Application of Business Simulation for Business Education Teaching Learning

Business Simulation Capsim

Global DNA & Comp-XM - Company Exemplar - Cochlear Bionic Hearing Implants

Abstract or executive summary of a business simulation report presented to faculty in partial fulfilment of the requirements for the Master of Business Administration (International Business) at European University Business School & University of Roehampton.

Business Simulation for Higher Education Learning (Image © Pexels)

Executive Summary

Cochlear Australia has potential to enter, create market share and be profitable in the Taiwanese market for bionic hearing implant devices; without need for dominating.  Taiwan has a state and private backed health sector, biotechnology strategy, middle income nation of 23.5 million, ageing population through improved longevity, almost all are insured and excellent relations with Australia.


Any successful strategy will be based upon research and development R&D, marketing, production and finance divisions; with commensurate excellence in human resources with strong focus upon innovation, differentiated products, customer satisfaction, forecasting, cost control and attracting further investment.


Through using two Capsim business simulations, Global DNA and Comp-XM, relevant and inter-dependent personnel can develop strategies, then apply and evaluate key performance indicators KPIs for testing the market, in addition to lessening the impact of silo mentality.  Simulation, risk free, exemplified the need for investment in innovation and automation to satisfy customers, good communication, forecasting and cost control for continued profitability.


Simulations showed the need for a suite of products for both budget and performance, while suggesting a trend towards moderate pricing to retain market share.  This was confirmed by impairment due to unexpected events including price cutting or dumping of competitor products, in addition to lagging on higher specifications on products and automation; both making forecasting of demand and sales difficult.  The lesson was never assume anything, especially market dominance or competitive share, and be constantly aware of the market, including awareness of other divisions.


The optimal strategy reflected the need for achieving customer satisfaction in both budget and performance segments through incremental improvements, investment in R&D, plant automation investment, leading onto cost control, profitability and then attracting continued investment through sound financial KPIs.


As markets mature the strategy is important, while understanding that organic profit growth is achievable even if population growth slows and market share remains static, as the population ages and suffers widespread age-related hearing impairment.


The first simulation Global DNA in a higher growth environment followed by the lower growth Comp-XM highlighted that markets may not continually grow thus precluding market domination and increased sales.


However, both simulations indicated that profitability could be maintained without dominating market share provided customer satisfaction was addressed with continual attracting of investment in R&D and product innovation, plant automation lowering costs and human resource development.


Cochlear could leverage such simulations further for both new or existing market strategy and planning, in addition to supporting the skills development of all relevant company personnel globally, thus achieving share and stakeholder objectives.