Just plug in numbers and note down your net profit values. We will get ROE higher soon, and faster than other competitors. However, my net profit is still negative even after i have adjusted the private-label. The BSG tends to underestimate those values by about 20% and hence, you need to correct them for a more precise estimate. The world economic trends are changing fast creating more necessities for the students to develop the ability to be flexible, expert, and adaptable. $50.66 but $50.67 gives you higher profits, go for the higher prices. Team members run the simulation company efficiently while competing successfully. I am currently dominating my industry, and closing in on the top 100 list! The Business Strategy Game is a hands on learning exercise that will give The Students valuable decision-making practice and develop powers of business judgment. 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. The Business Strategy Game Player's Guide 2 Welcome to the Online Edition of The Business Strategy Game. Business Strategy Game Simulation Try out each and every value and note down the highest net profit values. Optimizing your values is the essence of the game, even though it might be very time-consuming. Now, decide to which region you want to ship your private-label shoes. My stupidness did not know that I should not pay dividends when I am in 5-year-loan, so I did not adjust any part in Finance Cash Flow except for borrowing. Avg. values have changed. It will be, trust me. How to solves this situation ,have you given us any suggestion. The higher your celebrity endorsement value for a specific region, the more your advantage in attracting buyers to purchase your branded footwear. thank you for your help. Hi there! The key information form balance sheet is not just Total Cash outlays of 711,362 or Net Cash balance for every year. We need to adjust the number of productions to optimal these decisions. My group and I are about to complete year 17 for the game. at least one of the two teams has an S/Q of 8* and low prices so far (yes, they are in first place for now) what do you think we should do?. Sometimes thats cutting expenses, sometimes thats increasing expenses (even though it might not make sense at first). This is why building additional capacity is so important. Should you consider selling a factory, dont upgrade it because you will lose that investment. You can know your strategy in several ways. Check the Competitive Intelligent Report. But this year the shipping is too high from AP to LA so I cannot make any money from LA. Beat the Business Strategy Game. Logistics strategy as an enabler of new business models. 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. If you set your price lower, you will sell more but lose due to low profits. More than two groups following the same strategy suffer the same difficulties since they create direct competition among their target market. Yeah I had that in the first weeks as well. You will get the hang of it after the first few decision rounds as it is always the same procedure. One option that you definitely want to purchase is Option C. Option C increases your S/Q rating by 1 star. We get out of Year 17 with bad results in ROE because we expand too fast in that year. Year 11 BSG Decisions - 11/4/2016 INDUSTRY18 You can also ensure the S/Q since it is the first decision. You will not have any complaints about the quality of the assignments we deliver. Market share is not crucial for your success in the BSG, but profit is. In Year 18, we have increased ROE to 26.3% vs. IE of 15%. Most of the decisions you can make here are a waste of money and will not benefit your company. 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. So for our strategy, it should be 7 stars at the beginning. However, the private-label market is set up the way that only a limited demand is given each year. 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. I now have another question about capacity. While this was driven . However, if you loose and the share price will go down. Before you even start plugging in any numbers, it is important that you decide for a strategy to pursue for the game. Again, try out each percentage for each region and set it to the percentage that yields the highest profits. It might be tedious work and consumes a lot of time, but it will definitely worth it and will let you win the BSG. Ship all the other shoes for the Europe-African warehouses and the Asia-Pacific warehouses from the Asian-Pacific plant. Strategies, decision screens, reports and tests. Do not worry about those numbers, they will just show you whether your investment is profitable or not. 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). With increased competition, prices tend to decrease. I guess because i grew too fast last week, this weeks net profit is negative (I didnt make any adjustment yet). I have experienced different behavior with bidding on celebrities. After that, loot to the left of screen to check if we have high Net Profit. This is a good lesson in class that can be valuable in life. While you already have a good estimate of how many shoes you are going to sell in each region, you still need to consider your rejected pairs during production. It will be very helpful for us and will be very grateful Do you still have your upload reports of all your years ? Keep in mind to check your profits and ensure they get as high as possible. Paying dividends will increase your stock price and your ROE. What are the core competitive advantages? 