The Situation Analysis will help your company understand the current market conditions and how the industry will evolve over the next eight years. There are five parts:

• Perceptual Map
• Industry Demand Analysis
• Capacity Analysis
• Margin Analysis
• Consumer Report

The analysis can be done as a group or you can assign parts to individuals and then report back to the rest of the company.

These exercises require The Capstone® Courier industry newsletter for Round 0. The Courier is available from two locations:

• On the website, login to your simulation then click the Reports link;
• From Capstone.xls, click Courier in the menu bar.

Tip: The Courier displays “Last Years Results,” for example, the Courier available at the start of Round 2 will display the results for Round 1. The Courier available at the start of Round 1 displays the results for Round 0, when all companies have equal standing (if you access the report from the website, use the Round 0 Courier to complete the Situation Analysis).