and the cost of the goods sold Other operating expenses are not factored into this calculation In the default setting the report shows all products being sold by the corporation To limit the list to products that the corporation is currently producing click the Production button at the bottomof the report Also you can click the Retail button to see only products that the corporation is currently retailing 83 Graphs 1 This report contains 12 graphs They show six different itens about the corporation over two different periods the past 12 months and the past 30 years Expenses The corporation s total operating expenses Net Profit A corporation s net profit is the sumof the operating profit and other nonoperating profits of the corporation Because it includes the return on stock and increase in land value this figure fluctuates when the stock price or the land value fluctuates Revenue The corporation s total operating revenue Net Worth Net worth or shareholders equity of a corporation represents the resources invested by shareholders It is the difference between a corporation s total assets and total liabilities Operating Profit A corporation s operating profit is the difference between the corp
104. oration s incorre expenses and profit are displayed in dollars The balance sheet shows the value for each account during four different periods e Current Month The value for the account in the current month e Last Month The value for the account in the last month e YTD The year to date value of the account the amount accumulated since the beginning of the current year e Lifetime The value for the account accumulated in the corporation s lifetime Operating Revenue The total operating incorre of the corporation is the consolidation of the operating incorre of all firms owned by the corporation Operating Expenses A corporation has the following types of operating expense e Cost of Sales The consolidated cost of sales which includes costs of all raw materials intermediate goods and salable products purchased by all fins owned by the corporation e Salaries Expenses This refers to the total salary expenses within the corporation Operating Overhead The fixed operating overhead of all firms owned by the corporation is reported here Advertising Spending The total amount of advertising spending by the corporation is reported here Training and New Equipment The corporation s spending on staff training and procurement of new equipment is reported here White offs Discontinued merchandise fromthe corporation s business assets and inventories are treated as write offs 87 Operating Profit The opera
105. oration s operating incorre and operating expenses It tells how much the corporation has earned by producing and selling goods over a specific period e Stock Price The price of the corporation s stock Graphs 2 This report contains 12 graphs The graphs show the following information over the past ten year period e Cash The amount of cash that the corporation has on hand Inventory The total value of all raw materials and goods stocked in firms owned by the corporation Business Assets The total value of all business buildings and facilities owned by the corporation e Land and Resources The value of the land and natural resources owned by the corporation e Stock Assets The total value of stock that the corporation owns e Total Loans The total loans that the corporation has borrowed e Dividend Paid The dividend paid each year e Stock Retum The profit gained fromthe rise of the price of the stocks owned by the corporation and the dividend received fromthese stocks 84 e Salaries Expense The corporation s total salary expenses e Advertising The total amount of the corporation s advertising spending Training The corporation s spending on staff training and procurerrent of new equipment White offs The corporation s business assets and inventories which have been discontinued are treated as write offs Stock There are two sections in the Stock Report The first section lists the corporatio
106. ore Leather Belt Deparment Store Discount Megastore amp Leather Store Leather Briefcase Departrrent Store Discount Megastore amp Leather Store Leather J acket Departrrent Store Discount Megastore amp Apparel Store Leather Wallet Departrrent Store Discount Megastore amp Leather Store Lipstick Deparment Store Discount Megastore Cosmetic Store Drug Store Microwave Deparment Store Discount Megastore Hardware Store Watch Store Soap Deparment Store Discount Megastore Supermarket Convenience Store Cosmetic Store Drug Store Socks Deparment Store Discount Megastore Footwear Store Sofa Deparment Store Discount Megastore Furniture Store Sport Shoes Deparment Store Discount Megastore Footwear Store Sports Watch Departrent Store amp J ewelry Watch Store Sweater Deparment Store Discount Megastore Apparel Store 133 134 Product Sell in Television Deparment Store Discount Megastore Hardware Store Toilet Geaner Discount Megastore amp Supermarket Toothpaste Discount Megastore amp supermarket Toy Doll Departrrent Store Discount Megastore amp Toy Store Toy Racing Car Departrrent Store Discount Megastore amp Toy Store Video Carrera Deparment Store Discount Megastore Hardware Store Video Garre Console Departrrent Store Discount Megastore amp Toy
107. orporate insignia If you are tired of manufacturing products yourself you can label products of a less popular brand with your own brand This saves you the trouble of managing production lines and lets you concentrate on marketing 44 When to Private Label Products Private labeling is a reasonable choice if your corporation is pursuing a corporate or range brand strategy In this case the private labeled goods can be sheltered under the retailer s brand and receive the intrediate benefit of a well established brand Although it seems that private labeling could put additional brand value into a product effortlessly this tactic should be used with extreme caution If the Quality of the private labeled product is inferior to those of the existing products in the brand family it will damage the entire brand Furthermore since external suppliers manufacture the products it is very difficult to assure that their quality will always meet your corporation s quality standard Private Labeling Products Any products directed into the private labeling unit are relabeled immediately Usually linking a private labeling unit between a purchasing unit and a sale unit is the easiest way to label the products from another corporation In this arrangement of units the purchased goods from another company are labeled with your brand and resold as if you had produced them yourself Unit Details When you highlight an active Private Labeling Unit the