24 Pros & Cons Of Starting A Distribution Warehouse Business (2023) We give you. Over the next five years, G-Brand will pursue strategies that will help it improve its financial bottom line, especially ROE because the company has quite high Equity. With more inventory, however, you can put more shoes into private label which is a really important aspect of the game. And then I would just follow my tips and adjust all other values to maximize profits. . But it is definitely worth it. And I would not build another plant, rather increase capacity in the plants that you already built. So I doubt on his strategy. So, multiply your sales volume for the wholesale segment for each region by 1.2. Examples, Strategy and Warehousing - Supply Chain Brief Now you begin to understand why I earlier said, that if you use overtime for branded production, you should expand your plant capacity for the next year. We need to keep track of cost in more details in next years. Okay! 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? With revised strategy, G-Brand will focus on offering higher quality products, more models, more fashion, to be industry leader in cost for value. You are almost done for the Sales Forecast decision page. Id also like to point out that it appears the developers threw out NAFTA in the new version, so tariffs hurt pretty bad in Latin America. Sorry for the late reply.. Been starting my new job and working a lot lately. 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. We have quite large Total Shareholder Equity of 446,571. When evaluating the 3PL provider in charge of your pharmaceutical distribution warehouse, safety is the name of the game. We also thank the Professor and creators of BSG Online to give us a good environment to learn, to practice with full of knowledge, competitions and emotion close to business life. After you have calculated the manufacturing volume for each region, add up your N.A. Hi Lee, Thanks a lot! my advice would be to read my guide and follow the steps. I was thinking about building a LA plant because I took the majority of private label there last year. This is very helpful. How can the company overcome tough competitors who seem to know most of the things you know? However, to be able to do so, you need available capacity. We even understand the very details such as marketing per pair of shoes, cost of warehouse, administration per pair of shoes, which can contribute to the total cost making the Net Profit higher or lower then decide the Business Results and overall market development. In this blog post, I will run you through everything important that you have to know about the BSG and how to win it. The ROE in Year 18 is good back to 24,3% compared with Investor Expectation of 15%. I am having trouble getting my company back into the positive ending cash after taking out a loan. I worried that another team would have stumbled onto your blog, but few people Google tips it seems! The two most important values you want to have as precisely estimated as possible are the industrys average wholesale price and S/Q rating. The Strategy Business Game learned all aspects such as production, distribution, sales forecasting, finance, marketing, celebrity endorsements, private label operations, corporate . Promise I wont have tons of question haha. We note to see Return on Equity, so keep Total Equity lower than increase Ratio of Net Profit. or A-P plant. Hi. While they might boost your image rating, they will decrease your profit. Plant Capacity / Upgrades. Besides, your team of managers will develop the critical thinking they need to move beyond the functional management of the company as a whole. With the Business Strategy Game, teams of students run an athletic footwear company in head-to-head competition against companies run by other class members.Company co-managers must make decisions relating to plant operations, distribution and warehouse operations, work force compensation, online sales at the company's web site, sales and marketing, and finance. The same accounts for your Change in Annual Base Wages and Incentive Pay values. Business Strategy game year 11 Internet Marketing, I need to figure out the appropriate units in the boxes that are in blue for best case scenario Show transcribed image text Expert Answer Transcribed image text: I feel you. Increase from 3 to 6 activities to support society and environment. You now need the forecasted Regional Sales Volume for both the Internet Segments and Wholesale Segments in all four regions that you wrote down earlier. Keep track of close competitors, H and others. But again, thanks! Buy I have quite a lot ending cash. The Models Offered estimate seems pretty fair and you do not have to worry about it. . 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. I cant seem to find it. Also, we are doing better than in the past so interest rate is lower. Furthermore, I spent all my cash on hand for dividends and stock repurchase to increase my ROE and EPS as much as possible. You can win the game if you follow the High quality and the Low number of models. The information is these guides is laid out, and displayed, in such a way that crucial decisions should be a breeze. On this page, you will optimize your entries and toggle each value until your reach the maximum profit possible for each entry. For example, a WMS can: The S/Q upgrade is the best option if you choose high-quality strategies, while setup cost reduction is ideal if you decide to have several models. While +2% might now always be spot on, I have made the best experience with it so far. Business Strategy Game Simulation - bsg-online.com We need to control this better in next five years. You will soon know why. That being said, when you go with the strategy explained in my post, you will have maximized profits. They have all changed by +2%, just as you plugged it in. This is the case of iPhone or any other high end products are bringing values to customers such as cars and fashions. honestly i started with 150 models at 6 stars and went to 200 and 7 stars, 8 in private label. Also, we can upgrade NA in C and one other option. 