The Letter — on the capstone simulation

An MBA simulation explained

2026-07-20 · by Anouk van der Meer — MBA, head of letters and commerce

A business simulation is a model with a grade attached. Your team submits decisions, the model runs them against the other teams and a demand engine, and hands back results that become the opening position of the next round. Understanding that loop is most of the work.

What the model is doing while you sleep

Whatever product your program licenses, the machinery is similar. Each round you set a handful of levers: what to charge, how much to make, how much capacity and automation to buy, what to spend on promotion and distribution, how much to invest in development, how to staff, and how to finance any of it. The model then allocates demand between the competing teams according to how well each offer matches what the simulated customers say they want, and runs the consequences through a full set of financial statements.

Two features of that loop cause nearly all the distress. The first is that the results carry forward: capacity bought in round two is still there in round six, and debt taken in round three is still being serviced at the end. The second is that you are not playing against the model, you are playing against classmates who are also adjusting. A price that looked clever in isolation can be met by three other teams doing the same thing, and the round produces a market where everybody sold at a loss.

Treat the first round as calibration

The most expensive mistake in a simulation is a bold opening. Teams read the customer report, form a theory, and swing every lever at once, which means that when the results arrive nobody can say which move caused what. You have spent a round and learned nothing that can be reused.

Move a little and move deliberately instead. Change price in one segment, or promotion, or capacity, not all three, and write down beforehand what you expect to happen. When the results come back, the gap between expectation and outcome is the only genuine information the round produced, and it is worth more than the standings. Teams that calibrate early tend to look mediocre after two rounds and win the second half, because by then they know how the model responds and the confident teams are still guessing.

The decision log, which is usually also the deliverable

Keep one document from the first round and write in it immediately after every submission, while the reasoning is still recoverable. It costs a quarter of an hour a round and it is what the final report gets built from.

Where the marks actually sit

Read the scoring guide before round one and most anxiety about the standings will resolve itself. In the majority of capstone courses the simulation result is one criterion among several, sitting beside the strategic analysis, the round-by-round justification, the reflection on what went wrong, and a presentation. A team that finished last and can explain precisely why, with evidence from its own log, routinely outscores a team that won and writes three paragraphs of triumph.

This is not a consolation prize. Faculty are examining whether you can reason about a business under uncertainty, which is a different skill from beating five classmates inside a model. Write the analysis in the language of the rubric, tie every claim to a number from your own results, and be candid about the errors. Candor reads as competence here, since the model has already recorded what happened and there is nothing to be gained by narrating a different story.

The team, and the member who goes quiet

Simulations are graded on group deliverables and run on synchronous decisions, which makes an absent teammate more damaging than in an ordinary group paper: a missed submission window cannot be made up, and the round closes without you. Set the roles in week one, give each round a single person with the password and the authority to submit, and agree a deadline of your own hours before the real one. Then document contribution as you go, quietly and without drama, so that if the conversation with faculty becomes necessary it is a matter of record rather than of accusation.

Where a term has reached the point that a simulation, a capstone report and a full working week are colliding, patrons commonly hand the coursework across and keep the rounds. That is what a specialist holding the commerce side of the course is for, and the written analysis, which is the part carrying most of the marks, is exactly the part that responds to it. The same logic governs a capstone with a committee attached, where the deliverable rather than the effort is what gets scored.

Questions put to the house

Does winning the simulation guarantee a good grade?

No. In most capstone courses the standings are one criterion beside several others, chief among them the written analysis and the justification of each round's decisions. A team that finishes low and explains its errors with evidence from its own results frequently scores above a team that finishes first without analysis. Read the scoring guide in week one and allocate effort accordingly.

How much should we change between rounds?

Early on, less than instinct suggests. Moving several levers at once makes the result uninterpretable, since nothing can be attributed to a decision. Change one or two things, record what you expect before results are released, and use the gap as evidence. Once you understand how the model responds, larger and better-founded moves become safe in the later rounds.

What happens if a teammate misses a submission?

The round closes with whatever was entered, and it cannot be replayed. Protect against it structurally: nominate one submitter per round with the credentials, set an internal deadline several hours before the real one, and keep a shared record of decisions so anyone can file them. Tell faculty early if a member has genuinely disappeared, with dates rather than complaints.

Is the simulation meant to model a real company?

It models a simplified market with rules you can learn, which is the point of it. Prices, demand, capacity and cash behave in ways that reward attention rather than realism, and faculty know this. What transfers to practice is the discipline: deciding under uncertainty, recording your reasoning, and comparing what you expected with what actually occurred.

Anouk van der Meer
Written by
Anouk van der Meer
MBA, head of letters and commerce · one of the eight of the house.
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