108. otal amount of cash this person owns e Stocks The total value of stocks this person owns e Total The person s total wealth including cash and stocks 94 Owned Stocks Corporation The narre of the corporation whose stock is owned e Price The current price of the stock Onmed Qty The quantity of stock Qwmed The percentage owned is calculated by dividing the quantity of the stock owned by the total number of outstanding shares of the stock e Stock Value The total value of the stock Position The position the person holds in the corporation CEO Chief Executive Officer CEO amp C Chief Executive Officer and Chairman Career Corporation The corporation which the person is operating e J ob Title Whatever titles the person has eamed through running or acquiring companies CEO stands for Chief Executive Officer e Years of Service The number of years the person has been working for the corporation If the person is available you may hire themin the capacity of Chief Operating Officer Chief Marketing Officer or Chief Technical Officer by selecting the appropriate button If your corporation already hires the person their salary and option to terminate their contract are also displayed Beneath this information the person s management policies are displayed You may alter how the person approaches pricing internal sale and the acquisition of better suppliers and products For more information r
109. product The brand must first generate sufficient awareness for the consurrers purchase and use the product The higher the awareness the more people will try the product and the faster the rate at which the loyalty can increase 114 Product Quality If a custorrer is satisfied after using the product brand loyalty increases Conversely a bad experience with a product will lead to a decrease in brand loyalty or sometimes even negative brand loyalty the custorrer will avoid buying the sarre brand in the future In addition custorrers will only be loyal to a brand if products of the brand have consistent quality Brand Scope If a brand covers a variety of products the corporation is not perceived as a dedicated provider of a single category of products Consumers may doubt the devotion of the corporation to that product and their loyalty to the brand may thus be reduced See Brand Strategy below for details on brand scope Brand Strategy Your corporation can select one of three brand strategies in Capitalisml Corporate Brandl A corporation uses a single umbrella brand for all its products e Range Brand A single brand covers a range of products within the same product class e Unique Brand Each product has a unique brand We strongly recontrend that you decide the brand strategy of your corporation at the beginning of the gare Switching brand strategy after brands have been established not only leads to a loss of t
110. r the ammount the department spends per month on attracting investors Chief Executive Officer Office This unit displays CEO information Since you are the CEO of your corrpany you will see your portrait displayed on the screen You may give a salary to yourself by setting the Chief Executive Officer s Annual Salary using the slider below your portrait The maximum arrount of salary you can give eyo to yourself is tied to the company s annual profit in the last year The higher the profit your company achieved the higher the salary you may receive Chiat Executive Officers Office Chii Fister Eee ead da g eel Eras Cie You may offer to acquire a technology fromanother corporation by clicking the Offer to Acquire a Technology button For details please see Chief Technical Officer Office below Ciicking the Detail button will take you to the Person Report in the Information Center Chief Operating Officer Office Once this unit is built you may hire a COO to run any of your corporations retail stores factories or farms The available candidates have attributes strengths and weaknesses that may enable you to delegate control of corporate interests to them For example you may discover a candidate is skilled in manufacturing techniques and decide to hire that individual to run your corporations factories To hire a candidate click the Look for Candidates button You are taken to the Person Report
111. rand are considered However the relative concern consumers place on these factors varies from product to product Sorre products such as frozen meat are very difficult to apply a brand to because they lack differentiating features Consumers generally buy based on quality and price with litde concern for the brand narre On the other hand for products such as soft drinks the brand name is much nore important when consumers make their purchasing decisions Some consurrers may continue to purchase a product to which they are loyal even if competitors offer products of superior quality and at a lower price Based on this consumer behavior each product has a set of predefined values These values include price concem quality concern and brand concern They are shown as percentages and their sumis always 100 percent that is when a consurrer buys a product with 60 percent price concern 30 percent quality concern and 10 percent brand concern the forermost concern is price Quality is second and the brand is least important 111 These concerns vary slightly fromcity to city because of cultural variations anong cities To find out the concerns for a specific product in a specific city refer to the Product Summary Report page74 or the Product Detail Report page76 Overall Rating amp Product Demand Most people will prefer a product with a higher overall rating This does not however imply that goods with a lower overall rati
112. rch Adding more staff and resources can improve productivity in all but the key research areas Larger teans also lack the flexibility of smaller teans and suffer from decreased efficiency The following table shows the relationship between the size of the R amp D team and technological gain If you are still unclear about the concept consider this example If a single unit R amp D teamcan gain 20 technology levels after 54 five years of research then a three unit R amp D teamcan gain 48 20 x 240 technology levels after five years of research Number of RAD Effect on linked Marginal Units together Tech Gain Increase 1 100 2 170 70 3 240 70 4 295 55 5 350 55 6 390 40 7 430 40 8 455 25 9 480 25 Unit levels of the R amp D team Each increase of the unit level boosts the effect of the R amp D plan by 20 because rrore experienced scientists usually achieve better results Top Product Technology Level If you are conducting research on a product for which a competitor already has a higher level of technology which is being put to practical use in their product the research tirre on that technology is shortened You need less time to gain this knowledge because of the diffusion of technology and the use of special technology acquisition techniques such as reverse engineering Application of Technology to Production When a research period is complete you can app
113. re more interested in trading stocks than starting up businesses themselves You will see two browsers in the upper section of the report The one on the left lists all of the people and lets you select which person s information you want to see The one on the right is the topic selector which lets you select the information to display in the report The topics available include Sunnery Lists a suntrary of each person Wealth Displays the person s wealth status Career Displays the person s career status e Personality Displays the persor s personality Expertise Lists a sumrary of a person s skills e Score Displays a person s garre score 93 Sunnery This report displays the person sunnery information The information displayed includes e Character The character determines how the person manages his her business Character is described as conservative moderate aggressive or very aggressive eJ obTitle J ob title refers to whatever titles the person has earned through running or acquiring corrpanies CEO stands for Chief Executive Officer Corporation The corporation which the person is operating e Cash The total cash this person owns e Stocks The total value of stocks this person owns e Total Wealth This person s total wealth calculated by adding the value of the cash and stocks Wealth The information shown in this section covers the following areas Personal Wealth e Cash The t
