A group of students at the Rutgers School of Business–Camden have earned high scores in Capstone, the top competitive strategy simulation in the world undertaken every year by more than 75,000 graduate and undergraduate students worldwide.
The simulation challenges students to apply business principals practiced only in theory in the classroom. It builds their business know-how and skills to become well-rounded managers and helps students understand how various business functions relate to each other in the real world.
“The simulation helps them integrate all the knowledge they’ve gained over the four years they’ve been here in a way that develops their business acumen and develops their understanding of how to manage a business,” says Diana Day, an associate professor of management at Rutgers University–Camden.
Prior to the competition, all participants learn finance, research and development, marketing, and production in core business courses at Rutgers–Camden.
The simulation is a critical part of the Business Policy course. First, teams of students compete against each other to see who can achieve the highest rankings on their company’s balance scorecard, which is a composite measure of performance based on weighted averages of stock, financial, processes, customer, learning, and innovation measures.
Then, the Rutgers–Camden undergraduates present their company’s strategy and results to a mock panel of “stockholders” who judge not only the students’ company management, but also their ability to present it effectively and respond appropriately to challenging business questions at the end of the course. The judges included several local business executives.
The students are tasked with managing a simulated business and make real-life decisions based on everything from financial performance and internal processes to customer management, innovation, and growth.
“By the end of the course, the students know how to put together a strategic plan for building a brand name, how to develop employees and how to develop quality and reputation. It all fits together,” Day says.
The simulation is utilized by more than 500 universities around the world and many top companies — such as Goldman Sachs, Johnson & Johnson and Coca-Cola — use it to train their employees, Day says.
Saghi Shpun, a business management major from Marlton and 2010 graduate, says the simulation is a good example of how a business operates.
“It has prepared me for my career because I understand how to run my own company and how important communication is between departments,” says Shpun, who plans to move to California to pursue a career with Johnson & Johnson.
Donna Smith-Williams, another member of the Class of 2010 who majored in business management at Rutgers–Camden, says she learned a lot about planning and organization.
“Determining the direction of a company and staying consistently focused on achieving the company’s objectives while being flexible enough to adapt your tactics or your strategy when the business environment changes is difficult,” the Sicklerville resident says. “There is no guessing. You have to do the work…you have to be able to make the hard decisions.”
Day says that over the last few years, most of her Rutgers–Camden student teams have scored within the top 10 percent of all students who have taken the Capstone Challenge worldwide. This year, one Rutgers–Camden student scored in the 99th percentile and three others scored within the 92nd percentile or higher. Two other students scored in the 85th percentile or higher.
“I’m very impressed with our students because they’re learning,” Day says. “How do you teach someone to make good business decisions? You let them make lots of business decisions, from bad ones to good ones. When you learn how to drive a car, you don’t get on the expressway the first time behind the wheel. It starts in a parking lot where you drive around for a half hour. That’s what this is designed to do. You learn by doing.”
Media Contact: Ed Moorhouse
856-225-6759
E-mail: ejmoor@camden.rutgers.edu