The Business Strategy Game Player's Guide 2 Welcome to the Online Edition of The Business Strategy Game. Thanks for your strategy! No matter the location, our goal is to satisfy our customers foot fashion desires and provide them with the best style and quality in footwear. The ROE in Year 18 is good back to 24,3% compared with Investor Expectation of 15%. Hi Yvonne. Advantage of this is, that you dont have to pay too much attention to your competitors. In 2020 digital game sales outpaced physical sales for the first time. With respect to our employees well-being, our G-Brand Company intends is to continue its practices of investing in employee-development and utilize a compensation model that encourages our employees to work hard, while simultaneously striving to be more productive and efficient. I feel you. It is all about trying out all possible combinations. Try out different combinations that keep you at 8* and the highest possible net profit. Is there anyway to increase the demand for my shoes in the internet/wholesale markets? I will explain soon, how to increase plant capacity and why we need the capacity for private label. Since youre only in the second year, I would honestly decrease your models to 50. Graduates are expected to possess broad competencies like problem-solving, critical thinking, and cognitive skills when entering the job market. Helped me get to the second place! Buy I have quite a lot ending cash. Hi. Nonetheless, learning from your and other groups failures is also necessary. The BSG tends to underestimate those values by about 20% and hence, you need to correct them for a more precise estimate. Yeah I had that in the first weeks as well. Warehouse management plays a strategic role in the supply chain by enabling inventory distribution, sorting, or cross-docking processes that strive to meet the growing demand of the market. I personally would not bid higher than $5,000 $6,000. This decision page deals with your plants. Although we are still ranked 8th in the world and 1st in the. You can also ensure the S/Q since it is the first decision. It is best to build only as much capacity as you can afford without taking any loans. Fin. When starting the BSG, you have two long-term loans; one for 5 years, the other one for 10 years. Thats a game changer!! I put $1.00 pay dividends, which turned out 20,000k in total. No worries, it will be easier after the first few years. Set Models Offered to 50 and Free Shipping to No. With our strategy, you might want to think about getting Option A as well. I hope that helps and good luck! As such, you can play the game frequently, any time you get it interesting. We always used the 10 decision groups of Finance and Cash Flows in most careful ways to maintain high EPS, in fact we should spend more Cash in hand to buy back Share in early years. Also, we can upgrade NA in C and one other option. These strategies are easy to see in the real world of business. Hi, thanks for the great strategy! You can lower the costs by increasing training and upgrading facilities. Same with all the other values, like I described in my blog post And then use all your remaining shoes for the private label market. Optimizing your values is the essence of the game, even though it might be very time-consuming. my advice would be to read my guide and follow the steps. You will not have any complaints about the quality of the assignments we deliver. After you have plugged in your numbers for both plants and your Branded Pairs Available for Shipment matches your Total Branded Pairs Shipped from each Plant, go ahead, click the Save Decisions button, and move to the Private-Label Operations page. However, if you experience difficulty winning your game, type Help with My BSG. You will get professional from BSG game help. This decision page is mainly a waste of money and we will not spend a lot of time with this page. The decision is due tonight I am so nervous but the performance score so far looks good. What is the companys differentiation strategy? You need the capacity for the private label market. You are now done with all your decisions for the Corporate Citizenship decision page and should hit the Save Decisions button on the upper right-hand corner. This way, you end up buying the share at a lower price. Winning the BSG game is essential. Any advice? A window should pop up where you can select each of the four regions and change the industry average S/Q rating and competitive impact. Strategies, decision screens, reports and tests. When evaluating the 3PL provider in charge of your pharmaceutical distribution warehouse, safety is the name of the game. Everything else like earnings per share (EPS), return on equity (REO), and image rating (IR) will automatically follow. If you tweak those numbers, your demand will adjust accordingly. PS: I do the 5-year-loan 12,000k in Y11 (7% interest); In year 12, I paid #1 Long-Term (early payment) 12k at 8.2% AND borrow 70,000k 5-year-loan at 4.5%. Try to move away from your competitors if they are applying the same strategy. Paying dividends will increase your stock price and your ROE. Decades of experience in warehousing and distribution can be an incredible advantage. Learn how your comment data is processed. That combined will give you a good boost for the last year. Thank you, Fin! This has been very useful. However, you should keep on thing in mind: Your internet price should ideally be 40% higher than your wholesale price. I usually go ahead and plug in whole dollar amounts for the wholesale price and see how net profit changes. Another important indicator of profitability is the return on equity (ROE). Do not focus too much on the market share but focus more on profits. Let us move on to the tricky part of this decision page. Okay. G Brand has a Vision to establish a worldwide brand dedicated to innovative design and best provider in quality at reasonable prices, allow becoming a global leader in the athletic branded shoe market. If you reach the last decision round, comment down below and I will give you some hints on how to boost your net profits for the last year and gain some extra points. You are now