114. ree buttons above the graph Click one of these buttons to control the type of information displayed on the graph P button Shows the gross profit of the product over the past 12 months R button Shows the revenue of the product over the past 12 months Q button Shows the quantity of the product sold over the past 12 months 27 Product Ratings The section at the lower part of the Product Detail area displays important ratings about the product They are e Brand The product s brand rating e Quality The products quality rating e Price The product s sale price e Overall The product s overall rating To the right of each rating the average rating of similar products in the city is displayed The example below is taken fromthe Product Detail information for the bed discussed below The type of bed being sold has a Brand rating of 24 a Quality of 89 fh a and a Price of 325 These ratings result in an overall rating of 75 In comparison other competitors beds for sale in the city do not have such established branding or quality but their price is lower As a consequence the overall rating for the conpetitors beds is only slightly lower at 71 Simo H Gay By looking at the Product Rating bars you can see the real difference between the two types of bed The consumers purchasing the current firms beds are more concerned by the higher quality on offer the green portion dominates the Product Rat
115. roduct is inferior to those of its competitors you can save money budgeted for advertising and concentrate on cost reduction instead This lets you position your company as a cost leader and target the market segment of price sensitive custorrers The following illustrates the effect of advertising under four different case scenarios e Low quality and little advertising Low demand at first due to low brand awareness Demand remains low or even drops because the buyers are not satisfied with the low quality which results in low or even negative loyalty toward the brand Long term Brand awareness is low brand loyalty is low or even negative demand is low e Low quality and heavy acvertising High demand at first due to high brand awareness raised be heavy advertising Demand decreases gradually because buyers are not satisfied with the low quality resulting in low or even negative loyalty toward the brand Long term Brand awareness is high brand loyalty is low or even negative demand is low to moderate high awareness can always attract sorre new buyers 119 High quality and little advertising Low derrand at first due to low brand awareness Derrand increases gradually because buyers are satisfied with the high quality and develop loyalty toward the brand Long term brand awareness is low to moderate large sales and a loyal Custorrer base help increase awareness brand loyalty is moderate to high dermand is modera
116. s Last year changes of the account Assets Anything of value owned by a corporation is regarded as an asset Assets are classified into the following categories e Cash The amount of cash that the corporation currently has Inventory The total value of all raw materials intermediate goods and finished goods stocked in firms Owned by the corporation Business Assets The total value of all business buildings and facilities owned by the corporation e Land and Natural Resources The land and reserves of natural resources that the corporation owns e Stocks The total value of stock that the corporation owns Liabilities Anything that a corporation owes is regarded as liability e Bank Loans The amount of money that the corporation has borrowed from banks Shareholders Equity e Shareholders Equity Shareholders equity or net worth of a corporation represents the resources invested by shareholders It is the difference between a corporation s total assets and total liabilities Common Stock The amount of money that has been invested directly into the corporation by shareholders The account increases when new shares are issued and decreases when the corporation buys back its shares Retained Eamings The eamings that have been reinvested back into the business after dividends are paid to stockholders 86 Incone Statement The incorre statement shows the corporation s business results The corp
117. s Store Grape J uice Discount Megastore Supermarket amp Convenience Store Hair Color Departrrent Store Discount Megastore Cosmetic Store Drug Store Handheld Deparment Store Discount Megastore Garre Device Toy Store Headache Pills Discount Megastore Supermarket Convenience Store amp Drug Store Hi Fi Departrrent Store Discount Megastore amp Hardware Store Ice Cream Discount Megastore Supermarket Convenience Store In line Skates Departrrent Store Discount Megastore amp Sports Store Product Sell in Mobile Phone Deparment Store Discount Megastore Hardware Store Motorcycle Automobile Outlet Notebook Computer Departrent Store Discount Megastore Hardware Store Computer Store Palm Computer Deparment Store Discount Megastore Hardware Store amp Computer Store Perfume Department Store Discount Megastore Cosmetic Store Drug Store Printer Department Store Discount Megastore Hardware Store amp Computer Store Sandals Department Store Discount Megastore Footwear Store Shampoo Department Store Discount Megastore Supermarket Convenience Store Cosmetic Store Drug Store Shoes Deparment Store Discount Megastore amp Footwear Store Silver Necklace Departrent Store amp J ewelry J eans Departrrent Store Discount Megastore amp Apparel Store Leather Bag Departrrent Store Discount Megastore amp Leather St
118. s advance one level For example if a persor s manufacturing expertise level is 40 all functional units created in factories the person manages start at level 3 126 e Advertising If a person has an advertising expertise advertising conducted by the person generates higher brand awareness The result doubles when a person s advertising expertise level is 100 Training If a person has training expertise the staff learn faster in training conducted by the person The efficiency doubles when a person s training expertise level is 100 Delegating Fins to a COO with Expertise If you assign your COO to manage a firmand your COO has expertise managing the firm all the functional unit levels in the finmincrease For example if you have a manufacturing unit of level 3 delegating the factory to a COO whose manufacturing expertise is 40 points increases the level of the manufacturing unit to 5 3 2 If the COO quits managing your firms the functional units drop back to their original level However any advancerrent gained fromtraining is not affected Delegating R amp D Centers If you assign a person with R amp D expertise to manage your R amp D centers new projects started by the COO will have higher expected technology advancerrent However the R amp D projects that have already started do not benefit fromthe COO s expertise NOTE If the COO quits managing the R amp D centers the expected technology advancement drops to the
