Here, you have to tie materials, styles, or features and TQM until you attain the desired S/Q. Business Strategy Game is an online business simulation game where class members are grouped into teams and assigned the task of running an athletic footwear company in head-to-head competition against businesses managed by groups formed by other class members. This way, you get a clue on the actual standing of the company entering into year 11. Again, this can be trial and error for a couple of decisions but you should get a feeling for what multiplier is best for your company. It depends on how much private label you sell and whether you want and can sell more depending on the market, whether its satisfied or not. After you have decided to which region to ship your shoes to, go ahead and set your Superior Materials Usage value and your Enhanced Styling / Features value. Do this for all four regions. However, with a reasonable price. Each decision period in the BSG represents a year, and the company you will run began its operations 10 years ago. I would definitely increase your S/Q rating to 8* and lower your models to 50 (this should be the lowest you can go if I remember correctly). 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. Thanks! Our EPS increase fast from 7.36. Paying dividends will increase your stock price and your ROE. Business Strategy Game Sorry for the late reply.. Been starting my new job and working a lot lately. In next five years, G-Brand will be more competitive with production capacity at the top and also high quality with largest collection. If you really need money, I would rather advise you to issue some of your stock. You always want to make sure that you produce your sales volume for N.A. If your results in the first year are not too good, its not a big deal. Its not too bad, no worries. Is it too late to reduce that to 50 as you suggested in your recommendation? So, should I decrease pay dividends here to $0.15? Buy I have quite a lot ending cash. 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? Same for your superior material. Can you tell us more about the strategy you had ? Do not worry about those numbers, they will just show you whether your investment is profitable or not. Beat the Business Strategy Game. Thanks a lot! Hi, Im glad to hear that it helped! However, do not rely on those values. Im play a new version of BSG ,we have already completed year 17 and now our team have a problem with struck in the middle stage that cost cant decrease more and this year other company in the industry have a high SQ star and low cost (price war) that we cant fight them because our cost is too high. (Darius White) The business strategy was a very practical and real-world experience of what it is like to run a major corporation and the rigor it takes to increase earnings per share, return on equity, credit and image rating. Also, I am concerned about the prices strategy; the group who is in the first place has the plan of highest S/Q rating (7) with 200 models and lowest prices. Let me know if you have any more questions. Keep control of Private Label market with upgraded factories that can produce most of quality at lower cost than any competitors. I am currently dominating my industry, and closing in on the top 100 list! I started with 250 models and S/Q rating of 5. Set your price to whatever maximizes your profits. Ship all the other shoes for the Europe-African warehouses and the Asia-Pacific warehouses from the Asian-Pacific plant. im at year 17 and perfect score twice, 1st in last 3 years and 2nd twice. However, it will also decrease your ending cash. 7.39 to 12.81 over last three years, much higher than Investor Expectation of 4.3. 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. On this page, you will optimize your entries and toggle each value until your reach the maximum profit possible for each entry. What I like about my strategy is that you do not necessarily have to keep an eye on your competitors. The Business Strategy Game is a simulation game that allows players to experience the complexities of running a business. Besides, you can set best practice training high, maybe at 5.000. This means, you decide about the S/Q Rating of your branded pairs produced and your compensation and training for your employees. You can decide to sell or purchase available capacity, upgrade your plants, build new plants in other regions, or add capacity to already existing plants. Here, you will determine the Percentage of Superior Materials, Number of Models, Enhanced Styling / Features, TQM / Six Sigma Quality Program, Change in Annual Base Wages, Incentive Pay, and Best Practices Training. From Company Operating Reports, we focused on Balance Sheets and Cash Flow, we see Total fixed Assets of 573,906; Total Liabilities of 127,335 and Total Shareholder Equity of 446,571. After clicking on the green Go to Decisions/Reports-button in the corporate