all set to dominate your industry and win the BSG! So, multiply your sales volume for the wholesale segment for each region by 1.2. I prioritize building additional capacity and purchasing plant upgrades. In next five years, G-Brand will be more competitive with production capacity at the top and also high quality with largest collection. View full document. This can get confusing at the beginning so here is a table to show you the process. We will adjust collection online lower to 400 compared with 500 in stores. We need to keep continue going up to expand and to create new markets. We will keep Expansion of Internet Sales, keep low-cost-strategy with Highest Values that customers can get Online. After you have done this for both the N.A. After you have done this, play around with the values for Wholesale Price, Advertising Budget, Rebate Offer, and Retailer Support (increase/decrease by 100s only, as everything else makes no sense). Is it too late to reduce that to 50 as you suggested in your recommendation? This is the case of iPhone or any other high end products are bringing values to customers such as cars and fashions. congrats on your success! This is why building additional capacity is so important. I am currently dominating my industry, and closing in on the top 100 list! How can the company defend the position if you are leading? On this screen, you can handle your financial decisions for your company. However, you can successfully apply most of the following tips to either strategy. If numbers do not add up correctly and your total pairs shipped do not match your total pairs available, go back to the Branded Distribution page and adjust your numbers accordingly. How can you apply the knowledge from the textbooks? What I like about my strategy is that you do not necessarily have to keep an eye on your competitors. I would like to ask you about the Dividends. However, after 3-4 years, your competitors will settle and changes will be more predictable. We note to see Return on Equity, so keep Total Equity lower than increase Ratio of Net Profit. I believe it varies based on your games situation. How can you apply the ancient wise in the Arts of War of Sun Tzu? You and your co-managers are taking over the operation of an athletic footwear company that is in a neck-and-neck race for global market leadership, competing against rival athletic footwear companies run by other class members. If it is 0%, that is fine as well, do not worry about it. Important: Your Sales volume, not the production volume that includes the rejected pairs! More capacity also brings down your costs. So far I have only build a 1000 EA plant and additional 500 NA plant. However, keep in mind that your regional endorsement value should not be higher than 400 in any region. For example, a WMS can: Annual leasing and maintenance fees of $1 million per distribution center/warehouse in each region Per. For further explanation, please read my blog post. We also learn that Loans from previous years may have higher interest rate, we can borrow new loans to pay off old debts, and get higher Credit Rating because we can pay loans. 3/29/2021 BSG Decisions & Reports Projected Year 12 Performance Scoring Measures EPS (earnings per . Hi, It has to find ways expand so that cost of production at high quality still low enough to increase high margin, high market share and getting over all high Net Profit. G-Brand will continue to build on its existing strategy (Globa Differentiation Strategy) of attempting to gain a competitive advantage primarily by differentiating the Value and Quality for Price, customers pays for Real High Quality Value and Fashionable athletic shoes with much higher Quality what our competitors would charge for similar products. 7.39 to 12.81 over last three years, much higher than Investor Expectation of 4.3. So for our strategy, it should be 7 stars at the beginning. In addition, your Retail Outlets values should always be the highest number possible that you are allowed to enter. Key pharmaceutical distribution warehouse questions to ask a 3PL. However, the private-label market is set up the way that only a limited demand is given each year. First, set your Number of Models to 50, as determined earlier at the Sales Forecast page. (Which affects all 5 factors: EPS, ROE, Image Rating, Credit Rating and Stock Prices). We also learn a lot from the BSG itself and from our class mates, other teams, even we compete in the games, but in order to run effectively, we have to look at our competitors to learn their strategies and we see what they did well or not very well, we learn by doing this. The most important advice in advance: it is all about PROFIT. A warehouse management system (WMS) is a software solution that aims to simplify the complexity of managing a warehouse. However, my net profit is still negative even after i have adjusted the private-label. We need to look at bottom line to see Cost of Pairs available for Sales. With more inventory, however, you can put more shoes into private label which is a really important aspect of the game. These are the three most crucial decisions to make in the game. Here, you have the opportunity to sell your existing capacity. After you have calculated the manufacturing volume for each region, add up your N.A. With revised strategy, G-Brand will focus on offering higher quality products, more models, more fashion, to be industry leader in cost for value. Check the Competitive Intelligent Report. When we do so, look at estimations to keep control of ROE and EPS. How can the company jump over other competitors? And profit is what the game is all about. Were at the middle of the pack and wanted the best strategy to move up the ranks. If you add capacity it will show you the price. Repurchasing stock will boost both your EPS and ROE. we are having a horrible time of having left over inventory .. we are in year 13 and our numbers are ok we were 1st place last on year 11 and second place on year 12 but i having a feeling we have been focusing so much on our current numbers we arent going to end well any advise on what we should do on inventory and other sections of the