119. s may drag a city into a recession As such if you invest aggressively in a city by building new finns the positive effect it brings to the econony may in tum benefit all of your businesses in the city 30 Chapter 4 Firms Units amp Buildings A firmis any building that a corporation can operate such as a retail store or a factory Buildings are controlled by civilians houses stadiums and the like or by the city government such as the stock market Usually a firmis built and operated by the same corporation but there are exceptions Radio and TV stations and Newspaper Publishers begin the garre under the city s control Corporations may buy these firms and subsequently sell them Construction of a firmnot only includes the cost of the actual structure but a land value cost The land value is determined by several factors but the general rule is that construction on empty land will be cheaper than having to purchase occupied land Within each firm specialized units may be built Several units are common arrongst different types of fims whilst sorre are firmspecific All units are placed within the Layout section of a firm This isa3x3 grid containing 9 slots Each slot can accontrodate one unit Units may be linked to other units to provide functional groups For example if you connect a Manufacturing unit to a Sales unit you will be able to sell what you produce You may find you need to use the sarre layout in more than o
120. s you have in your firms by increasing their efficiency Your CTO will control all of your R amp D firms determining research and improving the efficiency of RSD projects with their expertise To hire a COO you must first build a Chief Operating Officer Office in your headquarters For details please see the section on headquarters in Chapter 4 Firs Units and Buildings Similarly you must build a Chief Marketing Officer Office in order to hire a CMO and a Chief Technical Officer Office to hire a CTO Hiring an Officer To hire a candidate you may click the Look for Candidates button on the Officer s Office in Headquarters Subsequently you will be taken to the Person Report in the Information Center Alternatively you can access Person Report directly and select the Career page Now select the person you want to hire and choose fromwhich of the three roles you would like the candidate to take Chief Operating Officer Chief Marketing Officer or Chief Technical Officer When you have selected the role the candidate will propose a salary that you may decline or accept If you agree to the proposed sumthe candidate will be immediately available to your corporation 121 Factors That Affect the Expected Salary The following factors affect the expected salary The person s expertise The more expertise the person has the higher the requested salary e The person s salary preference Each person has different salary expectat
121. shareholder Omet The percentage of the total number of shares owned by the shareholder Soc Proce To the right of this window the Stock Graph window shows the stock price over a specific period You can select the period past 30 days past 30 months or past 30 years by clicking the corresponding button below OL the graph Fmi 20 Hoia The investor browser in the lower left of the Alan Doyl 378191 i screen lets you select the person or corporation that will be investing in the stock market The available selections are the player as an individual and the corporations controlled by that player Investor Browser Mid Aipen 454 444 4 e Who The investor or the investing corporation e Cash The amount of cash the investor has 103 Buying and Selling to the Public To buy stocks fromor sell stocks to public shareholders follow these steps 1 Select which person or corporation will buy or sell the stock in the investor browser 2 Select the stock that you are going to buy or sell in the stock browser 3 At the lower right you see something sinilar to the example shown below Buy Stocks MEE 5 00 X 6 000 000 X 6 92 Buy 2 077 207 In this example there are 6 000 000 outstanding shares of stock and you are going to buy 5 00 of the total at 6 92 per share The total price is 2 077 207 If you are satisfied with these conditions click the Buy button to buy the stock Use th
122. specially useful for factories because your COO purchases all raw materials needed and you don t have to look for suppliers yourself 130 Appendix A Product Ranges of Retail Stores The following table displays the types of retail stores in which each product type may be sold when the garre setting Retail Store Type is set to Many Product Sell in Air Conditioner Deparment Store Discount Megastore amp Hardware Store Backpack Deparment Store Discount Megastore amp Sports Store Bath Lotion Deparment Store Discount Megastore Supermarket Convenience Store Cosmetic Store Drug Store Bed Department Store Discount Megastore amp Furniture Store Bottled Milk Discount Megastore Supermarket amp Convenience Store Bread Discount Megastore Supermarket Convenience Store Cakes Discount Megastore Supermarket Convenience Store Carrera Departrrent Store Discount Megastore Supertrarket Convenience Store amp Hardware Store Carrera Film Departrrent Store Discount Megastore Superrrarket Convenience Store amp Hardware Store Canned Corn Discount Megastore Supermarket amp Convenience Store Canned Soup Discount Megastore Supermarket amp Convenience Store Car Automobile Outet Chair Departrrent Store Discount Megastore amp Furniture Store Chewing Gum Discount Megastore Supermarket Convenience Store 131
123. ssive or very aggressive only if you want to trigger a price war with your competitors A price war greatly reduces the profit margins of all parties involved It only pays off if your competitors are driven out of the market and you take advantage of the monopoly 125 Change Internal Sale If this option is set to Yes your COO will change the internal sale setting of your products for you Look for Better Supplies This option determines whether your COO will look for better supplies for your purchasing units However the product types of supplies will not be changed If this option is set to From Own Fin rs Only your COO will try to locate better supplies from your own firms only If this option is set to From Any Firms your COO will ignore who operates the supplying firms and pick the best available supplier Look for Better Products to Sell in Retail Stores If this option is set to Yes your COO will attenpt to change the types of products being sold in your retail stores to maxinize your profits Expertise Choose a narre fromthe list of people and select Expertise fromthe menu list on the right to see the Expertise page The computer players have expertise in the following fields Retailing Faming e Manufacturing e Research and Development e Raw Materials Production If a person has expertise in these fields the firms that the person manages have higher unit levels For every 20 expertise level points the unit
