Friday, June 27, 2025

CompXM Round 4 Strategy Guide | 2025–2026 |

 

CompXM Round 4 Strategy Guide | 2025–2026 |


Introduction

Hello and welcome back to the CompXM Capstone Exam Strategy Series, focusing on Round 4 – Final Round. In this video, we’ll walk through a sample winning strategy for the last round of the simulation. This is where your company consolidates its market position, maximizes profitability, and secures a top score — even up to 999/1000.

Let’s begin.


Overall Company Position

As we enter Round 4, our company has launched four new products, one for each segment. That gives us a total of eight products: two per segment — slightly differentiated but well-aligned with customer expectations.

At this point, we are leading the market in both total market share and net profit. We’ve kept our production aligned with demand and continuously refined pricing and positioning based on the latest reports.


 Step 1: R&D Strategy – Maintaining Ideal Positioning

The first step is always to review and adjust R&D decisions.

To do this, we refer to the Industry Conditions Report and last year's Courier Report. Our goal is to make sure every product is meeting or exceeding the buying criteria — especially in performance and size.

  • For Nano and Elite, performance and size are critical — so we fine-tune the specs to stay close to the ideal spot.
  • For Traditional and Core, these factors are less important, but we still maintain slightly above-average performance and size to ensure competitiveness.

In this round, our products are positioned extremely well — especially the Elite product, which is at 0.8 performance and 3.0 size — exactly what the market demands. All adjustments are entered into the R&D (IndD) screen before any other decisions are made.


 Step 2: Marketing – Price, Promotion, and Forecast

Next, we move to the Marketing module.

For Round 4, we lowered prices slightly — by about $0.50 per product — to stay competitive while maintaining high profit margins.

  • Even though our prices are higher than many competitors, we’ve chosen to prioritize margin over volume, since our products are well positioned.
  • Being in the top 4 sellers in each segment confirms that our pricing strategy works.
  • Higher price = higher per-unit profit. We maximize this advantage without pricing ourselves out of the market.

We also continue with strong promotional budgets, especially in larger segments like Traditional and Core, to maintain awareness and accessibility.


 Market Performance Check

Let’s evaluate current performance before making decisions:

  • Some products, like the Nano product, experienced stock-outs in the previous round. That tells us demand was higher than expected, so we’ll increase production for that item.
  • Others — like new products launched in Rounds 2 or 3 — may still be building customer awareness and traction.

By reviewing sales, inventory, and contribution margin, we make informed adjustments for Round 4.


 Step 3: Production Planning – Matching Demand Accurately

We now move into the Production module.

This is one of the most critical areas. Let’s walk through the process step by step:

  1. Use Courier data + Excel tool to calculate expected demand for each product.
    • Estimate next round’s demand by applying segment growth rates to last year’s total unit sales.
    • Adjust for any existing inventory.
    • Assign realistic market share targets to each of your eight products.
    • Use Excel formulas to forecast required production accurately.
  2. Enter production estimates in the system. After inputting, review the “After Adjustment” values to ensure you have:
    • No underproduction (which causes lost sales)
    • No major overproduction (which inflates inventory costs)
  3. Capacity & Automation:
    Since Round 4 is the final round, there is no need to invest in additional capacity or automation. There’s no future payoff.

🔔 Tip: In some exams, professors may ask how you'd prepare for future growth. If that’s the case, mention capacity expansion plans, even if not executed in Round 4.


 Step 4: Human Resources – Keep It Maxed Out

In Human Resources (HR), we maintain our standard settings:

  • Recruiting Spend: $5,000
  • Training Hours: 80 hours

This ensures maximum productivity and reduced labor costs. Even in the final round, this investment helps keep efficiency at its peak.


 Step 5: Finance – Maximize Shareholder Value

With solid profits and strong performance, we now focus on financial strategy.

  1. Retire Stock
    • Retiring stock increases EPS (Earnings Per Share) and ROE (Return on Equity).
    • We retire the maximum number of shares allowed.
  2. Pay Dividends
    • A dividend of $8.00 per share boosts investor satisfaction and stock price.
  3. Retire Long-Term Debt
    • With excess cash, we reduce interest expenses by paying off long-term liabilities.
    • This also improves the company’s balance sheet.
  4. Avoid Borrowing
    • We don’t take on any new debt — short or long-term — to keep financial ratios optimal.

 Final Results Overview

Let’s look at the results from this final round:

  • Total Sales Revenue: $335 million
    (Up from $279 million in Round 3)
  • Contribution Margin: 48%
  • Net Profit: $62 million
    Combined with earlier profits, we reached nearly $100 million in cumulative net income.
  • Stock Price: $163
    (Our nearest competitor sits at $127)

In comparison to earlier rounds, our company’s performance has accelerated significantly. Even if Round 1 or 2 was not ideal, the strong strategy from Round 3 onward has allowed us to dominate.

This highlights a key principle in CompXM:

💡 A poor start can still lead to a top finish if you learn, adapt, and execute strong strategy in the later rounds.


 Strategic Takeaways

Let’s recap the key takeaways from our CompXM Final Round strategy:

  1. Optimize Product Positioning — stay close to ideal specs, especially in Nano and Elite.
  2. Price Strategically — balance margin vs. market share; don’t aim to be the cheapest.
  3. Forecast with Data — use Courier + Excel for precision.
  4. Avoid Overproduction — excess inventory eats up your profits.
  5. Maximize Production Efficiency — use full capacity, no expansions needed in final round.
  6. Invest in HR — keep recruiting and training maxed out.
  7. Use Profits Wisely — pay dividends, retire stock and debt.
  8. Focus on Shareholder Metrics — EPS, ROE, and stock price matter most.
  9. Don’t Panic If Behind — late rounds are the best opportunity to catch up.
  10. Finish Strong — CompXM rewards consistent execution and long-term planning.

 Need Help or Support?

If you need QUICK support to complete your CompXM in just a few hours with top results (even 999/1000), email us at:
📧 mbahelp2002@gmail.com

Also check out our CompXM strategy blog with free tips, Excel tools, and success stories:
🔗 https://compxmguide2022.blogspot.com


 Final Words

Thank you for watching this Round 4 walkthrough. We hope this strategy helps you maximize your score and finish strong in the CompXM exam.

If you haven’t already, be sure to check out our videos on Rounds 1, 2, and 3 for a complete winning strategy.

Best of luck — and I’ll see you at the top of the leaderboard!

 

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