game. The key factors need to be considers is Cost of Branded Pairs Sold, e.g. . Now, I am worried about the future rounds. In the later years, when the cost in NA is high, we have built a new factory in LA, we can ship from LA to NA (eg. Team members run the simulation company efficiently while competing successfully. The information is these guides is laid out, and displayed, in such a way that crucial decisions should be a breeze. BSG Guide - How to Win the Business Strategy Game.pdf. You have successfully adjusted to your competitors. I started with paying $0.05 dividends and increased it by $0.05 every year. Should you have excess capacity, consider this market and manufacture at full capacity. My question is what if I decreased the pay dividends to $0.15 from $1.00? If your results in the first year are not too good, its not a big deal. I never really watched my EPS or credit rating (ofc credit rating should be a B at least). I am having trouble getting my company back into the positive ending cash after taking out a loan. I have encountered two successful strategies so far: medium-quality shoes (S/Q rating of 5-6 stars) paired with high number of models (250-350 models) and high-quality shoes (S/Q rating of 8-10 stars) paired with low number of models (50 models). Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. Recommendations for Improving the Image Rating in The Business Strategy Game The Strategy Business Game learned all aspects such as production, distribution, sales forecasting, finance, marketing, celebrity endorsements, private label operations, corporate . I am in Y12, and I am adjusting for Y13. Again, trying out different combinations and optimizing net profits is key for these values. You will soon know why. After you have successfully plugged in your branded pairs that need to be manufactured for both plants, click the Save Decisions button and move on to the Branded Distribution page. On this decision page, you can bid on celebrities. So, play around and find the best combination for your given S/Q rating that yields the highest net profit. For only $35, get instant access to the Business Strategy Game Guide. As the CEO, you need the support of the other company managers. However, when pricing your shoes, keep in mind to set the price at least $5 below the wholesale price average. So do you mean although we sell exactly same shoes it does not matter even my rivals price is lower than mine so long as i can maximize my profit? Exactly. This support strategy of expansion and getting high Sales, Higher Net Profit and higher market shares. Increase S/Q ratings? Percentage of Superior Materials, Number of Models, Enhanced Styling / Features, TQM / Six Sigma Quality Program, and Best Practices Training all affect the S/Q Rating. This means, you decide about the S/Q Rating of your branded pairs produced and your compensation and training for your employees. Often provided as part of an integrated enterprise resource planning (ERP) suite of business applications, a WMS can support and help to optimize every aspect of warehouse management. Net Revenue of 52.76, but cost of 25.43; 3.16 for warehouse; 10.50 for marketing; 1.16 for Admin, make the Net profit of 12.53. Keep track of total Net Profit to have enough money to build new factory, or we can always borrow to do so. If so, we need to start building a new factory in LA, eg. 24.51 is low, we can reduce with good factory in AP so increase the margin to much higher. I would then adjust the Percentage of Superior Materials to whatever is needed to match my S/Q Rating with the value plugged in on the Sales Forecast page. Also do you know the cost of building additional capacity. Beat the Business Strategy Game. Okay! Looking at Company Operating Report, Marketing and Admin, Private Label, we also need to focus on reading and understanding Business and Financial Statement. This is quite good at the year 19 and later. So if one of your markets is not satisfied or prices are high, I would built capacity to attack this market and sell a lot of shoes for a cheap price, to guarantee you the lowest price so that you sell all your offered shoes. For the next five years from Year 18, we will continue: To provide highest quality branded athletic shoes to the global market at a competitive price. The Business Strategy Game or BSG is a simulation game used by, different colleges for their Business capstone. The private-label market is a very nice opportunity to gain an advantage off your competitors and take their market share. However, the challenge is in crafting and executing a competitive strategy that delivers a respected brand image, keeping the company in contention for an international market leader, produce a good financial performance as that is measured by the earnings per share, return per share, return on investment, stock price appreciation, and credit rating. Business Strategy Game - Week 5 (Year 14) Commissar BRO 9.95K subscribers 10K views 6 years ago And so we creep into Year 14. Go up and down each decision a couple of times to get the optimal profits. For instance, you can change the Industry Average to +2% or +4% to attain the optimal. Also, I suggest not decreasing your dividends. More effective. Hello. Hi, Increase from 3 to 6 activities to support society and environment. (In Y11, I did the 5-year loan with 12,000k (7% interest). At the end, I increased dividends to boost my ROE. But you need to identify your strategy first in the following three aspects: How can you identify your strategy? I just have a quick question. This is a good lesson in class that can be valuable in life. I worried that another team would have stumbled onto your blog, but few people Google tips it seems! How can the company lead the market in 10 years? 14. Thank you in advance! It will be very helpful for us and will be very grateful Do you still have your upload reports of all your years ? If I have further questions do you mind I ask you for help? but out industry there is a direct competitor for me, he is also star 8 and 50 models, and he prices so low for wholesale, only 47!
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