124. t 57 To raise livestock in a farm set up a livestock raising unit a livestock processing unit and a sales unit to sell the livestock products Select the livestock you want to raise in the livestock raising unit and the livestock product in the livestock processing unit The units start operations immediately NOTE Do not set the game speed to frozen during this process because it prevents the livestock processing unit from obtaining information fromthe livestock raising unit which means you won t see the appropriate choices when selecting the livestock product Crop Growing Unit Set up in Farm Setup cost 100 000 Workers needed 16 Crop growing units in farms grow and harvest crops Once you tell a crop growing unit which crop to grow it takes care of the growing and harvesting process and stores the harvested crops in its barn Growing a Crop To grow a crop press the Grow Crop button in the unit detail area You see a menu where you select the crop you want to grow The menu shows the sowing month and harvesting month Consider the sowing month of the crop and the growing season If you try to start a crop after its sowing season the unit will just wait until the sowing season next year Remember that the crop will not be available until the end of the harvest month Unit Details When you highlight an active crop growing unit the unit detail area shows the following about the crop e Quality The q
125. t let the COO go The chance of a resignation is lower if your COO has a good attitude toward you Layoff To terminate the employment of your COO go to the career section of the person report and click the Terminate Employment button You pay your COO one month s salary and severance if you terminate employment Severance is calculated by multiplying the weekly salary by the number of years the person has been working for your corporation Laying a person off may cause resentment toward you However if the layoff is because of the corporation s financial difficulties the degree of resentrent is minimized Delegating Firme to Your Chief Operating Officer You can let your COO manage your firms Display the detail screen of Mayer Conperalion id Athen one of your firms and you see a i ee Ho portrait at the top left comer of the screen which shows the current manager of the firm Ps 006 dick on the portrait and you will see a window where you can click the Let him manage this firm button to let your COO manage this firm Now the portrait located at the top left comer of the screen has changed to your COOS Mars ol tea Finn Player CPO E Chairman A I manage ds Mann mye A al at A Rasaki Thaian bie Chil operating of fear Lal hit maaga Ms lim Cancel 123 If you want your COO to manage all of your firms for you click on his portrait You will see a window where you can click the Let himmanage all of my
126. t other subjects can also give you clues about management style The person s attitude toward a particular subject can range fromOto 100 The areas where a person has concerns are listed below Sorre of themare meaningful only if the person is a CEO or COO and do not apply to independent investors The people to whomthese concerns apply are shown in parentheses Investing in Research and Development CEO amp COO A high degree of concern here indicates someone who would invest heavily in R amp D A low number means that the person is conservative toward R amp D investment Investing in Training and New Equipment CEO amp COO Whether the person believes in expending resources for the training of staff and the procurement of new equipment 128 Frequency of Upgrading Production Facilities CEO amp COO A high degree of concern in this area indicates that the person would upgrade the production facilities as soon as a better production technology becorres available A low number means that the person would upgrade production facilities only if the production technology has improved significantly Upgrading production facilities can improve product quality but it causes a downgrade of functional units Therefore there is never an optimal rate of upgrading production facilities Spending on Acivertising CEO amp COO Whether the person would spend aggressively on advertising Paying Dividend CEO COO amp Independent I
127. t the list to a specific type of firm firms owned by a specific corporation or firms in a specific city To see only your factories select Factory in the firmtype filter and your corporation in the corporation filter You may also select the Firmfor sale filter option to see only firms currently for sale 78 Corporate Suntrary Report This report shows the following information about each corporation e Financial overview e Stock overview e Firms overview e Business relations ao a bee cn ei ipinia i E For the firmrecord you see two graphs The left one shows the firms revenue for the past 12 months The right one shows the firms profit for the past 12 rronths The color bar below the firmicon is the firms corporate color If the word delegate is displayed on the color bar the control of the firmis delegated to your Chief Operating Officer or Chief Technical Officer Other information shown includes e City The city where the firmis located Years of Operating How many years the firmhas been operating Lifetime Revenue Total firmrevenue over its lifetime To find out more about a corporation click its corporate logo to display the Corporation Detail Report To go back to the Corporate Sumrary Report Lifetime Profit Total firm profit over its lifetime click the Corp Suntmary button at the bottom of the detail report window No of Employees Total number of employees working for the firm Financia
128. talismil CD by choosing Install ubi com fromthe garre startup menu When you have successfully found online opponents in ubi com ubi com will launch Capitalism again with an attachment of all multiplayer setup information necessary for starting a multiplayer gare As soon as Capitalism Il is launched you will see the Multi player Game menu There you should select either CREATE A NEW GAME or LOAD a previously saved garre If you have selected LOAD you will be asked to select a garre you previously saved in a multi player garre session Step Z Setting Up the Multi player Gane Here you will be asked to provide YOUR NAME and a SAVE GAME FILE NAME Once you have completed these choose CREATE to begin a new multi player garre or J OIN to take part in an existing session You will then be taken to the Multiplayer Game Setup screen where you can customize the new multiplayer game and chat with other players To chat just type in your chat message and press ENTER to send When you are ready click the READY button and the indicator next to your narre at the top of the screen will tum fromred to green When all players indicators are green the creator of this garre the player who selected CREATE instead of J OIN in the previous screen can now click the START button to start the garre 14 Chatting with Other Players To chat with other players in a multiplayer garre either click the Chat button on the toolbar at the bottom of