lobby, you can see your profits in the lower left-hand corner. But my profit is still a little bit low for a second place, guess my price is too low and I need to cut some of my expenses, right? Keep track of total Net Profit to have enough money to build new factory, or we can always borrow to do so. Hi! Business Strategy Game Simulation - bsg-online.com 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). is it because I need to add capacity? I personally find it easier to pursue and had more success with it in the past. If your team faces these kinds of challenges, seeking BSG help online could be the best option. Build new factory in LA and upgrade to C and one more, may be D. Keep NA and LA for controlling Private Label, this year will also requires high S/Q so we have good advantages. Now we learn from the game and be more knowledgeable in making business decision. Like should I add up all my wholesale prices from the 4 regions and then divide by 4 to get an average wholesale price and multiply by 1.40 to get the internet price or should I base it off the lowest wholesale and then multiply by 1.40 to get the internet price? congrats on your success! At Top Academic Writers, we have writers with experience in different fields be it in high school, college or university. I was thinking about building a LA plant because I took the majority of private label there last year. We increase wage, compensation, bonus and keep high training, TQM as we used to doing in the last 8 years. After you have found the right price, click the Save Decisions button. However, keep in mind that your regional endorsement value should not be higher than 400 in any region. You might have the highest profits with 0 advertising budget. Learn tips & tricks, from a BSG Grand Master! However, if done right, it is worth the time as it will yield the maximum profit possible and success in your industry. internet-marketing B Company- Year 11 Heip Print save | Chegg.com NEVER do this. In the last section of the Plant Capacity / Upgrades decision page, you can construct a new plant in either of the two regions where you do not have a plant yet or you can build additional capacity to your N.A. The Business Strategy Game Player's Guide 2 Welcome to the Online Edition of The Business Strategy Game. The Business Strategy Game: A Reflection For instance, you can change the Industry Average to +2% or +4% to attain the optimal. For this blog post, I will concentrate on the high-quality + low model strategy. When starting the BSG, you have two long-term loans; one for 5 years, the other one for 10 years. Which wholesale are you referring to? I am in a box where every move I make to lower cost or shift production lowers my EPS or credit rating. But again, thanks! Yeah I will hold on to that for now. So, how can you win the BSG game? Hence, it should be your goal to price your shoes lower than everyone else and take their market share so that other companies will not sell any private-label shoe in this region. Toward that end, it put in place responsible environmental policy that ensures more decisions for community. I have extra capacity in the LA plant (worst place to ship from to any place outside of LA) which I tried to sell off. Once you get the Main Menu for running the company, print a copy of the Year 10 company reports, a summary of the footwear industry report for year 10, and competitive intelligence reports. We need to figure out most effective ways to increase ROE by increasing Net Profit but keep Total Equity low, not expanding faster than increase of Net Profit. If you have your AP price set to e.g. G-Brand has been performing for many years Higher than Investors Expectation. And then I would just follow my tips and adjust all other values to maximize profits. We will work tirelessly to ensure that our shoes are within reach of purchasing and get the high quality shoes with very large selection. Hello, thanks for the great strategy, it is working (1st place) ! Here, you have the opportunity to sell your existing capacity. You will need those numbers later on. Go up and down each decision a couple of times to get the optimal profits. Decades of experience in warehousing and distribution can be an incredible advantage. Therefore, the first set of decisions your team of managers makes is for year 11. Company operations parallel those of actual athletic footwear companies. In the above example, we ship from NA factories to NA and LA. 14. Before you even start plugging in any numbers, it is important that you decide for a strategy to pursue for the game. View Invitational Current Adopters of BSG Schools (campuses), institutions, and companies using BSG during the last 12 months. Tips: We ship from NA to LA because no import tax or tariffs due to NAFTA (North American Free Trade Agreements) - The North American Free Trade Agreement, or NAFTA, is a three-country accord negotiated by . Thank you so much for your suggestion! Write down each regions reject rates and add them up to the regions estimates sales volume. Hi, youre welcome. With the high-quality shoes + low model strategy, the only thing you care about is your PROFIT. They do their best to ensure that you get the best grades on your assignment. 