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What to do with excess cash? You want to make sure you use cash; remember you are a business, not a bank. Your objective is to grow your company. On one side, you start with one product; it could be a high-tech or low-tech product. You can invest the cash into developing other products — because you can have up to five and you can optimize with TQM On the other side, if you already have enough products, you can pay dividends to the shareholders or repurchase your stock. Just like in the real world, your company gains value by showing revenue.
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I started using the Capsim Foundation Challenge in my classes because it is one of the most popular business simulations in the world, with more than 900 universities participating. It is a key activity of Strategic Management (BPS 4305), the course in which you get to run a company. You get to practice making executive decisions regarding accounting, finance, research, design, and more. Many activities mimic real-life situations and revolve around designing products, pricing them, and finding the perfect marketing strategy to sell them.