129. te High quality and heavy acvertising High demand at first due to high brand awareness raised by heavy advertising Demand continues to increase because buyers are satisfied with the high quality and develop loyalty towards the brand Long term Brand awareness is high brand loyalty is high demand is high Local Competitors There are local competitors in each city Although their firms are not shown in the garre map they compete directly with the corporations Sometimes they are even the major competing forces in the market Information about local competitors is shown briefly in the Product Summary Report page 74 and the Product Detail Report page 76 The white portion of the pie charts in the reports represents the combined market share of all local competitors in the city The reports also show the average price quality rating brand rating and overall rating of the goods that are sold by the local competitors in the city For more details on information in these two reports see Chapter 5 120 Chapter 8 Personnel Management You can hire a Chief Operating Officer COO for your corporation and let that person take care of the day to day management of your firms This frees you fromtedious micro management and lets you concentrate on corporate level planning You can also hire a Chief Marketing Officer CMO and a Chief Technical Officer CTO The marketing expertise of your CMO will influence any advertising unit
130. that it is produced by a company with a reputation for having been in the marketplace a long time 113 Brand Awareness Level and Rating Brand awareness ranges from barely being recognized as a competitor in the marketplace to being recognized as the only one in the product class The brand awareness rating which has a range fromO to 100 represents the two main dimensions of brand awareness the percentage of the city population that is aware of the brand and the average awareness level of the people Increasing Brand Awareness Brand awareness increases when e The brand has been advertised extensively e The products using the brand have been sold for a long tirre e The products using the brand are widely distributed e The custorrer base is large Brand Loyalty Brand loyalty measures the attachment that a customer has to a brand If a custorrer continues to purchase a brand even in the face of competitors with a superior quality and or lower price then there must be a substantial value placed in the brand itself Brand Loyalty Level and Rating In the gare a brand loyalty rating with a range of Oto 100 represents the two main dimensions of brand loyalty e The percentage of the people who are loyal to the brand e The average loyalty level of the people Brand Loyalty Factors Brand loyalty is based mainly on the following factors Brand Awareness Brand loyalty cannot exist without the prior purchase and use of a
131. ties Set this filter to a specific city to list sales information for that city only The browser also shows the population of each city Product Detail Report The Product Detail Report provides complete information about a specific product You can access the Product Detail Report any of the following ways e Call it up fromthe Information Screen e Click the product s picture in the Product Summary Report e Highlight a firmin the map and double click the picture of a product in the firm As well as repeating the information available in the Product Summary Report the Product Detail Report also displays product specific information If the product is for consumers the report displays the average price quality rating brand rating and overall rating of the goods that are being sold by local competitors in the city Next to the local competitor information the average price quality rating brand rating and overall rating of all goods from both corporations and local competitors are displayed 76 When consurrers buy a product they usually consider several factors Generally the three most important factors are price quality and brand The importance of these three factors however varies for each product For example when buying a pair of sport shoes a consurrer is more concerned about brand than price In contrast when buying a piece of frozen meat a consurrer is usually more concerned about price than brand
132. times smaller The discussion that follows describes the Inventory Unit in detail 33 Why Retain Inventories There are two major operational reasons why companies retain inventories anticipation and buffer Anticipation inventories Anticipation inventories are held because you expect a future increase in demand Rather than operate at peak capacity during one period and then shut down in a subsequent period anticipation inventories can accurulate before a period of peak demand Buffer inventories Buffer inventories protect against unexpected surges in dermand Any inventory held over and above the average demand requirement is considered buffer inventory High buffer inventories allow companies to continue to serve custorrers through unexpected increases in demand Unit Details When an inventory unit is highlighted the unit detail area shows the following information Cost Freight The product cost and the freight cost Quality The product s quality rating Brandl The product s brand rating Unit Level The experience level of the unit Stock The quantity of the product stocked in the unit Each cargo unit can store a certain number of product units The number of units a cargo unit can hold varies For some expensive products such as automobiles one cargo holds only a few units For lower cost products such as shampoo one cargo unit holds several thousand units The value of each cargo unit is about the sarre
133. ting profit of a corporation is the difference between the corporation s operating revenue and operating expenses It shows directly how much the corporation has earned by producing and selling goods over a specific period Since the ultimate goal of most corporations is to earn as much money as possible this single figure means a lot to a corporation Due to its importance the annual operating profit of a corporation is also displayed in various other reports and screens for quick reference Other Profit The other profit section of an income statement includes the nonoperating incorres and expenses of the corporation e Stock Retum The profit gained fromthe rise of the price of the stock owned by the corporation and the dividend received fromthis stock e Increase in Asset Value The increase in the value of assets by the corporation e Loan Interest The loan interest paid by the corporation to the bank Net Profit Add a corporation s other profits to its operating profits to get the net profit of the corporation It includes all sources of profit that a corporation generates over a specific period NOTE Because the net profit includes the fluctuation of the value of the stock owned by the corporation it may rise over time Thus it may not be a sufficient indicator of the actual profit eaming ability of the corporation For this reason when we refer to profit or earnings it always means the operating profit instead of the net
134. tion B owns more than 50 of corporation As stock If this occurs ultimate control belongs to the corporation that first initiates the takeover Merger A rrerger results when two corporations corrbine In the garre if a corporation owns at least 75 of another corporation the corporation can execute a merger with the controlled corporation To execute a merger open the Stock Information screen The Merger button below the Buy button in the stock buying section is displayed if your corporation owns at least 75 of another corporation Click the Merger button to display a window that explains you must acquire the remaining shares of the target corporation to accomplish the merger You have two choices to performa merger You can either pay cash equal to the value of the remaining shares of the company you want to take over or you can issue new shares of your corporation in exchange for the value of the stock held by shareholders in the company you are buying out If you prefer to issue new shares be reninded that it will dilute the shares of existing shareholders including yourself and introduce new shareholders into your corporation Although a rare event it is possible that after you issue new stock the shareholders of the target corporation in the merger could own more than 50 of your corporation and gain control of your corporation as a result 106 If a merger is successful all the target corporation s assets are consolidated