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. Thank you so much for the good recommendations. As such, your views and analysis of the information in the latest Company Reports, in Footwear Industry Report, and the Competitive Intelligence Reports will serve as the basis for agreeing upon any strategy changes or making a revised set of decisions for the following year. Business Strategy Game - Week 5 (Year 14) Commissar BRO 9.95K subscribers 10K views 6 years ago And so we creep into Year 14. Entering year 15 I am still doing 8 star but the demand forecast is super low. Hi! This is probably the most important decision entry page in the game and you will be spending most of your time here. I am on my second year and I have negative income right now, any tips on how to get in the positive? If you have beginning inventory from last year (you did not sell all your shoes), try and use the Inventory Clearance option in the lower half of the page. We will adjust collection online lower to 400 compared with 500 in stores. Beat the Business Strategy Game. You can still ship pairs from LA to somewhere else if needed. You should pay attention that your S/Q Rating of Branded Pairs Produced matches your value on the Sales Forecast page. How can we apply the wisdom of strategies like Cao Cao to Professors Peter Drunker, Igor Ansoff, Philip Selznick, James Collins, Bruce Handerson, Michael Porter, and Alfred Chandler, among others? And he also purchase 4000 capacity in the first year but no advertising expenses. These include; Lowering the costs come with lots of benefits. We do not leave it in bank or safe. Like I said before, you should be building capacity, yes. Annual leasing and maintenance fees of $1 million per distribution center/warehouse in each region Per. For only $35, get instant access to the Business Strategy Game Guide. trying to find the best way to earn some cash for | Chegg.com So when following the steps described above, you will have positive ending cash really soon again. The world economic trends are changing fast creating more necessities for the students to develop the ability to be flexible, expert, and adaptable. Distribution Warehouse Business's typically involve a much greater degree of movement than other lines of work. As I keep reading online about different strategies to win, there are some postings that are aligned with the strategy of low quantity of models offered at a high quality and keep increasing capacity. Examples, Strategy and Warehousing - Supply Chain Brief In the Private-Label Production field, use all your remaining available capacity, even overtime. BSG Guide - How to Win the Business Strategy Game.pdf. This is the case of iPhone or any other high end products are bringing values to customers such as cars and fashions. Like in the real world, the BSG companies compete in the international market arena, selling branded and private-label athletic footwear in different geographic regions such as Europe-Africa, North America, Asia-Pacific, and Latin America. We will differentiate prices to allow our shoes to be reasonable priced to the average personal. Strategies, decision screens, reports and tests. I am so thankful for your post!!!!!!!!!!!! The ROE in Year 18 is good back to 24,3% compared with Investor Expectation of 15%. Is there anyway to increase the demand for my shoes in the internet/wholesale markets? However, you can successfully apply most of the following tips to either strategy. With this, they raised the global capacity to 30,000 when the potential global demand (including private label) is only 24,218. Total Admin Expenses is very low, just 1.49 per pair of shoes. This way, it becomes a living guide for decision-making for the entire company. If you happen to end up with a large surplus of shoes the next year, lower your 1.2 multiplier a little bit to 1.18. The end result counts. Since youre only in the second year, I would honestly decrease your models to 50. On this decision page, you can bid on celebrities. You can win the game if you follow the High quality and the Low number of models. I just have a quick question. Concerning changing others values, I recommend reading my initial post where I have explained everything in detail. Hence, try to keep your internet price at least 40% higher than your wholesale price. We will keep Expansion of Internet Sales, keep low-cost-strategy with Highest Values that customers can get Online. I guess because i grew too fast last week, this weeks net profit is negative (I didnt make any adjustment yet). If I have further questions do you mind I ask you for help? Also, consider workforce