COMPXM GUIDE ROUND 4 | 2025 - 2026 - VIP13

 

COMPXM GUIDE ROUND 4 | 2025 - 2026

I’ll walk you through a detailed strategy to win CompXM across all four rounds. CompXM is the final exam that follows your 8-round Capstone simulation. While Capstone prepares you through team play and long-term planning, CompXM tests your individual performance under time pressure, usually across 4 decision rounds and 5 evaluation questions per round.

In this video, I’ll show you a step-by-step approach to Round 4, building on the previous three rounds. We’ll focus on key modules: R&D, Marketing, Production, Finance, and TQM, while maintaining a Broad Differentiation strategy.

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🔁 Quick Recap of Previous Rounds

Before diving into Round 4, let’s quickly recap where we are:

• In Round 1, we added two new products in the Nano and Elite segments.
• We maintained high investment in marketing, launched differentiated products, and optimized capacity and automation early.
• After three rounds, our company now has the highest sales, net profit, contribution margin, and stock price — significantly outperforming all competitors.

Now, let’s finish strong with Round 4.

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1. 🧪 R&D: Update Based on Segment Drift

In Round 4, we continue to pursue our Broad Differentiation strategy, meaning we keep products aligned with the changing customer preferences.

Open the Industry Condition Report (ICR) for your unique CompXM version. This is very important because each CompXM exam is different from student to student.

• Locate the drift values for Performance and Size in Table 3 of the ICR.
• Use those values to calculate the ideal position for each product in Round 4.
• Update your product specs accordingly in the R&D module.

✅ Pro Tip: Do not simply copy numbers from someone else or another version — your CompXM exam is unique.

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2. 💸 Marketing: Pricing, Promotion, and Sales Forecast

🔹 Pricing Strategy:

Stick with the pricing ranges you’ve been using, but slightly reduce prices by $0.50 per product to stay competitive.

Example pricing guideline:

• Traditional: ~$22
• Low End: ~$30
• High End: ~$38
• Elite/Nano: ~$42

Lowering the price slightly helps secure market share in the final round.

🔹 Promotion & Sales Budget:

You can now reduce your promotion and sales budget for existing products — especially if they have 100% customer awareness and accessibility.

• Drop promo/sales budget to around $1,400 per product.
• For newer products, keep higher levels ($2,000) to maintain visibility.

🔹 Sales Forecasting:

This part is critical for accurate production planning.

• Open the Courier Report from Round 3
• Identify the actual sales for each product last round.
• Use our free Excel tool to forecast Round 4 sales.

Formula:

Forecast Sales = Last Round Sales × (1 + Segment Growth Rate) + 5% buffer

✅ Always add 5% extra to avoid stockouts due to unexpected demand increases.

Segment growth rates usually range from 11% to 20%, as stated in the ICR.

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3. 🏭 Production: Align with Forecast

In the Production module, you’ll now schedule production based on your forecast:

Production Required = Forecast Sales - Inventory Available + 5% Safety Stock

Since we’ve already optimized capacity and automation in earlier rounds:

• No need to purchase new capacity this round.
• No need to adjust automation further.

Our production system is stable with:

• Full automation for Low End and Traditional
• Moderate automation for High End and Elite
• Sufficient capacity for all 6 products

✅ This stability lets you reduce costs and maintain high margins.

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4. 🧾 Finance: Buy Back, Dividends & Loans

In Round 4, maximize shareholder value by making smart financial decisions:

🔹 Buy Back Stock:

• Use available cash to buy back shares
• This increases your stock price and EPS (Earnings Per Share)

🔹 Dividends:

• Issue a $10 dividend per share.
• It improves stock value and boosts investor confidence.

🔹 Loan Management:

• Repay $15 million of long-term debt
• This improves your credit rating and lowers interest costs.

You’ll see the results immediately — your stock price will rise significantly, and your financial structure will strengthen.

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5. ⚙️ TQM: Final Investments

We continue with our TQM (Total Quality Management) strategy.

In Round 4:

• Invest $1,000 per initiative across all 10 initiatives (total = $10,000)
• If your budget is tight, prioritize initiatives that:
• Reduce R&D cycle time
• Improve production efficiency
• Increase customer satisfaction

Over four rounds, this adds up to $40,000 total investment — which maximizes TQM benefits.

TQM drives:

• Higher customer demand
• Lower material/labor costs
• Increased contribution margins

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6. 📈 Analyzing Estimated Results

After submitting all decisions, check your Proforma Reports.

Here’s what you want to see:

• Contribution Margin: >50%
• Net Profit: >20%
• Stock Price: Highest in your industry
• Earnings Per Share (EPS): Strong growth over all rounds
• Return on Equity (ROE): Significantly outperforming competitors

If you followed the strategy from Rounds 1–3 and execute Round 4 correctly:

✅ You will likely have:

• Top sales and profit in all four rounds
• Stock price 2× higher than other competitors
• Leading performance in all five CompXM evaluation areas

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🧠 Final Thoughts

Let’s recap the key priorities for Round 4:

1. Update R&D using drift rates from ICR.
2. Set competitive prices by slightly reducing from Round 3.
3. Lower marketing budget for mature products with 100% awareness.
4. Use Courier Report + Excel tool to forecast sales.
5. Schedule production accurately, avoid overproduction.
6. Maintain automation and capacity, no need for expansion.
7. Repay loans, buy back stock, issue $10 dividend.
8. Invest final $10,000 in TQM initiatives.
9. Review Proforma to ensure profit, margin, stock price are peaking.

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💬 Need Help?

If you have questions or need 1-on-1 support for CompXM:

📧 Email: mbahelp2002@gmail.com

You can also check the detailed guide and templates on our blog:
🌐 https://compxmguide2022.blogspot.com

We also offer:

• Free Excel tools for sales forecasting
• Sample answers for CompXM questions
• One-hour coaching sessions by request

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Thank you for watching. I hope this video gives you the clarity and confidence to finish CompXM with top results — even 999 out of 1000.

Good luck — and I’ll see you in the next simulation victory!