135. to the following table to identify common bottlenecks Supply and Demand Utilization Bottleneck Capacity is peak Capacity is peak Insufficient supply Supply lt derrand utilization 100 Supply gt derrand utilization 100 Supply lt derrand utilization lt 100 Supply gt derrand utilization lt 100 Low demand Here are sorre suggested solutions Capacity is peak When the capacity of the sales unit is at its peak you can resolve this bottleneck in two ways The first way is to set up an additional sales unit to share the workload However due to the linitations of layout space you Cannot do so in every case The second way is to increase the spending on training and new equipment which lets the unit improve its unit level and productivity faster Insufficient Supply Sometimes the cause of the problemis not obvious It can be caused by a shortage in the product supply capacity limitation of a purchasing or manufacturing unit or improper linkage of units which affects 41 the scheduling among functional units To increase the supply trace the chain of supply exanine all linked units carefully and remove any bottlenecks you find Low Demand There are many ways to increase derrand but all have costs For a departrrent store increasing the frequency of the advertising can be an adequate short term decision The real driving forces of demand are price quality and brand however you should also al
136. uality rating Growth Days The number of days since the crop was planted e Status Whether the crop is growing being harvested awaiting the season Unit Info box Unit armo ME TAT The info box of the Crop Growing Unit in the layout area shows the Crop MA following infomation Hama in Barm Crop Nane The crop that the unit is currently planting Gropin Bam When crops are harvested they are stored in bams Crops in bams are represented by boxes in the unit info box Each box represents a certain quantity of crops You can see more boxes appear as crops are harvested and disappear as crops are sold Growth Progress The crop s growth progress When this bar reaches its maximumlength the crop is ready to be harvested Unit Level The capacity of a crop growing unit improves as its unit level increases The following table shows the relationship Unit Level Capacity 1 100 2 150 3 200 4 250 5 300 6 350 7 400 8 450 9 500 Livestock Raising Unit Set up in Farm Setup cost 100 000 Workers needed 16 59 Raising Livestock To order a unit to raise livestock press the Raise Livestock button in the unit detail area Select the livestock you want to raise in the menu The menu also shows which products you can make fromeach type of livestock After you select a product the livestock raising unit purchases livestock for breeding and begins the
137. uce more than one product fromthe specified raw rraterials you see a Set Production button in the unit details area Select this to determine which itemto produce Quality of Manufactured Goods The quality of manufactured goods depends on two factors e Raw materials quality e Factory s production technology For sore products such as the computer CPU quality is determined mainly by the production technology For other products such as furniture quality is affected more by the quality of the raw materials The importance of these two factors varies from product to product For details refer to the Manufacturer s Guide 47 The quality rating is calculated fromthese two factors The example below shows how to calculate the quality rating First the information we need to know concerning the factory and the raw material follows e The unit is manufacturing textiles using cotton as the raw material e The quality rating of the cotton is 71 e The factory s production technology level for textiles is 30 e The top production technology level in the world is 100 The quality of the textile is 50 affected by the quality of the raw material and 50 affected by the production technology If you highlighted this Textiles manufacturing unit in layout mode you would see the Product Quality 50 100 di Oru One Production Quality 15 50 Rew Material Quality 35 50 Product Quality 5100 HA 30 The quality rating of the
138. ufacturing other goods Links This filter displays product firms and corporation links within the gare Use it in conjunction with the Product Finm filter to track for example the sale of raw materials from your mine The INFO icon allows you to select whether or not the main view indicates what a building is used for toy store apartment building If the option is tumed off the main screen will still display the buildings including corporate insignia ES The Product Finm filter allows for greater inspection by toggling the Za various buttons it contains For example by clicking the MYFIRM button you can cycle through the location of all your buildings within the current city or multiple cities if you toggle between THIS CITY ALL CITIES Similarly the PRODUCTS button allows you to search for specific products for example to see if and where a particular product is being manufactured and sold Use FIRM to search for specific buildings such as Retail Stores or Factories or try CORP for a corporate level search Choose froma combination of buttons to refine your search For example choose Retail Store fromFIRM and Canned Soup fromPRODUCTS to see which stores are selling soup in the city To close the Mini Map window click the X in the top right or click the Mini Map icon on the toolbar EE 3 World Map Displays the world location of the current city and any other playable cities Click the World Map ico
139. unt of shareholders equity by the number of shares Eamings Per Share Eamings per share is determined by dividing the amount of operating earnings over the past 365 days by the number of shares Operating eamings are used in the calculation instead of net eamings because of garre design considerations This ensures that the stock price correctly reflects the profit earning ability of the corporation and is not affected by the price fluctuation of stocks that the corporation owns e Price Eaming P E Ratio The P E ratio is the relationship between the price of a stock and its earnings per share The P E ratio is calculated by dividing the stock price by the earnings per share A stock selling at 30 with earnings of 2 per share has a price earnings ratio of 15 The P E ratio can be thought of as the number of years it will take the Company to earn back the amount of your initial investment assuming that the company s eamings stay constant Let s say you buy 100 shares of a stock selling at 30 for 3000 Current earnings are 2 per share so your 100 shares will earn 200 in one year and the original investment of 3000 will be earned back in 15 years This may give you the impression that stocks with low P E ratios are 101 nore attractive than stocks with higher P E ratios However it is not always true You should also consider the profit growth potential of the corrpany A stock with a high P E and a high profit growth r