diversity and ethics training. I dont understand why it did this as this capacity was unused and there was upside to having it as my production was max out for the demand. But do whatever is necessary to maximize your profits. in year 17-18-19 and 20). I only ever paid attention to my profits and I never ever sold capacity. Several colleges and universities use the Business Strategy Game in teaching and learning strategic management at their schools of Business Management. Total Wholesale Marketing is 12.92 is good now, we will keep maintaining strong marketing to get higher sales volume. Tips: We ship from NA to LA because no import tax or tariffs due to NAFTA (North American Free Trade Agreements) - The North American Free Trade Agreement, or NAFTA, is a three-country accord negotiated by the governments of Canada, Mexico, and the United States that entered into force in January 1994. Hi Lee, We had a bunch of copycats in practice year 12, but nobody has figured our profit-maximizing, low-cost strategy, and now theyre pursuing higher models in the real game. What should I do for year 12 and 13? Should you win, it would mean your tips are more favorable, and your competitors may learn from you. I dont know why the game suddenly changed your numbers but I recommend using every last bit of your capacity. View Distribution & Warehouse.pdf from MGMT 5355 at Texas A&M University, Corpus Christi. havr the highest stock price, image rating at 90, A+ still, and double digit EPS. After you have calculated your new regional wholesale sales volume, add the regional internet sales volume to it. my advice would be to read my guide and follow the steps. You need your capacity and it is never a good idea to sell your existing capacity. I let the rest remain the same in the entry. The key information form balance sheet is not just Total Cash outlays of 711,362 or Net Cash balance for every year. If you found your highest value for the best net profit, move on to the next value and do the same. I cant seem to find it. I always went with 500 every second year, but it depends on your market and competitors. Here is a chart again tho show you the process: If your regular production capacity is not sufficient, use overtime. Do you have any suggestions? You need this capacity for the private-label market. Also, we can upgrade NA in C and one other option. You are now all set to dominate your industry and win the BSG! When contracting a celebrity, your advertising efforts in the Sales Forecast section should not be low. Higher Net Profit is a key to win the BSG Online Game. Unused capacity kills your numbers and profits! In Y12, I paid early payment 12,000k at 8.5% and continued borrowing 70,000k at 4.5% for 5-year). Keep the price expand from Average to higher, but Maintain Highest quality of our shoe will continue to exceed the quality of shoes within offered by our competitors and which are with the same price-range. Besides, you dont have to spend more on high-quality materials. We have two plants in year 11, and growth rate of market is about 5-7%, during 10 years from year 11 to year 20 we will need to double may be triple production capacity. Quiz 2 Chapters 1 an 2.docx. This is very helpful. $50.66 but $50.67 gives you higher profits, go for the higher prices. So far I have only build a 1000 EA plant and additional 500 NA plant. Furthermore, G-Brand will continue focus on what we are top leading like S/Q, models, strong advertising, retailer support, celebrities. You said that the internet price should be 40% above wholesale. Models Available weighted average Wholesale Wholesale Price to Retailers span Marketing Brand Advertising (5000 Decisions Mail-in Rebate 9 to $15 por part Delivery Time (1 to 4 wek delivery Retailer Support (50 to $10000 Retail Outlets witing to cry your brand Marketing variables de termined by prior year Celebrity Appeal am creeper Do not worry about me skipping the Internet Marketing, Wholesale Marketing, and Celebrity Endorsements pages. Use the remaining 30% capacity to sell shows in private-label! construction cost to be financed with debt. sales volume estimate. Hi. And Im so thankful for your post!!!!!!!! We also ship from AP to EA, AP and some to LA. This like a trial and error process and does not necessarily have to make sense. While competing with the other teams in BSG, you need to make informed decisions that can create a difference and take your team ahead of all. G-Brand will continue to make all efforts to use good materials which environment friendly. Try and set it to Yes. On this screen, you can handle your financial decisions for your company. We have never looked in very details of business management like sales margins or even a few percent of market shares. Thats a relief. We will keep the largest market shares in Internet Sales. Study on the go. You can know your strategy in several ways.
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