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. I hope that helps and good luck! Leave everything else unchanged. Recommendations for Improving the Image Rating in The Business Strategy Game Always check the market snapshot and the private-label segment. Now we learn from the game and be more knowledgeable in making business decision. Hi, Its a lot of trial and error until you find the best possible value and it takes a lot of time at the beginning. If I have further questions do you mind I ask you for help? The company operations run parallel to those of actual athletic footwear companies. Business Strategy Game - Week 5 (Year 14) - YouTube We even understand the very details such as marketing per pair of shoes, cost of warehouse, administration per pair of shoes, which can contribute to the total cost making the Net Profit higher or lower then decide the Business Results and overall market development. However, with effective BSG simulation tips, you can keep your company ahead of the competition. This like a trial and error process and does not necessarily have to make sense. I did not stock issues or issue purchase in the those years. If you have your AP price set to e.g. After you have done this, you might notice that your Your Estimate of the Ind. Keeping track of the closest competitor you would like to get ahead of, check their price, S/Q, and other things like celebrities, advertising, plant capacities, and bidding price. The Business Strategy Game is an online exercise where class members are divided into teams and assigned the task of running an athletic footwear company in head-to-head competition against companies managed by other class members. 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. Also, I suggest not decreasing your dividends. The value that yields the highest profit value is the one you want to go with for this decision round. Company operations parallel those of actual athletic footwear companies. Moreover, we will invest on advertising and make use of celebrity appeal to gain brand consciousness. However, there are still some other voluntary decision that will prepare you for future decisions. You said that the internet price should be 40% above wholesale. We are doing well, so Stock Price is high too, over 120, we will buy back some with extra money, cash in hand of G-Brand will be over 150 million every years. Strategies, decision screens, reports and tests. 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. This can have a positive impact on energy levels and your overall health. I put $1.00 pay dividends, which turned out 20,000k in total. I am so thankful for your post!!!!!!!!!!!! With our strategy, you might want to think about getting Option A as well. 7.39 to 12.81 over last three years, much higher than Investor Expectation of 4.3. Most players play hard from the first round, thus increasing S/Q, the number of models, reduce the price, putting for advertisement three times higher than average, and bidding for celebrities. You can either take out a 1-year, 5-year, or 10-year bank loan. We will adjust collection online lower to 400 compared with 500 in stores. Set your price to whatever maximizes your profits. After you have done this, you repeat the same procedure for Europe-Africa and Asia-Pacific with the A-P plant because it is cheapest to ship shoes from A-P to E-A. This can make Net profit quite simple, if we produce 12.000.000 pair of shoes, we will get about 144 million Net Profit. I never really watched my EPS or credit rating (ofc credit rating should be a B at least). Annual leasing and maintenance fees of $1 million per distribution center/warehouse in each region Per. My direct competitor is now selling 8 stars with more than 400 models in wholesale so I think i will be at a even better position selling 50 models. Which wholesale are you referring to? However, keep in mind that your regional endorsement value should not be higher than 400 in any region. After you have done this for both the N.A. Also, G-Brand need to keep high market shares, year 17 market shares are reduced, but G-Brand has get back to Top in Year 18. Business Strategy Game - Phdessay However, keep track of profit since you are cutting from the profit for PR products. View Adopters Arthur A. Thompson, Jr. John R. Miller Professor Emeritus Do not sit on it. 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. Here, you have the opportunity to sell your existing capacity. Your estimate of the industry average for the internet retail price does not change with your adjusted competitive that you set to +2% before. To do so, first plug in your N.A. You can also pay dividends to your shareholders. Hello. However, you must tie your values and settle for the best combination to optimize your net profit. Even more important is, to stick to it! Thank you in advance! I usually go ahead and plug in whole dollar amounts for the wholesale price and see how net profit changes. Purchasing capacity is 20% cheaper than building new capacity on your own. And he also purchase 4000 capacity in the first year but no advertising expenses. and L.A. in North America to reduce costs because ofNAFTA. Like I said before, you should be building capacity, yes. . 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.
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