140. using the spinners or cancel the deal If you have enough cash and you decide to purchase the finm you will be able to set the following Extra monthiy budget for new content development The higher this budget is the better the content of the media will becorre This is an investirent that you should make to improve the quality of your media firms content which will in tum increase the rating points and incornes Next month advertising pricing Cost per thousand By adjusting the advertising pricing you will affect the willingness of potential clients to buy advertising from your firm The adjusted advertising price will becorre effective next nonth A high rating points will enable you to charge a higher advertising cost but it should not be set too high that it becomes uncorrpetitive 72 Buildings The following buildings are government owned and operated They cannot be purchased but offer services to your corporation Bank The Bank can be used for arranging or repaying corporate loans See Chapter 5 Reports and Guides Financial Actions for more information Information Center Ciicking on the building simply takes you to the Information Genter screen See Chapter 5 Reports and Guides for more information about what the Information Center has to offer Investrent Bank The Investrent Bank is used to issue new shares See Chapter 5 Reports and Guides Financial Actions for more information Stock Market Cl
141. ve this problem set up an inventory unit between the wool purchasing unit and the manufacturing unit shown below right without the Sales units The inventory unit is a buffer it stores wool when the available supply exceeds the company s ability to process it into socks When the wool supply dininishes supplies of wool are taken fromthe inventory unit so that the factory can continue to operate The inventory unit helps the company s profitability by keeping the factory running year round and not only during the wool shearing season We now have a constant supply of raw materials and need a constant demand for the finished product to make the factory profitable To stinulate demand for socks you can advertise the product widely in the city using television and radio broadcasts or newspaper advertisements Use inventory units to control seasonal supply 52 To advertise the socks you must first set up an advertising unit in the factory Link the advertising unit to either the manufacturing unit or the sales unit to identify the product that you want to advertise Click the advertising unit Select the Link Media Firm button and choose a television station radio or a newspaper publisher in which to advertise your product Once the advertising campaign starts brand awareness and the sales of your product will increase A private labeling unit can convert products of other brands to your own brand If you are tired
142. verrber March Wheat August April Livestock Products Cattle Frozen Beef Leather Milk Chicken Frozen Chicken Eggs N A Pig Frozen Pork Leather N A Sheep Frozen Larrb Leather Wool 99 Please note that in garre there is no difference between leather produced by cattle pigs and sheep To understand how each crop or livestock product may be used refer to the Manufacturer s Guide below Managers Guide This guide details the contents of each unit located in the layout section of firms Units are discussed in depth in Chapter 4 100 Chapter 6 Stock and Finances The Stock Market Before you start investing in the stock market you should be familiar with sorre basic stock concepts Open up the Stock Market information screen by pressing the Information icon on the Toolbar and choose Stock Market fromthe left hand menu or if the Game Tools menu is open click the Stock Market icon Alternatively click the Stock Market building in the main city view El Information Stock Market The screen now shows six browser windows each with specific stock information Before each window is fully explored take a moment to read the following list to familiarize yourself with some of the terms used in the rest of this chapter e Stock Price The market determines the stock price e Total No of Shares A companys total number of shares Equity Per Share Equity per share is calculated by dividing the amo
143. w Purchasing unit will be added to your store along with a linked Sales unit The Select A Supplier screen will automatically open Remember that the Add Product button will only be visible if there is sufficient layout space for setting up an additional pair of purchasing and sales units 35 LCCT A SUPP LER Now select the product you want to purchase froma supplier by e Scrolling the main list until you see the product you want or e Use the filter lists All Products All Suppliers and All Cities to refine your search You may for exanple select your corporation fromthe All Suppliers list in order to select a product that you are producing Please note that clicking Go To Supplier will take you to that particular factory or seaport Click the back button on the toolbar to return to your retail store You can see fromthe picture above that each product entry carries specific details The owning corporation s logo if any is displayed to the left of the product picture and the corporation narre is displayed in the detail box If the product is imported the detail box will show Seaport and a logo will be absent Next the city housing the supply and the distance to the supplier is given Remember that importing from another city will carry additional freight costs The actual freight cost of transporting the product fromthe supplier s location to the current firms location is also shown The product cost quality
144. you could open your company to a hostile takeover If issuing new shares provides any corporation or investor with the opportunity to own more than 50 of your corporation the danger of a hostile takeover is not worth the new capital that you might raise Paying Dividend You have to decide whether to pay out the corporation s eamings or retain those funds for reinvestment in the firm Although the dividend policy of a normal corporation has no long term effect on its share price in practice most corporations try to pay a steadily increasing dividend This provides investors with signals about managerrent s expectations for growth and its ability to generate more eamings You can set a dividend payout ratio for your corporation and automatically pay dividends based on this ratio each year Under this policy the dividend per share is calculated by multiplying the eamings per share by the dividend payout ratio To be able to alter the dividend you must first build your corporate headquarters and add a financial department Open the financial department unit and select the Set Dividend option Set the dividend payout ratio using the spinner and press the Select button when you are satisfied with your selection The dividend payout ratio is initialized to zero when the garre starts 108 Finance Borrowing and Repaying To borrow or repay a bank loan you must first click the government run Investment Bank in the Main City View or choos

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